FCA is still suffering significant delays in allocating case officers for CiC notifications. It has recruited more staff but there is still around 6 weeks between submission of an application and allocation to a case...
FCA started court proceedings in December 2019 against Bright Management Solution Limited, which it alleged was operating an unauthorised deposit taking scheme. The matter was due to come to trial this month, but a...
New sanctions under the Russian regime designate more individuals within Vladimir Putin’s inner circle, including Russia’s second richest man, and a relation to Putin’s who is president of a large...
OFSI has updated its table of monetary penalties for sanctions breaches. The table now reflects a fine on Tracerco Limited, a company operating in the energy sector, which has been fined £15,000 for making funds...
FCA has published its Dear CEO letter for the lifetime mortgage provider sector. Its last letter was in October 2020. The latest letter: highlights (as other sectoral letters have done) the impact on vulnerable...
FCA has published its Dear CEO letter to the debt advice portfolio, updating its letter of 2020. Most of the messages are similar to those it has given to the mainstream consumer credit lenders, specifically the focus...
FCA has fined Ghana International Bank nearly £6m for failings in its financial crime prevention controls in respect of its correspondent banking business. It found that, for a 5 year period to the end of 2016, it did...
FCA has levied a second fine on insurance broker JLT Speciality Ltd for financial crime control failings. The £7,881,700 fine follows a previous fine of nearly £2m in December 2013 for similar failings. Following...
The latest FATF Plenary meeting took place from 14-17 June. At it, FATF agreed to severely limit the role of Russia and its influence in FATF; approved a report to help the real estate sector better detect and prevent...
Treasury has published its consultation response to its plans for regulating the buy-now-pay-later credit market. It has confirmed that: lenders offering BNPL will need to be authorised by FCA; lenders will need to...
FCA was due to carry out its post-implementation review of its requirements to help customers with serious pre-existing medical conditions to get travel insurance and report by October. It has decided to delay its...
FPC has confirmed that it will withdraw its Recommendation on mortgage affordability with effect from 1 August. The current test specifies a stress interest rate for lenders when assessing borrowers’ ability to...
The Treasury Committee is to question OFSI as part of its inquiry into effective economic sanctions on Russia. The session will take place on 22 June and is likely to include discussion on the challenges of implementing...
NCA has published updated guidance on SAR Glossary Codes and Reporting Routes. The booklet follows the familiar form, providing: a checklist aimed at establishing whether the circumstances require immediate attention...
FCA has published a list of 24 of the largest funeral plan providers who it intends to authorise with effect from 29 July, when funeral plan regulation takes effect. It is still considering applications from a number...
The Treasury Committee has warned the Government that, in looking at the opportunities for regulatory reform and considering what it can offer, it must take care to ensure that competitiveness does not become the...
Treasury has published the feedback on its consultation from last summer on amendments to the MLRs. It has now analysed the responses to the consultation, made the legislative changes, and most of the changes will take...
EBA has published its final guidelines on the role and responsibilities of the officer in charge of compliance with AML and CTF and of the management body of credit and financial institutions. As ever, the Guidelines...
The European Scrutiny Committee has launched an inquiry looking at the benefits and challenges to business and the UK economy of diverging from EU regulation that was copied into UK law post-Brexit. Financial services...
FATF has carried out its latest assessment of the UK’s compliance with its Recommendations, following the 2018 report. FATF says the report from the UK on the actions taken since the last evaluation has enabled it...
Kinled Investments Limited introduced an investor to Zopa Group Limited. Kinled claimed a £4.2m fee from Zopa for its intermediary work when the investor made a second investment, while Zopa counterclaimed £345,000 as...
A court has considered whether a law firm that offered an indemnity against adverse court orders when acting for claimants on a conditional fee basis was in fact carrying on insurance business. The defendant firm of...
Verena Ross of ESMA has spoken on the priorities for EU retail fund investors. She focussed on: the PRIIPs review: she acknowledged that change is needed, particularly on the presentation of performance information, and...
The Government is consulting on proposed amendments to the FMI Special Administration Regime to enable the management of a failure of a “systemic digital settlement asset firm” – including stablecoin...
FCA has published a new page on its website in which it gives answers to requests for further clarification that it has received from respondents to its consultation on the British Steel Pension Scheme redress scheme...
The Financial Reporting Council has issued its final decision notice after its investigation into KPMG Audit plc and the Audit Engagement Partner, Anthony Sykes, in respect of the statutory audit of Rolls-Royce Group...
The High Court has approved the scheme of arrangement that will provide redress for customers who were mis-sold loans by Amigo and who have raised a complaint. FCA has reiterated that the scheme is an improvement on the...
PayPal (Europe) S.a.r.l et Cie, SCA is withdrawing from FOS’ voluntary jurisdiction from 1 December 2022. The company became subject to the compulsory jurisdiction after Brexit when it joined the TPR. But the...
The Government has announced new legislation that will protect access to cash. It will introduce measures in the forthcoming Financial Services and Markets Bill which will give FCA power to require the largest banks...
FCA has confirmed new rules that will make it easier for it to cancel permissions that firms are not using. Following a change in the law in the FS Act 2021 that allows it to streamline and shorten the process, FCA will...
The Competition Appeal Tribunal has refused Mastercard leave to appeal on the issue of what the “domicile date” should be in the Collective Proceedings Order granted in the collective action brought by...
A new page on the FCA website asks for reports of sanctions evasion by firms on any of FCA’s registered or by companies with UK listed securities. The new page gives details of how: individuals can report as...
ESMA is consulting on the information and form of templates for making notifications of cross-border management and marketing activities for UCITS and AIFs within the EU. It has drafted RTS and ITS for comment and...
Sheldon Mills has spoken to insurance brokers of the important role they play and how FCA is looking to regulate them proportionately. Statistics show that 67% of general insurance business and 81% of commercial...
FCA has launched its latest “scam smart” campaign with case studies on increasingly sophisticated scams including those involving screen sharing which enabled scammers to take £48,000 from a consumer’s...
PRA has launched its biennial stress test for life and general insurers. It has sent the test to the largest firms and has asked for submissions by 28 September, and is hosting a seminar on 11 May with a Q&A...
The European Commission has opened a call for evidence on a proposed Regulation to improve market outcomes and increase consumer participation in capital markets. The consultation period is short, lasting only until...
The ESAs have published their technical advice to the European Commission on making the PRIIPs Key Information Document more user friendly, The advice recommends several changes and encourages the Commission to...
The Treasury Committee has published responses from the Government, FCA and PSR to its report on economic crime. The key message is that the Government is creating a second Economic Crime Plan which it will publish...
FCA has completed its review of the list of linked services list for the purposes of the Payment Account Regulations, and has decided not to make any changes.
FCA has made rules using its emergency powers to prevent firms taking steps to dispose of their assets to avoid paying compensation in relation to BSPS pension transfer advice. It says it is introducing the rules...
FCA has published a thematic review on how challenger banks assess financial crime risk, and has highlighted significant failings. Among the findings of the review, which it carried out during 2021, focussing on banks...
The industry led Post-Trade Task Force has published its report on the future of post-trade. Its work will now be taken forward by the FICC Markets Standards Board (FMSB). The report looks at key challenges which it...
FCA has imposed a requirement preventing David Stock & Co Limited, a firm which advised on BSPS transfers, from disposing of assets without FCA’s permission. FCA had noted to all relevant firms that they...
FATF has published a report based on data from mutual evaluation reports since 2013, which finds that overall countries have made huge progress. Many have enacted a range of laws and regulations, with 76% of countries...
The latest updates to CMA’s information page show correspondence between the OBIE and CMA on the status of the roadmap. The OBIE updated CMA on progress and items that require updating, and CMA welcomed the update...
The High Court has handed down its judgment in the case of Arthistory Ltd and Mr and Mrs Campbell. The Campbells own a property and had granted an option to Arthistory (the Claimant) to acquire it. The Claimant sought...
FCA has published its first supervisory notice against Semantic Business Services Ltd, a secondary credit broker. It plans to remove the firm’s permissions because: the firm has links with a number of other firms...
FCA has published its thematic review looking at wind-down planning across different business models, with a focus on liquidity needs during wind-down, intra-group dependencies and wind-down triggers. It has reiterated...
FCA has written to Amigo Loans to confirm it will not be attending the hearings to oppose its proposals for its Scheme of Arrangement. FCA has previously said the new proposal is an improvement on the failed proposal of...
FCA has published its Business Plan with its new 3 year strategy aimed at preventing serious harm, setting higher standards and promoting competition. Among the measures it is taking is the creation of 80 new roles to...
The PSR has publishes the non-confidential version of its decision following its investigation into two cartels in the pre-paid cards market. In January it confirmed its fines totalling around £33m on Mastercard...
FCA has appointed Laura Dawes and Dominic Cashman as Directors of Authorisations, starting from late April/early May. It will also appoint a new Finance Director, Craig Chapman. The appointments come as FCA commits to a...
Jessica Rusu, FCA’s Chief Data, Information and Intelligence Officer, has spoken on how FCA is building its digital regulatory future. Its work will focus on fostering innovation, being intelligence led and...
Following its consultation last year, Treasury has decided it will regulate stablecoins. It plans to bring activities that issue or facilitate the use of stablecoins that are used as a means of payment within the UK...
FCA has published its proposals for a compensation scheme to compensate former members of the British Steel Pension Scheme who received unsuitable advice to transfer out. FCA says that almost half the advice it reviewed...
CMA has issued directions to HSBC under the SME banking undertakings 2002. The directions stem from breaches notified over the past 18 months in respect of 221 loans impacting 204 customers since 2002. They primarily...
The Wolfsberg Group has published guidance on Digital Customer Lifecycle Risk Management. The guidance looks at how non face-to-face customer interaction could be considered a standard or even lower-risk channel for a...
FCA has fined GAM International Management Limited £9m, and its former Investment Director and Business Unit Head Timothy Haywood £230,000 following failure to conduct business with due care and attention, and failure...
A pensions transfer and opt out adviser, Portal Financial Services LLP, had given advice to several clients introduced by a third party advisory firm which was the AR (Cherish) of another firm whose permissions did not...
The latest amendment Regulations setting out high-risk countries for ML/TF purposes took effect on 29 March. The list is: 1. Albania 2. Barbados 3. Burkina Faso 4. Cambodia 5. Cayman Islands 6. Democratic People’s...
PRA and FCA have written to firms reminding them of their obligations when interacting with or exposed to crypto-assets and related services. FCA reminds firms that crypto can offer benefits but also increased risk to...
Read our updated article on the creation of the Overseas Entities Register under the Economic Crime (Transparency and Enforcement) Act 2022. The article highlights that the grace period given to overseas entities to...
CMA has replied to the OBIE roadmap status highlighting areas that need updating and has written to the OBIE asking it to continue to update it on progress and saying the CMA will review progress in the summer.
The European Parliament has published its report on the proposal for a Regulation of crypto asset service providers. A key change is to specify that any person providing any relevant services to EU citizens must both...
FCA’s latest letter on its portfolio supervision strategy relates to custody and fund services. It sees 4 areas of potential harm: disruption to consumers and market participants, or the loss, compromise, or lack...
CMA has written to both Barclays and Lloyds about breaches of the Retail Banking Order. It found Barclays had breached the Order 13 times and Lloyds 10 times through inaccurate publication of information through APIs.
IOSCO has published a consultation report from the Retail Market Conduct Task Force. The report looks at recent retail investor trends and the development of a regulatory toolkit to help regulators consider emerging...
The National Audit Office has published its report on its investigation into the British Steel Pension Scheme. When BSPS was restructured in 2017 44,000 of its members had the opportunity to transfer out of the scheme...
The latest AML advisory to update the list of high risk third countries has been updated to reflect FATF’s latest list. The list now comprises Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, DPRK...
Lloyd’s has issued a notice of censure to Atrium, a managing agent in the Lloyd’s market. The firm admitted three charges of misconduct, and Lloyd’s Enforcement Board levied its largest ever fine of...
FCA has started discussions in advance of a formal consultation on options that would allow UK authorised retail funds to make exceptional use of “side pockets” so they can separate Russian and Belarussian...
FCA has set out its response to the Complaints Commissioner’s report on its handling of the failure of LCF in respect of assessing complaints against it. It says it is sorry for the mistakes it made. It has...
The Economic Crime (Transparency and Enforcement) Act 2022 got Royal Assent on 15 March only 14 days after its introduction into Parliament. As noted in previous posts and articles, the main focus of the Act is: the...
The Chancellor has called on all UK firms to think very carefully about any investments that might support the Putin regime, and has welcomed commitments to divest away from Russian assets. The Government recognises...
FCA has warned operators of crypto ATMs that they must shut down their machines. Any firm operating a crypto ATM in the UK must be registered under the MLRs, but no firm that does operate one has yet been approved by...
FCA has created a new webpage to bring together its various resources and publications relating to the Russian invasion of Ukraine. It includes FCA’s notices about the effect of the invasion on financial markets...
The Economic Crime (Anti-Money Laundering) Levy Regulations have been made and will take effect on 1 April. The Regulations: specify the FCA, Gambling Commission or HMRC as appropriate as the collection agencies; and...
FCA has published its most recent porfolio strategy letters for: retail mortgage lenders; non-bank lenders; and building societies. Common themes in the letters are: that the response to the pandemic has shown FCA and...
Over the last couple of days: OFSI has published a blog on the evolving Russian sanctions, including calling out the intent of the Economic Crime bill to introduce a strict civil liability test, and confirming that it...
ESMA has published its peer review on cross-border supervision of investment firms, and. It found many shortcomings, and says that “home” regulators need to make significant improvements to their approach...
The judgment in relation to the treatment of certain funds held by Ipagoo, a failed EMI, has been handed down. The joint administrators of the firm had applied for directions as to whether certain funds were held on...
The Economic Crime (Transparency and Enforcement) Bill has started its passage through the House of Lords, and the Bill as brought from the Commons has been released. Meanwhile, the Russia sanctions regulations have...
FCA’s new webpage looks at points firms should consider about their operational and cyber resilience following the Russian invasion of Ukraine. It recommends that firms: review the National Cyber Security Centre...
The Economic Crime (Transparency and Enforcement) Bill is nearing the end of its stage in the Commons, and is at 3rd reading. 47 pages worth of amendments have been tabled to date.
OFSI has published an update to its financial sanctions guidance, specifically addressing the range of sanctions now introduced against Russia. The guidance explains the scope of the sanctions and available licensing...
At FATF’s latest meeting, it adopted amendments to Recommendation 24 and its interpretive note. The recommendation now requires a multi-pronged approach to the collection of beneficial ownership information...
FCA has published a letter that it wrote to Amigo Loans confirming that it does not plan to attend the hearing to oppose the proposed Scheme of Arrangement. It thinks the new proposals are preferable to the ones in the...
Late on 3 March and on 4 March: FCDO and OFSI confirmed the extension of sanctions to Russian oligarchs Alisher Usmanov and Igor Shuvalov; and BEIS published an updated factsheet on the register of overseas entities;...
FCA’s latest quarterly consultation covers: proposed changes to PERG in respect of the MiFID 2 ancillary activities test; making collective investment portfolio managers subject to the same research and inducement...
We have written an article giving more detail on the proposals in the Economic Crime Bill finally to implement the registry of beneficial ownership information for foreign entities holding property in the UK, and the...
The new round of UK economic sanctions will prevent Russian companies in the aviation and space industry from accessing the UK insurance sector. The measures will apply to insurance and reinsurance services accessed...
FCA has noted the multiple impacts that financial markets will feel following the Russian invasion of Ukraine itself and the wide range of sanctions imposed by numerous jurisdictions on Russia, Russian individuals and...
Charlotte Gerken of the PRA has spoken of its supervisory priorities for the sector during 2022. She looked at: climate change diversity and inclusion operational resilience: she commented in particular that, in...
Transparency International has welcomed that publication of the Economic Crime Bill as an opportunity to be a major boost to Britain’s defences against illicit wealth. However, there are some things it thinks...
Treasury has published the outcome of its consultation on implementation of the IFPR and Basel 3. The latest update looks at how to amend the definition of “investment firm” in s48D Banking Act 2009 to...
The Finance Act 2022 has achieved Royal Assent, and includes the economic crime levy. It sets out: the powers of FCA, HMRC and the Gambling Commission to collect it; how to assess whether a person is subject to the...
The ASA challenged an ad for Floki Inu, a cryptocurrency, which was made via a poster displayed on the Tube in November 2021. The poster had a cartoon dog in a Viking helmet with text saying “Missed Doge. Get...
FCA has updated its webpage on SCA to explain the changes to the SCA-RTS in respect of the new exemption that means customers will not need to reauthenticate when accessing account information through a TPP, if ASPSPs...
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