FSB has published a report looking at FinTech market developments in the financial system and what that might mean for financial stability. It is generally excited by the possibilities that FinTech offers and says...
Author - Emma Radmore
Emma Radmore
Treasury makes Brexit MLR changes
Treasury has made a statutory instrument making necessary changes to the MLRs consequent on a hard Brexit. The instrument took effect on 13 February and will take effect on exit day. Among other things, the changes:...
FCA calls for prevention over cure in market abuse
Julia Hoggett has spoken on FCA’s views on compliance with market abuse prevention laws. She stressed the importance of a regulatory system (both regulators and firms) working to prevent abuses from happening, as...
MLROs.com financial crime update
Thank you to all of you who attended our first quarterly breakfast briefing. The next briefing will be on 19 June 2019. To book, please visit the MLROs.com site.
Sign up to our repeat SMCR workshop
We are delighted to be hosting a re-run of our sell-out half day workshop on the SMCR for solo-regulated firms. This Compliance Register seminar, at which Emma Radmore, Roseyna Jahangir and Michelle Chance will speak...
Treasury Committee publishes FOS economic crime evidence
The Treasury Committee’s hearing on economic crime continues, and it has recently heard evidence from FOS. FOS received 8,500 complaints about fraud and scams in 2017/18 and has received over 10,000 this financial...
PRA updates fees position
PRA has issued its feedback statement, new rules and a new supervisory statement on certain aspects of its periodic and transaction fees. Its update covers: a revised approach to periodic fees for Designated Investment...
Commission updates advice on high-risk countries
The Commission has published a fact sheet on its new list of high-risk third countries for the purposes of MLD4. The new list contains 12 jurisdictions from the FATF list: the Bahamas, Botswana, North Korea, Ethiopia...
EBA sets up PSD2 working group
EBA has set up a working group on APIs under PSD2. It has published details of its meetings and the group on a new website page.
FCA posts video for SMCR help
FCA has arranged for a video to be made by firms that have already implemented the SMCR, sharing their experiences of adopting it. Contributors share the stories from Virgin Monday, HSBC, State Street and JP Morgan.
Commercial BankingConductInsurancePayment Services & Electronic MoneyRetail BankingSMCR & Governance
ESMA briefs on non-EU branches
ESMA has published a supervisory briefing aimed at helping supervisors dealing with non-EU branches of EU firms. It highlights how the supervisors should ensure that the non-EU branch can comply with the requirements of...
EU reaches political agreement on EMIR Refit
After nearly 2 years of negotiation, the European Parliament and Member States have agreed a targeted reform of EMIR. The Commission wanted to provide simpler and more proportionate rules, and the changes will exempt...
ConductConsumer FinanceEnforcement & LitigationFintech & InnovationFundsInsurancePayment Services & Electronic MoneyPensionsRetail Banking
ESMA creates Brexit page
ESMA has created a new web-page on Brexit, setting out how it is preparing for it. Its latest agreement is a MoU with BoE for recognition of CCPs and the Central Securities Depository. It aims to recognise all UK CCPs...
FOS focuses on debt
The most recent edition of Ombudsman News focuses on enquiries FOS has received about debt collection – on credit cards, loans and mortgages. It took on over 1,000 complaints in the area during 2018. As a result...
FCA fines fund manager
FCA has fined Paul Stephany, formerly a fund manager at Newton Investment Management Limited. It imposed the £32,200 fine after it found Mr Stephany twice submitted orders as part of a book build for shares that were to...
Commercial BankingConsumer FinanceFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyPensionsRetail Banking
Treasury lays Brexit FS SI before Parliament
Treasury has laid before Parliament the Financial Services (Miscellaneous)(Amendment)(EU Exit) Regulations 2019. The wide-ranging instrument amends several pieces of UK and retained EU law relating to financial...
TI publishes latest CPI
The latest Corruption Perceptions Index contains few shocks, but a few pithy observations from Transparency International. The top 10 includes 4 Nordic nations, and comprises Denmark, New Zealand, Finland, Singapore...
FCA updates MiFID expectations
FCA has set out how it proposes to use its temporary powers under the draft legislation Treasury has put forward. It plans in principle to make transitional measures that will ensure that firms do not need to prepare...
Commission makes MLD4 RTS on third country risks
The Commission has published the final form of RTS under MLD4 aimed at better and more consistent measures in approaching ML/TF risk where credit or financial institutions have a presence in a third country whose laws...
Regulators consult on FSCS MELL
FCA and PRA are consulting on the management expenses levy limit (MELL) for FSCS for the 2019/2020 year. They propose an increase of 2.4% over the current year with a levy for FSCS management expenses of £74.6m and an...
BSB consults on regulatory references good practice
The Banking Standards Board is consulting on draft good practice guidance on regulatory references. The guidance will be all the more important later this year when the SMCR extends the regulatory references...
FCA feeds back on RND and Plevin issues
FCA has published a detailed policy statement to back up the new rules on regular premium PPI complaints and recurring non-disclosure of commission. FCA stresses that one of the main purposes of its consultation and now...
FCA consults on retirement outcome improvements
FCA is consulting on measures to improve retirement outcomes for consumers. Its concern is that consumers are using the pensions freedoms to move into drawdown and hold funds in investments that will not meet their...
Tribunal rules on Burns costs
The Upper Tribunal has ruled on whether any part of costs claimed by Alistair Burns (on his unsuccessful application) should be awarded. The Tribunal has discretion over the award of costs, but can only make the award...
Solicitor fined for AML breaches
The Solicitors Disciplinary Tribunal has fined Khalid Sharif, a director and solicitor at Child & Child, who was also the firm’s MLRO £45,000 for failings under the (then) 2007 MLRs, which were also breaches...
Consumer CreditEnforcement & LitigationFinancial Crime PreventionPayment Services & Electronic MoneyRetail Banking
FCA makes new rules
FCA’s latest Handbook Update lists rules made in December and January. The key changes: amend the rules on PCAs and Overdrafts from 18 December 2019: these changes amend BCOBS and CONC to tackle low levels of...
CMA updates investment consultancy implementation timetable
CMA has published its administrative timetable for implementation of the investment consultancy and fiduciary management market remedies. There will be: Consultation on the draft Order in February; Notification to the...
FMLC writes to Treasury on Brexit regulations
FMLC has written to Treasury with its key observations on the FSMA (EU Exit) Regulations. The Committee is concerned at some wording proposed in relation to the financial promotion rules. Specifically, FCA has power to...
Commercial BankingConsumer FinanceFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyPensionsRetail Banking
Treasury Committee launches post-Brexit FS inquiry
The Treasury Committee has started a new inquiry looking at financial services in the UK after Brexit. Its focus is to look at: what the UK’s financial services priorities should be when negotiating the UK’s...
SFO announces Tesco DPA
SFO has published the terms of a DPA it has entered into with Tesco Stores Ltd following events in 2014 which resulted in the company creating a false account of its financial position by overstating its profits. As...
Consumer CreditFinancial Crime PreventionFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyRegulated MortgagesRetail Banking
Treasury writes to Treasury Committee on no-deal planning law
The Treasury has written to the Treasury Committee enclosing a draft of secondary legislation that would give temporary transitional powers to the UK financial regulators in the event of a no-deal Brexit that would...
Wolfsberg Group publishes sanctions screening guidance
The Wolfsberg Group has published new guidance on how financial institutions should carry out their sanctions screening. It says its guidance is intended to help institutions see how screening can form an effective part...
Commercial BankingConsumer CreditFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyRegulated MortgagesRetail Banking
FCA to look at product governance and research unbundling
A set of oral evidence given to the Treasury Committee includes statements from FCA that: it is now content on how to interpret the mortgage affordability test compliantly with the MCD and now plans to consult on...
FCA confirms Keydata individual fines
FCA has published its final notices banning Stewart Ford and Mark Owen from performing any function in relation to any regulated activity and fining them £76 million and £3,240,787 respectively. Mr Ford held the CF1, 3...
SAR numbers increase but TI unimpressed
The NCA has reported a rise in SARs from the private sector in the past year. It reports nearly 464,000 SARs received and processed in the year covered by its report. However, Transparency International says this...
HMRC updates MLR help pages
HMRC has updated its website in respect of money laundering supervision. The updates include the addition of webinars on firms’ obligations and how HMRC applies its supervisory duties.
JMLSG updates guidance for MLR changes
JMLSG has updated its guidance to take account of changes to the MLR 2017 that came into force on 10 January. The changes ban firms from setting up anonymous accounts and passbooks or providing anonymous safe-deposit...
Economic Task Force meets and pledges SARs reform
The first meeting of the Government’s task force on economic crime has been chaired by the Home Secretary and the Chancellor. The Government plans that the Economic Crime Strategy Board will meet twice a year and...
Treasury Committee publishes SME reports
In October, the Treasury Committee reported on SME finance, making several recommendations including setting out its views on the availability of FOS and the Tribunal for SME disputes, and the suggestion that commercial...
Consumer CreditFinancial Crime PreventionFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyPensionsRegulated MortgagesRetail Banking
FCA publishes sector views
FCA has published its “Sector Views” setting out its observations from monitoring its 7 selected sectors of: retail banking retail lending general insurance and protection pensions and retirement income...
Commission reports on AIFMD
The European Commission has published a report showing how the AIFMD has significantly contributed to creating an internal market for AIFs. It says most of its provisions have achieved their intended objectives...
Treasury Committee welcomes new move for mortgage prisoners
The Treasury Committee has welcomed FCA’s new commitment to consulting on rule changes which will allow the estimated 120,000 “mortgage prisoners” who are with unregulated firms and 20,000 with firms...
PRA plans CRM eligibility clarification
PRA is proposing changes to its Supervisory Statement on credit risk mitigation, to clarify how financial collateral is eligible as funded credit protection under the CRR. The CRR sets criteria for recognising...
ESAs advise on crypto approach
ESMA and EBA have published papers on ICOs and crypto-assets. The ESMA paper clarifies which crypto-assets currently qualify as financial instruments and provides its views on gaps and risks. The paper identifies...
Council agrees investment firms prudential standards change
The EU Council has confirmed its position on the compromise proposals on a package of changes to the CRR/CRD4 , comprising a Regulation and a Directive, to allow prudential and supervisory requirements to be...
ESAs report on sandboxes
The ESAs have published a joint report on regulatory sandboxes and innovation hubs. The report shows that 24 EEA Member States have developed hubs but only 5 have regulatory sandboxes. As a result of the study the ESAs...
FCA opens temporary permissions notification window
FCA has opened the notification window for passporting-in firms. Firms will need to have notified FCA of their intention to seek full UK authorisation to carry on services in the UK before exit day in the event of a...
Commercial BankingConsumer CreditFundsInsuranceInvestmentsPayment Services & Electronic MoneyRegulated MortgagesRetail Banking
Up next from FCA
FCA’s latest Policy Development Update highlights a number of publications due before the end of Q1 2019: a policy statement on general standards and communication rules for payment services and emoney providers;...
ESMA updates MiFID 2 FAQs
ESMA has updated its FAQs on MiFID 2 and MiFIR in respect of: transparency; and commodity derivatives. The updated questions cover, among other things, publication of request for market data transactions and the...
Swiss equivalence decision published in OJ
The Commission Implementing Regulation on the equivalence of the Swiss regulatory framework for stock exchanges for the purposes of MiFID 2 has been published in the OJEU and applies from 1 January 2019. The SIX Swiss...
Government updates Blocking Order regulations
The Extraterritorial US Legislation (Sanctions against Cuba, Iran and Libya) Protection of Trading Interests)(Amendment) Order 2018 will take effect on 1 February 2019. It updates a 1996 order to reflect updates to the...
FCA sets out ex post impact evaluation framework
FCA has published its final framework setting out how it will measure the impact of its past interventions.
ESMA renews CFD restrictions
ESMA is to renew the current restrictions on the marketing, distribution or sale of CFDs to retail clients for a further three months from February 2019.
Regulators update on market infrastructure recognition post-Brexit
BoE has made a statement on the equivalence of the future UK legal and supervisory framework for CCPs and CSDs, following a decision by the European Commission to make implementing acts that will allow UK CCPs and CSDs...
EU Council agrees greater EBA rule in AML action
Following complaints by banks that AML rules are not effectively and consistently supervised, the Council has agreed to give EBA greater powers over supervision, including allowing it to perform risk assessments on...
ESMA consults on sustainability measures
ESMA has published a set of consultation papers on sustainable finance initiatives, seeking views on: draft technical advice on integrating sustainability risks and factors into MiFID 2, the AIFMD and UCITS Directives...
FCA fines for bank bereavement process failings
FCA has fined Santander £32,817,000 for failing effectively to process the accounts and investments of deceased customers. FCA found the bank did not transfer funds totally over £183m to customers when it should have...
Treasury publishes draft Financial Services Contracts Regime
Treasury has published a draft statutory instrument setting out the Financial Services Contracts Regime (FSCR) which will provide run-off mechanisms to the various temporary regimes the government and regulators are...
FCA updates on MAR compliance
The latest edition of Market Watch outlines FCA’s views on industry implementation of MAR. FCA stresses the importance of industry participants properly calibrating their risk assessments to the markets and asset...
Home Office updates on anti-corruption strategy
The Home Office has updated on the first year’s progress against the UK’s anti–corruption strategy. The update concludes that the commitments made have largely been met, and that the UK is on track to...
FCA bans Angela Burns
FCA has finally issued its final notice banning Angela Burns from acting as a NED and has fined her £20,000. Ms Burns acted as NED for two mutual societies and was chair of their investment committees. She provided...
FCA updates on preparing for Brexit
FCA has added a page to its website updating firms on what they could and should be doing to prepare for Brexit. The page is for use by UK and EEA firms and takes them through each various practicality they should...
Financial Crime Prevention in 2018
We have written an article for Financial Regulation International on financial crime prevention developments in 2018.
EIOPA reports on insurance intermediary markets
EIOPA has published its report on its evaluation of the structure of insurance intermediaries markets in Europe in accordance with IDD requirements. The report notes a very wide diversity of local distribution channels...
FCA finalises new financial crime guidance
FCA has now finalised its guidance on insider dealing and market manipulation within the Financial Crime Guide. It received 8 responses to its consultation, generally positive. However, some respondents raised concerns...
PRA and FCA consult on mortgage reporting
PRA and FCA are consulting on new reporting requirements for mortgage lenders and home finance administrators. Both regulators think there are areas in which they need data from firms additional to that which is...
FCA updates on PPI campaign
FCA has published the latest figures on engagement of consumers with its PPI helpline.
Court finds no MCOB breach by lender on self-certified loan
A Court has found in favour of the lender in a case brought by a couple who entered into a 5 year interest only loan through a broker, which they met repayments on but were ultimately unable to repay the capital. The...
FCA reports on cyber review findings
FCA has published the results of its study of cyber-resilience and security in 20 asset management and wholesale banking firms. Its review comprised firms of varying size, scale, operating models and geography. The...
Tribunal rules on Prodhan
The Upper Tribunal has ruled on an application by Mohammad Prodhan, former CEO of Sonali Bank (UK). Mr Prodhan contended that FCA was time-barred from taking action against him. He also applied for a direction for his...
Companies House to do sanctions checks
Companies House has announced it now carries on additional checks on certain applicants for registration, to guard against designated persons using economic resources such as companies in an attempt to get round...
Charity Commission publishes sanctions alert
The Charity Commission has warned charities that operate in Syria or Turkey of the dangers of aid passing through the Bab Al-Hawa crossing. There have been reports that the crossing is under the control of Al...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation proposes rules that: amend SUP 16 to address FCA’s concern that it does not always hold accurate “firm details” by requiring an annual accuracy check and...
FATF publishes UK mutual evaluation
FATF has published the long-awaited mutual evaluation report on the UK’s measures to combat money laundering and terrorist financing. The report notes that, because of the exceptionally large funds flow through...
FCA plans permanent CFD intervention measures
FCA is consulting on permanent rules to restrict the marketing, distribution and sale of CFDs and CFD-like options to retail consumers. The proposals are similar to the ESMA temporary measures, but FCA wants also to...
ESMA publishes KID amendment advice
ESMA has published the advice it received from the Securities and Markets Stakeholder Group on amending the PRIIPs KID. The group fully supports the principle of the KID but is disappointed that there are proposals for...
FCA updates on “unacceptable” pension transfer advice
FCA has published the key findings from its recent information gathering exercise on pension transfer advice. This year it has collected information from an additional 45 firms and visited 18 of them. It found less than...
FCA decides to fine former Sonali CEO
FCA has published a decision notice setting out its proposal to find Mohammad Prodhan, the former CEO of Sonali Bank (UK) Ltd £76,400 in relation to the bank’s AML systems and controls. Mr Prodhan was responsible...
ECB publishes cyber resilience expectations
ECB has published its expectations on financial market infrastructures in terms of cyber resilience oversight. Its expectations are based on CPMI/IOSCO guidance and is aimed at providing the FMIs with clear steps on how...
Treasury makes SAMLA Regulations
Treasury has made the Sanctions Review Procedure (EU Exit) Regulations 2018. The Regulations, made under SAMLA, come into force on 7 January 2019 and address the mechanics of requesting reviews, variations or...
Standard Bank DPA comes to an end
SFO announced that the first DPA, agreed with what is now ICBC Standard Bank plc for breach of s7 Bribery Act, has come to an end after the bank successfully complied with its terms. The DPA lasted for 3 years. Its...
Thank you to our readers
The FIN team was delighted to win two awards at the 2018 Compliance Register Platinum awards, including Best Consultancy/Law Firm – Regulatory Compliance. Thank you to those of you who nominated us and those who...
Commercial BankingConsumer FinanceFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyPensionsRetail Banking
Treasury Committee publishes Withdrawal Agreement analyses
The Treasury Committee has published the Bank of England’s analysis of the Withdrawal Agreement and Political Declaration. The lengthy document explains how the reduction in openness with reduce the UK...
BoE publishes Financial Stability Report and stress test results
BoE has published its latest Financial Stability Report together with the results of the 2018 Stress Tests. The Financial Stability Report found that the UK financial system has good resilience to a range of risks...
FCA publishes cyber resilience report
FCA has published the results of its survey on tech and cyber resilience, which showed that nearly half of all firms don’t upgrade or retire old IT systems in time, and only just over half say they can measure the...
FCA publishes DISP modification for PPI claims
FCA has published a new modification by consent to allow firms to exclude from their complaints return form those PPI complaints in relation to which the complainant had not in fact bought PPI from the firm. Any firm...
1st SAMLA commencement order made
The first Commencement Order under the Sanctions and Anti-Money Laundering Act 2018 has been made. It brings into force the majority of the sanctions provisions in the Act that enable Ministers to make and implement...
FCA consults further on Brexit approach
FCA has published additional proposals on how it will deal with a hard Brexit. The consultation focuses on: more changes to the Temporary Permissions regime; reflecting the new Credit Rating Agency and Trade Repository...
SFO elaborates on bribery and DPAs
Matthew Wagstaff has spoken on SFO’s priorities and resourcing, and the successes of its collaborations with other enforcement agencies, particularly the DOJ. He spoke of SFO’s perception that the s7 Bribery...
FCA speaks on AI and financial crime
Rob Gruppetta has spoken on FCA’s views on the use of innovation, data and algorithms to help it in its supervision of, and approach to, financial crime prevention. He said that FCA is always open to innovation...
FCA updates on PCA prompts
FCA has published a report looking at how banks and building societies are developing and delivering their commitment to provide prompts to customers. The prompts should increase engagement of consumers with their...
Commercial BankingConsumer FinanceFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyPensionsRetail Banking
FCA consults on fees and levies
FCA is consulting on policy proposals for its proposed regulatory fees and levies for 2019/2020. Among the proposed changes is a plan to streamline the process of setting consumer credit fees by exemption community...
FCA makes new rules on RND and PPI complaints
At its latest Board meeting, FCA has made changes to DISP and its guidance, effective from 8 November, to confirm that firms must not reject relevant regular premium PPI complaints without considering whether recurring...
FCA writes to Treasury Committee on Register
Andrew Bailey has written to Nicky Morgan setting out FCA’s plans for improving accessibility and usability of the Financial Services Register, and updating on its recent consultation on the register of...
Leveson and Osofksy give evidence in Bribery Act enquiry
Sir Brian Leveson and Lisa Osofsky (among others) were listed to give evidence to the Bribery Act Committee. They were expected to be asked questions such as: whether a company that self-reports at an early stage should...
ESMA updates MAR FAQs
ESMA has updated its FAQs on the Market Abuse Regulation, adding new questions on trading restrictions for persons discharging managerial responsibilities.
FSB publishes Cyber Lexicon
The Financial Stability Board has published a “cyber lexicon“, comprising a set of around 50 core terms related to cyber security and cyber resilience in the financial sector.
ESMA briefs on suitability
ESMA has updated its supervisory briefing for regulators on the suitability requirements under MiFID 2. The briefing covers: when a suitability assessment is needed; information to clients on the assessment; getting...
FCA publishes financial crime data
FCA has completed its first financial crime survey. It intends to carry out the survey annually, using the Financial Crime Return. Over 2,000 firms were required to file the return, and FCA looked to establish: the...
Commons launches sanctions policy inquiry
The Foreign Affairs Committee in the Commons has launched an inquiry on the future of UK sanctions policy. Given SAMLA’s Royal Assent, the Committee is to look at different options for the UK’s sanctions...