FIN.

Author - Emma Radmore

ESAs finish PRIIPs KID review

The ESAs have reported to the European Commission on the outcome of their review of the PRIIPs KID. A draft Final Report following public consultation was submitted to the boards of the 3 ESAs for approval, but...

Treasury consults on economic crime levy

Treasury is consulting on the introduction of the economic crime levy, announced in the Budget, which aims to raise around £100m per year. It wants views on: the design principles of the levy how it can operate in...

FCA to streamline cancellation process

Treasury has published a policy paper outlining its intention to streamline the process FCA must apply to cancel a firm’s authorisation. The process will apply where firms are no longer carrying on regulated...

Government launches Fintech review

The Government has launched an independent Fintech Strategic Review to set priorities for industry, policy makers and regulators. Its aims are: to ensure UK fintech has the resources to grow and succeed to create...

MPs want Brexit information

The EU Services Sub-Committee has written to John Glen asking for more detail on: UK/EU equivalence – it wants to now when the Government will be publishing its decisions. The Government had said it has finished...

FCA consults on more time for SMCR

FCA is consulting on extending the implementation deadlines for parts of the SMCR for solo regulated firms.  It plans that the 9 December 2020 deadline should be extended to 31 March 2021 for: the Conduct Rules taking...

FCA consults on access to cash guidance

FCA has published a guidance consultation on how it expects banks, building societies and credit unions to behave when considering closing branches or ATMs, or converting a free to use ATM to a paid one. Firms should...

HMRC feeds back on trust registration

HMRC has published a summary of the responses it received to its consultation on MLD5 and the Trust Registration Service.  The consultation had over 100 responses, and the key messages were: most respondents agreed with...

Government updates on cash infrastructure

The Joint Authorities Cash Strategy Group (the BoE, PSR, FCA and Treasury) has published an update on the work it is doing to safeguard the UK’s cash infrastructure. The group members have been working closely to...

MEPs approve ML action plan

MEPs have resoundingly backed the Commission’s action plan for fighting money laundering and terrorist financing. In a press release, the European Parliament said it “deplores” the incorrect and patchy...

New FS register coming at end of July

FCA is to replace the existing Register with a new, enhanced, Financial Services Register at the end of July, prior to adding a directory of certified and assessed persons later in the year. It says it has made...

Commission begins Brexit warning notices

The European Commission has stated the process of sending Stakeholder Preparedness Notices, to summarise for stakeholders the effect of Brexit on over 100 sectors.  It had originally published these notices during...

FCA reformats Brexit advice

FCA has revamped its information page on Brexit. The page gives advice to firms on what they should be considering in preparation for the end of the transition period. Much of the information is not news, and includes a...

PRA makes fees rules

Following on from FCA’s confirmation of its fees and levies for 2020/21, PRA has now made its policy statement. It made no changes to its proposals, and has now published the necessary rule changes which take...

Commission consults on CMU roadmap

The European Commission is consulting on its roadmap toward capital markets union.  The “roadmap” is a short, high-level document, setting out the reasons for and priorities of the initiative. Consultation...

Commission confirms MLD4 enforcement actions

The European Commission has confirmed further actions against Member States for failure correctly to transpose MLD4. It has sent letters of formal notice to Luxembourg, Slovakia and Slovenia, reasoned opinions to...

Up next from FCA

Over the rest of 2020, FCA plans the following: consultations on mortgage borrowing and mortgage prisoners (now overdue), debt advice levy rates and exist fees in investment platforms (Summer 2020) and on financial...

Basel Committee finalises AML/CFT guidelines

The Basel Committee has published the updated version of its guidelines for supervisors on co-operation in relation to the sound management of risks related to money laundering and the financing of terrorism. Among the...

FCA makes fees for 2020/21

FCA has published its final fees and levies for 2020/21.  Almost all respondents to its consultation welcomed the freezing of minimum fees and the 2 month extension to payment terms for medium and small firms, but most...

Court of Appeal upholds Cynergy judgement

The Court of Appeal has upheld the judgment that a borrower was justified in its refusal to make payments under a loan where the ultimate beneficial owner of the lender was an OFAC SDN. Cynergy Bank (a UK bank) had...

FCA to reopen TPR

FCA has updated its webpages on the temporary permissions regime, to note it will reopen the TPR windows for inbound passporting EEA firms and funds on 30 September, and will also allow fund managers to update their...

Consumer Panel mulls digital advertising

The Financial Services Consumer Panel has published a discussion paper on digital advertising in financial services.  It is deeply concerned about the use of “adtech” to create detailed profiles of...

FCA updates on SMCR and approved persons

FCA has updated on SMCR implementation periods in the times of Covid-19. It has extended the deadline for solo-regulated firms to have undertaking the first assessment of fitness and propriety of Certified Persons to 31...

Barnier speaks on Brexit

Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations.  He noted the desire to give the EU/UK negotiations “every chance of succeeding”.  He noted he had rescheduled many other meetings...

IOSCO consults on AI use

IOSCO is consulting on the use of AI and machine learning by market intermediaries and asset managers. It has produced guidance for its members to help them supervise its use. IOSCO notes the key potential benefits of...

FCA makes new rules

FCA has published a Handbook Notice covering the rules it made at its May and June Board meetings. changes to COBs in relation to pension transfers, introducing a ban on contingent charging in respect of most advice on...

BoE postpones Financial Stability Review

BoE has announced its decision to postpone publication of the Q2 FSR to 6 August.  Since its May meeting, though, it has taken several decisions by written procedure including the Q2 setting of the CCyB and its views on...

MLD4 high-risk list in OJEU

The revised list of high-risk third countries for AML purposes has been published in the OJEU. The new list applies from 1 October, and will comprise: Afghanistan Bahamas Barbados Botswana Cambodia Ghana Iraq Jamaica...

FCA updates on Covid-19 delayed activities

FCA has confirmed some further delays to projects and extensions to proposed deadlines, in light of Covid-19. Various deadlines now postponed until later in 2020-or to 2021 include: The Directory of Certified Persons...

FCA consults on pensions value for money

FCA is consulting on measures that will make it easier for governance committees to compare the value for money of pensions products and services, so the value for workplace pension scheme members can be better assessed...

Chancellor updates on FS laws and Brexit

Rishi Sunak has made a written statement about the UK’s approach to implementing key financial services reforms before the end of 2020. The statement notes the UK’s policy intention, and the manner in which...

Green finance taxonomy in OJEU

The sustainable finance taxonomy Regulation has now (22 June) been published in the OJEU and takes effect 20 days after publication, with graduated application of the objectives on either 1 January 2022 or 1 January...

FCA ready with Gabriel replacement

FCA has announced that its new platform, which replaces Gabriel, is called RegData, and that it is preparing to move all firms across to it. It will move firms over in groups, depending on the nature of their reporting...

FCA reminds crypto businesses to register

FCA has reminded businesses that carry on cryptoasset activity in the UK to register with it for AML purposes, if they have not done so already.  Firms that were carrying on the activities before 10 January 2020 must...

Treasury appoints new FCA CEO

Treasury has appointed Nikhil Rathi as the new permanent Chief Executive of the FCA. He joins from teh LSE, having previously been Director, Financial Services Group at the Treasury.  He is expected to take up his role...

JMLSG upates on Covid-19 risks

JMLSG has reminded firms of FCA’s guidance on managing financial crime risks throughout Covid-19 and has also commented on the disruption the pandemic is causing to documents often relied on for CDD purposes. It...

EBA updates risk taker RTS

EBA has published its final draft RTS on the criteria to define material risk takers for CRD purposes. It has published the revised standards to define and harmonise the criteria across the EU. An individual member of...

EP adopts green finance measures

The European Parliament has adopted legislation that sets 6 environmental objectives and allows activity to be labelled as environmentally sustainable if it meets at least one of them without significantly harming any...

EBA updates RTS on CRD passport notifications

EBA has published its final revised RTS and ITS on passport notifications.  The new versions are aimed at betting better quality consistent information, particularly on start dates of new activities and the granularity...

ESMA updates work programme

ESMA has updated its 2020 work programme to include its work on its immediate reaction to the Covid-19 crisis and what may be deprioritised as a result.  It has also published its 2019 annual report.

EBA publishes DGS review

EBA has published its first peer review of deposit guarantee schemes, looking at stress tests and resilience. It has concluded overall resilience is “fair”, which means that any shortcomings are unlikely to...

FCA publishes equity release review

FCA has published the results of its review into how the equity release market is working for consumers. The review found that equity release can be an attractive option for some consumers, and that it is working well...

FCA fines Commerzbank for AML failings

FCA has fined Commerzbank AG London Branch nearly £38m for AML systems and controls failings spanning a 5 year period to September 2017.  The bank benefited from a 30% discount for early settlement. Many of the...

Randell speaks on supporting the recovery

Charles Randell has spoken to a virtual roundtable of bank chairs on how the financial services industry can work to support recovery from the Covid-19 pandemic. He noted the great efforts that banks and other market...

EBA looks to understand derisking

The EBA has issued a call for input better to understand the scale and drivers of derisking and its impact on customers.  It wants to gain better insight into why finacnail institutions prefer to derisk instead of...

Commission consults on Green Bond

The Commission has launched a targeted consultation on setting up an EU Green Bond standard. It wants to collect the views of interested parties to help it set up the standard. Consultation closes on 2 October

Government responds on FS post-Brexit inquiry

The Government has published its response (dated 27 May) to the EU financial affairs sub-committee on financial services after Brexit. The letter, from John Glen: confirms that EU negotiations continue to be a priority...

FCA updates market abuse pages

FCA has updated the guidance on its website on reporting suspected market abuse. The guidance includes FCA’s expectations in respect of how firms should make market observations in situations where they will not...

ESMA clarifies MiFIR open access application

ESMA has issued a statement to clarify how supervisors should apply the open access provisions of MiFIR for trading venues and CCPs in the light of Covid-19. The current temporary powers to grant exemptions from the...

FCA looks at conduct, culture and Covid-19

FCA has looked at how the measures taken to adapt to working in the times of Covid-19 have affected conduct and culture.  It notes that, for those that can work at home, there may be no return to the office for some...

£38m support for debt advice

The Government has announced a nearly £38m support package for debt advice providers, to help them to provide essential services to people who have struggled with their finances because of Covid-19. The Money and...

FCA publishes Covid-19 guidance for SMEs

FCA has added to its suite of guidance on Covid-19 issues with a pages setting out help available to SMEs. The guidance explains what BBLS and CBILS do, and explains the guidance FCA has given to banks and insurers on...

Europol launches economic crime centre

Europol has launched the European Financial and Economic Crime Centre to give better operational support to Member States and EU bodies fighting financial and economic crime. It has also published a report looking at...

ESMA opines on compliance function

ESMA has given new guidance on the MiFID 2 compliance function, replacing 2012 guidance.  The new version aims to provide more clarity and more convergence in implementation and supervision of the requirements of MiFID...

FOS publishes Ombudsman News

The latest edition of Ombudsman News covers: annual complaints data figures (which FIN already reported) views of FOS on complaints trends FOS’ future strategy how FOS has dealt with its first year of CMC...

FCA publishes quarterly CP

FCA is returning to some regular business and has published a short quarterly consultation, proposing changes to: clarify FSCS’s power to declare in default firms and successors subject to the proposed new...

Up next from FCA

FCA’s latest Policy Development Update highlights the following publications due over the next few months: CP on marketing speculative illiquid securities to retail investors (including speculative mini-bonds); CP...

FCA sets out new DB measures

FCA has published a package of measures to address weaknesses across the defined benefit transfer market. The key changes will: ban contingent charging in almost all circumstances. This will remove the conflict that an...

EP debates green finance taxonomy

On 2 June. the European Parliament recommended the Council’s position on the “taxonomy” for green finance for adoption following a second reading.  The Regulation will set out the criteria for...

FOS publishes 2019/20 data

FOS has published details of the complaints it received and dealt with in 2019/2020.  It received around 270,000 complaints and dealt with nearly 300,000, with the Ombudsman making nearly 30,000 decisions.  As ever, the...

FOS updates on priorities

FOS has published its three strategic priorities for the next 5 years: enhancing its service preventing complaints and unfairness arising and building an organisation with the capabilities it needs for the future It...

Commission updates on MLD transposition

The European Commission has updated its website to show the state of transposition and infringement actions in respect of the Money Laundering Directives.  The UK is no longer mentioned. In respect of MLD4, all Member...

PRA confirms stance on e-signatures

PRA has confirmed its position on acceptability of electronic signatures when firms are submitting forms and other regulatory documents.  It confirms this is permissible, in the absence of any legal provisions to the...

FCA updates on LCF report delay

Dame Elizabeth Gloster wrote to FCA on 15 May to note that she would be unable to complete her investigation into FCA’s regulation of London Capital & Finance by 10th July as required. The reason for this is...

Compulsory FCA survey coming to firms

FCA is to send a survey by email with a link to 13,000 solo regulated firms,  aimed to helping FCA understand the impact of Covid 19 on regulated firms and their financial resilience, where the greatest impacts are for...

JMLSG updates guidance

JMLSG has published its final amendments to its guidance to take account of the implementation of MLD5, and which it consulted on in February.  It has submitted the changes to Treasury for approval.

FCA takes passports from Cypriot firms

FCA has used its power to remove passporting rights from overseas firms for the first time.  It has removed the passports of four Cypriot firms that appear to have used unauthorised celebrity endorsements as part of...

ESMA updates investor protection FAQs

ESMA has updated its Q&As on investor protection issues under MiFID 2 and MiFIR. The changes specifically address what is an “acceptable minor non-monetary benefit” for the purposes of the inducements...

IOSCO consults on outsourcing principles

IOSCO has published a consultation paper on updating its guidance on the principles of outsourcing.  It delayed publishing the consultation because of Covid-19 but now feels it is right to publish it, not least because...

OFSI reports on TAFA

OFSI has submitted its latest quarterly report to Parliament on the operation of the UK asset freezing regime under TAFA. The report covers the quarter to the end of 2019 and notes: only £9,000 of funds were frozen...

FCA updates on CPD and Covid-19

FCA has previously said that is expects firm to be able to show that individuals are competent to carry out their work during the pandemic. It notes that effective and consistent CPD is a part of this, but that it is...