FCA has reminded solo-regulated firms that if they want to opt up to the Enhanced firm category, they must submit their Form K (which all Core and Enhanced firms must submit anyway) together with their Form O, by 24...
Author - Emma Radmore
Emma Radmore
FCA reviews non-bank PSP safeguarding
FCA has carried out a review of the safeguarding arrangements of 11 non-bank PSPs. It wanted to see how well they complied with the requirements of the EMRs and PSRs and found both good and bad practices. Among its key...
FCA speaks on regulating innovation
Christopher Woolard has spoken on regulating financial innovation. He explained how valuable early engagement is, and how working with innovative firms helps FCA to get a good bird’s eye view of what it should...
FOS consults on funding
FOS is consulting on its future funding model. It says it is looking forward to a time when it is not dominated by PPI, and is looking at how it should: rebalance the proportion of income it gets from its levy as...
Treasury creates RAO exemption for social landlords
A new exclusion from the regulated activity of credit broking will cover registered social landlords who introduce individuals to credit unions, community benefit societies, community interest companies limited by...
ESMA leaves product intervention to Member States
ESMA has decided not to renew its prohibition on marketing, distribution or sale of binary options to retail clients, and the ban expired on 1 July. Its reasoning is that most Member States now impose their own...
Financial Crime Compliance Course
We are pleased once again to host the Financial Crime Compliance Professionals course for the Compliance Register. The course takes place this year on 25 September, and we will be presenting the morning session. ...
FCA makes CFD limiting rules
FCA has confirmed the restrictions it is putting in place for firms that offer CFDs to retail customers. It is requiring all firms that offer CFDs and CFD-like options to retail consumers to: limit leverage –...
FCA announces insider dealing imprisonment for former compliance officer
A former compliance officer at UBS has been sentenced to 3 years’ imprisonment for insider dealing, following a prosecution brought by FCA. Fabiana Abdel-Malik used her position to acquire confidential and...
Treasury updates on mini-bond review
Treasury has written to Nicky Morgan updating on the progress of its review into the failure of London and Capital Finance and the government and FCA review of mini-bonds. Alongside the FCA review into the...
Wolfsberg Group publishes CBDDQ materials
The Wolfsberg Group has published a set of materials that supplement its correspondent banking DDQ. The materials include a set of videos that banks can use as training materials, and a detailed review of the DDQ...
FCA summarises new rules
FCA’s latest Handbook Notice confirms the following rule changes: the changes to, mainly MIPRU, MCOB and SUP that took effect on 4 June in relation to crowdfunding platforms that offer home finance products, where...
FATF reports to G20
FATF has reported to the G20 Leaders’ Summit. The report summarises FATF’s current and ongoing workstreams, including its current focus on virtual assets, improving transparency and the availability of...
EU Council adopts crowdfunding position
The Council of the EU has adopted a position it hopes will make it easier for crowdfunding platforms to provide services across the EU, by setting minimum requirements that the platforms must meet and harmonising...
PSR updates on access and governance
The PSR has published its fourth report on access to payment systems and governance of system operators. Key developments since the last update are: 12 new participants joining FPS, Bacs and CHAPs in 2018 (with the...
FCA confirms market code recognition
FCA has confirmed it is recognising the FX Global Code and the UK Money Markets Code. These are the first codes to be recognised under its new scheme. While FCA will not supervise firms or individuals directly against...
FATF plenary updates on strategy
The recent FATF plenary, under US presidency, celebrated FATF’s 30th birthday. The meeting discussed: key strategic initiatives, including how to mitigate risks from virtual asset activities, and how to assess...
“Not all about Brexit” says Philip Hammond
Philip Hammond, speaking at the Mansion House dinner, highlighted the many ways in which a no-deal Brexit would be damaging for the financial services industry and the UK as a whole. He noted also the political...
Government says overseas entity registration open in 2021
In response to a question in Parliament, Lord Henley said the Government “anticipates” that the overseas entities register will be open during 2021. There was no indication of whether that would be early or...
FCA publishes first perimeter report
FCA has published the first of what will be an annual report on its regulatory perimeter. Among other things, the report is designed to explain what challenges the perimeter is presenting and whether there might be a...
CMA updates on loyalty penalty work
CMA has updated on its work on the loyalty penalty. It says key decisions are due shortly and that two enforcement cases are underway. It says it expects regulators to take strong action where they find problems and...
Law Commission calls for SAR guidance
The Law Commission has criticised the time that is wasted because lack of proper guidance leads to too many low quality SARs being made, which wastes both the time and money of those gathering information to report, and...
CLLS warns on MLD5 crypto plans
The City of London Law Society has published its response to Treasury’s consultation on MLD5 implementation. Its comments focused on two key areas: crypto-assets: CLLS is nervous about the suggestion that the UK...
FCA to take no further action on RBS GRG
FCA has published its final report on its investigation into the RBR GRG group’s treatment of SMEs. Its last report was nearly a year ago, and at that time FCA explained its plan to undertake a comprehensive...
FCA consults on financial resources
FCA is consulting on the approach it takes to assessing adequate financial resources – and what it means by the term. The paper has been prompted by the levels of compensation FSCS has paid out relating to firms...
BVCA responds on MLD 5
BVCA has responded to Treasury’s consultation on MLD5 implementation. Its key observations are: where the underlying CDD obligation involves subjectivity or judgement, the concept of taking “reasonable...
Foreign Affairs Committee slams post-Brexit sanctions policy
The Foreign Affairs Committee has heavily criticised the UK’s position on post-Brexit sanctions. It says Brexit will bring about a “seismic shift” in how the government applies its sanctions policies...
FCA finds culture the main issue in capital market AML review
FCA has published its thematic review of money laundering risks in the capital markets. The review covered 19 firms representing a broad range of market segments and participants and focused on secondary markets. FCA...
Up next from FCA
FCA’s latest Policy Development Update heralds a few interesting papers on the near horizon, including: a consultation in June on alternatives to high cost credit; perhaps, a policy statement on general insurance...
FCA consults on Gibraltar and SMCR Handbook changes
FCA’s latest quarterly consultation: proposes changes that will essentially apply the current rules for Gibraltar firms past October in the event of a hard Brexit. The status quo on rule application and fees will...
ESMA speaks on equivalence and cross-border regulation
Steven Maijoor has spoken to FESE about the challenges of cross-border regulation and supervision. He focused on market fragmentation and heralded the work of IOSCO, which will be discussed at this month’s G20...
FCA speaks on tech activism
Nick Cook, FCA’s director of innovation, has spoken on the need for regulators to keep up to speed with innovation. He spoke about: the continuing success of the FCA sandbox and the high proportion of firms that...
Baroness Manzoor takes on FOS Chair
Baroness Zahida Mansoor will become chair of FOS in August, succeeding Sir Nicholas Montagu.
FCA tells CMCs what it expects
FCA has written a Dear CEO letter to CMCs who have temporary permissions telling them how it expects them to behave then making financial promotions or acting for their customers. There has been an increase in cases...
Treasury consults on funeral plan pressure sales
Treasury is consulting on how to deal with pressure sales of pre-paid funeral plans. Most of the sector is subject to voluntary regulation only through the Funeral Planning Authority. There is an increasing demand for...
OFSI fines firm for dealing with sanctioned individual
OFSI has announced that on 8 March 2019, it imposed a monetary penalty of £10,000 against Travelex (UK) Limited for contravening the EU Egypt financial sanctions regime, in relation to a payment of £204 belonging to a...
FCA publishes asset management competition breach case study
FCA has published its decisions against 3 asset management firms that breached competition law. FIN reported on the breaches in February. The decisions are accompanied by a case study, which explains what the firms...
CMA writes to Santander on overdraft charge breach
CMA has written to Santander UK setting out its views on a breach by the bank of hte Retail Banking Market Investigation Order. It says the bank imposed unarranged overdraft charges on around 20,000 PCA customers...
FCA extends temporary permissions deadline
FCA has confirmed the deadline for EEA firms to notify it of their intention to use the temporary permissions regime is now 30 October. FCA has updated its website with details of how the TPR applies, and its policy for...
London Capital & Finance investigation starts
Treasury has announced an investigation into the collapse of London Capital & Finance and FCA’s supervision of the firm. John Glen, Economic Secretary to the Treasury, said there is an urgent need to...
FCA publishes unfair term undertaking
FCA has published an undertaking from Capital Financial Management Limited. It considered two term in the company’s debt management contract gave the firm sole discretion on what it could charge customers who...
Treasury makes Cyber-Attack Asset Freezing Regs
Treasury has made the Cyber-Attacks (Asset-Freezing) Regulations 2019. The Regulations, made following ah EU Regulation, create a new set of designations under the financial sanctions regime aimed at potential cyber...
Have you replied on MLD5?
We’ve written a detailed article on Treasury’s proposals for MLD5 implementation to go with our summary post. Deadline for comment is 10 June.
Fund umbrella providers come under fire
FCA has published the results of its review into how firms in the investment management sector that have Appointed Representatives comply with their regulatory obligations as principals. There are over 1000 ARs in the...
Joint Committee slams Overseas Entities Registration Bill
The Joint Committee on the Draft Registration of Overseas Entities Bill has criticised the draft legislation. It notes it is now 3 years since the proposals were announced, with increasing public concern and calls from...
BoE speaks on “stylish regulation”
Sam Woods has spoken on how UK financial regulation might look post-Brexit. He looked at the 6 principles of an effective regulatory framework and how the SMCR model of legislation can deliver them. robust prudential...
EC fines banks for FX cartel
The European Commission has fined 5 banks for taking part in 2 cartels involving 11 currencies in the spot fx markets. It has imposed fines totalling over €800m on Barclays, RBS, Citigroup and JP Morgan for the so...
LawTech UK consults on crypto issues
The LawTech Delivery Panel, set up under a Government and Law Commission initiative, is consulting on the status of cryptoassets, DLT and smart contracts under English private law. The consultation notes: the...
Group AML Regulation takes effect from September
The Regulation setting out the measures firms covered by MLD4 must take when they are members of a group with offices outside the EU has been published in the OJEU. It will apply from 3 September 2019. The Regulation:...
Government responds on Bribery Act report
The Government has published its response to the Committee report on the effectiveness of the Bribery Act. Among other things, the report had looked at the deterrent effect of the Bribery Act and its effects on SMEs. ...
BEIS consults on corporate transparency reform
BEIS is consulting on the reform of Companies House and its role in transparency of UK corporate entities. The consultation addresses concerns that the current company registration framework is too open to misuse. To...
SRA reviews lawyer AML compliance
SRA has published the results of a thematic review it carried out on law firms that provide trust and company services, looking at their compliance with the MLRs 2017. The review followed up a more general review in...
FCA takes action on pensions advisers lacking integrity
FCA has published decision notices against three firms and five individuals, setting out its decision to find them for acting without integrity in pensions advisory businesses and misleading FCA. The individuals have...
FCA publishes research on execution-only mortgage issues
FCA has published research it commissioned to look at the biggest problems execution-only mortgage customers face in disclosure documents, and how it might be addressed. The problems identified are: because of the...
ICO fines for spam PPI claim texts
The ICO has fined a claims management company £120,000 for sending spam texts. It found Hall and Hanley Ltd, using a third party, had sent over 3.5m direct marketing texts about PPI claims without having valid consents...
FCA objects to Complaints Commissioner decision on inaccurate register entry
The Complaints Commissioner has told FCA to pay compensation to a consumer who lost money after investing with what they believed to the be UK operation of an Austrian firm but was in fact fraudsters who had cloned the...
Government responds on economic crime report
The Government has responded to the Treasury Committee’s report on economic crime. Nicky Morgan, commenting on the Government response, said she was glad that some Committee recommendations had been taken into...
FCA helps investors in unregulated mini-bonds
FCA has published advice to investors who lost money investing in Secured Energy Bonds plc mini-bonds. The advice notes that, although the issuer was (and did not need to be) regulated, mini-bonds are themselves...
OFSI makes Counter-Terrorism International Sanctions guidance
OFSI, together with the FCO and Export Control Joint Unit, has made guidance on the UK’s counter-terrorism and international sanctions, specifically anticipating a no-deal Brexit. The guidance is made under SAMLA...
FCA calls for input on FAMR and RDR
FCA has called for feedback on its planned approach to reviewing the RDR and FAMR. The purpose of the review is to find out whether the two initiatives have succeeded in their objectives, focussing on what consumers...
FCA fines for market abuse control failings
FCA has fined Linear Investments Limited £409,300 for the firm’s breach of Principle 3 by failing to take reasonable care to organise and control its affairs responsibly and effectively. In particular, FCA found...
FSCS sets next year’s levy
FSCS has set its 2019/2020 levy. It will be £532m, which is slightly more than its forecast, but still less than the 9 month levy for last year (had it been a 12 month levy). FSCS puts the increase down to an uplift in...
BoE speaks on embracing Fintech
Dave Ramsden has spoken at the Innovate Finance Global Summit, stressing the importance of fintech, and of BoE’s ability to keep on top of developments. He spoke of the anniversary of the BoE Fintech Hub and...
FCA heralds Innovate success
Christopher Woolard has spoken on FCA’s continuing work to promote innovation. As part of its drive, it has published an evaluation of its Innovate services, which have now supported nearly 700 firms. FCA...
FSB updates on market issues
FSB, in its latest plenary meeting, discussed: current vulnerabilities in the global financial system; developing a surveillance network for potential vulnerabilities; areas where supervisory policies and practices...
HMRC publishes MLR miscreant list
HMRC has updated the list of businesses it has fined for failing to comply with the MLRs. The list includes references to which regulations the firms breached, the amount of the fine and whether the firm appealed or is...
FCA confirms miscellaneous new rules
FCA’s latest Handbook Notice confirms the following rule changes: to COBS 22 in relation to introducing a ban on selling, marketing and distributing binary options to retail customers, which already took effect...
With-profits firms should review consumer harm risks
FCA has published its thematic review of firms’ practices in key areas of the with-profits market that FCA had identified as presenting the highest potential for customer harm. The review focused on: investment...
FCA publishes PFOF findings
FCA has published an update to its Market Watch item on payment for order flow. It has now carried out a review of 15 firms, to check how they monitor compliance with FCA requirements around conflicts, inducements and...
EP publishes amended funds law changes
The European Parliament has published a new version of the proposed revised funds marketing Regulation and Directive. Among the changes are: to specify that pre-marketing may be directed at professional investors only;...
FCA consults on fees
FCA’s consultation on fees and levies for 2019/20. Among key proposals are: an increase of minimum fees and flat fees of 2% for the A, and CC1 and 2 fee blocks; unchanged variable fee rates for consumer credit...
FCA publishes research agenda
One of the documents that accompanied FCA’s Business Plan is its Research Agenda. This sets out its intentions in respect of the themes that underpin the Business Plan. The document explains how FCA welcomes...
FCA prioritises culture, customers and crime prevention
FCA’s Business Plan for 2019/2020 holds few surprises. It highlights 4 ongoing cross-sector priorities and three additional longer-term priorities. FCA will focus on: culture and governance, not least in SMCR...
Wholesale brokers ignore Dear CEO letter at their peril
FCA has written a Dear CEO letter to wholesale brokers setting out its thoughts on the key harms the sector poses. The letter explains that MiFID 2 and MAR have significantly raised expectations on market participants...
Complaint levels fall
FCA’s data for complaints against regulated firms for H2 2018 show that complaints decreased by 5%, with PPI complaints falling by 8% – although PPI still accounted for 40% of all complaints. In part this...
PRA proposes amendments to enforcement action settlement policy
PRA is consulting on changes to its policy on the settlement of enforcement action. The consultation proposes changes to its Enforcement Statement of Policy. The proposals include keeping the 30% discount for early...
Treasury presses on with MLD5 implementation
HMT has opened a consultation on the implementation of MLD5. Treasury proposes a number of changes to UK law, and seeks views on its proposals in several areas. Aspects of MLD5 addressed in the consultation include:...
FCA fines SCB £100m for AML failings
FCA has imposed its second largest ever fine for AML controls failings. It has fined Standard Chartered Bank £102.2m for failings in its wholesale bank correspondent banking business and its branches in the UAE. It...
ESAs publish PRIIPs KID FAQs
The ESAs have published further Q&As on the KID requirement for PRIIPs. The updates are on both general topics (in respect of calculating the minimum holding period for a product) and MOPs, in terms of the form and...
FCA gives investigations update
Mark Steward has spoken on partly contested cases, the pipeline and AML investigations. Key points included: the partly contested case process has, since 2017, allowed those subject to FCA disciplinary action to choose...
ESMA publishes appropriateness briefing
ESMA has updated its supervisory briefing on MiFID 2 appropriateness requirements and execution only. The briefing covers: working out when an appropriateness assessment is needed; getting information from clients; the...
SFO speaks on fighting fraud and corruption
Lisa Osofsky has spoken about the global fight against fraud and corruption. One of the key points of her speech is the need to understand how different jurisdictions and different regulators operate. She gave the...
Lloyd’s warns on sanctions evasion tactics
Lloyd’s has issued a new market bulletin on how to counter North Korean and other sanctions evasion tactics. The bulletin points out the constant evolution of tactics to evade sanctions, including using otherwise...
ESMA happy with national product intervention measures
ESMA has issued positive opinions on product intervention measures taken by not only the FCA in relation to binary options, but also the Polish KNF and Dutch AFM (also in respect of binary options), and a further...
EU and Singapore adopt equivalence in derivatives trading venues
The European Commission and MAS have mutually recognised several trading venues as equivalent in terms of their respective trading obligations. The EU has recognised 3 approved exchanges and 2 market operators. MAS has...
FCA makes new rules
FCA’s latest handbook notice outlines all the rules adopted by FCA in its February and March Board meetings, including some not reported on in other FIN items. It includes a fill its of all the Brexit instruments...
FCA finalises CMC SMCR rules
FCA has published its policy statement and final rules explaining how it will apply the SMCR to CMCs. In the main, it has confirmed the rules it proposed, with a few adjustments following consultation. The key elements...
FCA makes binary option banning rules
FCA has published its final position and Handbook Rules on permanent product intervention measures that will ban sale, marketing and distribution of binary options to retail consumers. ESMA has extended its temporary...
London Capital investigation to start
Treasury has announced an independent investigation into what happened at London Capital & Finance. Treasury and FCA both feel there is public interest in a statutory investigation, and so Treasury is using its...
FCA regulation of CMCs starts
1 April saw the start of FCA regulation of claims management companies. Over 900 companies have registered with FCA for temporary permission, without which they cannot operate until fully authorised. FCA will have the...
FCA publishes final no-deal Brexit rules
Perhaps in anticipation of what would follow later in the day, FCA published its final instruments and guidance that would apply in the event of a no-deal, no-implementation period Brexit, on the morning of 29 March...
ESMA fines CRAs for conflicts breaches
ESMA has fined 3 CRAs in the Fitch group a total of €5,132,500 for a series of failures to comply with the requirements of the CRA Regulation relating to conflicts of interest. It found that Fitch UK, Fitch France and...
ESMA updates MiFID 2 FAQs
ESMA has updated its Q&As on MiFID 2 and MiFIR investor protection and intermediaries topics. There are several new questions, including on: reverse solicitation by third country firms the target market of CoCo-bond...
FCA fines GSI £34m for 10 years of poor transaction reporting
FCA has fined Goldman Sachs International £34.3m for failing to provide accurate and timely reporting from the date of implementation of MiFID (November 2007) to March 2017. The failings affected over 220 million...
ESMA updates Q&A on MiFID II AND MiFIR in relation to commodity derivatives topics
ESMA has updated its Q&As on MiFID II and MiFIR commodity derivatives topics. An new answer has been published on the ancillary activity test as it applies to third-country firms and subsidiaries, and the answer...
ESMA renews CFD and binary option restrictions
ESMA is renewing the restrictions on marketing, distribution or sale of CFDs to retail clients for a further 3 months from 1 May. Separately, it has also renewed the restrictions on binary options, so that these...
OFSI publishes Brexit counter-terrorism guidance
OFSI has published guidance on the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019. The Regulations, made under SAMLA, impose various bans and requirements, and create offences with penalties. The Regulations...
2019 Financial Crime Compliance Summit
Emma Radmore is pleased to be presenting at the Compliance Register’s Financial Crime Compliance Summit on 25 June. To book, please see this timetable and contact the Compliance Register.
FCA clarifies MAR status on hard Brexit
FCA has updated the information on its website about the Market Abuse Regulation, to clarify that the Treasury’s intention is to convert MAR and the Short Selling Regulation into UK law on a hard Brexit. This...
FCA extends temporary permissions window
In light of the current short extension to Brexit, FCA has decided to extend the notification window for EEA firms to apply for temporary permissions. The window was due to close on 28 March, but will now close on 11...