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...
Author - Emma Radmore
Emma Radmore
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...
Regulators update on third-country cooperation
Treasury published a policy paper on how the UK and Singaporean regulators might work together in the future, while the City of London has released a report on cross-border trade in services with Australia.
Regulators consult on easier complaints scheme
BoE, PRA and FCA are consulting on making the process of complaining about the regulators easier. The main changes are to use plainer language and make the scheme more user friendly to its main users, who are consumers...
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...
Treasury consults on fin proms approval “gateway”
Treasury is consulting on a fundamental change to the rights of authorised firms to approve financial promotions of unauthorised firms. Both it and FCA have become increasingly concerned that some firms are approving...
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...
Ireland and Romania fined for late implementation of MLD4
The Court of Justice of the EU has fined Ireland €2m and Romania €3m for failure to transpose MLD4. Both jurisdictions had neither transposed the Directive in full nor notified the Commission of the measures they had...
Regulation round up highlights refunds, SMRC delays and next steps in Covid-19 consumer protection
FCA’s latest Regulation Round up covers the usual update of FCA’s recent publications, and reminds them of some earlier, still relevant, statements, not least: the confirmed new guidance for motor finance...
Overseas Terroritories agree beneficial ownership registers
Baroness Sugg has welcomed the statements of 8 Overseas Territories that they will establish publicly accessible registers of beneficial ownership of companies. Anguilla, Bermuda, the Cayman Islands, the Falkland...
FCA and City Corporation work on digital sandbox
FCA and the City Corporation have announced their intention to collaborate on the pilot of the digital sandbox FCA had previously announced, designed to help innovative firms aiming to address the challenges Covid-19...
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...
Commission updates Brexit preparedness notices
The Commission has added more notices to stakeholders on preparing for Brexit and the consequences of loss of the passport. Among the notices now updated are those for: asset management consumer protection credit rating...
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 says no MIFIR equivalence by year end
The European Commission has published a Communication to the EP, Council, EESC and the Committee of the Regions on preparations for the end of the transition period. The Communication looks at: changes happening in any...
EBA calls for action on resolution plans in Covid-19
EBA has reiterated the importance of resolution planning in times of uncertainty such as the Covid-19 pandemic. It calls on regulators to take into account the impact of Covid-19 on banks and their business models when...
FCA finalises Covid-19 payment services guidance
FCA has finalised its guidance to payment and e-money firms on safeguarding customers’ funds in light of the impact of Covid-19. Alongside the guidance is a portfolio strategy letter to CEOs of relevant firms...
PRA consults on temporary high balance FSCS extension
PRA is consulting on extending coverage under the FSCS for temporary high balances in bank accounts, in response to Covid-19. PRA feels it would be appropriate to cover the balances (on up to £1m) for 12 months from the...
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...
FATF reports on stablecoins and virtual assets
FATF has published 2 reports: its report on “so-called Stablecoins” looks at the characteristics of stablecoins, their ML/TF risks and how FATF standards currently apply to them and businesses that are...
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...
Treasury imposes Global Human Rights sanctions
Treasury has used its powers under SAMLA to make autonomous UK sanctions against those who violate global human rights. It has made the Global Human Rights Sanctions Regulations 2020, and the FCO has made statutory...
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...
PRA writes to firms on climate-related risks
Sam Woods has written to CEOs of all PRA-regulated firms with PRA’s conclusions from its thematic review of firm’s climate-related risk plans. The letter notes that firms were asked to have in place by...
Treasury agrees future UK/Switzerland relationship
Rishi Sunak has confirmed that he and his Swiss counterpart have signed an agreement to develop a deep agreement on financial services once the Treasury acquires its new “equivalence” powers after the end of...
FCA gets judgment against unregulated introducers
FCA has won a case in the High Court against Avacade Limited and Alexandra Associates (UK) Limited and their three directors. The companies provided a pension reports service and made misleading statements as a result...
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...
Treasury Committee concerned about FCA complaints handling
The Treasury Committee has written to the Complaints Commissioner and FCA following a report by the Complaints Commissioner highlighting several observations about a particular case, and FCA’s more general...
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...
PRA comments on EBA Covid-19 reporting guidelines
PRA has considered how to approach implementation of the EBA’s guidelines on gaps in reporting data in the context of Covid-19 in the light of its and FCA’s approach to payment deferrals and the data it is...
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...
FCA looks to better prudential rules for investment firms
FCA has published a discussion paper on a bespoke prudential regime for investment firms. FCA has long wanted to introduce a better regime for firms, but has been constrained largely by MiFID. The EU is now introducing...
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...
FCA consults on high-risk investment marketing
FCA is consulting on marketing of speculative illiquid securities including speculative mini-bonds. It wants to make its ban (which it introduced in January without consultation) on mass marketing of these products to...
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...
FCA updates on approach to complaints remedies
FCA has made a statement explaining its approach when it receives a complaint about it that it considers well founded. When considering what remedy is appropriate, FCA will take into account the factors under the...
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...
FCA finalises financial resource assessment guidance
FCA has published its finalised guidance explaining how it assesses what is “adequate financial resources“. The draft guidance was published for consultation around a year ago, and FCA has largely...
FCA fines £64m for mortgage arrears handling failures
FCA has fined Lloyds Bank, Bank of Scotland and the Mortgage Business £64,046,800 for failures in relation to handling of mortgage customers in payment difficulties or arrears between April 2011 and December 2015. The...
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...
EIOPA consults on digitalisation and the value chain
EIOPA is consulting on how the continued evolution of technology is affecting business models and bringing beneficial innovation and a new set of risks that need to be taken into account. Firms are increasingly relying...
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...
Commission consults on green finance preferences
The European Commission is consulting on a set of draft delegated Regulations that would oblige AIFs and other investment funds, investment firms, insurance firms and brokers, (re)insurers and mutual funds to advise...
£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...
FCA speaks on current concerns and crisis response
Megan Butler has spoken to PIFMA on FCA’s response to Covid-19 and its expectations for the rest of the year, with a focus on its actions and expectations in respect of wealth managers. Generally, she thought the...
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...
FCA finalises SMCR rules for benchmark administrators
FCA has published its final rules on extending the SMCR to employees at benchmark administrators. The rules, bespoke to firms that undertake no other regulated activities, take effect from 7 December. UK-based...
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...
EU Crowdfunding Regulation – investor protection aspects
We’ve now published the second part of our review of the proposed EU Crowdfunding Regulation, looking at the investor protection aspects.
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...