The City of London Law Society has responded to FCA’s discussion paper on changes to the financial promotion rules for high risk investments and for firms approving financial promotions. It: is concerned the...
Author - Emma Radmore
Emma Radmore
FCA bans fraudster
FCA has banned Matthew Creed from performing any regulated activity. Mr Creed had been an approved person at a firm from 2005 – 2019, and was also the director of an unauthorised company from 2002- 2013. In 2012...
FCA consults on modifying derivatives list on LIBOR transition
FCA is consulting on modifications to the list of derivatives subject to the derivatives trading obligation in line with Articles 28 and 32 of UK MiFIR in the light of interest rate benchmark reform and BoE’s...
FCA writes to Work and Pensions committee on online safety
FCA has written to the chair of the Commons Work and Pensions Committee highlighting the role that online platforms play in putting consumers at risk by exposing them to advertisements for financial products. It notes...
ESMA warns of PFOF risks
ESMA has issued a warning to remind firms of the investor protection concerns around receipt of payment for order flow. It has previously said that it is unlikely that the receipt of PFOF would be compatible with MiFID...
BoE publishes Financial Stability Report July 2021
BoE has published the latest Financial Stability Report. Key messages include: pleasing strength in the banking markets to support the recovery of the economy – banks are able to lend to households and businesses...
EIOPA publishes opinion on risk mitigation techniques
EIOPA has published an opinion on the use of risk mitigation techniques by insurers and reinsurers. It notes the importance of the structures that have emerged, but also the importance of having a proper balance between...
Treasury updates AML advisory
Treasury has updated its advisory notice on high right third countries for AML purposes. The notices follow the FATF updates, and the list replicates the FATF list. Post-Brexit, Treasury now included the list in...
SFO publishes Amec Foster Wheeler Energy DPA
SFO has published the DPA judgment from Lord Justice Edis in respect of Amec Foster Wheeler Energy. The firm is now owned by John Wood Group which was willing to undertake to meet the firm’s liabilities. ...
Home Office warns on SARs and civil litigation
The Home Office has issued a circular setting out its position on the use of SARs in private civil litigation. Its aim is to protect reporters and subjects of SARs and the integrity of the regime. A previous circular...
FATF reports on technology opportunities and threats
FATF has published a paper looking at the opportunities and challenges of new technologies for AML and CFT. The report looks at emerging and available technology based solutions, and the conditions, policies and...
ESAs report on F&P, internal governance and remuneration
EBA and ESMA have reported on: assessment of suitability of members of the management body and key function holders under CRD V and MiFID 2. The guidelines focus on the revisions brought in by the IFR and their affect...
Appeal refused on FCA action against unauthorised firm
The application to appeal has been refused in the case of FCA v 24 Hr Trading Academy. In this case, the High Court had held that 24 Hr Trading Academy had beached the regulated activities and financial promotion...
FCA writes to insurance intermediaries on client money
FCA has written a Dear CEO letter to insurance intermediaries, Following its work on financial resilience and its concerns that some firms risked not having adequate financial resources, it carried out a review of how...
Mansion House speech heralds new era for UK financial services
Rishi Sunak’s Mansion House speech has outlined the reforms the UK is undertaking so the financial services industry can lead both domestically and internationally in the sector. Treasury also produced a roadmap...
Wolfsberg Group highlights importance of showing effective AML programme
The Wolfsberg Group has reminded of its suggestions for how financial institutions can have effective AL/CTF compliance programmes, and of its 2020 recommendations for ensuring effective outcomes. The reminder comes...
EU close to credit servicer Directive and proposes CCD changes
The Council of the EU has supported a proposal for a Directive to regulate credit servicers and purchasers, following concerns that the regulation (or otherwise) of those who buy and service loans, particularly non...
LSB stresses importance of good governance
LSB has stressed the importance of governance as underpinning everything a firm does, and has started a series of publications to help firms. Its latest guidance looks at how to achieve best practice. The guide...
FCA finds “host” fund manager weaknesses
FCA has carried out a review of authorised fund managers that provide hosting services to third party investment managers outside of their corporate group. It concluded that some firms were operating well but others did...
Dear CEO letter on retail bank AML failings
FCA has finally published the Dear CEO letter it sent to retail banks on 22 May on AML failings. The letter sets out the common themes FCA has observed and highlights its disappointment that it continues to find certain...
Damning report on EU AML efforts
The European Court of Auditors has published a damning report on the EU’s efforts to fight money laundering in the banking sector. A review found institutional fragmentation and poor coordination at EU level. The...
FCA to host Business Plan webinar
FCA is to unveil its business plan on 15 July and is holding a webinar at which Nikhil Rathi will set out his view of FCA’s role and answer questions.
FATF holds plenary
FATF has held its June 2021 plenary session, at which it finalised a number of reports. Key outputs include: no changes to the highest risk jurisdictions, but Haiti, Malta, the Philippines and South Sudan have been made...
FCA updates rules
FCA’s latest Handbook notice confirms updates to: TC to improve information sharing on retail advisers’ failure to comply with appropriate FCA rules and to update on accredited qualifications. COMP to...
Premium finance disclosure changes delayed
FCA has published an update to its feedback statement and new rules on general insurance pricing practices, which means that the new rules relating to premium finance disclosure will take effect on 1 January 2022...
BoE and Pay.UK collaborate on payment messages
Pay.UK and BoE have announced a collaboration on ISO 20022 payment messages. ISO 20022 will be implemented in the CHAPS and NPA. The collaboration started in 2018 and BoE and Pay.UK will continue to work together to...
BoE takes action over Euroclear settlement outage
BoE has announced it is taking supervisory action over the operational settlement outage suffered by Euroclear UK and Ireland in September 2020, which caused significant market disruption. The outage was caused by a...
FCA publishes VOP refusal
FCA has published its final notice explaining its reasons for refusing a firm’s application to vary its permission. Gedik International Limited was authorised in February 2020 as an agency brokerage with a set of...
Treasury Committee calls for FCA culture shift
The Treasury Committee has published a unanimously agreed report on FCA’s regulation of London Capital and Finance, in which it expresses the view that FCA cannot justify expecting firms it regulates to comply...
IAIS publishes application papers
IAIS has published application papers on: resolution powers and planning; the paper looks at the objectives and concepts of resolution of insurers, entry into resolution, resolution powers and plans, resolvability...
More of FS Act comes into force
The second Commencement Order under the FS Act 2021 brings into force: on 28 June the provisions on forfeiture of money in relation to EMIs and payment institutions, as they extend to Northern Ireland; and on 1 July...
Treasury responds on Fin Proms
Treasury has published its response following its consultation on a regulatory regime for the approval of financial promotions. It had been concerned about: lack of expertise in approver firms; lack of due diligence by...
FCA speaks on tough regulation and the future
Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...
FCA consults on regulated firm climate disclosures
FCA is consulting on enhancing climate-related disclosures by asset managers, life insurers and regulated pension providers. Following on from the introduction of disclosure rules for the most prominent listed companies...
PRA consults on financial holding companies
PRA has issued a further consultation on applying existing prudential consolidation requirements to financial holding companies and mixed financial holding companies approved or designated under FSMA. The proposals:...
LSB updates on CRM code review
LSB has published its follow up review of the CRM Code in respect of firms’ approach to reimbursing customers. Provision R2(1)(c) of the Code allows firms to decline reimbursement in specific cases. LSB looked at...
Government responds on financial exclusion
The Government has published its response to the Lords Liaison Committee report on tackling financial exclusion. Key elements of the response consider: access to cash: the response notes that the FS Act 2021 will allow...
PRA updates on Solvency II QIS
PRA is to launch its Quantitative Information Survey on Solvency II during the summer. The QIS will cover the calculation of the matching adjustment, risk margin and the transitional measure on technical provisions. ...
Taskforce reports on regulatory reform
The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...
ECB consults on “fit and proper”
ECB has issued a consultation draft of its requirements when assessing members of management boards and those holding key functions within regulated institutions as “fit and proper”. It asks for comment by ...
Sam Woods reappointed
Sam Woods has been reappointed as Deputy Governor of the BoE with responsibility for Prudential Regulation and Chief Executive of the PRA. His second 5 year term will last until June 2026.
PRA updates on TPR timetable
PRA has updated on authorisations under the TPR. It has reminded that it has up to the end of 2023 to process applications from firms falling under it. Currently, it is seeing a high volume of applications of varying...
Up next from FCA
FCA’s latest Policy Development Update highlights: a policy statement in July on regulation of funeral plans, and consultation on resolution and FSCS protection rules for the funeral plans sector consultations on...
Treasury Committee to hold economic crime hearing
The Treasury Committee will hold its next evidence session in its Economic Crime Inquiry on 14 June. The witnesses will come from the FCA, PSR, HMRC and Companies House.
FCA takes 13 firms into new sandbox cohort
FCA has accepted 13 firms into cohort 7 of the regulatory sandbox. It received 58 applications, mainly from firms in the retail investment and retail lending sectors. FCA was interested in proposals that saw more...
Basel Committee consults on prudential treatment of crypto exposures
The Basel Committee is consulting on preliminary proposals on how to treat banks’ cryptoasset exposures. It notes that exposure is currently limited, but there is the prospect that heightened exposures could...
EBA finalises PSD2 incident reporting guidelines
EBA has finalised and published its revised guidelines for major incident reporting under PSD2. PSD2 requires PSPs to report major operational or security incidents to their supervisors where those incidents are likely...
Law Commission consults on corporate criminal liability
The long-awaited Law Commission consultation on corporate criminal liability was published on 9 June. The Law Commission notes that companies can only be found guilty of offences that require proof of a certain mental...
LSB launches Access to Banking Standard Review
LSB has published a consultation paper on the review of the Access to Banking Standard. The Review is aimed at determining whether the Standard is still an effective way to achieve fair outcomes for customers (consumers...
FS Act 2021 starts to come into force
The first commencement order for the FS Act 2021 bring into force: on 9 June, sections 3-5 and Schedule 3 on prudential regulation of credit institutions by PRA on 26 June, section 7 and part of Schedule 4 on amendments...
FCA consults on CONC and other miscellaneous changes
FCA’s latest quarterly consultation on minor rule changes focuses on: changes to CONC to enable firms that provide credit cards to offer instalment plans without applying for a rule modification make minor changes...
CPS updates on failure to disclose prosecution factors
CPS has updated its guidance on prosecuting “standalone” failure to disclose offences under s330 POCA. It can now (from 2 June) bring a prosecution regardless of whether a predicate money laundering offence...
UK takes over G7 presidency
The International Regulatory Strategy Group has published a paper on the financial services priorities for the UK’s G7 Presidency. The UK took over the Presidency in January and the IRSG now says it should focus...
FCA extends temporary crypto registration regime
FCA has extended the date of the Temporary Registrations Regime for cryptoasset businesses until 31 March 2022. The regime, which allows businesses that were in existence and applied for registration before 16 December...
Treasury extends UCITS PRIIPS exemption
Treasury is to extend the exemption from the requirements of the PRIIPs Regulation for UCITS until 31 December 2026.
EBA and ESMA update on IFR permitted funds
EBA and ESMA have published a provisional list of additional instruments and funds that some of the smallest investment firms may use as own funds under the IFR. The list is designed to help firms in advance of the IFR...
Market Watch looks at use of orderbook data
The latest edition of Market Watch explains how FCA uses orderbook data to help conduct surveillance to identify suspected market manipulation. It uses its own data combined the STORs and other notifications it...
FCA and PRA make new accountability rules for long term absence
FCA and PRA have confirmed their policy on long term absences. FCA has made new rules on individual accountability, requiring firms to notify it when a Senior Manager or Approved Person at an AR takes more than 12...
FCA finalises value pricing and loyalty penalty measures
FCA has finalised its package of remedies that will protect home and motor insurance customers from loyalty penalties and improve competition. The package of rules will: require insurers to offer renewing customers a...
Pensions Dashboard call for input
The Pensions Dashboards Programme has called for input on plans for the staged compulsory connection of pension providers to the new ecosystem. The DWP, FCA and TPR have been involved in developing the proposals, which...
ESMA finalises marketing guidelines
ESMA has clarified its guidelines on standards for fund marketing. Following its consultation, the guidelines detail how all marketing communications should: be identifiable as such; describe the risks and rewards of...
ESMA calls for evidence on digital finance
ESMA has launched a call for evidence which aims to gather information on various issues relating to digital finance. It is particularly seeking to understand: more fragmented or non-integrated value chains, which arise...
FOS publishes Annual Complaints Data
FOS has published its annual complaints data for April 2020 – March 2021. Key highlights include: an overall increase in new complaints of 2% from the previous year – but a 58% increase when PPI complaints...
FCA intervenes on high risk CFDs
FCA has stopped ICC Intercertus, a Cypriot firm operating under the TPR, from conducting any regulated or marketing activities in the UK. The firm’s wider group traded as “EverFX” and used the...
FCA confirms role in RLS
FCA has confirmed its approach to regulating firms in relation to the Government Recovery Loan Scheme that was launched by the British Business Bank on 6 April to replace the BBLs and CBILS which are now closed to new...
PRA speaks on Cyber Risk
Lyndon Nelson has spoken about the steps PRA takes to counter cyber risk. He described how PRA has looked at operational resilience in the context of cyber risk by testing, capabilities and coordination. It has carried...
PRA updates on MRTs
PRA has published an update on the requirements applicable to material risk takers. The EU did not adopt an updated version of the MRT Regulation before the transposition date of CRD V, and so PRA is currently using...
FCA orders firm to terminate AR agreements
FCA has published a first supervisory notice to Marshall Sterling Investment Management Limited, requiring it to terminate its relationships with 2 appointed representative firms within 14 days of the notice, and with a...
No timescale on BNPL
In answer to a question in Parliament, the Government confirmed its intention is still to bring forward secondary legislation to bring forward currently unregulated BNPL products “when Parliamentary time...
PRA publishes results of 2020 feedback survey
PRA has published the results of its 2020 firm feedback survey. The survey asked questions aiming to understand whether firms consider that PRA understands the firm and its business and the it has appropriate access to...
PSR consults on CoP for all
The PSR has issued a call for views on whether it should direct additional banks, building societies and financial institutions to offer Confirmation of Payee. Currently only the 6 biggest banking groups offer it. The...
FCA brings charges for unauthorised activities
FCA has taken criminal proceedings against Ian Hudson for carrying on his business, Richmond Associates, with the intention to defraud creditors and for carrying on the regulated activities of accepting deposits and...
ICO fines Amex for direct marketing messaging without consent
The ICO has fined American Express Services Europe Limited for sending, or instigating the sending of, over 4 million direct marketing messages over the period of a year, for which subscribers had not provided consent. ...
FCA updates on change of legal status applications
FCA has updated its website to state that from 1 June 2021 firms will no longer be able to apply to change their legal status. Instead, they will need to submit a new authorisation application for the new entity and...
Rebranded BSB updates website
The former Banking Standards Board has been rebranded as the Financial Services Culture Board from May 2021. It is now open to all financial services firms operating in the UK
FCA writes to CEOs of EMIs on client money
FCA has written a Dear CEO letter asking e-money firms to write to their customers to explain how their money is protected. It is worried that these firms’ promotions to customers give the impression that their...
IAIS consults on AML guidance
IAIS is consulting on changes to its “application paper” on AML and CFT in the insurance industry. The paper was originally published in 2013, and IAIS has revised it in light of various FATF updates and...
FCA clarifies application of EBA outsourcing guidelines
FCA has updated its webpage on outsourcing and operational resilience to clarify the application of EBA’s guidelines on outsourcing. It has confirmed that it expects relevant firms to continue to comply with them...
SFO publishes business plan
SFO’s business plan for 2021/22 includes nothing of great surprise. Its main priorities remain: investigating and prosecuting the most complex cases of fraud, bribery and corruption; delivering justice, upholding...
Dormant Assets Bill introduced in Lords
The Dormant Assets Bill has been introduced into the House of Lords and has had its first reading. The Bill proposes expansions to the current scheme to include not only bank and building society assets, but also long...
FSCS confirms 2021/22 levy forecast
FSCS has confirmed its levy forecast for 2021/22 at £833m. This is slightly lower than the indicative levy announced in January, partly because extensions of government support are likely to mean some firms will...
FCA reminds that complaints handling should be back to normal
FCA has reminded firms that its guidance on complaints handling during the pandemic expired on 1 May, and firms should now be back to normal.
FCA and PSR make statement on access to cash
A joint statement from FCA and PSR stresses that although there has been an overall decline in use of cash, withdrawals have started again as restrictions ease, and there must remain access to cash and banking services...
Treasury clarifies CIS exemption for P2P operators
Treasury has amended the FSMA (CIS) Order to clarify that the exemption that means operators of peer-to-peer lending platforms are not operating CIS when they carry out activities closely associated with platform...
FCA finalises guidance to insolvency practitioners
FCA has finalised its non-Handbook guidance on how IPs should approach insolvencies of regulated firms. The guidance focuses on how an IP appointed to a regulated firm should ensure the firm meets its ongoing financial...
Up next from FCA
The latest Policy Development Update from FCA heralds: a consultation on a new ESG sourcebook for enhancing climate-related disclosure requirements, coming in June; and a consultation on exit fees in investment...
FCA speaks on UK regulation and FCA transformation
Nikhil Rathi has spoken on FCA’s vision for regulation of the future. His audience was overseas banks, and he focussed on FCA’s priorities in regulating overseas firms at the same standards as domestic...
EBA consults on AML/CTF database
EBA has published for consultation draft RTS on a central AML/CTF database. The idea is for the database to contain details of weaknesses in systems and controls within individual firms identified by their national...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
FCA fines for financial crime failings in cum/ex trading
FCA has imposed its first fine for failings in cum/ex trading, dividend arbitrage and withholding tax reclaim schemes. It fined Sapien Capital £178,000 for systems and controls failings that led to the risk of...
Treasury updates on economic crime plan
Treasury has updated on the Government’s progress on its Economic Crime Plan. It is pleased to see an improved understanding of the threats to the economy and the moves that have been made to address...
PRA reports on collections in non-systemic banks
PRA has published a letter setting out the findings of its thematic review on collections. The letter follows PRA asking the internal audit function within non-systemic UK deposit takers to review their: collection...
FCA publishes H2 2020 complaints data
FCA’s most recent complaints data report shows: a significant drop in complaints over the H1 2020 figure; a large decrease in insurance and pure protection complaints – with the largest being in PPI...
FCA publishes DP on high risk investment promotions
Following feedback to its Call for Input on Consumer Investments, FCA has published a discussion paper on proposals to strengthen its financial promotion rules for high-risk investments. The paper focuses on three main...
FS Bill gets Royal Assent
The final stages of the FS Bill’s passage through Parliament have been completed, with the Lords agreeing on the Commons amendments to the duty of care provisions, and not insisting on following through with the...
FCA consults on changes to UK MiFID firm organisational requirements
FCA is consulting, as part of its wider capital markets reform work, on a set of changes to the conduct and organisational requirements on research and best execution. The aim is that the rules continue to achieve...
Court considers “by way of business” test
The High Court has considered the scope of the “by way of business” test for the purposes of FSMA. Mr and Mrs A were involved in property development. They took a loan from a Mr P when they were unable to...
Debate over FS Bill continues
The House of Commons has not agreed with some of the Lords amendments to the FS Bill. In particular: they reject the addition of the requirement on FCA to make rules on the duty of care to take effect by 6 April 2022...
Government makes Global Anti-Corruption Sanctions Regulations
The Government has made the Global Anti-Corruption Sanctions Regulations 2021 using its powers under SAMLA. The Regulations took effect one hour after being made, at noon on 26 April. They give the Secretary of State...
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