On 2 March, various UK government agencies and regulators released a number of statements and extra measures brought in on 1 March: the PSR announced that is was working with all relevant agencies to help make sure the...
Author - Emma Radmore
Emma Radmore
Treasury responds on mini-bonds
Treasury has published its response to the consultation on the regulation of mini-bonds (or NTDS – non-transferable debt securities). Most respondents agreed the instruments should be brought into regulation, but...
OFSI updates asset freeze lists
OFSI has updated its list of all asset freeze targets and has also published separately an updated list of persons named in relation to financial and investment restrictions related to Russia, together with guidance on...
Government publishes economic crime combatting measures
As promised, the Government has published: The draft Economic Crime (Transparency and Enforcement) Bill; a factsheet on the Register of Overseas Entities; and a white paper on corporate transparency and register reform...
Economic Crime Bill, Register of Overseas Entities and Companies House reform – at last
The Home Office has announced it is to bring forwards a new Economic Crime (Transparency and Enforcement) Bill on 1 March. The bill is to help NCA prevent foreign owners from laundering money in UK property and to make...
FCA fines Barclays over collapsed payment firm oversight
FCA has fined Barclays £783,800 for oversight failings in its relationship with Premier FX, a payments firm which is in liquidation. Barclays was Premier’s sole UK banker. FCA found that Barclays failed to make...
OFSI updates Russian sanctions
Unsurprisingly, OFSI is constantly updating the sanctions lists in respect of Russia. On 24 and 25 February it updated the list of designated persons, which as at 25 February ran to 190 individuals and 59...
Ombudsman News features data, diversity and storm damage
The latest edition of Ombudsman News features items on the latest complaints data and the FOS diversity, inclusion and wellbeing reports featured in other posts, and also notes that FOS often sees complaints from...
Dormant Assets Act gets Royal Assent
The Dormant Assets Act got Royal Assent on 24 February, The Act expands the scope of “dormant assets” that has encompassed cash in bank and building society accounts since 2008 to include a greater range of...
Employment tribunal orders reinstatement of dismissed trader
An employment tribunal has determined an application for reinstatement in Bradley Jones v JP Morgan Securities plc in favour of the applicant. Mr Jones was a financial analyst and cash equities trader employed by JPM...
FCA Portfolio letter to credit rating agencies
FCA has published a portfolio letter setting out the risks of harm in the credit rating agency sector, and its regulatory expectations. This is the first of its letters aimed at the sector, which it supervises under the...
FCA reinforces sanctions expectations
In the light of the tranche of sanctions imposed on Russia, FCA has reminded firms it expects them to have established systems and controls to counter the risk they they might be used to further financial crime, and...
New courses for compliance professionals
We are excited to have agreed with the Compliance Register to present at several key courses over the coming months. We will be presenting on: financial crime prevention SMCR the regulatory regime financial promotions...
OFSI updates sanctions
OFSI has published a new set of financial sanctions relating to Russia, effective from 22 February, together with updated guidance. It amended existing entries in relation to 2 entities and added 5 more entities and 3...
FCA comments on crypto-provider controllers
FCA has commented on recent statements made by Bitpanda announcing its acquisition of Trustology Limited. It comments that the acquisition has made Bitpanda (an EU digital assets service provider) the new beneficial...
Parliament publishes UWO briefing
The House of Commons Library has published a briefing paper on unexplained wealth orders. The paper looks at the background to the introduction of UWOs in the Criminal Finances Act 2017, and says that only 9 orders have...
Report says single market for investment funds not working
A report from the European Court of Auditors says that not all the ambition of the EU investment funds single market directives has been achieved. It says cross-border activities are still rate, supervision across...
OFSI updates penalties table
OFSI has updated its table of penalties imposed for breach of financial sanctions restrictions and requirements to include a fine imposed over a year ago, but just publicised, The payment services provider in question...
Amended MLD4 high risk list published in OJEU
The new list of High Risk third countries for the purposes of EU AML legislation has been published in the Official Journal. Burkina Faso, the Cayman Islands, Haiti, Jordan, Mali, Morocco, the Philippines, Senegal and...
JMLSG confirms syndicated lending update
JMLSG has published the finalised revisions to the syndicated lending chapter in Part II of its guidance, following its December 2021 consultation. The new content confirmed that in a low risk scenario, each lender will...
FCA warns “no change of control without approval”
FCA has updated its website to highlight the consequences of the significant increase in change in control notifications it is currently receiving. It is currently taking around 2 months for FCA to allocate a case...
EU Council opines on AML measures
The Council of the EU has published opinions on the proposals for an AML Authority and the proposals for AMLR1 and AMLD6. The ECB has welcomed the package, and is ready to cooperate with the AMLA. It notes the criteria...
Tribunal considers crypto registration refusal
The Upper Tribunal has considered the FCA’s decision not to register Gidiplus Limited under the MLRs and the firm’s application for a suspension application to allow it to continue business pending an appeal...
MLR changes made in respect of trusts
Changes to the MLRs that take effect on 9 March will extend various deadlines in respect of beneficial ownership of trusts, and to amend the lists of excluded trusts. The main deadline for registration of relevant...
FCA updates on GI value measures
FCA has updated its webpage on general insurance value reporting to clarify what firms are expected to report in respect of legal expenses and vehicle breakdown products. For these products, firms are not required to...
FCA finalises Part VII conduct expectations guidance
FCA has published an updated version of its guidance on how it approaches a review of Part VII insurance business transfers. The update, which FCA consulted on last July, gives clarity on some points, and has been...
FCA gets BNPL firms to change contract terms
FCA has secured voluntary agreement from Clearpay, Klarna, Laybuy and Openpay to make changes to terms in their contracts. Although FCA does not yet regulate the contracts, it used its powers under the Consumer Rights...
Treasury publishes summary of UK funds regime responses
Treasury has published a summary of the responses it received to its call for input on the UK funds regime and what the next steps will be. Following comments, the government and FCA will put forward a number of new...
FCA speaks on capital market enhancement
Sarah Pritchard has spoken on FCA’s role and priorities in enhancing the UK’s capital markets. She focused on FCA’s transformation plan and how this would affect the way it regulates. It has welcomed...
Parliament launches new UK-EU financial services inquiry
Parliament has launched an inquiry to establish: the impact of Brexit so far on the financial services sector; the future of financial services trade with the EU in the absence of equivalence; and the impact of...
FCA publishes 2021 fin proms data
FCA has published its analysis of its data from 2021 relating to action it took against authorised firms breaching financial promotion rules. Key conclusions included: an increase in amendment and withdrawal of...
Treasury Committee calls for urgent economic crime measures
The Treasury Committee has published its long awaited report on Economic Crime. It is concerned that the Economic Crime Plan has not been as effective as hoped, and says the need for additional funding can’t just...
Treasury and OFSI update on penalties for sanctions breaches
Treasury and OFSI have published updated guidance on monetary penalties for breaching financial sanctions. The guidance applies from 28 January 2022 and applies to all case where OFSI becomes aware of a potential breach...
FOS looks at current initiatives
The latest edition of Ombudsman News reminds firms there is still time to respond to its consultation on its plan and budget, and at its wider work, including the wider implications framework and how it is working on...
FCA explains multiple-occupancy buildings insurance work
FCA has written to CEOs of insurance firms and brokers explaining the work it is carrying out in the insurance market for multiple-occupancy residential buildings. FCA wants to ensure residential leaseholders get...
ESMA consults on MiFID 2 suitability
ESMA is reviewing its guidelines on the MiFID 2 suitability requirement, with a view to updating them in respect of sustainability. It is looking particularly at collecting client information on sustainability...
Regulators work to transform data collection
FCA is working with the BoE and the industry to transform how regulators collect data from the financial sector. FCA recognises the burdens of regulatory reporting and it finds that the data it receives is not always of...
2021 CPI shows little change in worldwide corruption levels
Transparency International has published the 2021 Corruption Perceptions Index, which shows a worldwide standstill on corruption levels. It is disappointed that the average score on the index is 43 (with 100 being the...
PRA calls for technical input on insurance stress test
PRA will be conducting an insurance stress test in both life and general insurance markets from May 2022. It is seeking, by 17 March, feedback on any aspect of the stress tests, and has published updated scenarios with...
CMA publishes updated governance arrangements for Open Banking
CMA has published amended arrangements setting out the composition, governance, budget and funding arrangements for the Open Banking Implementation Entity, following last year’s reports on the lack of appropriate...
FCA publishes 2022 retail banking model update
FCA has published its 2022 final report on competition in retail banking business models, following on from its 2018 reports. As a result of the 2018 reports there were a number of regulatory changes, specifically to...
FCA updates competition powers guidance
FCA has updated its guidance on its competition powers and procedures. The guidance needed updating partly following Brexit and also to include FCA’s powers in relation to claims management and certain procedural...
FCA to impose requirements on non-compliant API
FCA has published its first supervisory notice of its intent to require an API authorised to provide money remittance services to cease doing so without prior written approval. It wants Probitas to cease all business...
OFSI and FCDO update on new look sanctions lists
OFSI has published a format guide for the Consolidated List of Designated Persons, while the FCDO has published samples of the new-look list in various formats.
FCA reminds TPR firms to meet its standards or face action
FCA has updated its website to remind firms under the TPR that they must comply with relevant rules, or else they may be asked to stop undertaking new business and have their permissions removed. Similarly, firms who...
Treasury to make rules on misleading crypto ads
Treasury has confirmed that the Government plans to legislate to address misleading cryptoasset promotions. It proposes to do so by brining the promotion of cryptoassets within the scope of financial promotions...
Government consults on CCP and CSD regulation
Treasury is consulting on how the future regulatory framework should look for central counterparties and central securities depositories. It follows up on a commitment to look at whether changes should be made in the...
Parliament launches commercial insurance inquiry
The Industry and Regulators Committee has published a call for evidence for a new inquiry into commercial insurance and reinsurance regulation. It is asking for evidence by 11 February on the roles of the regulators and...
FOS responds on action plan
The Treasury Committee has published a response from FOS, received in December, answering various questions the Committee had posed about FOS’ action plan. The letter addresses several issues, including: the...
FCDO publishes first UK annual sanctions report
The Foreign, Commonwealth and Development Office has published the UK annual sanctions report for 2021, which is the first report to detail the full extent of the UK’s autonomous sanctions since Brexit. In the...
Parliament publishes report on central bank digital currencies
The Economic Affairs Committee has published its report on the potential for the UK to have a central bank digital currency. It has concluded that there’s no convincing case to have one. Although there could be...
FCA updates on skilled persons reviews
FCA has published the figures for the skilled persons reviews commissioned in October – December 2021. There were 12 in total, of which 4 were on retail banking and payments firms and 3 on investment management...
PRA updates insurance business transfer SoP
PRA has published its feedback on responses to its consultation in CP 16/21 on insurance business transfers, and has published an updated Statement of Policy. There were not many respondents, and those who responded...
FCA updates on GI value reporting
FCA has updated its webpage on reporting of general insurance value measures to clarify which firm is responsible for reporting in various scenarios. The requirements are all set out in SUP 16.27.8 but FCA has set out a...
EU to amend high risk third countries list
The European Commission has published a draft Regulation to amend the MLD list of high risk third countries. It proposes to: add to the list: Burkina Faso, Cayman Islands, Haiti, Jordan, Mali, Morocco, the Phillippines...
FCA still concerned about wholesale data
FCA is to continue to investigate the markets for benchmarks, indices, credit ratings and trading data after responses to its call for input highlighted concerns that there is limited competition in the markets and that...
MLR changes change dates and criteria for registrable trusts
Changes to the MLRs: change time limits for the registration of trusts, so that trustees now have until 1 September 2022 to register (extended from the original 10 March to give trustees a year after the TRS enabled...
FCA takes criminal proceedings against directors of unauthorised firm
FCA has commenced criminal proceedings against brothers who were directors of Collateral (UK) Limited, and who: dishonestly represented to investors that the firm was authorised as a P2P lender, knowing it was not;...
FCA to redo financial resilience survey
Firms should look out for a new version of the FCA Covid financial resilience survey. It has already run the survey 5 times and will now start a 6th review. Completion of the survey is mandatory, and FCA will be...
FCA updates information on Complaints Commissioner reports
FCA has updated its website to provide links to Complaints Commissioner’s reports where the Commissioner has upheld complaints against the FCA, and has added 6 new reports dated 4 January 2022. The reports...
EBA publishes derisking opinion
EBA has published its opinion on the scale and impact of derisking and the steps regulators should take to tackle “unwarranted” derisking. Although EBA feels its guidance ought to help avert the practice, it...
ESMA asks for support on reverse solicitation report
ESMA has written to the EU on reverse solicitation. The Commission had asked ESMA for its input on a report the Commission is to deliver on cross-border distribution of collective investment undertakings. ESMA has been...
ESMA publishes appropriateness and execution only report
ESMA has published its final report on its guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements that apply for non-advised sales. ESMA’s work had shown a need for...
FCA confirms end-2021 LIBOR changes
FCA has reminded firms that publication of 24 LIBOR settings has ended – that is, all euro and Swiss Franc, all overnight/spot next, 1-week, 2-month and 12-month sterling and Japanese yen and 1-week and 2-month US...
EU reaches political agreement on DLT Regulation
The Council of the EU and European Parliament have reached a final compromise on a Regulation on a pilot regime for market infrastructures based on DLT. The regime: sets out the conditions for acquiring permission to...
JMLSG consults on syndicated lending changes
JMLSG is consulting on a proposed change to the Syndicated Lending chapter within part 2 of its guidance, to include a new paragraph on the risk-based measures that may be appropriate for each lender in a syndicate when...
FCA reminds firms and consumers of insurance renewal rule change
FCA has reminded firms and consumers of the new requirements taking effect from 1 January that will prevent insurers from quoting customers a higher price for renewing home or motor insurance than they would charge a...
FCA updates on PRIIPs
FCA has confirmed its intention to amend the UK PRIIPs RTS and handbook guidance to reflect the new end date legislated for in the Financial Services Act 2021 that allows UCITS providers to choose to supply either a...
FCA extends 10% depreciation notification waiver
FCA has extended the temporary measures it put in place in March 2020 that mean it will not take action against firms who breach the requirement to issue 10% depreciation notices to retail investors under COBS so long...
HMRC reports on MLR non-compliance
HMRC has published its regular report on business that have failed to comply with the MLRs. Among the failings and fines are: a fine on BNY Mellon Corporate Trustee Services Limited for failing to apply for registration...
JMLSG updates guidance
JMLSG has confirmed the changes it proposed to chapter 5.7 of part 1 of its guidance on monitoring customer activity and published one further clarificatory guideline. It has now submitted the updated wording to...
PRA fines Standard Chartered for governance and transparency failings
PRA has fined Standard Chartered Bank £46.55m for: failings in its regulatory reporting governance and controls: PRA had imposed a temporary additional liquidity expectation on the bank in late 2017. Over a 14 month...
Government updates on anti-corruption strategy
The Government has highlighted the action taken in the third year of the UK’s current 5 year anti-corruption strategy. During 2020, key initiatives included: reducing the insider threat in high-risk domestic...
FCA updates on rule changes
FCA’s latest Handbook Notice confirms, among other things: changes to SUP to clarify what FCA expects to see reported on form FIN-A changes to LIBOR rules (previously reported in FIN) and changes to the value...
EU updates on PRIIPs
The Council of the EU ha published details of the extension of the transitional arrangement that allows UCITS to choose whether to use the KID or the KIDD. The transitional arrangement was due to end in July 2022, but...
FCA fines HSBC for AML transaction monitoring failings
FCA has fined HSBC £63.9m for failings in its AML transaction monitoring process between March 2010 to March 2018. FCA found that the bank did not: until 2014, consider whether the scenarios used to identify ML/TF...
CLLS considers Fin Prom onshoring
The City of London Law Society has published a letter written to the Treasury in July expressing concerns about how the “onshoring” of the Financial Promotion Order post-Brexit has affected the exemptions...
FCA fines for conflicts and gift & entertainment breaches
FCA has fined GAM International Management Limited £9.1m and Timothy Hayward £230,037 for issues relating to conflicts of interest and gifts and hospitality. Both the firm and Mr Haywood agreed all issues and qualified...
Ombudsman News looks at BI “at the premises” complaints
The latest edition of Ombudsman News from FOS looks not only at its plan and consultation (which FIN has covered separately) but also at complaints it has looked at relating to “at the premises” cover in...
Treasury Committee updates on Nat West correspondence
Following the sentencing in the Nat West MLR prosecution, the Treasury Committee has published further correspondence between it and the FCA. The FCA has now responded to the Committee’s previous correspondence...
Treasury consults on amending Fin Prom exemptions
20 years since the FPO was made, and more than 15 since it was amended to facilitate exemptions from the financial promotion restriction for high net worth and sophisticated individual investors, Treasury is consulting...
BoE publishes Financial Stability Report
The December 2021 Financial Stability Report concludes: recovery from the pandemic continues, and uncertainty also continues, but UK banks’ capital and liquidity positions remain strong; the FPC is keeping an eye...
Structure of sanctions lists to change
OFSI and the FCDO have announced that the structure and format of the UK sanctions list will change in February 2022. The changes will include: alias strength for UN listings standardised data wherever possible new...
FSB considers “safe remittance corridors”
FSB has published a World Bank/IMF report which proposes a draft methodology for and framework for assessing remittance corridors which could be considered “safe”, in an effort to improve cross-border...
NatWest fined £264.8m for AML failings
The long awaited sentencing following the conviction of NatWest on three offences of failing to comply with the MLRs resulted in the announcement of a fine on the bank of £264,772,619.95. The bank admitted to breaching...
FCA issues final LIBOR publications for end-2021
FCA has reminded firms of the remaining actions they need to take as the end of the year approaches and, with it, the cessation of calculation of most LIBOR rates. From 1 January 2022, 24 of the 35 LIBOR settings will...
EBA publishes draft guidelines on remote onboarding
EBA is consulting on draft guidelines for the use of remote customer onboarding solutions under MLD4. It aims to set common EU standards on developing and implementing sound, risk-sensitive initial CDD policies and...
UK Finance updates Financial Abuse Code
UK Finance has published an updated version of its Financial Abuse Code of Practice. The Code is a voluntary one, updated to reflect the industry’s understanding of victim-survivor needs. It is designed to align...
Treasury Committee asks for information on FOS action plan
The Treasury Committee has written to FOS, asking for further information on how it intends to get on top of its current case backlog, and how it proposes to address its funding issues. Mel Stride welcomed the...
FCA considers FSCS operation review
FCA has published a discussion paper on the purpose, scope and funding of the compensation framework. It notes that the FSCS levy has increased over the last 10 years, by nearly £500m to an expected £717m for 2021/22...
Commons Committee seeks clarity on UK/EU AML divergence
The House of Commons (European Scrutiny Committee) has written a letter on the implications for the UK of the proposed changes to EU AML rules. The Committee wants to understand better what the UK’s general...
ICO fines over pensions cold-calling
ICO has fined EB Associates Group (EBAG) £140,000 for instigating two IARs to make over 100,000 unsolicited direct marketing calls to consumers about occupational or personal pension schemes where the customers had not...
PSR consults on CoP: ending dual running
The PSR is consulting on the wider implementation of Confirmation of Payee, following its adoption by the UK’s largest banking groups. It has published a draft direction to ensure migration to the Phase 2...
FOS publishes plan for change
FOS has published an action plan to deliver a better service to customers. The plan aims, among other things: to bring more effective and efficient resolution of cases – part of this involves teams which are...
European Council and Parliament agree crypto-transfer mandate
The Council of the EU has agreed on a mandate to negotiate with the Parliament on a proposal to update existing rules on information accompanying transfers of funds so that they will include certain crypto assets within...
EU fines banks for FX spot cartel
The European Commission has fined UBS, Barclays, RBS, HSBC and Credit Suisse a total of €344m for their participation in a foreign exchange spot cartel. The first 4 banks settled (with UBS receiving full immunity for...
FCA publishes consumer warning on firm
FCA has published a consumer warning on Grosvenor Associates Limited. It says it has removed the firm’s permissions, so it is no longer authorised to carry out any regulated activities and investments with it may...
FCA makes pensions “stronger nudge” rules
FCA has made final rules that will require firms to give customers a “stronger nudge” towards Pension Wise when they decide to access their savings. The rules will take effect from 1 June 2022 and will...
FCA finalises UK MiFID changes
FCA has finalised its proposals on changes to the research rules and removal of the best execution reporting in RTS 27 and 28 in relation to UK MiFID. FCA remains of the view that the changes were necessary to ensure...
FCA publishes mortgage prisoner review
FCA has laid its mortgage prisoner review before Parliament. The review sets out data that will help the Government consider whether any practical and proportionate solutions could help these borrowers. FCA’s data...
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