FIN.

Author - Emma Radmore

Sanctions updates from 2 March

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...

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...

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...

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...

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...

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...

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...

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 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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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 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...

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...

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...

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...

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...

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...

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...

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...

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...

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 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...