FIN.

Author - Emma Radmore

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...

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...

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...

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...

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...

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...

FCA plans UK Benchmarks register

FCA is planning a new UK Benchmarks Register to replace the ESMA register post-Brexit for UK supervised users, for use by them and UK and third-country supervised benchmark administrators that want their benchmarks to...

EP upset over rejected AML blacklist

The European Parliament has called for urgent resolution of the debate between the EU Council and Commission on the new proposed AML blacklist. The EP had previously rejected 2 submissions by the Commission on the...

OFSI updates on sanctions approach

OFSI has updated its website to reflect the latest legislation and guidance on how the UK will implement on the one hand EU and on the other UN and domestic sanctions in the event of a no-deal Brexit.  Legislation has...

Lords Committee praises Bribery Act

The Select Committee on the Bribery Act has published its post-legislative scrutiny report, which concludes the Act is “exemplary”.  Enquiries and evidence have shown it to be a piece of law that works well...

FCA confirms FOS increase

FCA has issued a policy statement confirming the increase in the FOS award limit.  From 1 April, the limit that FOS can award against firms will be £350,000. This amount will apply in relation to complaints about...

FCA makes Directory rules

FCA has made its final rules on its “Directory“. The new public register will enable searches on all directors and senior managers, certification staff and other individuals who require qualifications to...

Council rejects high risk list

The EU Council has unanimously rejected the Commission’s updated list of high risk third countries. It said the proposal was not established in a “transparent and resilient process that actively incentivises...

FCA targets high-cost credit firms

FCA has written a “portfolio strategy letter” to firms that provide high-cost lending products such as guarantor loans, high cost short-term credit and unsecured loans for sub-prime customers, home-collected...

FCA updates rules

FCA has made a number of amendments to various parts of its rulebook, including: amendments to COBS on information relating to pensions savings, taking effect from November 2019 and April 2020; introducing a Devolved...

Up next from FCA

FCA is running behind schedule on some expected publications.  Its latest Policy Development Update highlights the following: consultation and discussion on the Investment Platforms Market Study remedies due in March...

No more Rolls Royce or GSK prosecutions

SFO has announced that, having considered all the evidence, there is either an insufficient likelihood of success, or it is not in the public interest, for it to bring any further prosecutions relating to the Rolls...

FATF plenary updates AML control reviews

At the most recent plenary meeting, FATF as usual reviewed its list of jurisdictions with AML deficiencies.  Although still disappointed with Iran’s lack of progress, it has continued the suspension of...

FCA welcomes MiFID 2 impact on research

Andrew Bailey has spoken to the European Independent Research Providers Association on the subject of MiFID 2. He noted one guiding principle of MiFID 2 is to ensure that portfolio managers act in the best interests of...

OFSI imposes first sanctions breach fine

OFSI has imposed its first publicised financial penalty for breach of sanctions restrictions. It fined Raphaels Bank £5,000 for dealing with £200 of a person designated under the Egyptian asset freezing legislation. The...

HMRC publishes self-reporting guidance

HMRC has published guidance for firms  on self-reporting a breach of the CFA provisions on failure to prevent facilitation of tax evasion. HMRC stresses that: reporting must be done only by an authorised representative...

FCA takes first competition action

In its first decision under its competition powers, FCA has found that 3 asset management firms have breached competition law by sharing of strategic information, the effect of which was that the firms knew each others...

EBA investigates regulators over Danske Bank

EBA has opened a formal investigation into possible breaches by the Estonian and Danish financial services regulators of EU law in connection with the links of Danske Bank and, in particular, its Estonian branch, with...

FSB asks if BigTech will shake up FinTech

FSB has published a report looking at FinTech market developments in the financial system and what that might mean for financial stability.  It is generally excited by the possibilities that FinTech offers and says...

Treasury makes Brexit MLR changes

Treasury has made a statutory instrument making necessary changes to the MLRs consequent on a hard Brexit. The instrument took effect on 13 February and will take effect on exit day.  Among other things, the changes:...

Sign up to our repeat SMCR workshop

We are delighted to be hosting a re-run of our sell-out half day workshop on the SMCR for solo-regulated firms. This Compliance Register seminar, at which Emma Radmore, Roseyna Jahangir and Michelle Chance will speak...

PRA updates fees position

PRA has issued its feedback statement, new rules and a new supervisory statement on certain aspects of its periodic and transaction fees. Its update covers: a revised approach to periodic fees for Designated Investment...

FCA posts video for SMCR help

FCA has arranged for a video to be made by firms that have already implemented the SMCR, sharing their experiences of adopting it.  Contributors share the stories from Virgin Monday, HSBC, State Street and JP Morgan.

ESMA briefs on non-EU branches

ESMA has published a supervisory briefing aimed at helping supervisors dealing with non-EU branches of EU firms. It highlights how the supervisors should ensure that the non-EU branch can comply with the requirements of...

EU reaches political agreement on EMIR Refit

After nearly 2 years of negotiation, the European Parliament and Member States have agreed a targeted reform of EMIR. The Commission wanted to provide simpler and more proportionate rules, and the changes will exempt...

ESMA creates Brexit page

ESMA has created a new web-page on Brexit, setting out how it is preparing for it.  Its latest agreement is a MoU with BoE for recognition of CCPs and the Central Securities Depository.  It aims to recognise all UK CCPs...

FOS focuses on debt

The most recent edition of Ombudsman News focuses on enquiries FOS has received about debt collection – on credit cards, loans and mortgages. It took on over 1,000 complaints in the area during 2018. As a result...

FCA fines fund manager

FCA has fined Paul Stephany, formerly a fund manager at Newton Investment Management Limited. It imposed the £32,200 fine after it found Mr Stephany twice submitted orders as part of a book build for shares that were to...

TI publishes latest CPI

The latest Corruption Perceptions Index contains few shocks, but a few pithy observations from Transparency International.  The top 10 includes 4 Nordic nations, and comprises Denmark, New Zealand, Finland, Singapore...

FCA updates MiFID expectations

FCA has set out how it proposes to use its temporary powers under the draft legislation Treasury has put forward. It plans in principle to make transitional measures that will ensure that firms do not need to prepare...

Regulators consult on FSCS MELL

FCA and PRA are consulting on the management expenses levy limit (MELL) for FSCS for the 2019/2020 year. They propose an increase of 2.4% over the current year with a levy for FSCS management expenses of £74.6m and an...

FCA feeds back on RND and Plevin issues

FCA has published a detailed policy statement to back up the new rules on regular premium PPI complaints and recurring non-disclosure of commission. FCA stresses that one of the main purposes of its consultation and now...

Tribunal rules on Burns costs

The Upper Tribunal has ruled on whether any part of costs claimed by Alistair Burns (on his unsuccessful application) should be awarded. The Tribunal has discretion over the award of costs, but can only make the award...

Solicitor fined for AML breaches

The Solicitors Disciplinary Tribunal has fined Khalid Sharif, a director and solicitor at Child & Child, who was also the firm’s MLRO £45,000 for failings under the (then) 2007 MLRs, which were also breaches...

FCA makes new rules

FCA’s latest Handbook Update lists rules made in December and January.  The key changes: amend the rules on PCAs and Overdrafts from 18 December 2019: these changes amend BCOBS and CONC to tackle low levels of...

FMLC writes to Treasury on Brexit regulations

FMLC has written to Treasury with its key observations on the FSMA (EU Exit) Regulations.  The Committee is concerned at some wording proposed in relation to the financial promotion rules. Specifically, FCA has power to...

SFO announces Tesco DPA

SFO has published the terms of a DPA it has entered into with Tesco Stores Ltd following events in 2014 which resulted in the company creating a false account of its financial position by overstating its profits. As...