The European Parliament has adopted the new AML package, which, among other things, will: limit cash payments to €10,000; create a new EU-wide agency to directly supervise the highest risk businesses; allow those with a...
Author - Emma Radmore
Emma Radmore
ABI acts on motor premium finance
The ABI has announced a new set of Premium Finance Principles, designed to try better to manage the charges on consumers who pay monthly for motor insurance. The ABI says it considered, and discussed with the FCA, a...
FCA consults on Financial Crime Guide updates
The FCA is consulting on several proposed changes to its Financial Crime Guide. It is suggesting change to: the guide generally to add references to crypto assets and the Consumer Duty; the sanctions part to reflect...
PRA writes to CROs on private equity related activities
Following a PRA review of private equity financing businesses, it has now written to bank Chief Risk Officers noting the key conclusions. It specifically notes a recent trend that increases exposure to various non...
FCA notes good and poor practice for credit broking ARs
The FCA has carried out a review of the key harms and drivers of harm caused by ARs and IARs in the credit broking market. Key areas where some principals could improve are; making sure they undertake criminal or credit...
PSR consults on supervisory approach
The PSR is seeking views on its approach to supervision. Last year, it set up a Supervision and Compliance Monitoring division, designed to deter and challenge any poor practices within firms. It plans for the division...
Banking and financial services included in key Smart Data sectors
The Department for Business and Trade has published the Smart Data Roadmap to outline the action it is planning to take in 2024 to 2025 using the provisions of the Data Protection and Digital Information Bill on Smart...
Lords asks for FCA justification of enforcement proposals
The House of Lords Financial Services Regulation Committee has written to the FCA making several criticisms of its proposals to name firms under investigation. It is particularly critical that the paper explicitly rules...
UK Finance to support VRPs for commercial applications
UK Finance has published a report which sets out recommendations for addressing the key issues and processes needed to develop VRPs for commercial applications and containing a set of model contractual terms.
PSD3 nears final agreement
The European Parliament has voted through proposed changes to the Payment Services Regulation and Directive by a large majority. Key changes include: free verification of identifiers and requirements on PSPs to ensure...
BoE/PRA update on AI approach
The BoE and the PRA have responded to requests for an update on the strategic approach they are taking to AI. The response notes that AI and Machine Learning is already in quite wide use in many parts of the financial...
Debanking complaints spike
The Treasury Committee has published new data that shows a rise of 69% in complaints to the FOS about debanking since 2020/21. In the last year, there were nearly 4,000 complaints. There has also been an increase in the...
FCA updates on BSPS complaint action
The FCA has provided an update on the complaints it has been receiving about what it is doing, or not doing, in relation to the fallout from BSPS transfer advice. Although it has implemented a redress scheme and taken...
BoE speaks on role of private equity
Nathanael Benjamin of the BoE has spoken on the role of the private equity market, focusing on its key role in financing companies but looking also about safe and sustainable growth. Key points from his speech included:...
PRA consults on final Solvency II review steps
The PRA has published a consultation on the final steps it needs to take to implement the conclusions of the Solvency II review and finalise all the PRA materials needed to replace the Solvency II assimilated laws that...
APPG publishes Economic Crime Manifesto II
The All Party Parliamentary Groups for Anti-Corruption and Responsible Tax and for Fair Business Banking have published a manifesto looking at the scale of corruption and calling for significant greater transparency to...
PSR consults on APP reimbursement compliance and monitoring
The PSR has published a consultation paper seeking views on proposed reporting requirements for PSPs that are in scope of the new reimbursement requirement, so that the PSPs will report data to allow the regulator...
NGFS publishes Transition Plan Package
The Network for Greening the Financial System has published its Transition Plan Package. It has published three detailed reports on: considerations for emerging markets and developing economies in tailoring transition...
FCA highlights common failings in asset management applications
The FCA has provided a list of common errors asset managers are making in applications for authorisation. For context, in the year to 1 April 2024, 18% of applications were withdrawn as a result of the FCA’s...
FCA publishes PEMC travel insurance signposting review
The FCA has published the findings of its review into how well consumers with medical conditions are being made aware of travel insurance available to them. The FCA introduced rules in 2020 requiring firms to signpost...
FCA publishes Link findings
The FCA has published its findings against Link Fund Solutions, explaining its conclusion that the firm failed to manager the liquidity of the Woodford Equity Income Fund from 31 July 2018 to 3 June 2019 and therefore...
PRA consults on fees
PRA is consulting on its fees and levies for 2024/25. Key elements of the proposals are: funding an overall increase in the budgeted cost for ongoing regulatory activities of 7%; dealing with an increase of 11% in the...
PRA publishes Business Plan 2024-5
The PRA has published its 2024/25 Business Plan. The plan focuses on: maintaining and building on the safety and soundness of the banking and insurance sectors and ensuring continuing resilience; being at the forefront...
FCA consults on new way to pay for research
The FCA is consulting on a range of ways in which asset managers might choose to pay for investment research. It says that, while firms are generally getting the research they want under the current rule format, the...
FCA finalises guidance for borrowers in financial difficulty
The FCA has finalised its rules and guidance to strengthen protection for consumer credit and mortgage borrowers in financial difficulty. It has decided to bring parts of its current guidance in FG23/2 for mortgage...
Transition Plan Taskforce updates plan resources
The TPT has published its final set of transition plans. The resources make use of the international best practice framework for plans and include: sector-specific guidance for entities such as asset managers and banks;...
Market Watch focuses on instrument reference data
The latest edition of Market Watch looks at completeness and accuracy of instrument reference data. It looks at the most common rejection messages and the number of rejections, and suggests best practice for submitting...
FCA consults on fees
The FCA has published its consultation on fees and levies for 2024/25. After the general fee freeze last year, key proposals for the next year include: increasing minimum and flat rate fees in line with the 8.75%...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
NCA releases latest SARs report
The latest NCA SARs annual statistical report shows a decrease in the total number of SARs compared to the previous year, which is mainly because of fewer SARs being made by high street banks, although banks still...
FCA publishes financial resilience survey results
The FCA has published the results of its October 2023 Financial Resilience Survey. The survey had been issued 11 times in the October 2023 form but has now been replaced with a new format. The FCA has released the data...
FOS publishes plans and budget for next phase
The FOS has published its finalised Plans and Budget for the next phase of its transformation. It expects to receive a greater number of complaints in the coming year, and anticipates 210,000 complaints in its caseload...
FCA gets consent to recover investor funds from Argento Wealth
The High Court has approved a consent order allowing the FCA to proceed with its application for £1.6m investor funds to be returned by Argento Wealth Limited and its sole director, in relation to 2 allegedly unlawful...
FCA and BoE consult on Digital Securities Sandbox
The BoE and FCA are consulting on the Digital Securities Sandbox which will allow participants to use developing technologies to carry out some of the traditional activities of CSDs and trading venues. Instruments such...
FCA updates on Attestations
The FCA has updated its website page on attestations. The page explains the situations in which the FCA will normally ask for attestations, and is updated quarterly with the numbers of attestations. For the quarter to...
Fair Business Banking group publishes call to action
The All Party Parliamentary Group on Fair Business Banking has called for input into its SME manifesto. The document, which wants to address the challenges that face SMEs when dealing with financial institutions, is...
FCA gives guidance on consumer credit income reporting
The FCA has updated its guidance for consumer credit firms to reflect changes to the way firms now need to calculate their proxy measure of annual income. When completing their reports, credit brokers need to include...
ABI publishes guide to supporting autistic customers
The ABI has published a good practice guide to help the insurance and long-term savings industry support autistic customers. It had found several barriers that autistic people face when trying to access the products...
FCA makes minor rule changes
The FCA has published its latest Handbook Notice. It has made changes to several parts of the rulebook, but mainly minor changes. The changes include: Removing SUP 1A which no longer reflects the FCA’s approach to...
Regulators respond on data collection transformation
The BoE and FCA have published an update on their joint transformation programme aimed at improving the data collection process for regulators and firms. They published their original transformation plan in 2021 and...
Regulators update on payment systems MoU
The signatory regulators to a joint-authority Memorandum of Understanding on co-operation in relation to payment systems in the UK have carried out their 8th annual review of how well the MoU is working. The BoE, FCA...
BoE consults on enforcement changes
The BoE, including the PRA, is consulting on proposed changes to its SOPs and procedures for enforcement, following the additional responsibilities FSMA 2023 has placed on it. The changes relate to enforcement policy...
Wolfsberg Group publishes financial crime audit principles
The Wolfsberg Group has published a set of principles for auditing a financial crime risk management programme under its three factors of: complying with financial crime laws and regulations establishing a reasonable...
HNWI/SCSI Fin Prom limits change again
We’ve written an article explaining the effects of the Budget reversal of the January increase on limits that high net worth and self-certified sophisticated investors need to meet to make use of financial...
PSR calls for evidence on LINK requirements
The PSR has published a call for views on its second annual review of Specific Direction 12, which is aimed at ensuring that LINK keeps a good geographical spread of free-to-use cash machines, and has appropriate and...
FPC March update
The BoE has published: the FPC’s financial policy summary and record for March: this concludes that conditions remain challenging and asset prices are stretched with the risk of a sharp correction in a broad range...
FCA consults further on pensions dashboard services
The FCA has published a further consultation ahead of the introduction of operating a pensions dashboard service as a new regulated activity. It has published new guidance that will be in PERG for relevant firms and is...
NCA updates SAR portal
The NCA has updated its website in respect of: overview of the SAR Portal: this includes an overview of the whole process and of the type of questions that the system will ask when a SAR is being submitted; registering...
Fund tokenisation report looks at further token use in MMFs
The second report of the Technology Working Group on fund tokenisation looks at the potential use of tokens as collateral for money market funds, and how tokenised funds can plan a key role in an “on chain”...
FCA updates social media guidance
The FCA has published its updated guidance on social media advertising. The guidance applies equally to firms and promotors, including influencers. It does not contain any new obligations, but is a reminder of...
FCA updates on AIFM hosting
The FCA has published information for AIFMs who make use of the hosting model. It reminds firms of its 2023 research which showed potential harm in the model, in terms of: lack of oversight of seconded staff –...
PSR speaks on the future
Chris Hemsley, speaking at the Pay360 conference, looked at how far payments innovation has come this century, and spoke of some challenges for the future. He focused on: the important role of a Payment System Operator...
Wolfsberg group updates CTF statement
The Wolfsberg Group has updated its 2002 statement on the Suppression of Financing of Terrorism. The updated statement reflects changes in laws and also public-private cooperation in the fight against terrorist...
FCA writes to CEOs on consumer lending strategy
The FCA has published a “Dear CEO” letter on its strategy for Consumer Lending. The letter focuses on three of the lending portfolios within the market – high-cost lending, mainstream consumer credit...
PRA to revamp Rulebook website
The PRA is to launch a new website for its Rulebook on 10 April. The site url will remain the same, but the new site is intended to be more engaging and user friendly. New features will include easier links to policy...
FCA calls for improvement in Retirement Income Advice
The FCA has published a Thematic Review and written to CEOs of financial advisers, asking them to assess the compliance of their retirement income advice, and take steps to address any shortcomings they find. It...
FCA extends enforcement CP response period
The FCA has extended the consultation period on its consultation on publicising enforcement investigations. The consultation was due to close on 16 April, but will now remain open until 30 April.
FCA updates approach to international firms
The FCA has published an updated version of its approach to international firms. Its guidance applies equally to firms applying for authorisation and those that are already authorised. It does not cover payment and e...
FCA publishes Business Plan 2024/2025
The FCA’s 2024/25 Business Plan highlights the work carried out to date, and what it plans to do in the coming year, the final year of its 3 year strategy. The strategy continues a focus on delivery of the...
Court decides on investment property loans
The Court of Appeal has found in favour of an unregulated lender, confirming that agreements it entered into with individuals were investment property loans which were exempt from the RAO definition of “regulated...
FCA decides to fine and ban for sham trading
The FCA has published a Decision Notice setting out its decision to fine Nailesh Teraiya £5.95m and ban him, in its latest enforcement case involving “cum ex” payments. Mr Teraiya was formerly the sole...
FCA confirms FIN074 return requirement
The FCA has confirmed that it sends firms the FIN074 return so that it can work out whether the firm needs to pay the Economic Crime Levy – not all firms that receive the return will need to do so. The FCA also...
Transition Finance Market Review calls for evidence
The TFMR has issued a call for evidence, open until 25 April 2024, seeking views to help its future work. The TFMR was launched in January and will report in the summer. It proposes to take a broad view of what...
Treasury publishes payment contract termination changes
Treasury has published the near final version of the amendments to the PSRs that will require payment services providers to give customers at least 90 days’ notice of termination of framework payment services...
AI in financial services: gathering speed
Read our article on the latest reports on use of AI in financial services and the potential benefits of generative AI.
SME Manifesto redoubles efforts in call to action
The All-Party Parliamentary Group on Fair Business Banking has republished its call for action to help it build its SME Manifesto, which wants to target access to finance and dispute resolution. So far, it has started...
FCA speaks on the future of pensions
Nikil Rathi has spoken on pensions freedoms. He noted that, with the increasing flexibility consumers have on accessing their pensions savings, it is ever more important for the individual to be sure they are saving...
FOS limit to increase to £430,000
The FOS maximum compensation limit will increase from 1 April 2024. It will be: £430,000 for claims referred to FOS on or after 1 April 2024 about acts or omissions by firms on or after 1 April 2019; and £195,000 for...
Treasury releases draft laws on payment delays
The Treasury has published the Payment Services (Amendment) Regulations 2024, which will allow payment services providers to delay payment processing where there are reasonable grounds to suspect fraud or dishonesty...
FCA updates financial crime pages
The FCA has updated the page on its website that lists all its financial crime resources to include its most recent publications.
FATF updates beneficial ownership guidance
FATF has updated its risk based guidance for its Recommendation 25 on Beneficial Ownership and transparency of legal arrangements. The guidance focuses on understanding trusts, and the risks associated with them. It...
Treasury consults on MLR improvements
The Treasury is consulting on how to make the Money Laundering Regulations more effective. The paper follows previous consultations on changes to the MLRs and picks up on comments about how many of the provisions of the...
FCA fines and bans over pension transfer advice and oversight
It’s been a while since the last published notice, but FCA continues to take action against firms and individuals relating to pension transfer advice. It has fined Inspirational Financial Management (in...
FCA updates on skilled persons reports
The latest statistics for skilled persons reports FCA commissioned in Q3 2023/24 show: 24 reports in total 7 related to the retail banking and payments sector, 6 to retail investments, 5 to wholesale markets and 4 to...
Treasury reverses FPO and FCA makes clear statement
FCA has confirmed that it and the industry implemented the changes to the HNWI exemption in the FPO on 31 January, as required by a change in the law which in turn followed detailed consultation and recommendations from...
Budget reverses HNWI update and ups Economic Crime Levy
Among the announcements relevant to regulated financial services in Jeremy Hunt’s budget are: a bizarre U-turn to reinstate the previous eligibility criteria for high net worth and sophisticated investors, when...
FCA updates on Woodford
FCA has updated its website with further updates on the Woodford Equity Income Fund. It has confirmed the redress scheme became fully operational on 5 March and that payments are expected around Easter.
FCA speaks on “future-fit” workforce
Emily Shepperd of FCA has spoken on what firms need to be doing to make sure they get and keep the right talent which can respond to new events and different methods of working. She looked at the need to unlock talent...
Government reviews SAMLA
The FCDO has carried out a preliminary post-legislative assessment of SAMLA 2018. The analysis looks at the background to the legislation and sets out the powers it contains. It is divided into sections, focusing mainly...
FCA warns Annex I firms on AML issues
FCA has written to CEOs of the 1,000 Annex I firms it supervises (firms which do not need FSMA authorisation but which carry on activities subject to the MLRs for which FCA is the appropriate supervisor). It has carried...
FCA updates on crypto stats
FCA has updated its information pages on crypto AML applications to reflect statistics to 1 March 2024. It has now received 340 applications since January 2020, including 26 in the past year and 2 in the past month...
AIF Bill has second reading
The Alternative Investment Fund Designation Bill has had its second reading in the House of Lords and has now moved to Committee stage. The main purpose of the Bill is to remove listed investment companies from the...
FCA pauses civil action to pursue criminal investigation
FCA has secured a 12-month pause in its civil case over regulatory breaches against John Dance and WealthTek LLP to allow it to focus its efforts on its investigation into possible criminal offences of fraud and money...
FCA creates new market intelligence pages
FCA has created new pages on its website looking at:
market observations it has received and
STORs it has received
The pages currently contain the figures for 2023.
FCA reminds on LIBOR and comments on its objectives
FCA has reminded firms that the 3 month synthetic sterling LIBOR ceases permanently on 28 March and also that USD synthetic LIBOR is expected to end at the end of September. Separately, it has published a report as...
PRA publishes final Solvency II review reporting rules
PRA has published its final reporting and disclosure policy following its various consultations on the Solvency II review. It has also published near-final rules which will: amend the External Audit, Fees and Reporting...
FCA says wholesale data market needs improvement
FCA has published the results of its wholesale data market study. The study looked at competition in the markets for credit ratings data, benchmarks and market data vendor services. FCA has found instances in all 3...
CMA launches Home Credit Market Order review
CMA has formally launched a consultation on part of the Home Credit Market Investigation Order 2007. The review relates to the operation, information and management of a cash loan price comparison website. The website...
PSR speaks on progress in fraud reimbursement
Chris Hemsley has spoken at the Fraud Leaders’ summit. He looked at how the APP fraud reimbursement rules are critical to address the increasing number of frauds that take place through payments that use the FPS...
FMSB publishes onboarding standard
The Financial Markets Standards Board has published a draft standard which would apply to firms onboarding clients or reviewing client files for UK AML and KYC compliance. The standard would apply to FMSB members in all...
Treasury Committee publishes SME de-banking report
The Treasury Committee has published a report based on data from 8 of the largest banks that shows that banks have closed 2.7% of small business accounts during the past year. The banks also gave reasons for the...
SFO speaks on faster case resolution
Nick Ephgrave, SFO Director, has spoken on SFO’s history and his plans for the future. He wants to solve cases more quickly, and spoke of a number of tactics he plans to use. These include a more rigorous and...
OFSI updates guidance
OFSI has updated its guidance on financial sanctions and licensing to include detail on licensing principles and framework in the general guidance section of its main guidance, and to move its travel guidance to a...
Government responds on net zero recommendations for financial sector
The Government has responded to the Environmental Audit Committee’s recommendations in respect of boosting the role of the financial sector in achieving net zero. It says it won’t introduce quarterly...
High risk third country list update
Treasury has updated its website to reflect the list of high risk third countries for MLR purposes. The list now comes directly from FATF. Following FATF’s plenary meeting on 23 February, it has removed Barbados...
Treasury consults on PRA ability to modify rules
Treasury has published a draft statutory instrument using its powers under s138B FSMA. This provision was introduced by FSMA 2023. PRA and FCA have always had power to modify the application of certain rules, but before...
FCA issues supervisory notice under PSRs
FCA has published a First Supervisory Notice against an API (EPayPro), setting out its decision to very the firm’s authorisation so as to restrict it from charging a “compliance” or any other fee that...
Law Commission calls for evidence on digital assets
The Law Commission has published a call for evidence and is also seeking views on draft legislation on digital assets. It wants better to understand the challenges that digitalisation poses for private international...
FCA updates on interest-only mortgage work
FCA is working with an Industry Working Group of 12 mortgage lenders and administrators on a review of FCA’s current guidance on interest-only mortgages. There were under 1 million interest-only and part-and-part...
PRA confirms result of rule review process
PRA has published its feedback following its consultation on its how it reviews its rules. None of the 13 respondents raised any major concern but made some suggestions for improvement, largely around better engagement...