Author Archives: Michelle Chance

PRA consults on SMR/SIMR changes

PRA has published a consultation paper proposing changes to both the SMR and SIMR, but focuses predominantly on the SIMR, introducing what PRA describes as “optimisations”. The proposed changes will apply to all Solvency II insurance firms and to large NDFs, and are designed to bring the SIMR more closely into line with the SMR. They include: creating […]

FCA updates on duty of responsibility

FCA has published guidance in DEPP on how it will enforce the duty of responsibility.  The guidance is already in force, applying from 3 May. It applies to UK banks, building societies, credit unions, PRA-designated investment firms, and incoming branches of overseas firms, and their Senior Managers. A new rule explains when FCA can take […]

FCA makes whistleblowing rules for foreign bank branches

FCA has made its final rules on whistleblowing requirements for UK branches of foreign banks.  The rules cover UK branches of both EEA and third-country banks and require them to implement whistleblowing rules by 7 September. FCA made only minor changes from its consultation version. Under the new rules, firms must tell their employees of […]

FCA makes conduct rules for NEDs

FCA has made its new rules applying individual conduct rules to NEDs in the banking and insurance sectors. The new rules, which take effect on 3 July, apply the provisions of COCON to “standard” NEDs in the banking and insurance sectors. It has not made any changes to its proposals, but noted respondents’ requests to […]

PRA makes branch whistleblowing rules

PRA has made policy statements and rules requiring UK branches of non-EEA banks and insurers to tell their staff about the PRA and FCA’s whistleblowing services. Any non-EEA bank that has both a branch and a subsidiary in the UK must also tell its branch staff about the whistleblowing procedures the subsidiary has in place. […]

FCA speaks on corporate misconduct and individual accountability

Mark Steward, FCA Director of Enforcement and Market Oversight, has spoken on tackling conduct issues and individual and corporate accountability. He gave examples of where parties to investigations had strongly felt a fault within an institution had either been wrongly blamed on an individual when it was an institutional failing, or where an institution felt […]

BSB publishes certification guidance

The Banking Standards Board (BSB) has published good practice guidance for banks and building societies putting in place procedures to assess the fitness and propriety of staff under the Certification Regime. This takes the form of a high-level set of principles on the assessment of fitness and propriety. The BSB has also issued supporting guidance on […]

AFME responds on whistleblowing

AFME (The Association for Financial Markets in Europe) has published its response to the FCA and PRA consultation papers on whistleblowing in UK branches of overseas banks. The FCA and PRA propose that UK branches of overseas banks tell their UK-based employees about the FCA and PRA whistleblowing services. Where a branch of an overseas […]

FCA makes it crystal clear that 2016/2017 Remuneration must be directly linked to Effective Risk Management

The FCA will crack down hard on firms which incentivise behaviours that are not in the best interests of consumers, market integrity or fair competition and will look closely at Material Risk Takers, bonus pools and individual performance assessments. The FCA’s letter to all UK banks, building societies and investment firms (with relevant total assets […]

FinTech bridge to China agreed

Announced as part of the 8th annual UK-China Economic and Financial Dialogue at Lancaster House in London this month, the FCA has signed a Co-operation Agreement with the People’s Bank of China in a bid to share information on promoting innovation in financial services. This is the fourth co-operation agreement signed with AsiaPac countries this […]