Lucy HadrillTreasury is consulting on a set of amendments to modernise the Building Societies Act 1986. The key changes will update the funding model and corporate governance requirements of societies. The Government realises that...
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Jonny Williams
Emma RadmoreFCA publishes quarterly consultation paper
The FCA has published its 34th quarterly consultation paper. The proposed changes to the FCA handbook include: Amending the Enforcement Guide to reflect the EU Exit Passport Regulations by providing information about...
Emma Bond
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...
BoE speaks on Solvency II reform
Andrew Bailey, Governor of the Bank of England, today gave a speech on the opportunity to reform Solvency II post-Brexit. He focused on what he identified to be the key foundations of public policy in prudential...
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 policy statement on new CMC charging rules
The FCA has published its policy statement on restricting CMC charges for non-PPI financial products and services claims. This follows the FCA’s corresponding consultation which ran from 21 January to 21 April...
FCA publishes final rules on strong customer authentication
The FCA has published a policy statement on changes to the SCA technical standards (SCA-RTS), the payment services and e-money approach document and guidance in PERG. The policy statement summarises feedback received to...
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...
FCA publishes Frensham Wealth Limited supervisory notice
The FCA has published a supervisory notice addressed to Frensham Wealth Limited. The notice removes all regulatory activities from the firm’s Part 4A permissions with immediate effect. This follows the FCA’s...
FCA confirms changes to decision-making process
FCA has confirmed the changes to its decision-making process that will allow more decisions to be taken by senior managers rather than by the RDC. Senior managers will be able to make decisions under “executive...
FCA publishes final policy statement on IFPR
Following its first two policy statements, the FCA has published its third and final policy statement marking the completion of its rules to introduce the UK Investment Firm Prudential Regime (IFPR). The final rules...
Treasury provides update on Wholesale Markets Review
John Glen MP delivered a speech to the UK Finance Annual Dinner in which he provided an update on the Wholesale Markets Review. Mr Glen noted that there has been a broad consensus on the vast majority of the issues...
FOS sees rise in “authorised” scam complaints
FOS has seen a 30% increase in complaints about “authorised” scams in the second quarter of the financial year compared to the same period last year. half of the nearly 4,500 complaints were about...
UK Finance looks at operational resilience
In advance of the new operational resilience requirements taking effect on 31 March 2022, UK Finance has highlighted the following key themes of importance to both customers and the FCA: Simplicity – customers expect...
CMA publishes terms of reference for Open Banking review
Following a complaint relating to the Open Banking Implementation Entity (OBIE), an independent investigation identified a number of problems with its leadership and found that a lack of appropriate corporate governance...
ESMA reports on MAR sanctions
ESMA has published a report on the sanctions imposed by various member states under MAR during 2020. Over the year, €17.5m in fines were imposed for over 500 breaches. The number of administrative actions was...
EU consults on Mortgage Credit Directive review
The European Commission is seeking views on whether the Mortgage Credit Directive remains fit for purpose. The review will assess whether the existing framework can adequately deal with new challenges such as...
UK Finance makes Open Banking recommendations
UK Finance has published a report setting out its recommendations for the future strategy of open banking. Open banking payments have increased exponentially over the past 3 years and there are now over 2.5m each month...
Government publishes AML supervision report
The Government has published its AML and CTF supervision report for 2019-2020. The report notes the system has been strengthened significantly over recent years. The FATF report on the UK in 2018 had noted significant...
FCA publishes GI pricing attestation forms
FCA has published examples of the forms it will require from general insurance firms making their first, and then their subsequent attestations on compliance with the pricing rules. The first attestation can be sent in...
FCA updates on IFPR
The FCA has published the following additional MIFIDPRU applications forms under IFPR: Application under MIFIDPRU 2.3.1R to be exempt from disclosure requirements in MIFIDPRU 8 (disclosure by investment firms) for SNI...
Investment Association updates principles of remuneration
The IA has published amendments to its principles of remuneration for 2022. The main changes are on the following topics: ESG – companies should use ESG metrics that are quantifiable, appropriately stretching and linked...
FCA recognises revised FX Global Code and Global Precious Metals Code
The FCA confirmed today under its code recognition process that it is recognising: the updated FX Global Code (FX Code); and the Global Precious Metals Code (PM Code). FCA has updated its ‘Recognising industry...
PSR announces next steps to stop APP fraud
The PSR has set out its latest plans to force the financial sector and others involved in the digital ecosystem to prevent APP fraud. It is consulting on plans to: require the UK’s largest banking groups to...
FCA consults on debt packager referral fees ban
The FCA is proposing new rules to ban debt packagers from receiving referral fees from debt solution providers. The proposals follow concerns that consumers are receiving non-compliant debt advice that is biased towards...
European Commissioner speaks at EPIF annual conference
Mairead McGuinness, European Commissioner for Financial Stability, Financial Services and the Capital Markets Union, recently gave a speech at the European Payment Institutions Federation (EPIF) Annual Conference. She...
Commons Library publishes “Black Friday promotions” paper
The House of Commons Library has published a research briefing on the promotion and regulation of financial products on Black Friday. A debate has been scheduled for 23 November and has been initiated by Stella Creasey...
Dormant Assets Bill under inspection
The Dormant Assets Bill is making its way through the House of Lords, where members have voted on two changes to the Bill at report stage. It will now has its third reading on the Lords before moving to the Commons. The...
Market Watch looks at web-based trading platforms
The latest edition of Market Watch focusses on web-based trading platforms and sets out the FCA’s concerns about gaps in users’ surveillance of web-based platform activity. Highlights include: Market abuse...
PRA publishes CRR mapping table
PRA has published a document showing which CRR provisions that Treasury has revoked since Brexit where PRA has made its own rules on the revoked matters.
FCA confirms more LIBOR rules
FCA has confirmed its new rules for: legacy use of synthetic LIBOR rates; and no new use of USD LIBOR. It will allow temporary use of synthetic sterling and yen LIBOR rates in all legacy LIBOR contracts other than...
CMA letter to Danske Bank on breach of SME Banking Undertakings
The CMA has written to Danske Bank regarding the Bank’s second breach of the SME Banking Undertakings 2002. Relationship Managers at Danske Bank required up to 205 SMEs to open a business current account (BCA) to...
FCA writes to funeral plan providers
The FCA has published a Dear CEO letter on applying for authorisation as a pre-paid funeral plan provider or intermediary. The letter provides the following information to support firms’ preparations for...
FCA publishes IFPR amendments
FCA has set out several amendments it has made to the original text of the near-final IFPR Instrument, including changes to: The glossary definition of ‘UK parent investment firm’; MIFIDPRU 4.14.1R(2)(b) and...
FCA levies further fine for cum-ex trading controls
FCA has fined Sunrise Brokers LLP £600,000 for poor AML systems and controls in relation to cum-ex trading, dividend arbitrage and withholding tax reclaim schemes. It found the firm did not properly identify and...
FOS publishes Ombudsman News
The latest edition of Ombudsman News focuses on the recently published annual report and the feedback statement on outcomes reporting already covered in FIN.
FCA refuses SMF29 application
FCA has published its final notice refusing the application of an individual to perform the SMF 29 function for Servicesport Finance Limited. The individual in question was a solicitor who had failed to disclose SRA...
FCA to issue compliance survey to GI firms
The FCA has added a new section to its webpage on general insurance pricing – attesting compliance. The rules in PS21/5 require senior managers of general insurance firms to provide annual confirmation that their firm...
FMLC reports on UK bank ring-fencing legislation legal uncertainties
Legislation requiring UK banks to separate the provision of core retail services from other activities within their groups has been in force since 1 January 2019. This so-called “bank ring-fencing regime”...
Cynthia MaPRA publishes responses to CP13/21 occasional consultation paper
The PRA has published a policy statement (PS25/21) which sets out its final policy on the various proposals it consulted on in occasional paper CP13/21. These proposals included: For banks, building societies and PRA...
LMA updates guidance on pricing and product reviews
The LMA has issued guidance on FCA’s new Pricing Practices rules and associated Product Reviews. The guidance includes a template with notes and examples on how intermediaries should exchange required information...
FCA confirms final rules on funeral plans regulation
Following its consultation earlier this year, the FCA has published its final rules on the regulation of pre-paid funeral plans which will take effect from 29 July 2022. The latest policy statement sets out additional...
UK Finance paper on the PRA’s outsourcing expectations
UK Finance has published a paper on the PRA’s supervisory statement on outsourcing and third-party risk management (SS2/21). The paper summarises the key elements of SS2/21 and reminds firms that they are expected...
Government sets out net zero transition plans
The government has set out its plans for the UK to be the world’s first net zero aligned financial centre and has called for other countries to follow suit. The government has confirmed it will be introducing...
Treasury and FCA publish LCF compensation rules
Treasury and FCA have published the Scheme rules and consequent FCA rules on compensation arrangements for bondholders with outstanding investment in LCF which has not already been compensated by the FSCS. The scheme...
PSR publishes card-acquiring services report
The PSR has published its final market review into the supply of card-acquiring services. The report concludes that the supply of card-acquiring services does not work well for SME merchants and large merchants with...
FCA publishes cum/ex financial crime warning notice
FCA has published an anonymised warning notice it has issued to a firm in relation to financial crime failings in some of its cum/ex trading. The notice relates to activities during 2015, and FCA found that, for...
FCA delivers speech on data-led regulation
The FCA’s chief data, information and intelligence officer, Jessica Rusu, has delivered a speech on the FCA’s role as a data-led regulator. The speech explores the FCA’s response to new technologies...
Complaints Commissioner publishes final report
The Financial Regulators Complaints Commissioner has published its final report on FCA00865. The relevant complaint against the FCA (and FOS) constituted five separate elements, including the FCA’s delay in...
FOS publishes feedback on outcome reporting consultation
FOS has published the feedback to its consultation which set out the proposed temporary amendments to the way the FOS reports business-specific complaints data. As a result of the feedback the FOS has confirmed it will...
PRA and FCA “no comment” on Staley investigation
PRA and FCA have published a joint statement in relation to the Jes Staley investigation. The regulators do not comment on ongoing investigations and so will do no more than confirm the firm’s announcement...
FCA issues final notice after conspiracy to defraud conviction
The FCA has published a final notice banning Colin Bermingham from performing any function in relation to any regulated activity carried on by any authorised or exempt person or exempt professional firm. In 2019, Mr...
Treasury Committee publishes tech companies’ responses on financial crime
On 1 October 2021, Rt. Hon. Mel Stride MP wrote to a series of tech giants. The letter posed a series of questions relating to the policies and procedures that the addressees have in place to combat fraud and economic...
CMA writes to NewDay on PPI Order breaches
The CMA has written to NewDay Ltd about 5 breaches of the PPI Market Investigation Order 2011. The breaches, which have affected c.27,000 customers, relate to: NewDay’s failure to issue Annual Review statements to...
Treasury updates AML advisory
Treasury has updated its AML advisory on high risk jurisdictions for money laundering and terrorist financing, following the FATF meeting last week The list continues to require firms to apply counter measures and EDD...
ESMA makes statement on investment recommendations on social media
ESMA has made a statement on investment recommendations on social media. Following a rise in these types of promotion, and concerns that retail investors do not understand the risks involved in following these...
FATF updates virtual asset guidance
FATF has updated its 2019 guidance on a risk based approach for virtual assets and virtual asset service providers. The updates focus on: definitions of key terms; clarification of application of FATF standards to...
FCA publishes updated complaints data
FCA has published its six-monthly set of data on complaints that firms receive. Its latest findings include: a 7% decrease in complaints from H2 2016, with the 2.04m complaints being the lowest level since late 2016;...
SARs reporter engagement survey open to 1 November
The UKFIU and Home Office reporter engagement survey for SARs reporters is open until 1 November, for those involved in financial crime prevention to have their say.
Treasury updates on Economic Crime levy
Treasury has published a policy paper on the introduction of the economic crime levy, which will be introduced in the 1 April 2022 – 31 March 2023 levy year and payable in the following financial year. It had...
EU Banking Package 2021
The European Commission has today adopted a review of the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD) to ensure that EU banks become more resilient to potential future economic...
PSR publishes consultation on Specific Direction for free-to-use ATMs
The PSR is proposing to issue a new Specific Direction to support LINK in meeting the objective of continuing to maintain a broad geographic coverage of the Free-to-Use ATM network in the UK. The draft Specific...
Government publishes first proliferation financing NRA
Treasury has produced the first comprehensive National Risk Assessment of proliferation financing, setting out the key risks and vulnerabilities the UK faces. The assessment explains the UK’s role and stance in...
FATF looks at unintended consequences of standards
FATF has published a high level synopsis of its stocktake in its project to look at the unintended consequences of incorrect implementation of its standards. It will now move on to identifying and considering potential...
FCA responds on NatWest
FCA has responded to the enquiry from the Treasury Committee on its actions in relation to its prosecution of NatWest for money laundering. The response says it would be inappropriate to respond in detail while...
FCA finalises LTAF rules
FCA has published its final rules for Long Term Asset Funds. An LTAF will be an open-ended authorised fund intended for investment by sophisticated investors and pension funds – in particular DC schemes whose...
FATF holds fifth plenary
The FATF held its fifth plenary between 19 and 21 October 2021. Those present for the meetings included delegates representing the 206 members of the Global Network and observer organisations. The FATF finalised a...
AFME publishes “Anti-Money Laundering Transaction Monitoring in the Markets sector”
The Association for Financial Markets in Europe (AFME) has published a paper entitled, “Anti-Money Laundering Transaction Monitoring in the Markets sector” in collaboration with Ernst & Young. Recognising the key...
FCA adds new question to GI pricing FAQs
FCA has added an additional question to its Q&As on its general insurance pricing practices rules. The new question relates to whether certain benefits such as events tickets, rare products or products of benefit...
Fraud taskforce adds new charters
The Government website hosting all information about the Joint Fraud Taskforce has added the charters for accountancy, retail banking and telecommunications. The retail banking charter quantifies the key risks (APP...
PSR responds on COP call for views
PSR issued its call for views on the wider implementation of Confirmation of Payee in May 2021. It has now set out the findings from its call for views and its plans and expectation on industry for the next step. It...
NAO updates on BSPS
The National Audit Office has set a timescale for reporting in Spring 2022 on its investigation into the activities FCA has undertaken to regulate financial advice in relation to the restructure of the British Steel...
FCA publishes final IFPR rules
The FCA has converted the near-final rules from its first two policy statements on IFPR into final rules, which are set out in the legal instruments FCA 2021/38 and FCA 2021/39. The FCA will publish a third policy...
More of FS Act comes into force
The third Commencement Order under the Financial Services Act 2021 brings into force the provisions on dealing with maximum sentences for insider dealing and financial services offences (section 31 of the Act). This...
Treasury consults on BNPL
Treasury has published the long-awaited consultation on buy-now pay-later regulation, following the announcement on 2 February that the Government would implement the Woolard Review recommendation to bring interest free...
FCA publishes 2020/21 Perimeter Report
The FCA has published its latest Perimeter Report, in which it calls for greater consumer protection and legislative change to address concerns beyond its remit. Highlights include recommendations that: duties on...
Treasury Committee seeks further information on NatWest action
The Treasury Committee has written to FCA asking for further information on FCA’s prosecution of NatWest for money laundering. It asks why it took 5 years to reach conclusion, and seeks to understand the...
FCA fines Credit Suisse £147m for financial crime DD failings
FCA has fined Credit Suisse (Credit Suisse International, Credit Suisse Securities (Europe) Ltd and Credit Suisse AG) £147,190,276 and agreed with it that it will forgive $200m of debt owed by the Republic of Mozambique...
Chancellor publishes green financing roadmap
The Chancellor has published ‘Greening Finance: A Roadmap to Sustainable Investing‘. The document lays out the government’s ambition to align the financial system with the UK’s net-zero...
European Commission adopts work programme for 2022
The EU Commission has adopted its 2022 work programme which sets out the next steps in its agenda towards a greener, fairer, more digital and more resilient Europe. The programme contains 42 new policy initiatives...
FSB wants better convergence in cyber incident reporting
FSB has examined approaches to cyber incident reporting and found fragmentation across sectors and jurisdictions in terms of what should be reported for a cyber incident, how impact and severity is measured, reporting...
EBA publishes final draft RTS on investment policy disclosure
The European Banking Authority (EBA) published today new regulatory technical standards (RTS) on disclosure of investment policy by investment firms. The final draft RTS provides for: specified information that...
Bank of England launches first public CCP supervisory stress test
The Bank of England (BoE) has today launched its first public supervisory stress test (SST) of UK central counterparties (CCPs) to take place over 2021-22 with the clearing services of all in-scope UK CCPs: ICE Clear...
FCA modifies list of derivatives subject to derivatives trading obligation
The Financial Conduct Authority (FCA) has modified the list of derivatives subject to the derivatives trading obligation (DTO) in line with Articles 28 and 32 of UK MiFIR in the newly released PS13/21 in response to the...
FCA writes to more DB customers about compensation
FCA has written to a further tranche of customers who received DB pension transfer advice to tell them they may be entitled to compensation, following findings of past business reviews. It has updated its list of firms...
UNEPFI publishes collective progress report on principles for responsible banking
The UN Environmental Programme Finance Initiative (UNEPFI) has published a collective progress report providing an update on the progress made by more than 200 signatories in implementing the Principles for Responsible...
FCA fines adviser for pension transfer advice failings
The FCA has published a final notice banning Omar Hussein, former director at pension switching firm Consumer Wealth Ltd, from working in financial services. Mr Hussein has also been fined £116,000 for providing...
ICAEW responds on AML consultations
ICAEW has published its response to the Treasury’s call for evidence on the UK AML/CFT supervisory regime and on targeted amendments to the MLRs. In its response on the MLR amendments, key observations include:...
Contactless card payment limit increased to £100
As of Friday 15 October 2021, the spending limit for contactless card payments has been increased to £100. The decision of HM Treasury and FCA to raise the limit from the previous cap of £45 was made following the...
PRA publishes final rules on Basel implementation
Following the publication of near-final rules in July, the PRA has published a policy statement (PS) setting out its CRR rule instrument to implement part of the Basel standards that still need to be implemented in the...
FCA portfolio letter to Lloyd’s participants
The latest portfolio supervision letter from FCA is addressed to Lloyd’s and London market insurers and others. The letter follows on from the November 2020 version and, generally, commends the market for its...
FOS blogs on distress and inconvenience payments
FOS has published a blog of its thoughts on how it assesses awards for distress and inconvenience. Its guidance has not fundamentally changed, but has been refreshed after firms said more clarity would help them. FOS...
BoE looks at financial stability risks of crypto
Jon Cunliffe has spoken of the potential risks to financial stability of crypto assets such as bitcoin and stablecoins. Crypto assets have grown by 200% in 2021 alone. Mr Cunliffe feels that they have the potential to...
CMA to take no action against Lloyds for Retail Banking Order breach
CMA has confirmed it will not be taking any further action against Lloyds Bank following the bank’s failure to display required information in relation to SME loans on one page of its website, which potentially...
ESMA seeks stakeholder input on retail consumer protection
The European Securities and Markets Authority (ESMA) today publishes a call for evidence on a number of retail investor protection topics under MiFID II. ESMA is seeking information from stakeholders on three topics:...
G20 Roadmap for enhancing cross-border payments
The Financial Stability Board (FSB) has published “G20 Roadmap for Enhancing Cross-border Payments – First consolidated progress report“, which summarises the progress made during the first year of the...
PIMFA welcomes guidance on ways to structure relationships between advisers and discretionary investment managers
The Personal Investment Management and Financial Advice Association (PIMFA) welcomes the publication of an industry guide by threesixty services LLP, with input and collaboration from PIMFA and DFM Connect, a group of...
PSR responses to consumer protection in interbank payments
The Payment Systems Regulator (PSR) has published the outcome of its consultation on consumer protections in interbank payments in PS21/2 – “Consumer protection in interbank payments – response to CP21/4“...
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