FIN.

FSB priorities published

The FSB published a letter addressed to all G20 Finance Ministers and Central Bank Governors on 18 February 2020. The letter sets out the areas that the FSB are focusing their efforts on.  All of the measures are to...

Latest current account data released

The FCA has today published the latest table of data provided to them by current account providers (both business and personal).  The data allows consumers and small businesses to compare the services provided by each...

FCA publishes annual sector views

The FCA has just published its annual sector views report which comprises a state of the nation in terms of the financial services industry. The report sets out the drivers for change in each financial services sector...

TI writes to SFO on DPA regime

In the light of the Airbus DPA, Transparency International and Spotlight on Corruption have written to Lisa Osofsky asking that SFO evaluates how DPAs are used to ensure the regime is fair and consistent and provides a...

FCA bans motor finance ads

FCA has banned a range of adverts for motor finance issued by Rix Motor Company Limited.  The ads, variously: did not include representative examples of the costs of credit, or included them in a way that made them...

HMRC investigating 30 for CFA breach

In response to several FOIA requests, HMRC has published statistics on what it is doing to police the CFA offence of failure to prevent facilitation of tax evasion. As at the end of 2019, it had 9 live investigations...

FCA writes to credit brokers

The FCA wrote to credit brokers on 13 February 2020 identifying the key drivers of harm within the credit broking portfolio. These include:- failure to understand regulatory requirements; poor oversight of staff and...

EP publishes negotiating mandate with UK

The European Parliament has published its proposed mandate for a new partnership with the UK.  The declaration acknowledges that the “close relationship” that will subsist and which, according to the...

FCA updates authorisation application fee

FCA has increased the application fee for moderately complex applications to £5,500 – so the fee tranches for standard financial services applications (excluding asset managers and consumer credit firms) are...

EU gets tough on AML

The European Commission has sent formal notice letters to 8 Member States for failing to tell it about their implementation measures for MLD5. It requires a response within 2 months, after which it may move to a...

FCA guidance to GI distribution chain

We have written an article about FCA’s findings on potential harm caused by the general insurance distribution chain and its guidance to firms in the sector setting out its expectations of them.

FCA Update: Basic Bank Accounts

The FCA has published their findings today (11/02/20) following a review of how 5 of the 9 banks, who provide Basic Bank Accounts (BBAs), give information about them to their customers. The object was to understand how...

Up next from FCA

The latest Policy Development Update highlights the following publications before the end of Q1 2020: policy statement on fees and levies; consultation on exit fees in investment platforms and comparable firms;...

Court dismisses UWO appeal

The Court of Appeal has dismissed an appeal against the first UWO imposed under the powers the CFA gave to the NCA. The UWO had been imposed in relation to the Azeri wife of an Azeri banker. A property had been...

New appointments to the FCA Board

HM Treasury has confirmed the appointments of Jeannette Lichner and Bernadette Conroy to the FCA Board.  The new NEDs will each serve three-year terms beginning on 1 April and 1 August 2020 respectively.

ESMA outlines sustainable finance strategy

On 6 February, ESMA published its sustainable finance strategy which sets out how ESMA plans to focus on sustainability. ESMA’s key priorities include: completing the regulatory framework on transparency...

Goods Mortgages Bill: First Reading

The Goods Mortgages Bill which we talked about in a previous post, has now had its first reading in the House of Lords. If it becomes law it will: create a new form of non-possessory security that can be created over...

FCA writes strategy letter to platforms

FCA’s latest  portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...

ESMA takes action on suitability

ESMA is launching a common supervisory action with national authorities on the application of the MiFID 2 suitability rules. It feels it needs to gauge how intermediaries have been applying the requirement and help in...

FCA makes travel insurance PEMC rules

FCA has published its policy statement and final rules to help consumers with serious pre-existing medical conditions to understand the travel insurance market better.  The new requirements will: require firms that sell...

FCA updates on skilled persons figures

FCA has published its latest figures on the numbers of skilled persons reports it has commissioned. During Q3 of 2019/2020 it commissioned 10 – of which 5 related to wholesale financial markets, 2 each to retail...

ESMA reports on product intervention

ESMA has published its final report on product intervention requirements under MiFIR. It notes that nearly all national authorities have used the measures in relation to marketing or selling binary options or CFDs to...

JMLSG consults on guidance update

JMLSG is consulting on updates to its guidance to take account of implementation of MLD5 and also make various other clarifications. The changes (consulted on in marked up form) will affect chapters 4,5,7 and 8 and the...

UK AML post-Brexit

Emma Radmore was interviewed by Money Laundering Bulletin on what might happen to UK AML laws in a post-Brexit world.

EBA begins 2020 EU-wide stress test

The stress test is designed to provide banks, supervisors and other market participants with a common analytical framework to consistently assess and compare the resilience of EU banks to economic shocks. As in previous...

FCA writes strategy letter to platforms

FCA’s latest  portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...

SFO publishes Airbus DPA

On Friday, Dame Victoria Sharp, President of the Queen’s Bench Division, approved a Deferred Prosecution Agreement between the Serious Fraud Office and Airbus SE. Under the terms of the DPA, Airbus SE agreed to...

FCA updates further on post-Brexit issues

FCA has further updated its website with information on Brexit and Temporary Directions.  It explains how: It will not need to use the Temporary Transitional Power it had previously made directions under, as the...

OFSI updates sanctions guidance

OFSI has updated its general sanctions guidance in respect of its application to UK financial sanctions regimes under SAMLA. Separate guidance still applies to the EU regimes. The guidance contains explanations of how...

UK and EU regulators update on Brexit

On Brexit day: FCA has issued an update including new Handbook Instruments, including an instrument providing guidance on the implementation period and updates to various existing guidance about EU non-legislative...

FCA and Lloyds update on Brexit

FCA and Lloyd’s have both issued releases confirming how firms should act in the immediate aftermath of Brexit. FCA confirmed that during the implementation period to 31 December EU law will continue to apply. So...

TPR fines FCA Pension Plan

The Pensions Regulator has fined the FCA Pension Plan £2,000 for a non-compliant chair’s statement, the maximum penalty which it can levy for this type of breach. The chair’s statement requires trustees of...

FCA: Overdraft Pricing Request

The FCA has written to firms today  requesting details about how they have reached their overdraft prices and the measures firms have put in place to protect consumers.  In particular the FCA is asking all firms to...

DExEU updates on FS equivalence post-Brexit

The Department for Exiting the EU has published an updated communication from the European Commission on equivalence in the area of financial services.  The documentation notes that temporary equivalence decisions are...

FCA and IBA write to ISDA on LIBOR

In December 2019, the International Swaps and Derivatives Association (ISDA) wrote to the FSB and recommended that the FCA and the ICE Benchmark Administration (IBA) provide further clarity about the length of any...

Progress update on PSR’s work

Chris Hemsley, Managing Director of the Payment Systems Regulator (PSR) delivered a speech at last week’s Westminster Business Forum: Payments, policy and regulation – infrastructure, innovation and end-user...

Government consults on TRS

Treasury and HMRC are consulting on the technical measures needed to extend the Trust Registration Service. The consultation includes draft legislation and proposals on the types of express trusts that will need to...

PRA publishes Pillar 2 policy statement

PRA has published its feedback to its consultation on updating the Pillar 2 capital framework in respect of capital buffers, and updated Statements of Policy and Supervisory Statements to include the changes.  The...

Treasury responds on MLD5

Hot on the heels of Parliamentary criticism, Treasury has now published its response to the consultation on MLD5 implementation.  The response confirms the Treasury’s position in: expanding the definition of...

Parliament criticises lack of MLD5 feedback

Hansard reports criticism of the way in which Treasury announced the measures implementing MLD5.  In particular, it was disappointing that Treasury did not publish copies of the feedback on consultation and impact...

BOE updates on ISO 20022

The BOE has published the final ‘like-for-like’ message set for the Introductory Phase of the ISO 20022 CHAPS migration.  ISO 20022 will be the new international standard for payments messaging. The update includes the...

Dear CEO letter re FSA047/048 returns

Given the progress of the UK Withdrawal Bill, the PRA has confirmed through a Dear CEO letter that relevant financial institutions no longer need to submit FSA047/048 returns after 22 January 2020. This return had been...

PSR consults on COP exemption requests

The PSR is consulting on a potential variation to its Specific Direction 10 on Confirmation of Payee. It had previously told the members of the UK’s 6 largest banking groups that they must fully implement COP by...

SFO updates compliance programme guidance

SFO has published an updated version of its internal guidance on how it evaluates a compliance programme.  The guidance is part of SFO’s Operational Handbook. When SFO is investigating an organisation, it will use...

FCA updates on RDR and FAMR review

FCA has provided an update on its work on the RDR and FAMR review, on which it expects to fully report later this year.  Its most recent work involved surveying around 400 firms for information on their advice services...

FSCS announces Plan and Budget

FSCS has published its full Plan and Budget for 2020/2021. As well as the indicative levy of £635m (£87m more than the current year, mainly because of a rise in SIPP operator claims) and management expenses budget of...

Regulators consult on FSCS levy

PRA and FCA are consulting on the FSCS Management Expenses Levy Limit for 2020/2021. The proposed limit is £78.2m management expenses budget (a nearly 5% increase on the current year) and a £5m contingency reserve...

HMRC updates on MLRs

HMRC has updated its website to reflect the changes the MLRs have brought and, in particular, the new classes of entities that fall within the regulated sector.  It will issue further guidance shortly, but has confirmed...

FCA updates AML pages

FCA has updated its pages on AML to take account of the coming into force of the changes to the MLRs implementing MLD5 and the regime for registration of those in the cryptoasset sector. It also confirmed the...

Duty of Care Bill progresses in Lords

The Financial Services (Duty of Care) Bill, the Private Members’ Bill to require FCA to make rules requiring authorised firms to owe a duty of care to consumers in their regulated activities, and originally...

FCA confirms crypto-AML requirements

FCA has formally confirmed that it has, as of 10 January, become the AML/CTF supervisor of businesses carrying on certain crypto-asset activities that now fall under the MLRs.  It reminds market participants that no new...

Up next from FCA

FCA plans a number of important publications during Q1 2020 including: consultation on exit fees in investment platforms and comparable firms potential policy statement on general insurance value reporting measures and...

UK regulators announce data reforms

The FCA has released its new Data Strategy which outlines plans to develop its data capabilities through a renewed focus on the use of advanced analytics and automation techniques.  The FCA hopes this strategy, an...

UK Finance explains COP

UK Finance has updated its website to explain how banks are introducing Confirmation of Payee over the next few months, to give customers greater assurance that they are sending payments to the right recipient. UK...

FCA updates website on MLRs

FCA has updated its website to provide information for firms on the amended MLRs following MLD5 implementation. It stresses the changes the new MLRs bring in relation to: high-risk factors – the MLRs now specify...

Treasury makes MLR changes for MLD5

Treasury has made the Regulations amending the 2017 Money Laundering Regulations to implement MLD5.  The changes also amend key primary legislation, not least to broaden the scope of the “regulated sector”...

Tribunal upholds CMC fine

The First-tier Tribunal has upheld a fine the Claims Management Regulator had imposed on a company, in an action taken over now by FCA. The CMR found Hall and Hanley: had sent marketing texts to customers without taking...