Emma BondThe latest edition of Ombudsman News warns customers to be extra vigilant about fraud and scams following a significant rise in cases seen by the FOS in the last 12 months. The FOS received 5,025 fraud and scam...
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Lucy Hadrill
ESMA consults on changes to MiFID II best execution reporting
ESMA is consulting on proposals for improvements to the MiFID II framework on best execution reports. The proposals include technical changes to: the reporting obligations for execution venues: aimed at simplifying the...
ECA calls for more consistent action to redirect finance towards sustainable investment
The European Court of Auditors (ECA) has published a Special Report calling for the Commission to take more consistent action in the redirection of finance towards sustainable investment. In particular, the Report...
Banks benefit from early adoption of green policies, says EBA
The BEA has published the results of its economy-wide stress test, which tested the impact of climate change on over 4 million firms worldwide and 1,600 euro area banks. The findings show that: firms and banks are to be...
Treasury updates on economic crime levy
The Treasury consultation on the imposition of an economic crime levy concluded last October and Treasury has published a summary of the responses it received. The Government is now consulting until 15 October on the...
Emma RadmoreICMA updates on the EU sustainability disclosure regime
In April 2020, the International Capital Market Association (ICMA) published a document summarising the various the new and amended EU legislation on significant sustainability and ESG related disclosure requirements...
Cynthia MaBasel Committee calls for greater resilience against cyber threats
The Basel Committee has published a newsletter encouraging banks to adopt more resilient measures relating to cyber security. This was triggered in part by the increase in cyber threats since the beginning of the COVID...
Court finds FSCS entitled to reject claim
The High Court has ruled on an application for judicial review of a decision by FSCS to refuse to compensate investors after an investment firm failed. The investors had bought wind bonds, initially before the firm in...
ESMA speaks on retail investment in capital markets
Natasha Casenave of ESMA has spoken on the investor protection safeguards that are needed to deal with the increasing retail participation in capital markets. She said ESMA welcomes both the increased investment and...
EBA to enhance monitoring of digital platform use in EU banking and payments sectors
A Report published by the European Banking Authority (EBA) today on the “platformisation” (use of digital platform-based business models) of the EU banking and payments sector: identifies the rapid growth in...
Complaints Commissioner rejects unregulated investments complaint
The Complaints Commissioner has published its decision to reject a complaint made about the FCA’s failure to regulate unregulated investments. The complainant, who suffered financial loss having invested in...
Specialist police unit prevents £85 million of fraud
A specialist police unit, the Dedicated Card and Payment Crime Unit (DCPCU), has prevented a total of £85 million worth of fraud in the first half of 2021. Its activities also resulted in some 49 criminal convictions...
OPBAS publishes progress report
OPBAS has published its latest report on its work to bring compliance with AML requirements in the professional services supervisory sector up to the levels in other sectors. Its report shows there are still...
ECJ delivers judgment on EBA Guidelines
The ECJ has ruled that the EBA acted within its powers when it adopted guidelines on product governance and oversight arrangements for retail banking products in 2015. The guidelines set out requirements for...
FCA speech: proposals for a new listing regime
Clare Cole, Director of Market Oversight at the FCA, has delivered a speech on the FCA’s proposals for a new listing regime. Highlights include: the UK Listing Review, chaired by Lord Hill, achieved unprecedented...
Measuring value for money in DC pension schemes
The FCA and the Pensions Regulator (TPR) have published a joint discussion paper on developing a framework for measuring value for money in defined contribution (DC) pension schemes. The FCA and TPR are proposing a...
FCA publishes insurer claims data
The FCA has published the latest data it has collected (as of 5 September 2021) from all affected insurers on the progress of their non-damage business interruption insurance claims. The data includes the number of: BI...
Tech companies join banking industry in fight against fraud
Several major technology companies including Google, Facebook, Instagram, Twitter, Amazon, Microsoft and TikTok have pledged to support UK Finance’s anti-fraud campaign – Take Five to Stop Fraud. The tech...
PSR panel publishes annual report
The PSR panel has published its annual report for 2020/21 which outlines how it has engaged with the PSR over the last year. Key themes that the panel highlighted over the last 12 months include the rapid acceleration...
EBA publishes revised guidelines on DGS stress tests
The EBA has published its revised guidelines on the stress tests conducted by national deposit guarantee schemes (DGS) under the Deposit Guarantee Schemes Directive. The revised guidelines extend the scope of the DGS...
FCA publishes consumer investment strategy
The FCA has published a new strategy to give consumers the confidence to invest and to tackle investment harm. By 2025, the FCA aims to: reduce by 20% the number of consumers who could benefit from investment earnings...
Regulators write to firms on trade finance expectations
PRA and FCA have sent a joint Dear CEO letter to firms who carry out trade finance activity. The regulators want to ensure firms understand what is expected of them. Both regulators consider there is often insufficient...
Government and FCA respond on LCF Report
The Treasury Committee has published responses from the Treasury and the FCA to its report on the FCA’s regulation of London Capital & Finance plc (LCF). Highlights from the government’s response...
CMA writes to LBG on PPI Order breach
The CMA has written to Lloyds Banking Group about its non-compliance with the Payment Protection Insurance (PPI) Market Investigation Order 2011. LBG breached the PPI Order by failing to include the monthly PPI benefit...
FCA consults on new cancellation and variation power
The Financial Services Act 2021 has given the FCA an additional power, allowing it to more quickly and efficiently: vary or cancel the statutory permissions to conduct FCA-regulated activities of many FCA-authorised...
FCA mortgage guidance to expire in October
In October 2020, the FCA introduced temporary guidance on maturing interest-only and part-and-part mortgages. The guidance allowed borrowers with certain mortgages due to mature between 20 March 2020 and 31 October 2021...
UK Finance looks at retail CBDC
UK Finance has published a report looking at the threats and opportunities of a central bank digital currency. The BoE says the around 95% of funds people hold to make payments are held as bank deposits rather than...
Court rules that ML offence can be committed by predicate offender
A Romanian court had sentenced an individual to imprisonment for money laundering. The proceeds of crime in question were the proceeds of tax evasion committed by the same individual. As part of an appeal (which was...
PRA consults on the identification of material risk takers
The PRA is consulting on proposed changes in respect of the applicable requirements on the identification of material risk takers (MRT) for the purposes of the PRA’s remuneration regime. The proposed amendments...
Commission updates PRIIPs KID standards
The European Commission has adopted new technical standards for the PRIIPs KID, which will apply from 1 July 2022 (so long as approved by the Council and Parliament), and will finally apply to all retail products. The...
Stick to the Basel III agreement, says EU
EU prudential supervisors and central banks have written to the EU Commission in support of a full, timely and consistent implementation of the Basel III agreement, saying that diluting the framework would not be in the...
Treasury consults on Banking Act amendment
Following the decision to remove FCA regulated 730k investment firms from the scope of the UK resolution regime, the government is now consulting on whether short-term liabilities owed to FCA investment firms should...
IOSCO publishes AI usage guidance
IOSCO has published guidance for supervisors of intermediaries and asset management firms when they use AI and machine learning. It notes both the benefits and the risks of usage, and says that as use is growing...
OFSI calls for frozen asset reports
OFSI has called for any firm holding assets of designated persons to submit the annual frozen assets report by 15 October, reporting on the value of all assets as of close of business on 30 September. As usual, the...
PRA consults on insurance holding company definition
PRA is consulting on its approach to interpreting and applying the definition of “insurance holding company“. It wants to distinguish an insurance holding company from a mixed-activity insurance holding...
FCA launches 2021 Green FinTech Challenge
Following the success of the pilot challenge in 2018, the FCA has announced that the application window for the 2021 Green FinTech Challenge is now open. The Green FinTech Challenge is open to start-ups, incumbents and...
FCA Chair speaks on risks of token regulation
Charles Randell, Chair of the FCA and PSR has delivered a speech on the risks of regulating crypto tokens. Speech highlights include: whilst platforms’ efforts to crack down on fraudulent advertisements are welcome, a...
TI responds on corporate criminal liability
Transparency International has responded to the Law Commission consultations on reform of corporate criminal liability. The response notes: that reform is long overdue, given the difficulties in establishing corporate...
FCA calls for funeral plan providers and intermediaries to apply now
FCA has updated its website to tell funeral plan providers and intermediaries what they need to do to ensure they are appropriately authorised by 29 July 2022. It has provided a set of forms that applicants will need...
Andrew Bailey writes to Chancellor on prudential regulation
PRA has published Andrew Bailey’s response to the Chancellor on Treasury’s recommendations on the PRA’s remit. He notes PRA’s work to ensure the Brexit transition period ended without any...
FCA confirms pensions transfer redress guidance review
FCA has confirmed its plans to start a periodic review of its FG17/9 on how firms should calculate redress for unsuitable DB pension transfer advice. It will start the review by the end of 2021, in line with its...
FCA warns firms about Afghanistan financial crime risks
FCA has reminded firms that the recent developments in Afghanistan may have an impact on the way they need to assess financial crime risks. It has warned them to consider what impact events may have on patterns of...
FCA publishes supervisory notice against Dolfin Financial
FCA has published a supervisory notice sent to Dolfin Financial (UK) Limited in March. The requirements in the notice have now largely been cancelled as Dolfin entered special administration. FCA has also redacted parts...
Contactless limit to increase from 15 October
UK Finance has confirmed the £100 contactless limit will apply from 15 October. However, it warned that it is likely to take retailers some time to update their terminals to accept the new limit.
FCA publishes requirements on SIPP operator
FCA has published the second supervisory notice it made in relation to DAC Pensions Limited, a small SIPP operator. The firm had accepted significant business from two EU-based introducers, operating in the UK under...
FCA publishes personal and commercial line insurance portfolio letter
FCA has published its supervisory strategy letter to personal and commercial lines insurers. The letter is dated 28 April, but only just published. The letter updated FCA’s previous communication of January 2020...
FCA tells insurance firms to be ready for fair value changes
FCA is worried that many firms are not currently compliant with its rules and guidance on product governance and value, and will not be ready to meet the new requirements which take effect on 1 October. It has carried...
EBA reports on controller condition peer review
EBA has published its peer review on how regulators assess those acquiring qualifying holdings in banks. Overall, the study found compliance with EBA’s guidelines, leading to significant convergence in practices. ...
FCA publishes life insurance supervisory letter
FCA has published its supervisory strategy for life insurers. The letter updates its communication from December 2018 and looks at: how the 2018 strategy has progressed; FCA’s updated view of the key harm risks;...
BBRS launches independent and transparent liaison panels
The Business Banking Resolution Service (BBRS) has launched two liaison panels which have been set up to act as independent and transparent advisory councils to the BBRS. The panels will create a feedback loop between...
CAT grants Mastercard collective proceedings order
The Competition Appeal Tribunal has granted the Merricks application for a collective proceedings order in relation to claims for millions of UK consumers against Mastercard following the European Commission’s...
Digital assets: limits of the concept of possession?
The City of London Law Society (CLLS) has formed a working group to consider and respond to the Law Commission’s call for evidence and consultation on “Digital assets: electronic trade documents”. In...
FCA updates on GI pricing
FCA has made some minor changes to the rules on general insurance pricing which were published in May. Among other things, the changes: clarify how the rules apply to firms that offer discounts or incentives to...
CLLS responds to Treasury consultation
The City of London Law Society (CLLS) has published its response to HM Treasury’s consultation paper “Amendments to the Insolvency Arrangements for Insurers” which was published on 20 May 2021. CLLS...
FCA writes to investment-based crowdfunders on supervision
FCA has published its Dear CEO letter on its portfolio strategy for investment-based crowdfunders. It notes that if any firm that has received the letter is not currently active in the market it should apply to remove...
HMRC updates on MLR fines
HMRC has updated its list of businesses that have not complied with the MLRs. Among the actions: a fine of £1,000 on an accountancy service provider that failed to provide documents when requested; a fine of £6,300 on...
First report for Payments Standards Strategy Group
In February 2021, UK Finance published the Future Ready Payments 2030 report which set out an ambitious 10-year strategy for the payments industry. The recently-formed Payments Standards Strategy Group (PSSG) has now...
EIOPA report on peer review of key functions
EIOPA has published a follow-up report to the 2018 peer review on the supervisory practices for the application of the proportionality principle in government requirements regarding key functions. The follow-up report...
Update on EU consultations on AML/CFT rules
In July 2021, the European Commission unveiled an ambitious package of legislative proposals to strengthen the EU’s AML/CFT rules. The closing date of the Commission’s various consultations on these...
FCA writes to mortgage third party administrators
The FCA has written to mortgage third party administrators (TPAs) to set out its view of the key risks TPAs pose to their customers or the markets in which they operate and to outline its expectations of TPAs, including...
FCA responds to Treasury on frozen bank accounts
Nikhil Rathi has responded to Rt. Hon. Mel Stride MP’s questions following press reports that NatWest might have frozen the accounts of some customers on low incomes without good reason. Highlights of the...
FCA announces new Digital Sandbox window
The FCA is opening the application window for the sustainability cohort on 6 September, with a view to opening the Digital Sandbox to successful applicants in November and access to the testing environment from January...
Banks back Confirmation of Payee extension
Following Pay.UK’s confirmation that the reach of the Confirmation of Payee Service (CoP) will be extended, a group of the UK’s major banks has written to the PSR to provide a public commitment to deliver...
Next steps for the Consumer Duty
The FCA’s consultation on a new Consumer Duty has now closed and the FCA has outlined its next steps. After considering the responses, the FCA will set out the proposed text for any new rules in a second...
FCA, PRA and SEC enter derivatives MoU
The FCA, PRA and the US SEC have entered into a Memorandum of Understanding (MoU) in relation to consultation, cooperation and the exchange of information in the supervision and oversight of certain over-the-counter...
BIS publishes blueprint for instant cross-border payments
BIS Innovation Hub and Monetary Authority of Singapore have published proposals for enhancing global payments network connectivity via multilateral linkages of countries’ national retail payment systems. The...
FCA fines adviser for pension transfer advice failings
The FCA has published a Decision Notice against Geoffrey Edward Armin of Retirement and Pension Planning Services Limited (in liquidation). The FCA has decided to fine Mr Armin £1,284,523 and ban him from performing any...
Commission asks for views on UCITS KID
The Commission is asking for views on its proposal for a Directive on UCITS. The proposals relate to the use of KIDs by UCITS managers. The current exemption from the use of a PRIIPs KID for UCITS expires at the end of...
FCA launches third IFPR consultation
The FCA has published its third and final consultation on the IFPR. The IFPR creates a new regime for solo-regulated MiFID investment firms. The first consultation introduced the IFPR and focussed on the categorisation...
LSB looks at next steps for CRM Code
LSB says the responses it received to its call for input on the CRM Code suggest the risk of APP scams is not evenly distributed among payment providers, and some respondents thought it did not cater for certain...
OFSI fines fintech for sanctions breach
OFSI has fined TransferGo Limited (an authorised payment institution) £50,000 for making funds available to a person designated under the Ukraine sanctions regime. The fine relates to 16 transactions where TransferGo...
FCA updates on regulating the funeral plans sector
The FCA has updated its webpages on regulating the funeral plans sector to set out what firms should be doing to prepare for FCA regulation on 29 July 2022. It has also published the authorisation and variation of...
Final report issued on FCA complaint
The Complaints Commissioner has issued its final report in respect of a complaint made to the FCA – the complainant received what they considered to be an aggressive and threatening email from the FCA’s...
PRA sets scope of 2022 insurance stress test
The PRA has written to the largest PRA-regulated life and general insurers to set out the high-level scope for the 2022 Insurance Stress Test (IST) exercise. For life insurers, the IST will focus primarily on economic...
Court sanctions Provident scheme
The Court has sanctioned the Provident Personal Credit Limited scheme, which includes a proposal to wind down the business. FCA has not supported the scheme for reasons including that consumers are being offered...
Court of Appeal supports FCA on unauthorised business action
The Court of Appeal has supported FCA in upholding findings that Alexandra Associates (UK) Limited, trading as Avacade Future Solutions, and Craig and Lee Lummis carried out unauthorised activities both in arranging and...
FCA writes to RemCo chairs
FCA has written to the Chairs of Remuneration Committees within firms to set out its approach to remuneration this year and to highlight the areas RemCo chairs should be considering. Broadly, the Chair must remain...
ESMA publishes guidelines on marketing communications
EMSA has published guidelines on marketing communications under the Regulation on cross-border distribution of funds. The guidelines set out principles on the identification of marketing communications, the description...
FCA launches new whistleblowing webform
The FCA has launched a new online form for reporting concerns about wrongdoing by firms or individuals to the FCA. It has also published a new webpage to help whistleblowers decide where to make a report.
ESMA publishes calls for advice on PRIIPs and wider retail issues
ESMA has published: a call for advice it has received on certain aspects of retail investor protection in which the Commission asks ESMA to advise on: addressing and enhancing investor engagement with disclosures;...
EBA consults on AML compliance officers
EBA is consulting on new guidelines on the role, tasks and responsibilities of AML/CFT compliance officers within supervised entities. The guidelines also consider the wider governance set up, including at group level...
EBA publishes stress test results
The EBA has published the results of its 2021 EU-wide stress test which involved 50 banks from 15 EU and EEA countries. The results show that under a very severe scenario, the EU banking sector would stay above a CET1...
Regulatory sandbox now open year-round
The FCA’s regulatory sandbox is now open permanently, meaning firms can submit their applications throughout the year, rather than on a cohort basis. The FCA has also published guidance for firms applying to the...
FCA gets illegal money lender charges removed
FCA has obtained an order from the High Court to remove over 600 charges, notices or restriction that had been registered by an illegal money lender at the Land Registry. FCA has started several legal proceedings...
LSB publishes Access to Banking Standard summary
LSB has published a summary report on the Access to Banking Standard. The report makes it clear that LSB has no role in approving or commenting on a bank’s decision to close a branch, but merely to see how the...
FCA resumes work on Credit Information Market Study
The FCA has restarted its work on the Credit Information Market Study following a pause during the Covid-19 pandemic. It intends to engage with industry and consumer groups and complete its analysis during Q3 2021...
Ombudsman News looks at BII complaints
The latest edition of Ombudsman News looks at complaints about business interruption insurance (BII) after the test case. In the case of most complaints, the insurer is now accepting that the policy provides cover...
FCA consults on streamlining decision making
FCA is consulting on changes to its decision making process. It plans to move some decision-making from the RDC to the authorisations, supervision and enforcement divisions, to speed up the process and give...
FCA updates on MIFIDPRU applications
Following the publication of various MIFIDPRU application forms on 27 July, the FCA has made further application forms available on its website. The FCA intends to make the remaining application forms and all...
FCA consults on D&I on listed company boards
The FCA is consulting on proposals to improve transparency for investors on the diversity of listed company boards and their executive management teams. The proposals include changes to the FCA’s Listing Rules to...
PRA consults on insurance business transfers
The PRA has launched a consultation on its approach to insurance business transfers. The proposals update the PRA’s approach following legislative changes post-Brexit and provide greater clarity on the PRA’s...
FCA publishes individual ban notice
FCA has published a decision notice noting its decision to ban Markos Markou, director and CEO of a mortgage broker, and to fine him £25,000. FCA considers Mr Markou not fit and proper to perform his senior management...
FCA writes to firms on SME lending and BBLS fraud
FCA has published a Dear CEO letter on its expectations of firms in reporting BBLS fraudulent activity. It notes the excellent levels of cooperation within the industry throughout the pandemic and in relation to BBLS...
Individual imprisoned for fraudulent trading and FSMA breaches
Ian Hudson has been imprisoned for 4 years, for one count of fraudulent trading and two additional terms of 14 months each reflecting a breach of s19 FSMA. These will run concurrently following an earlier guilty plea...
FCA updates on IFPR
FCA has updated a number of pages on its website to reflect the forthcoming IFPR. Among other things, it has updated its pages on: authorisation applications for wholesale investment firms capital requirements...
PRA updates on accountability
PRA has updated its web resources on strengthening accountability in banks and insurers. It has highlighted its paper on working together to drive change in diversity and inclusion and on its updates for remuneration...
FCA publishes second set of IFPR rules
FCA has published its second “near final” rules on elements of the new IFPR. These rules cover : own funds requirements firms acting as clearing members and indirect clearing firms basic liquid assets...
FOS commissions independent review
The FOS Board has commissioned an independent review of its service, aimed at ensuring it can continue to meet its customers’ needs. The first part of the review will look at the current operational effectiveness...
PSR writes to banks and UK Finance on Phase 2 of CoP
PSR has written an open letter to the 6 banking groups directed under its SD10 and to UK finance, on the public commitment to deliver the first part of Phase 2 of Confirmation of Payee. The banks had confirmed their...
FCA confirms new rules
FCA has confirmed various rule changes in its latest Handbook Notice: to the technical standards under EMIR, to give firms clarity and to align the UK in implementing various Basel Committee and IOSCO recommendations...
PRA updates MRT waiver
PRA has updated its list of modifications by consent to include an application to allow CRR firms to exclude from idenfication as MRTs employees who meet the pay-based criteria for the definition but are deemed not to...
Treasury writes to FCA over frozen bank accounts
The Chair of the Treasury Committee, Rt. Hon. Mel Stride MP, has written to Nikhil Rathi following press reports that NatWest might have frozen the accounts of some customers on low incomes without good reason. The...
Treasury consults on amendments to MLRs
The Treasury is consulting on amendments to the MLR 2017 Statutory Instrument 2022. These amendments will allow the government to make some time-sensitive updates to the MLRs, which are required to ensure that the UK...
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