Suzanne GadoThe Investment Association has published guidance for operators of UK-authorised collective investment schemes on ‘reasonable steps’ that may be taken to ensure the authenticity of electronic instructions...
Category - Topics
Roseyna Jahangir
PRA revises Branch Returns for international banks
The PRA has published Policy Statement 17/19, confirming changes to the Return that branches of international banks must complete, and associated reporting guidance. The first revised Returns will need to be submitted...
Emma RadmoreFCA updates SMCR resources
FCA has updated its checklists for firms preparing for the SMCR. It has added some text about the submission of Form K. It has also added a section for sole traders to its guidance on conversion from the Approved...
PRA consults on update to PIN process
The PRA is proposing amendments to its Pre-Issuance Notification regime for capital instruments within the scope of CRR. The proposed amendments reflect changes arising from CRR II, and also the PRA’s experience...
Payment Systems Regulator working on widening data access
In the PSR’s response to its Data in the Payments Industry discussion paper, the regulator heralds work with Pay.UK on opening up access to data in the UK’s new payments architecture. The aims of such a...
EBA to provide guidance on use of CRR ‘legacy instruments’
The EBA has confirmed that it will be developing communications aimed at providing clarity on the appropriate treatment of capital instruments that, for the purposes of the CRR, are currently classified as ‘legacy...
FATF updates compliance table
FATF has published further reports on Iceland, Hong Kong, China and Greece’s AML/CFT measures and as a result updated its consolidated table of assessment ratings.
FCA prosecutes for document destruction
FCA has brought its first prosecution for a destruction of documents offence under FSMA. It has prosecuted Konstantin Vishnyak, who it was investigating for suspected insider dealing, for destroying documents which he...
Jonny WilliamsFCA updates on consultations and feedback
The latest Policy Development Update highlights a number of papers due before the end of 2019: feedback on the investment platforms market study remedies; policy proposals on regulatory fees and levies; permitted links...
FCA postpones wholesale market data Call for Input
The FCA has announced that they are postponing the Call for Input they had planned for for Q2 2019/20, in the light of the impact of Brexit preparations on firms, and in particular on those individuals in firms that...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation covers a number of minor changes to the rules that will be made only if there is a no-deal Brexit on 31 October, and also other miscellaneous amendments including: minor...
PSR update on LINK interchange fees
On 9 September 2019, the PSR published a document setting out (1) the responses it had received to its call for views on the structure of LINK interchange fees and (2) a summary of the roundtable event which discussed...
Caroline StevensonFCA publishes Directory entry form
FCA has published forms and guidance for firms that need to submit data for the new Directory of certain individuals working for financial services firms. The guidance explains what FCA considers to be “customer...
OFSI publishes frozen asset review guidance
OFSI has published guidance on the annual frozen asset review reporting form. The guidance explains the requirement for all persons who hold or control funds or economic resources that belong to or are controlled by a...
Government answers AML questions
In response to questions posed in Parliament, the Secretary of State for the Home Department confirmed that the UK has not opted in to the Directive on criminal sanctions for money laundering our legislation is already...
EBA speaks on AML
Jose Manuel Campa, EBA Chair, spoke to ECON on the importance of consistent application of AML legislation. He explained the ESAs’ current powers, and the guidelines already published. He said EBA is working on...
FCA speaks on skimmers and scammers
Charles Randell has spoken on FCA’s commitment to the Economic Crime Plan and the importance of embedding fraud prevention in the development of new savings and investment policies. He encompassed within...
PRA writes to banks on AML risks
PRA has written a Dear CEO letter bringing banks’ attention to EBA’s opinion on the ML/TF risks in prudential supervision, and confirm it will continue to consider these concerns as part of its prudential...
No strong case to merge Ombudsmen
“There is not a strong case to merge TPO and FOS at the present time” is the conclusion of a tailored review of the Pensions Ombudsman (TPO) published by the DWP. A merger between the two Ombudsmen...
Gavin EllisonHMRC cracks down on ML breaches
HMRC has updated its list of actions against businesses that are not complying with the MLR and published details of a £7.8m fine levied on a money transmitter. It imposed the fine on Touma Foreign Exchange Ltd after...
ECB speaks about work and priorities for year ahead
The Chair of the Supervisory Board of the ECB has addressed the European Parliament’s Economic and Monetary Affairs Committee at its first ordinary hearing in 2019. Comments covered: key supervisory priorities for...
EC calls for action with publication of no-deal Brexit checklist
The EC is urging EU businesses and citizens to consider whether they are prepared for the UK leaving the UK on ‘no-deal’ terms on 31 October, reminding them in this scenario there will be no transition...
PRA consults on updates to ISPVs authorisation and supervision approach
The PRA is consulting on changes to certain aspects in its approach to the authorisation and supervision of ISPVs, in the light of experience gained of operating the regime since its introduction. The proposed changes...
Securitisation Regulation added to Single Rulebook
The EBA has added the Securitisation Regulation and associated RTS and Guidance to its online Interactive Single Rulebook. Consequently the Q&A tool is likewise extended to include this Regulation.
FCA publishes SCA webpage
As the official deadline approaches for SCA implementation, albeit mitigated by the conditional extension agreed with UK Finance, the FCA has published an overview page setting out the state of play for industry...
Tabernula defendant imprisoned
As a result of a conviction for money laundering following the “operation Tabernula” investigations, Richard Baldwin has been sentenced to 5 years and 8 months imprisonment. This follows convictions of...
FCA explains views on electoral polling and MAR
FCA has given guidance on how MAR might apply to information gained from electoral polling, and how firms should handle any information that might be inside information. It gives the example of how, if an established...
BSB publishes regulatory references good practice guide
The Banking Standards Board has published its guidance on good practice for regulatory references. The guidance is based on the three key principles of proportionality, fairness and consistency. While the guidance was...
Michelle ChanceEuropean Parliament Think Tank briefing on AML state of play
The European Parliament’s Economic Governance Support Unit has published a paper that outlines the current initiatives and actions targeting reinforcement of the AML supervisory and regulatory framework in the EU...
Big Data Analytics consultation by IAIS
The IAIS has published a draft issues paper on the use of Big Data Analytics in Insurance. The draft issues paper focuses on potential benefits and risks to consumers of the use of personal and other data by insurers...
European Payments Council urges no-deal Brexit preparation
Earlier this year, the European Payments Council (EPC) approved (on the application of UK Finance) the continued participation by UK PSPs in the SEPA payment schemes in the event of UK withdrawal from the EU on a no...
ESMA publishes Guidelines on funds liquidity stress testing
ESMA has published stress testing Guidelines that build upon and amplify the requirements of AIFMD and UCITS Directive. The Guidelines are directed at fund managers, and will require them to stress test the assets and...
FCA updates on Remuneration Code expectations
FCA has written its annual letter to RemCo chairs of Level 1 firms. The letter sets out what FCA has found on accountability, ex-post risk adjustments and diversity and inclusion. The letter: notes the responsibilities...
Pay.UK call for information
Pay.UK has today published a call for information following a change request which was requested by UK Finance on behalf of seven of their members. This change would introduce a new requirement to the Faster Payments...
FCA create implementation group for mortgage changes
Following publication of CP19/14 (the consultation looking at proposed changes to responsible lending rules for mortgage customers), the FCA announced on 27th August 2019 that they have set up an Implementation Group in...
Law Commission looks into intermediated securities
The Law Commission has asked all stakeholders for their views on how well the current system of intermediated securities works. Its call for evidence, which ends on 5 November, is in response to a request from BEIS to...
CMA takes action over PPI reminder failures
CMA has ordered RBS and Santander to take remedial action after they did not send, or sent inaccurate annual PPI reminders to customers. The banks must now appoint independent bodies to audit their PPI processes and put...
FCA publish data on current account providers
The FCA has today published the table of data provided to them by current account providers. This data allows consumers and small businesses to compare the services provided by each of the different brands. The data...
ASA rules share tipping site ad misleading
The ASA has upheld complaints in relation to three websites for Stockmarket Insider, an “investment advisory service”. The websites claimed: “of the thousands of “investment advisory...
FCA ‘Dear CEO’ letter on SCA published
The FCA has sent a Dear CEO letter to payment firms within the scope of PSD2 SCA, confirming the plan for an 18 month phased implementation of SCA for card-not-present e-commerce transactions. The FCA’s letter...
Consultation on restricting use of credit cards for gambling
The Gambling Commission is consulting on whether to prohibit or restrict the use of credit cards for online gambling. The basis for this proposal lies in evidence they have received suggesting there are risks of...
ESAs respond on crypto assets
EBA and ESMA have published a joint response to the Commissions’ paper on crypto-assets. The response explains the work the ESAs are undertaking, including an imminent national stock-taking exercise on the...
Data breaches and insider trading – lessons for public companies
We have written an article highlighting the risks of insider trading relating to a personal data breach, in the light of the SEC’s action against Equifax executives.
Audrey KohHigh Court refuses Prudential’s annuity transfer
The court process is not merely a “rubber stamping” exercise. The High Court has refused to sanction the transfer of £11.2 billion worth of annuities from the Prudential Assurance Company (PAC) to Rothesay...
Tribunal partially overturns FCA on lack of integrity consequences
The Tribunal has delivered its decision on FCA’s proposal to impose a public censure and ban from carrying on any significant influence functions on Andrew Tinney for his actions as COO of Barclays Wealth and...
CMA revokes Lloyds Directions
CMA has revoked the Directions it gave to Lloyds Banking Group on 1 April as part of the Retail Banking Market Investigation. The Directions had required Lloyds (among others) to take various actions to deliver App-to...
ECB calls for step up in Brexit preparation
ECB is concerned that banks have not progressed as far with their Brexit planning as they had originally indicated they would. ECB notes that it considers the risks of a no-deal Brexit to the overall euro area financial...
ASA takes action on misleading crypto ad
ASA has told HDR Global Trading to take down an ad and ensure in future that financial information was set out so as to be readily understood by the audience it was aimed at and that the risks of the relevant...
FCA provides more time to implement Secure Customer Authentication
The FCA has set out an agreed plan that it will not take any action against firms that are not ready for the strong customer authentication (“SCA”) EU rules by 14 September this year. In the plan, the FCA...
Natasha BrownleeSFO publishes “co-operation” guidance
The SFO has published guidance for corporates aimed at helping them to understand what it means by “co-operation” when it is considering its charging decisions. The SFO says it is assistance that goes above...
Regulators launch new ScamSmart campaign
The FCA and the Pensions Regulator are running another media campaign over the summer to warn the public about pension scams. With new research suggesting that 42% of pension savers are potentially at risk (which would...
Deposit Guarantee Schemes Directive Opinion published
The EBA has published the Opinion on the implementation of the Deposit Guarantee Schemes Directive (DGSD) that it is mandated to submit under article 19(6) of DGSD. The proposals set out in the Opinion include: a...
Reserve your place: FUNDamental Series
Join us for the first in our series of Funds seminars in Edinburgh on 3 September. If you work with funds, are looking to set one up or even invest in one you’ll benefit from attending this seminar which is...
NCA gets UWO against Northern Irish woman
NCA served an unexplained wealth order , its 4th in total, on a Northern Irish woman living in London with suspected links to organised crime, in respect of her financing of 6 properties worth over £3m.
Transparency International Annual Plan
TI has published its annual plan for 2019-20. Key points include: the growth of TI to over 50 staff in the past 10 years should now lead to a period of stabilisation; the key successes of last year included the...
FCA updates skilled persons statistics
FCA has released the figures for skilled persons reports it commissioned in Q1 2019/20. It commissioned 9 reports in total – of which 3 related to each of retail lending and wholesale financial markets, 2 to...
FCA explains UCITS liquidity problem
Andrew Bailey has written to Lord Myners explaining why FCA has not taken, and does not think it appropriate to take, action to establish its own requirements for liquidity standards for UCITS. The letter explains that...
Barry StimpsonFeedback on EBA Single Rulebook published
The EBA has published the results of a review exercise it conducted to assess the utility of the Single Rulebook. As might be expected, overall feedback from the competent authorities and selected industry...
EBA publishes Basel III implementation analyses
In the run up to full implementation of Basel III in the EU, the EBA has published an implementation impact study and policy advice set, covering securities financing transactions, operational risk, output floor and...
FCA publishes SMCR stocktake report
FCA has published the findings of its review on how the SMCR has been embedded in the banking sector. It hopes banks and solo-regulated firms will find the conclusions of use and interest, although it notes the review...
Up next from FCA
The latest version of FCA’s Policy Development Update highlights: expected feedback on Investment Platforms Market Study Remedies by the end of the year; potential policy statement on general insurance value...
Treasury Committee calls for FCA powers on perimeter changes
The Treasury Committee has unanimously called for FCA to be given formal powers to recommend changes to the regulatory perimeter. It says the current informal system allows the grey area between regulated and non...
FRC fines KPMG and individual over CASS reports
The Financial Reporting Council has fined KPMG Audit plc £3.5m (including a 30% reduction for it admitting the misconduct) and one of its (now) partners £52,500, reprimanded them, and imposed a requirement on the firm...
Market Watch focuses on insider dealing risks
The latest edition of FCA’s Market Watch focuses on FCA’s concerns on access to inside information, following the conviction of a former compliance officer for sharing information. FCA noted that Fabiana...
BoE publish the RTGS and CHAPS Annual Report
The Annual Report published on 1 August 2019 sets out the BoE’s strategy on the subjects of RTGS and CHAPS for the year 2019/20. The report notes that they have a target of 99.95% operational availability for RTGS...
FOS has updated its consumer credit resources
The updates published on 1st August 2019 relate to unaffordable lending and guarantor loans. The resources provide details of the types of complaints the FOS tend to deal with and include details about how they assess...
New FCA webpages on SMCR extension to FCA solo-regulated firms
The FCA has published two webpages with information for regarding the extension of the SMCR to solo-regulated firms. The first page published on 26 July includes a guide for firms, details of how the SMCR applies, a...
FCA introduces investment pathways for pensions drawdown
The FCA has published a policy statement introducing ‘investment pathways’ for consumers with pension savings who enter drawdown without taking advice. In 2018, the FCA published the final report of its Retirement...
ABI updates guidelines addressing customers with criminal convictions
The ABI has published updated guidelines aimed at helping insurers ensure they are treating fairly customers who have convictions or related offences. The existing guidelines have been reviewed to take account of...
PRA sets out their approach to enforcement
In a recent speech, Miles Bake, head of the PRA’s enforcement and litigation legal division, provided insight into: the PRA’s rationale for enforcement recent examples of enforcement action key themes; and...
FCA’s Final Guidance on Cryptoassets published
Having issued a consultation earlier this year on its proposed guidance on categorisation of cryptoassets and the perimeter of regulated activities, the FCA has now published its finalised guidance. The FCA notes that...
Publication of AG Opinion on consequence of removing unfair terms in consumer contracts
The European Court of Justice has published the AG’s Opinion in a case concerning the effect of a declaration of unfair terms for the purposes of the Unfair Contract Terms Directive (in UK law as the Consumer...
FMLC notes uncertainty in MLD5 definition of ‘virtual currencies’
In their (late) response to the consultation of the transposition of the Fifth Money Laundering Directive into UK law, the Financial Markets Law Committee has alerted Treasury to a potentially unintended consequence in...
BoE and PRA confirm Resolvability Assessment Framework
Following the consultation at the end of last year, the Bank of England and PRA have published the final version of their proposals for resolvability. The Resolvability Assessment Framework applies to certain UK banks...
FCA consultation on contingent charging ban for pension transfers
The FCA is proposing to ban the use of contingent charging for pension transfers, whereby an adviser is only paid if recommending that a member of a pension scheme makes a transfer. Under current pension legislation...
James BorshellEC sets out position statement on equivalence decisions
The EC has published a communication about equivalence decisions (the timing of which is no doubt entirely unrelated to the ascension of pro-Brexit Boris Johnson to the Prime Ministership of the UK). The communication...
FATF updates compliance ratings
FATF has published an updated table of assessment ratings. The ratings show how each member has fared in the assessments of compliance with each FATF standard. It has also updated its procedures for its fourth round of...
FCA publishes SMCR final rules
FCA has at last published its final rules on extending the SMCR to solo-regulated firms, including CMCs. It has, in the main, implemented the changes it consulted on in its consultation on “optimising” the...
Tribunal refuses suspension application
Sussex Independent Financial Advisers Limited had applied to the Tribunal for a suspension of the FCA’s decision to vary its permission to remove all its permitted activities on the basis that the firm did not...
BSB publishes Consumer Framework
BSB has published its Consumer Framework designed to show what good banking outcomes look like to consumers. Following consultation feedback, the BSB has made some adjustments to its draft principles and examples of...
FCA updates on London Capital & Finance investigation
Dame Elizabeth Gloster has made an initial announcement on how she plans to conduct the investigation into the regulation of London Capital and Finance plc. An email address has been set up for any communications...
Regulators tweak exit arrangement rules
FCA has announced an extension to the directions made under its temporary transitional power which it introduced in February. The direction will now give firms until 31 December 2020 to make the necessary adjustments...
Call for views on Access to Cash research
The Payment Systems Regulator has published the results of its commissioned research into how people and businesses are using cash in today’s landscape. It found that despite the transition to and increase in...
Commission calls for better AML measures
The European Commission is not happy with the levels of domestic implementation of various AML/CTF measures in Member States. It has carried out research and issued a Communication and several reports. Key conclusions...
‘General good’ report published by EIOPA
EIOPA has conducted a review of the approaches of NCA to ‘greater good’ rules. The findings of the report included the assessment that divergence between Member States in relation to, in particular, the...
OFSI updates post-Brexit sanctions pages
OFSI has added some more pages to its set of information on sanctions regimes that will apply if the UK leaves the EU without a deal. The new pages cover Burundi and Guinea.
PRA consults on group own funds for insurance firms
The PRA is consulting on its approach to the determination of the availability of subordinated liabilities and preference shares in group own funds under Solvency II. Views on the PRA’s statements regarding...
Commission adopts unfair terms guidance
The European Commission has adopted a guidance note on the Unfair Contract Terms Directive. The note covers: the objectives and scope of the directive; key terminology such as “supplier” and...
EIOPA discussion paper on insurance stress testing
EIOPA is inviting views from stakeholders on the methodological principles of insurance stress testing. The discussion paper considers aspects of stress tests such as: process and objectives; scope scenario design; and...
FCA consults on vulnerable customer guidance
FCA has published a guidance consultation on what it considers the Principles require of firms in terms of fair treatment of vulnerable customers. It thinks firms have made big improvements generally, but now wants to...
EBA publishes updated report on CET1 instruments
As part of its mandate under CRR to monitor and report on capital instruments, the EBA has published an update to its CET1 Report along with an updated list of instruments. The EBA notes the inclusion of 16 new forms...
Updated FCA and PRA MoU published
The FCA and the PRA have updated the MoU setting out the relationship between the two regulators and the way in which they respectively operate, particularly in common areas. The MoU was first published at the time of...
FCA writes Dear CEO letter on harm risks in wealth management
FCA has written to CEOs of wealth management and stockbroking firms setting out its view of the key risks of harm their firms pose to customers and markets. FCA has recently started its 2 year strategy plan on...
EBA FinTech report published
The EBA has analysed the regulatory landscape for FinTech firms, both in terms of activities around the regulatory perimeter and within authorisation. The report sets out the findings of this analysis, including...
FCA fines Standard Life for non-advised sales failings
FCA has fined Standard Life Assurance Limited £30,792,500. The fine relates to non-advised sales of annuities, and sales practices over nearly 8 years. Although the sales were non-advised, FCA found that the firm...
FCA publishes feedback statement on fair pricing
In the context of ongoing work by both the FCA and CMA on fair pricing and loyalty penalties, the FCA has published a feedback statement setting out a framework for how it will evaluate the fairness of a given pricing...
Government responds on Overseas Entities Bill
The Government has responded to the recommendations in the Joint Committee Report on the Overseas Entities Bill. The Government welcomed the Committee’s views, and responded on key points as follows: while taking...
European Ombudsman supports Commission on AML 3rd country info
The European Ombudsman has published its decision in relation to a complaint brought by a member of the European Parliament whose request to the European Commission to give him public access to various documents...
JMLSG updates on Guidance
JMLSG has thanked all those who responded to its proposed changes on the chapters in Part II of its guidance addressing credit unions and brokerage services to funds. It has now put the finalised chapters to Treasury...
APPG calls for radical overhaul to whistleblowing legislation
The All Party Parliamentary Group for Whistleblowing has published its report following its formation in 2018 to consider the effectiveness of the Public Interest Disclosure Act 1998. The Report calls for “a...
SFO confirms DPA with metals tech firm
The SFO has announced that in 2016 it entered into a DPA with Sarclad Ltd, a technology provider for the metals industry. The DPA related to charges of corruption and failure to prevent bribery between June 2004 and...
Call for evidence on impact of MiFID II disclosure requirements
ESMA has opened a call for evidence regarding the impact of MiFID II disclosure requirements in relation to inducements, and costs and charges. The responses will form part of ESMA’s assessment of the...
FCA to help travel insurance customers with pre-existing medical conditions
The FCA has launched a consultation on a new ‘signposting’ rule, aimed at helping customers with pre-existing medical conditions (PEMC) purchase travel insurance. The rule would specify circumstances in...