FIN.

FATF updates statements

FATF held a plenary meeting on 21-23 October.  Many initiatives are on hold while FATF warns firms about the financial crime risks the pandemic has created, but it has continued to work with countries under increased...

FATF updates recommendations

FATF has updated its recommendations in respect of: Recommendation 1 and its interpretative note, to broaden the existing requirement specifically to require relevant entities to identify and assess the risks of...

PRA consults on BRRD II

The PRA has launched a consultation on its Contractual Recognition of Bail-in (CROB) and Stay in Resolution (Stays) Rules. The proposals will support the UK’s transposition of the Bank Recovery and Resolution...

FCA confirms SMCR extension dates

FCA has confirmed it has extended the date by which all solo-regulated firms must have fully implemented the Certification Regime and Conduct Rules, to 31 March 2021.  This follows Treasury making the statutory...

FCA updates on Directory dates

FCA has updated its information page on the Directory of certified and assessed persons.  It confirms that dual regulated firms must submit their data by 13 November, and it will start to be published from 23 November...

SFO publishes DPA guidance

The SFO has published a chapter from its handbook that gives guidance on how it approaches DPAs and engages with companies when it is considering a DPA. The guidance, which is internal guidance for SFO staff and...

FCA confirms new rules

FCA has issued a Handbook Notice summarising rule changes finalised over recent months.  Key among them are: the new section on COBS (22.6) to ban derivatives and ETNs that reference certain cryptoassets to be marketed...

Commission consults on AIFMD review

The European Commission has launched a consultation on its review of the AIFMD.  The consultation is open until 29 January 2021. The Commission wants to gather views from AIFMs, distributors, industry representatives...

Breathing Space Consultation Launched

The FCA has published its consultation on the handbook changes required as a result of implementation of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales)...

MLR Bank Account Portal not yet ready

FCA has confirmed that the Bank Account Portal, which is being set up under the MLRs to enable credit institutions and providers of safe custody services to respond to requests for information from a law enforcement...

FCA publishes BI High Court declarations

FCA has published the High Court declarations made in the test case, which are the culmination of the test case judgment. The declarations set out how and to what extent the policies in the representative sample used in...

FCA: new webpages on whistleblowing

The FCA has launched two new webpages on whistleblowing. The first webpage sets out the process for reporting concerns of wrongdoing to the FCA in confidence and provides guidance on: Making the decision to speak to the...

PRA consults on CRD V

PRA is consulting on further proposed changes to its rules, supervisory statements and statements of policy to implement elements of CRD V, and also to make changes to the UK framework to take account of parts of CRR II...

Crowdfunding Regulation in OJEU

The EU Regulation on Crowdfunding and the accompanying amendments to MiFID 2 have been published in the Official Journal.  It will apply from 10 November 2021. Please ask us if you’d like to see the articles...

Commission publishes EU work programme 2021

The European Commission has announced its focus for 2021.  As well as continuing to work on managing the effects of the pandemic, its priorities will include: a “Fit for 55” packages to reduce emissions by...

FSB issues final report on CIRR toolkit

The Financial Stability Board (FSB) has published its final report on a toolkit of effective practices for financial institutions’ cyber incident response and recovery (CIRR). The toolkit aims to assist financial...

Lords responds to HMT on equivalence

Baroness Donaghy, chair of the House of Lords EU Services Sub-Committee, has responded to HMT’s letter of 21 September which set out the Government’s responses to previous queries of the Sub-Committee on UK...

HMRC publishes MLR risk assessment guidance

HMRC has published risk assessment information to help businesses carry out the money laundering and terrorist financing risk assessment required under the MLRs.  There are separate documents for each of: money services...

EBA consults on PSD2 major incident reporting

EBA is consulting on a proposed revision of its guidelines on major incident reporting under PSD2. It wants to make the process better, simpler and more streamlined, and reduce the number of operational incidents that...

Current accounts for expats post-Brexit

The Treasury Committee recently wrote to the FCA seeking clarification on the notice period that should be given to current account customers who are being told their accounts will be closed once the transition period...

FCA fines for short selling disclosure breach

FCA has issued its first fine for breach of the Short Selling Regulation. It fined Asia Research and Capital Management Limited, an asset management firm based in Hong Kong, nearly £875,000 for failing to notify FCA and...

FSB reports on global stablecoins

The Financial Stability Board (FSB) has published its finalised high-level recommendations for the regulation, supervision and oversight of “global stablecoin” (GSC) arrangements. The report says that GSC...

SFO looks to future challenges

Lisa Osofsky has spoken on future challenges in economic crime.  She focused on: the success of the National Economic Crime Centre in its first 2 years of existence; the refreshed Economic Crime Plan; better engagement...

OFSI publishes annual review

OFSI has published its annual review for the year to March 2020. The review highlights: OFSI’s work to prepare for the end of the transition period; its work on reported breaches and how it decides on the...

Mortgage Market Disruptions

The FCA today published Occasional Paper No. 57 on mortgage market disruptions.  The paper uses data to document the trends associated with COVID-19 and compares them to the financial crisis of 2007-09. The summary...

HMT writes to House of Lords on equivalence

The Economic Secretary to HM Treasury, John Glen MP, has responded to the House of Lords EU Services Sub-Committee’s queries on UK-EU regulatory cooperation for UK financial services post-Brexit. In its letter to...

EIOPA sets out approach on POG

The European Insurance and Occupational Pensions Authority (EIOPA) has published a paper outlining its approach to the supervision of product oversight and governance (POG) requirements based on the Insurance...

New Debt Letter Rules

HM Treasury has announced this morning that the current form of debt letters, including default notices will be changed from December 2020. The changes are expected to include making the notices more user friendly, with...

FCA skilled persons reports update

In July – September 2020, FCA commissioned 14 skilled persons reports – of which half were on the retail side and half the wholesale side.  3 related to retail banking and payments and 2 to retail lending...

EP approves crowdfunding proposals

The European Parliament has approved, in plenary, the proposal for EU-wide regulation of crowdfunding services and platforms. Given that the Council’s position was approved unamended, the text was deemed adopted...

FCA opens 2 sandbox windows

FCA has opened two new application windows in its Sandbox – applications for Cohort 7 of the now established regulatory sandbox, and the pilot of a new Digital Sandbox. The emphasis is on firms providing products...

FGC updated for MLR changes

The Financial Crime Guide has been updated to reflect necessary changes consequent on implementation of MLD5. In particular, it now covers new high-risk factor considerations; changed e-money thresholds for CDD; updated...

Up next from FCA

FCA’s latest Policy Development Update promises, by the end of the calendar year: consultation on amendments to CONC and MCOB to accommodate the Breathing Space Regulations consultation on the new regulatory...

OFSI publishes quarterly TAFA report

OFSI has published its quarterly report on the operation of TAFA, covering the quarter to end March 2020. At the end of the quarter, just over £100,000 were frozen, but mainly relating to the EU Al-Qaida Regulation...

EU updates on AML initiatives

Valdis Dombrovskis has spoken on financial crime prevention and, in particular on the AML action plan. He is pleased at the support the plan received, and the overwhelming agreement that no action is not an option. They...

FCA extends 10% depreciation guidance

FCA is giving a further 6 month extension to its measures on 10% depreciation notifications.  Its first set of measures expire on 30 September, and it is extending them such that it will not take action for breach of...

FCA updates on Brexit preparations

FCA has urged firms to make sure they have considered how the end of the transition period will impact them and their customers.  It has updated its webpage to include stressing that firms with any client money or...

EU to recognise UK CCPs from 1 January 2021

The European Securities and Markets Authority (ESMA) has announced that it will recognise the three central counterparties (CCPs) established in the UK as third country CCPs (TC-CCPs) from 1 January 2021.  The decision...

CMA letter re PPI Order breaches

The CMA has written to Cardiff Pinnacle about two breaches of the PPI Order: breach 1: 77 customers did not receive their Annual Reviews on time; and breach 2: 167 customers did not receive accurate information in their...

FCA reports on regulatory perimeter

FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...

ESMA publishes draft third country RTS

ESMA has published draft RTS and ITS for third country investment firms under MiFID 2/MiFIR.  It needed to make changes following the IFR and IFD, which requires information to go to ESMA even where the third-country...

ESMA issues report on MAR

The European Securities and Markets Authority (ESMA) has published its first in-depth review of the Market Abuse Regulation (MAR) since its implementation in 2016. It is expected that the report will feed into the...

EC adopts retail payments strategy

The European Commission (EC) has adopted a Retail Payments Strategy as part of its new Digital Finance Package. The strategy draws on the findings of the public consultation launched earlier this year and identifies key...

FCA updates on new COVID-19 issues

FCA has updated firms following the most recent Government announcement on COVID-19 restrictions.  It says firms should continue to follow Government advice to work from home, and has updated its statements on...

EU proposes crypto-asset market Regulation

The EU has published a proposal for a Regulation on markets in crypto-assets, as part of its Digital Finance package.  The proposal notes many Member States have legislated on issues relating to crypto-assets which has...

PRA publishes proprietary trading review

PRA has published a report required by law that looks at the extent of proprietary trading by deposit takers and dual-authorised investment firms.  The report looks at: the extent of trading; the risks trading poses to...

BI consequentials hearing set for 2 October

FCA says the Court has confirmed the consequentials hearing following judgment in the BI insurance test case will take place on 2 October, probably in the morning. FCA will live stream the hearing, at which the parties...

FCA writes to CEOs on BI judgment

FCA has written to the CEOs of insurers following publication of the High Court judgment on the BI test case. It expresses its gratitude to the insurers that were parties to the case and to all those who have co...

FCA sets up LIBOR transition page

FCA has created a new page on its website, telling firms what they need to know about LIBOR transition.  The page focuses on balance sheet exposure and how affected firms can move their LIBOR-linked contracts to...