Jonathan DrakeFOS has published its three strategic priorities for the next 5 years: enhancing its service preventing complaints and unfairness arising and building an organisation with the capabilities it needs for the future It...
Category - Topics
Emma Radmore
Caroline StevensonCommission updates on MLD transposition
The European Commission has updated its website to show the state of transposition and infringement actions in respect of the Money Laundering Directives. The UK is no longer mentioned. In respect of MLD4, all Member...
Amelia GreenFCA finalises SMCR rules for benchmark administrators
FCA has published its final rules on extending the SMCR to employees at benchmark administrators. The rules, bespoke to firms that undertake no other regulated activities, take effect from 7 December. UK-based...
PRA confirms stance on e-signatures
PRA has confirmed its position on acceptability of electronic signatures when firms are submitting forms and other regulatory documents. It confirms this is permissible, in the absence of any legal provisions to the...
FCA updates on LCF report delay
Dame Elizabeth Gloster wrote to FCA on 15 May to note that she would be unable to complete her investigation into FCA’s regulation of London Capital & Finance by 10th July as required. The reason for this is...
Compulsory FCA survey coming to firms
FCA is to send a survey by email with a link to 13,000 solo regulated firms, aimed to helping FCA understand the impact of Covid 19 on regulated firms and their financial resilience, where the greatest impacts are for...
FCA takes passports from Cypriot firms
FCA has used its power to remove passporting rights from overseas firms for the first time. It has removed the passports of four Cypriot firms that appear to have used unauthorised celebrity endorsements as part of...
Full details on BI case progress
We have now written a detailed article on the progress in FCA’s Business Interruption insurance test case, including summaries of FCA’s draft guidance, and its selection of polices, wordings and assumed...
LIBOR transition – tough legacy issues
The Working Group on Sterling Risk-Free Rates has published a paper on the identification of “tough legacy” issues. Tough legacy contracts are those that do not have robust fallbacks and prove unable to be...
Rebecca JonesFCA updates on BI test case
FCA has updated on its progress towards its test court case on business interruption insurance policies. It has now reviewed around 500 policies from 40 insurers, and has identified 17 policy wordings that capture most...
Pay.UK launches rules and standards for Request to Pay
Pay.UK has launched its Request to Pay framework comprising the message standards, rules and terms and conditions for developing Request to Pay services. Organisations can use it to create the first Request to Pay...
Natasha BrownleeUK Finance members offer support for commercial landlords
UK Finance says its members are committed to supporting commercial landlords and their tenants who are concerned about their ability to make payments during Covid-19. It urges those concerned to contact their lenders...
Jonny WilliamsUK Finance reports payment holiday figures
UK Finance statistics show that, as of 21 May, their members report that: 877,800 customer accounts had been given a payment freeze on their credit cards, an increase of 25% from the start of the month; nearly 680,000...
PRA publishes FAQs on property valuations
PRA has published a set of Q&A on CRR requirements for property valuations during the disruption caused by Covid-19. Firms have been asking questions on how they shoudl deal with the difficulties in conducting...
EBA publishes loan origination guidelines
EBA has published a set of guidelines on loan origination standards. Its aim is to bring together prudential standards, consumer protection obligations, AML and ESG considerations within one set of guidance. The...
CMA gets £47m refunds on overdraft charges
CMA has announced that over the past 2 years it has secured more than £47m of refunds for customers in respect of overdrafts where banks failed properly to warn them about unarranged overdraft charges. It has now taken...
ESMA updates investor protection FAQs
ESMA has updated its Q&As on investor protection issues under MiFID 2 and MiFIR. The changes specifically address what is an “acceptable minor non-monetary benefit” for the purposes of the inducements...
IOSCO consults on outsourcing principles
IOSCO has published a consultation paper on updating its guidance on the principles of outsourcing. It delayed publishing the consultation because of Covid-19 but now feels it is right to publish it, not least because...
OFSI reports on TAFA
OFSI has submitted its latest quarterly report to Parliament on the operation of the UK asset freezing regime under TAFA. The report covers the quarter to the end of 2019 and notes: only £9,000 of funds were frozen...
EU Crowdfunding Regulation – investor protection aspects
We’ve now published the second part of our review of the proposed EU Crowdfunding Regulation, looking at the investor protection aspects.
FCA updates on CPD and Covid-19
FCA has previously said that is expects firm to be able to show that individuals are competent to carry out their work during the pandemic. It notes that effective and consistent CPD is a part of this, but that it is...
UK Finance comments on FCA mortgage proposals
UK Finance has responded to FCA’s consultation on what firms should be doing as the next stage of helping customers in financial difficulties due to Covid-19 with their mortgages. While, of course, UK...
Green guide for supervisors
The Network for Greening the Financial System has published a guide for central banks and supervisors, looking at how financial institutions have worked with green, non-green and brown financial assets, and how...
Market Watch Covid special
FCA’s latest edition of Market Watch looks at market conduct and discipline in the context of coronavirus. It stresses particularly the importance of complying with the standards of MAR. Given the likely need for...
PRA updates on “prudent person” principle
PRA has updated its policy documents following its consultation on the Prudent Person principle under Solvency 2. PRA received only 7 responses to its consultation, but have made some clarificatory changes following...
FCA consults on safeguarding
FCA is consulting on how firms can strengthen their safeguarding protections during the Covid-19 crisis. The consultation focuses on the provision of additional guidance for payments firms to strengthen the way they...
FCA makes new rules
At FCA’s May Board Meeting it made 3 new sets of rules: the Covid-19 Premium Finance Instrument, which took effect from 18 May and introduced the new requirements on payment deferrals and other measures for...
PRA updates on ISPV supervision
PRA has updated on authorisation and supervision of insurance SPVs following consultation, and has published updated rules, an updated supervisory statement and an updated multi-arrangement insurance SPV new risk...
Regulator Covid-19 update 22 May
After a relatively quiet week, on 22 May: FCA announced further support for customers struggling to pay mortgages due to Covid-19. It is consulting on what options firms will need to provide to customers reaching the...
ASA rules on ad for “pre-approved” credit
The ASA has just announced that it has taken action against Clear Score Technology Ltd for breach of the BCAP Code. We have summarised the ASA ruling here.
FSCS announces 2020/21 levy
FSCS has announced its levy for 2020/2021 at £649m. This is £14m more than forecast in the plan and budget, mainly to reflect estimated compensation costs for LCF opf £44m which will be borne by the Life Distribution...
CMA updates on anti-competitive FS practices
The CMA has updated on progress in its investigations on anti-competitive arrangements in the financial services sector. The initial investigation, which started with information gathering in November 2018, and have...
FCA responds on economic impact of Covid-19
The Treasury Committee has published a copy of a letter from FCA answering its questions on the economic impact of Covid-19. The letter explains: the steps FCA has taken to ensure the credit ratings of customers taking...
Court clarifies SIPP providers’ DD obligations
A landmark case decision, in Adams v Options SIPP UK LLP has considered the duties SIPP providers owe to investors. In this case, a SIPP provider facilitated an investment on an execution-only basis for an investor who...
EP updates on MLD4 high-risk list
The European Parliament’s legislative observatory notes that the revised MLD4 high-risk third country list is now awaiting a committee decision. Meanwhile, the UK is among 9 jurisdictions from whom the Commission...
CRR amending Regulation progresses
The European Parliament is to consider the proposed Regulation amending the CRR in its plenary session on 17-18 June. Meanwhile, the ECB has published its opinion on the proposals, which are aimed at addressing some of...
Government publishes draft EU/UK FTA
The Government has published a draft Comprehensive Free Trade Agreement between the UK and EU. Chapter 17 of the agreement relates to financial services, which it defines as “any service of a financial nature...
JMLSG consults on pooled client accounts
JMLSG is consulting on some new draft text for Chapter 5 of Part 1 of its guidance dealing with pooled client accounts. JMLSG considers the key risks of PCAs are where a customer’s clients misuse a PCA without the...
Banks look at new ways to deal with SME complaints
The Business Banking Resolution Service has carried out a pilot study to look at how disagreements between banks and SME customers could be better addressed. The BBRS has been set up by 7 banks and other stakeholders...
FCA updates on business interruption insurance test case
FCA has provided further information on what it is doing to prepare for the test case it plans to bring to clarify various uncertainties over how business interruption insurance should operate during Covid-19. FCA notes...
Statement on impact of Covid-19 on LIBOR transition – update
Further to their statement on 25 March 2020, the Working Group on Sterling Risk-Free Rates has updated its statement on the impact of Covid-19 on the timeline for firms’ LIBOR transition plans. The update states that...
FCA updates on Innovation Hub help
FCA has updated its information on requesting Innovation Hub support in light of Covid-19. It wants to hear from firms who have creative and innovative solutions to the challenges the virus is posing, and is...
LSB publishes business plan and budget
LSB’s Business Plan and Budget for 2020/21 has been published. It was drafted before the Covid-19 outbreak, and LSB wants to continue with it so far as possible, while accepting it may need to adapt some of the...
FCA publishes finalised Covid-19 insurance guidance
FCA has published its finalised guidance for insurance and premium finance firms on dealing with Covid-19 and customers in temporary financial difficulty. The guidance should be complied with no later than 18 May and is...
PRA responds on retirement interest-only mortgages and default
PRA has provided its feedback following responses to its consultation on prudential treatment of retirement interest-only mortgages, and on credit risk: probability of default and loss given default estimation. Tt has...
EBF publishes cross-border payment guidance
EBF has published guidance for payment service providers in the form of examples and FAQs on implementation of the Cross-Border Payments Regulation. The guidance comes as EBF members have raised queries about charges...
FCA clarifies paper issues during Covid-19
FCA has set out its expectations on how firms should deal with post and paper-based processes during the pandemic. It says it recognises firms will be finding it hard to process post and comply with paper-based...
EBA addresses financial crime risks of dividend arbitrage
EBA has conducted an inquiry into dividend arbitrage trading schemes. It concluded that differences in domestic tax laws mean that national authorities do not share the same understanding of these schemes. As a result...
NCA updates guidance on better SARs
NCA has published an update to its guidance on how to submit better quality SARs, and a set of FAQs to accompany it. The guidance stresses that a properly made SAR will give the enforcement agencies a quick picture of...
FCA updates on Covid-19 and complaints
FCA has updated its webpage on how firms should be handling consumers’ complaints during Covid-19. The page explains that FCA has asked firms to prioritise making payments where consumers have accepted offers or...
Government agrees cross-border information sharing
The Government has endorsed cross-border information sharing within corporate groups as a weapon to combat financial crime. The Government says sharing can help both the private sector and government agencies, but where...
FMLC responds on Overseas Funds Regime
FMLC has published its response to Treasury’s consultation on a new Overseas Funds Regime. It notes: the uncertainty around the timing of the start of the new regime – and whether the new regime will overlap...
Barry StimpsonCovid-19 insurance rules to take effect from 15 May
FCA has updated its website to state that its new guidance for insurance and premium finance firms for dealing with customers in temporary financial difficulty due to Covid-19 will now take effect from 15 May (not 13 as...
Land Registry to accept Mercury PDF documents during Covid-19 pandemic
In response to the Covid-19 pandemic, the Land Registry has confirmed that it will accept PDF copies of certain deeds, including transfers and legal charges, until further notice. Previously only wet ink deeds had been...
EU launches AML policy
The European Commission has adopted an action plan for an EU policy on preventing money laundering and terrorist financing. It wants to deliver, by early 2021: effective implementation of existing rules a single EU...
Regulator Covid-19 update 7 May
On 7 May: PRA announced details of its plans to support firms and enable them and the PRA to focus on the highest priority work: The Climate Biennial Exploratory Scenario is postponed until at least mid-2021; full...
FCA gives lending application guidance
FCA has updated its webpages giving guidance to applicants for authorisation, The latest updated page includes a sample business plan for consumer credit business, with guidance for different types of firms, and...
FCA sets out planned initiatives
FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months. The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...
FCA speaks on response to Covid-19 and Brexit
Nausicaa Delfas has spoken on FCA’s national and international response to Covid-19 and Brexit. On Covid-19, she noted: FCA’s priority to keep markets open and orderly, help firms continue to operate...
FCA sets Covid-19 financial crime prevention expectations
FCA has set out the systems and controls it expects firms to have in place to continue to manage their financial crime risks during Covid-19. It appreciates firms will face operational challenges, but also notes that...
Complaints Commissioner decides on Connaught Complaint
The Complaints Commissioner has published his decision in relation to complaint brought by Mark Bishop about the actions of the FCA’s Chair and Chief Executive in relation to the establishment of the independent...
Regulator Covid-19 update 6 May: SMCR, financial crime systems and other updates
On 6 May: FCA published a modification by consent and a direction to enable all solo-regulated firms to arrange for an unapproved senior manager to cover SMFs in an emergency, from the normal 12 weeks to 36 weeks, as...
FCA updates on insurance and premises access during Covid-19
FCA has updated its webpage on insurance and coronavirus to include guidance on access to premises. It notes that some consumers may be unable to access their residential properties and some businesses may not be able...
Government sets out equivalence views
John Glen has written to the Chair of the European Scrutiny Committee explaining the Government’s stance on equivalence in financial services. The Government cannot provide great detail given the early stage of...
FATF updates on Covid-19 risks
FATF has considered the financial crime risks that Covid-19 has created, and is looking at how to address them. It is particularly concerned at, for example, how criminals may seek to bypass CDD measures, use online...
Covid-19: access to restricted savings
FCA has updated its Covid-19 information for firms in respect of consumers needing to access restricted savings. Research shows that over 20% of consumers have had to access their savings recently, and that several...
FCA pilots digital sandbox
FCA has announced a pilot of a digital sandbox to give support to innovative firms that are tackling challenges caused by Covid-19. It is asking for expressions of interest before opening applications later in the...
FCA updates on CBILS and BBLS expectations
On 4 May: FCA updated its statement about the CBILS and BBLS confirming that its position that lenders who comply with CBILS do not also have to comply with the creditworthiness rules in CONC 5.2A.4-34 where the...
Industry welcomes FCA business interruption insurance action
Industry associations have welcomed FCA’s initiative to seek Court declarations on aspects of business interruption insurance cover. The ABI commented that, although the vast majority of policies do not cover...
Up next from FCA
Unsurprisingly, FCA’s recent publications have almost exclusively focused on Covid-19. However, in BAU, it still proposes: a consultation on exit fees on investment platforms and comparable firms over the summer;...
Regulator Covid-19 update 1 May
On 1 May, FCA: announced proposals for a Court declaration on business interruption claims proposed guidance for insurers on assessing whether products still offer value and appropriate action to take where they do not...
FCA seeks court ruling on business interruption insurance
FCA has announced its intention to obtain a court declaration to resolve contractual uncertainty in business interruption (“BI“) insurance cover. It is also proposing a series of measures to support both...
Professional negligence and insurance post Covid-19
Read our article about the issues professionals, their brokers and their insurers will be looking at in the light of Covid-19.
Further statement on the impact of Coronavirus on the timeline for LIBOR transition
Following a joint statement on 25 March, the Working Group on Sterling Risk-Free Rates has issued a further statement on the impact of Coronavirus on the timeline for firms’ LIBOR transition plans. The statement...
FCA publishes skilled person data
FCA has publicised the number of skilled persons reports commissioned in January to March 2020. It commissioned 24 in total, of which 9 related to retail banking and 6 to retail lending. 6 of the reports were on...
Tribunal rules against FCA on cancellation decision
The Tribunal has ruled on a case brought by Financial Services (Euro) Ltd against FCA. FCA had decided to cancel the firm’s permission because it had no PII cover. The firm contended that FCA was aware that the...
PRA agrees time-limited SMF approval
PRA has agreed that an individual currently approved to the Chair role at four insurance entities within the Bank of Scotland/Lloyds Bank group (and an approved NED of the two banks pre-SMCR) may take on the SMF10 role...
Regulator Covid-19 update 28 April
On 28 April: FCA updated its guidance on changes to regulatory reporting; and The European Commission has announced a wide-ranging banking package to help banks to lend to support the economy. The package includes:...
UK and Switzerland work to strengthen ties
Economiesuisse and The CityUK have been working on a joint position paper setting out how to strengthen the countries’ relationship in the time of coronavirus and in the future. In terms of financial services, the...
COVID-19: the Future Fund – bridge funding for UK start-ups
The Government is setting up a co-investment fund, known as the “Future Fund”, to provide convertible loans of between £125,000 and £5 million to UK high growth companies. The Future Fund should provide...
Suzanne GadoEFAMA calls for urgent PRIIPs KID changes
EFAMA is adamant that the Covid-19 crisis makes it all the more important for action to be taken quickly on revisions to the PRIIPs KID, which it has long argued is “fundamentally flawed”. It says the...
Regulator Covid-19 Update 27 April
On 27 April: FCA has clarified the relationship between its rules and the UK’s CBILS and Bounce Back Loan schemes. It notes that, pending the roll-out of the BBL scheme, which, from 4 May, will give small...
Commission approves Green Finance position
The European Commission has sent a Communication to the Parliament on the sustainable finance initiative. It explains the background to the “taxonomy” for the common classification system, and the areas on...
How does CLBILS work?
We have written an article on how the Coronavirus Large Business Interruption Loan Scheme works.
FCA publishes report on PPI complaint deadline
FCA has published its final report on the impact of the deadline for PPI complaints. It concludes that its 2 year communications campaign led to a significant increase in consumer awareness of the deadline and...
FCA confirms more temporary relief measures
As expected, FCA has confirmed it will be going ahead with the measures it has consulted on to support customers facing difficulties in making payments on motor finance, buy-no-pay-later, rent-to-own and pawnbroking...
Regulator Covid-19 update 23 April
On 23 April: PRA followed up on its letter to insurers, noting that all insurers should consider carefully the previous letter and guidance on use of unrated assets and assessments of creditworthiness, and the...
Financial Services Bill measures
I wrote an article for Compliance Monitor on the current consultations and plans for financial services regulation under the Financial Services Bill initiative.
Regulator Covid-19 update 22 April
On 22 April FCA published a new webpage on PII cover for financial advisers. It recognises that firms may be concerned about their ability to renew their PII during the Covid-19 crisis, which may impact on their...
Regulator Covid-19 update 21 April
FCA has updated its information page for firms, in respect of professional qualification exams. It notes that while professional exams are being cancelled, firms must still ensure employees have the skills, knowledge...
PRA updates on skilled persons reports
PRA has published details of the skilled persons reports it commissioned in Q3 2019/20. There were 8 in total, of which 3 related to technology and information management in banks, and 2 to controls and risk management...
Wolfsberg Group updates CBDDQ
The Wolfsberg Group has updated its Correspondent Banking DDQ and supporting documents. The changes update the documents and focus on ease of use and readability.
Council publishes EU Crowdfunding Regulation compromise text
In March the European Commission submitted two legislative proposals to the Council of the European Union (“the Council“). The final compromise text of the proposals has now been published: Proposal for a...
CMA writes to Metro Bank on breaches of the Retail Banking Order
The CMA has written to Metro Bank’s CEO after the bank broke an Order requiring it to send customers text alerts before charging them for going into an unarranged overdraft, giving them time to act and...
Update on PSR Call for Input (CP20/2) on Payments Architecture
The PSR published an update today confirming that it will now be closing its call for input into competition and innovation in the UK’s new payments architecture on Monday 1 May 2020 at 5pm. Responses should be emailed...
PRA publishes buffer usage FAQs
PRA has published a set of FAQs on using liquidity and capital buffers in response to the issues caused by Covid-19. The FAQs address what the buffers are, how banks can use them and the implications of them doing so...
Regulator Covid-19 update 17 April
In addition to FCA’s consultation on further measures to help consumers who have motor finance or high cost credit products, covering motor finance, rent-to-own, BNPL and pawnbroking and HCSTC, it has also updated...
Covid-19: Draft temporary guidance on rent-to-own, buy-now pay-later and pawnbroking agreements
The FCA published draft guidance for regulated firms that enter into rent-to-own (“RTO“), buy-now pay-later (“BNPL“) (as defined in the FCA Handbook), or pawnbroking agreements today. The...
Covid-19: Draft temporary guidance on HCSTC
Today, the FCA published draft guidance for regulated firms that enter into high-cost short-term credit (“HCSTC“) loans, including payday loans. The guidance also applies to firms that have acquired such...
G20 finance ministers and central bank governors agree action plan
On 15 April, G20 finance ministers and central bank governors held a virtual meeting to discuss the details of a coordinated fiscal, monetary and regulatory response to the Covid-19 pandemic. G20 Finance Ministers...
Coronavirus: Draft relief for Motor Finance Customers
The FCA published draft relief measures for customers with motor finance agreements today. It is looking for feedback on the measures to be sent to FCAconsumercredit@fca.org.uk by 5pm on Monday 20 April. Who does the...
FCA publishes complaints figures for H2 2019
The FCA has today published the complaints figures for regulated firms for the second half of 2019. The data showed an increase in complaints from 4.29m in the first half of 2019 to 6.02m in the second half of 2019. In...
FOS publishes help on avoiding scams and fraud
The Financial Ombudsman Service (“FOS“) recognises that the type of complaint it sees is constantly evolving, as fraudsters develop new methods or seek to exploit events, such as the current impact of Covid...