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FOS updates on priorities

FOS 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...

Commission 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...

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a detailed article on the progress in FCA’s Business Interruption insurance test case, including summaries of FCA’s draft guidance, and its selection of polices, wordings and assumed...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...

FCA 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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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 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...

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...

EFAMA 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...

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...

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.

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...

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...