Emma RadmoreFCA has reminded solo-regulated firms of the new annual reporting requirement that will oblige them to tell FCA whether they have taken disciplinary action against individuals who are not senior managers for Conduct...
Category - Topics
FCA stresses client money protection priorities
FCA has written a Dear CEO letter to firms that provide non-discretionary investment services. It notes that clients may have rebalanced their portfolios to mitigate volativity during the pandemic, which has resulted...
Rothesay/Prudential transfer to go to appeal
In the week that the Court published its agreement to one Part VII transfer involving it, Rothesay Life has announced the Court of Appeal hearing against the court decision to decline to sanction the Part VII transfer...
Jonathan DrakeFMLC responds on departure from EU case law
FMLC has offered its views to the Ministry of Justice on whether courts and tribunals other than the Supreme Court and High Court of Judiciary should have the ability to depart from retained EU lase law after the end of...
EBA seeks views on Regtech
EBA has published a RegTech industry survey to seek views on how RegTech solutions are being, and could be, used. It wants to understand current activity, raise awareness of it, and have information to inform future...
FCA finalises guidance for insurance and premium finance firms
The FCA has today published its finalised guidance setting out its expectations for insurance firms when considering the fair treatment of existing customers in financial difficulty, due to Covid-19. The guidance...
High Court gives reasons for Part VII approval
The High Court has handed down its judgment on the Part VII transfer application between Rothesay Life PLC and Monument Life Insurance DAC. On 31 July, the court approved the transfer of around 400 in-force life...
Wolfsberg Group publishes SOW and SOF FAQs
The Wolfsberg Group has published FAQs on how Financial Institutions can identify, mitigate and manage money laundering risks by undertaking Source of Wealth and Source of Funds checks on relevant customers, when...
Amelia GreenBoE updates webpage on ISO 20022
The Bank of England (“BoE”) has updated its webpage on ISO 20022, the emerging global standard for payments messaging. The update confirms that BoE will go-live with ISO 20022 in April 2022 as currently...
Treasury publishes annual AML/CFT supervision report
Treasury has published the annual report for AML and CFT for 2018-19. The report looks at the work done on supervisory activities and on promoting and ensuring compliance. There is a section devoted to the FATF key...
Up next from FCA
FCA’s latest Policy Development Update heralds: consultation on financial crime reporting during Q3; PS on debt advice levy rates in Q4; CP on exit fees in investment platforms and comparable firms during 2021; PS...
CMA revokes HSBC directions
The CMA has on 6 August revoked the Directions given to HSBC under the Retail Banking Market Investigation, as the Implementation Trustee confirmed HSBC’s compliance with the Order on App-to-App Redirection...
PSR focuses on APP scams
The PSR has stressed the importance of the CRM Code in reimbursing victims of APP scams. It notes the Covid-19 pandemic has changed the way many people make payments, and left many of them vulnerable to fraud. The Code...
Basel consults on operational risk and resilience
The Basel Committee is consulting on proposals for principles for operational resilience and updates to its principles for the sound management of operational risk. The updates will reflect the growth of technology...
Jonny WilliamsFCA publishes high cost credit review
FCA has published the findings of a review into relending by firms that offer high cost credit. It carried out the review before the current pandemic. The results highlight concerns about poor practices by some firms...
Caroline StevensonCommittee highlights Breathing Space regulations’ importance
The House of Lords Secondary Legislation Scrutiny Committee has published its report in which it discussed the Breathing Space regulations. It drew attention to the importance of the regulations, and recommended that...
FCA recognises LSB update
FCA has confirmed it is maintaining its formal recognition for the LSB’s Standards of Lending Practice for business customers, and that the recognition now covers the recent updates to take account of CBILS and...
FCA consults on debt advice levy rates
FCA is consulting on additional funding by way of debt levy advice rates. The DWP has told it that an additional £14.2m for MaPS to provide debt advice in England in 2020/21. Treasury has also asked for a further £2...
Tribunal finds FCA acted unreasonably and must pay firm’s costs
The Tribunal has rules on an application by a firm for FCA to pay the costs of a previous Tribunal hearing. FCA decided to cancel the authorisation of a firm that had failed to pay its fees and failed to satisfy FCA...
PRA confirms temporary high balance extension
PRA has confirmed the extension to FSCS protection for temporary high balances in bank accounts, until 1 February 2021. Protection will last for 12 months until then, when it will revert to 6 months.
PSR encourages innovation and competition in payments
Genevieve Marjoribanks, head of policy at the PSR, says the PSR is looking at what consumer protections are available and whether they adequately protect those who use bank transfers to make payments. The PSR is...
FCA adds more BI documents
FCA has now published the transcript of day 8 of its Business Interruption insurance test case and a number of supplementary notes.
FCA speaks on challenges of LIBOR transition
Edwin Schooling Matter, FCA’s director of markets and wholesale policy, has spoken at ISDA’s event on LIBOR transition. He stressed that the time to act is now, as the next 4-6 months are critical. ISDA is...
FCA consults on open-ended fund improvements
FCA is consulting on reducing the potential for investor harm from the liquidity mismatch in open-ended property funds. Investor harm is caused by the fact that investors can redeem frequently, often daily, yet the...
Barry StimpsonFCA makes statement on non-damage BI settlements
Following the conclusion of the test case trial, FCA has noted increasing concerns about how insurers are calculating non-damage BI claim payments in situations where they have agreed liability. Specifically, they are...
FCA consults on Remuneration Code
FCA is consulting on proposals to update its Dual-Regulated firms Remuneration Code and guidance as part of CRD V implementation. The consultation largely follows PRA’s and proposes: changes to SYSC 19D in respect...
FCA updates on BI test case
The test case FCA brought to get court clarity on the application of certain clauses in a number of business interruption insurance policies is now complete. FCA has now published the draft transcripts for days 1-7 of...
FCA updates on Covid-19 and complaints handling
FCA has reviewed and updated its webpage on how firms should handle complaints during Covid-19. It has made some minor changes to its previous statement and will review it again at the end of October. The guidance...
FCA consults on consumer refund guidance
FCA has published a guidance consultation on how firms should be helping customers with rights and routes to refunds. The guidance builds on FCA’s previous statements on consumers’ rights when their trips...
ESAs consult on management body suitability guidelines
EBA and ESMA have published a joint consultation on updating their guidelines on assessing the suitability of members of the management body and key function holders in regulated firms. The revised guidelines stress...
Treasury amends PRIIPs requirements
Treasury has published a policy statement on how it proposes to amend the PRIIPs Regulation as it onshores it. It plans early changes to address the most pressing concerns and to ensure the regime provides more...
PRA consults on CRD V
PRA is consulting on changes to its rules, supervisory statements and statements of policy needed to implement parts of CRD V. This consultation is the first part of PRA’s preparation for implementation, and it...
OFSI updates guidance and issues maritime guidance
OFSI has updated various guidance and FAQs, including on monetary penalties. The update includes targeted FAQs for:
the charity sector;
the import and export sector; and
maritime.
EBA agrees tentative 2021 stress test
EBA has agreed on a tentative timeline and sample of the 2021 EU-wide stress test, which it expects to launch a the end of January 2021 and the results be published at the end of July 2021. The test will be carried out...
EBA consults on internal governance guidelines
EBA is consulting on proposed revisions to its guidelines on internal governance. The changes specifically reflect the CRD V and IFD requirements as they affect credit institutions. The focus of the changes is: on the...
FCA calls for views on consumer treatment at end of deferral period
FCA has published a call for input, seeking views on what should happen to mortgage and consumer credit customers reaching the end of a second payment deferral (these will be ending from September onwards). It also asks...
EVENT: Open Banking Webinar
Our next retail banking mixer by webinar will focus on open banking. Our session will include a brief introduction to the topics followed by a discussion that you’d be welcome to join in with: Open banking from a...
Insurance Europe issues consultation response on EU plan for AML policy
Insurance Europe has published its response to a consultation by the European Commission (“the Commission“) on its action plan for a comprehensive EU policy on preventing money laundering (“ML“)...
FCA Guidance on Vulnerable Customers
The FCA has set out new best practice guidance for firms to do more to protect vulnerable customers, and ensure they are receiving positive outcomes. The first phase of the FCA consultation in July 2019 found that some...
Andrew Graham-SmithFCA Guide: Prepare Your Firm for Brexit
The Brexit transition period is currently operating until 31 December 2020. The FCA have produced a list of key considerations to help firms consider how they will be impacted by this and what action they may need to...
FCA to Ban Motor Finance Discretionary Commission Models
The FCA has announced that it will introduce a ban on discretionary commission models following a consultation in October 2019. As background, some car retailers and motor finance brokers receive commission which is...
HMT Payments Landscape Review – Call for Evidence
In light of recent developments in technology, HMT announced in June 2019 that it was leading a Payments Landscape Review. The first stage of this review, released today, is a Call for Evidence paper which sets out the...
FCA issues statement on mortgage prisoners and consults on proposals to support consumers
FCA has published a statement on mortgage prisoners which presents further analysis the FCA has done, since the data it published back in January, on borrowers with inactive firms, including mortgage prisoners. The main...
JMLSG publishes new Guidance on pooled client accounts and cryptoasset exchange providers
The Joint Money Laundering Steering Group (“JMLSG“) has today published two new pieces of Guidance. The Board approved text includes a new annex within Part I: Annex 5-V on Pooled Client Accounts, and a new...
Covid-19: FCA defers commencement date for rules on access to travel insurance
On 27 July, the FCA published the Covid-19: Deferral of Commencement (Access to Insurance) Instrument 2020, which came into force the same day. The instrument amends the Insurance: Conduct of Business Sourcebook...
ECB takes steps to ensure pan-European reach for instant payments
On 24 July, the European Central Bank (“ECB“) announced that it has taken significant steps to support the full deployment of instant payments across the euro area which, it says, can be ensured by the end...
EBA Consults on RTS for Indirect Subscription of MREL Instruments
Today, the EBA launched a public consultation on its draft RTS. The RTS is aimed at specifying the methods to avoid hampering the smooth implementation of the resolution strategy, where instruments indirectly subscribed...
PRA publishes Policy Statement on Asset Encumbrance
On 27 July, the Prudential Regulation Authority (“PRA“) published its Policy Statement (“PS“) providing feedback to responses received in relation to Consultation Paper (“CP“) 24/19...
IAIS consults on the impact of Covid-19
The International Association of Insurance Supervisors (“IAIS“) is seeking feedback from stakeholders on the implications of Covid-19 on the insurance sector, supervisors and the future work of the IAIS. The...
FCA Launches New Register to Protect Consumers
Today, the FCA has launched its updated Financial Services Register. The FCA claim the redesign of the Register aims to help consumers protect themselves from harm and will provide a better experience for the...
EBA consults on technical standards on reporting of MREL decisions
The European Banking Authority (“EBA“) has launched a public consultation on its draft Implementing Technical Standards (“ITS“) specifying uniform reporting templates, instructions and...
FCA proposes to extend its updated guidance for insurance and premium finance firms
On 24 July, the Financial Conduct Authority (“FCA“) announced its proposal to extend a series of temporary measures to help customers who hold insurance and premium finance products and who may be in...
EBA updates on SREPs and Covid-19
EBA has summarised the difficulties Covid-19 has presented to supervision generally, and the SREP process in particular. It has now published guidelines to supervisors building on the requirements of the CRD and the...
ECB urges better benchmark reform preparation
ECB is concerned that banks are not sufficiently prepared for benchmark rate reforms, despite being well aware of the complexities. It has now published a set of suggested good practices to help banks structure their...
FCA updates on sandbox
FCA has announced its acceptance of 22 businesses into cohort 6 of its sandbox. It had received 68 applications, mainly from the retail banking, payments and retail lending sectors. More than half were seeking to...
FCA publishes Day 2 BI test case transcript
FCA has published the draft transcript from Day 2 of the Business Interruption Test Case hearing. Counsel developed the arguments from the details discussed on the first day, with reference to specific policies, and to...
FCA publishes debt advice portfolio strategy letter
FCA has written a portfolio letter to debt advice firms. The letter follows the usual format of setting out key risks and regulatory expectations, and explaining FCA’s supervisory strategy. It considers the key...
BoE publishes enforcement update
BoE has published the 2019/20 report of its Enforcement Decision Making Committee. The committee was set up in 2018 to decide contested enforcement cases and covers all regulatory areas where BoE has enforcement powers...
Lloyd’s updates on Part VII and Brexit
Lloyd’s has confirmed that, as of the end of the Transition Period on 31 December, Members’ policies will be transferred to Lloyd’s Insurance Company SA. The affected policies will be those where all...
PRA consults on simplified recovery planning
PRA is consulting on a plan to reduce its expectations on some firms in relation to recovery planning. The BRRD gives regulators the discretion to do this for firms whose failure would not be expected to have a...
BBLS unfair relationships exemption confirmed in law
The Business and Planning Act 2020 got Royal Assent on 20 July. Among wider provisions designed to address issued related to Covid-19, s12 of the Act provides that no order under s140B of the Consumer Credit Act...
Government extends 3rd country benchmark transition
Treasury has published a policy paper explaining why it is extending the transitional period for third country benchmarks to 31 December 2025. The extension will allow UK supervised entities to carry on using these...
Day 1 BI test case transcript published
FCA has published the draft transcript of Day 1 of the business interruption insurance test case. Much of the first day focused on how the pandemic developed, the actions of UK government and the effects on business...
PRA consults on approach to non-systemic banks
PRA is consulting on its approach to new and growing, non-systemic banks. It is making 2 new proposals, and taking the opportunity to clarify its position in other areas. The new proposals are: changes to the...
FCA publishes Intergenerational differences summary
The FCA has today published feedback statement FS20/12 summarising the responses and next steps following discussion paper DP19/2 on intergenerational differences. The paper summarises the average financial...
ESAs finish PRIIPs KID review
The ESAs have reported to the European Commission on the outcome of their review of the PRIIPs KID. A draft Final Report following public consultation was submitted to the boards of the 3 ESAs for approval, but...
Treasury consults on economic crime levy
Treasury is consulting on the introduction of the economic crime levy, announced in the Budget, which aims to raise around £100m per year. It wants views on: the design principles of the levy how it can operate in...
Regulators consult on easier complaints scheme
BoE, PRA and FCA are consulting on making the process of complaining about the regulators easier. The main changes are to use plainer language and make the scheme more user friendly to its main users, who are consumers...
Government launches Fintech review
The Government has launched an independent Fintech Strategic Review to set priorities for industry, policy makers and regulators. Its aims are: to ensure UK fintech has the resources to grow and succeed to create...
EU Council adopts new rules for crowdfunding platforms
The Council of the European Union (“the Council“) has announced that it has adopted new rules to improve the way that crowdfunding platforms operate across the EU. The new framework is part of the capital...
Treasury consults on fin proms approval “gateway”
Treasury is consulting on a fundamental change to the rights of authorised firms to approve financial promotions of unauthorised firms. Both it and FCA have become increasingly concerned that some firms are approving...
FCA updates BI papers ahead of trial
FCA has updated its list of documents relating to the business interruption insurance test case in preparation for the trial starting on 20 July. The documents now published are: the agreed list of issues and common...
Treasury gives CRR guidance
Treasury has published guidance on how CRR2 applies during the transition period. It has already made regulations under the Withdrawal Act to “onshore” CRR as amended by CRR2 after the end of the transition...
FCA consults on more time for SMCR
FCA is consulting on extending the implementation deadlines for parts of the SMCR for solo regulated firms. It plans that the 9 December 2020 deadline should be extended to 31 March 2021 for: the Conduct Rules taking...
Court rules “No DSS” unlawful under the Equality Act
York County Court has ruled that so called “no DSS” policies – which put in place a ban on renting property to people who are on housing benefit – are discriminatory and unlawful under the...
Ireland and Romania fined for late implementation of MLD4
The Court of Justice of the EU has fined Ireland €2m and Romania €3m for failure to transpose MLD4. Both jurisdictions had neither transposed the Directive in full nor notified the Commission of the measures they had...
Regulation round up highlights refunds, SMRC delays and next steps in Covid-19 consumer protection
FCA’s latest Regulation Round up covers the usual update of FCA’s recent publications, and reminds them of some earlier, still relevant, statements, not least: the confirmed new guidance for motor finance...
Overseas Terroritories agree beneficial ownership registers
Baroness Sugg has welcomed the statements of 8 Overseas Territories that they will establish publicly accessible registers of beneficial ownership of companies. Anguilla, Bermuda, the Cayman Islands, the Falkland...
FCA and City Corporation work on digital sandbox
FCA and the City Corporation have announced their intention to collaborate on the pilot of the digital sandbox FCA had previously announced, designed to help innovative firms aiming to address the challenges Covid-19...
FCA consults on access to cash guidance
FCA has published a guidance consultation on how it expects banks, building societies and credit unions to behave when considering closing branches or ATMs, or converting a free to use ATM to a paid one. Firms should...
Treasury consults on CRDV, prudential regime and Brexit
Treasury is consulting on the UK’s approach to implementation of those parts of CRD V that fall to be implemented into national law by 28 December. The Government has long said that it will transpose all EU...
HMRC feeds back on trust registration
HMRC has published a summary of the responses it received to its consultation on MLD5 and the Trust Registration Service. The consultation had over 100 responses, and the key messages were: most respondents agreed with...
Draft Debt Respite Scheme Regulations
Following the announcement in June last year, a draft of the new Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium (England and Wales) Regulations 2020 were published yesterday. The...
FCA publishes defendant BI case skeleton arguments
FCA has published the Defendants’ skeleton arguments in the business interruption insurance test case as well as the Defendants’ joint skeleton arguments on the principles of contractual construction and on...
Government updates on cash infrastructure
The Joint Authorities Cash Strategy Group (the BoE, PSR, FCA and Treasury) has published an update on the work it is doing to safeguard the UK’s cash infrastructure. The group members have been working closely to...
Commission updates Brexit preparedness notices
The Commission has added more notices to stakeholders on preparing for Brexit and the consequences of loss of the passport. Among the notices now updated are those for: asset management consumer protection credit rating...
FCA clarifies latest COVID-19 rules for motor finance, BNPL, RTO, HCSTC & Pawnbroking
Following the consultation at the start of July, the FCA has today clarified the latest rules for how firms should deal with motor finance, BNPL, TRO and pawnbroking customers coming to the end of payment freezes. These...
Enhancing Cross-border Payments – A Global Roadmap
Building on the FSB’s report published in April this year, the Committee on Payments and Market Infrastructures released its Stage 2 report. This report aims to identify the building blocks with which a roadmap...
BoE speech on LIBOR: Entering the Endgame
On 13 July Andrew Bailey, Governor of the Bank of England (“BoE“), made a speech on the continued importance of the transition away from LIBOR. The continued importance of the transition In Mr Bailey’s...
FCA takes action against unauthorised mortgage and SRB agreements
The Financial Conduct Authority (“FCA“) has issued a statement confirming that it has commenced proceedings in the High Court against London Property Investments (U.K) Limited (“LPI“), NPI...
CMA Update on Loyalty Penalty
Following its last publication in January, the CMA has once again published an update on their investigation into the loyalty penalty, noting that its progress has been significantly impacted by COVID-19. Mortgages The...
COJ Rulings on Unfair Contract Terms in Consumer Credit Agreements
The following are summaries of two recent Court of Justice of the European Union judgements. Both concern interpretation of the unfair contract terms provisions found in Council Directive 93/13/EEC as concern terms of...
ESMA issues second report on sanctions under MiFID 2
The European Securities and Markets Authority (“ESMA“) has published its second report on sanctions and measures imposed under MiFID 2, which provides an overview of the applicable legal framework and the...
PRA consults on updating SM&CR Forms
The Prudential Regulatory Authority (“PRA“) has issued a consultation paper (“CP“) setting out its proposals to make minor amendments to the PRA Rulebook, the Notifications Form and the Senior...
MEPs approve ML action plan
MEPs have resoundingly backed the Commission’s action plan for fighting money laundering and terrorist financing. In a press release, the European Parliament said it “deplores” the incorrect and patchy...
FCA updates on BI test case
FCA has published its and the Intervenors’ skeleton arguments for the trial, which will commence on 20 July. Over the weekend, it published: its skeleton argument: this runs to over 300 pages and explains, among...
Commission says no MIFIR equivalence by year end
The European Commission has published a Communication to the EP, Council, EESC and the Committee of the Regions on preparations for the end of the transition period. The Communication looks at: changes happening in any...
International bodies concerned about LIBOR transition
A report published today by the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (BCBS) has raised concerns about the apparent lack of commitment of financial markets to move away from...
EBA calls for action on resolution plans in Covid-19
EBA has reiterated the importance of resolution planning in times of uncertainty such as the Covid-19 pandemic. It calls on regulators to take into account the impact of Covid-19 on banks and their business models when...
FCA finalises Covid-19 payment services guidance
FCA has finalised its guidance to payment and e-money firms on safeguarding customers’ funds in light of the impact of Covid-19. Alongside the guidance is a portfolio strategy letter to CEOs of relevant firms...
PRA consults on temporary high balance FSCS extension
PRA is consulting on extending coverage under the FSCS for temporary high balances in bank accounts, in response to Covid-19. PRA feels it would be appropriate to cover the balances (on up to £1m) for 12 months from the...
FCA speaks on investment management role in recovery
Christopher Woolard has spoken to the IA on the role investment managers could play in the post-Covid recovery. He said he is very proud of what FCA has managed to achieve during the crisis to provide the regulatory...
BBRS publishes report on live pilot key learnings to date
The Business Banking Resolution Service (“BBRS“) has published a report capturing a panel discussion among four key individuals working on the development of its service, which is currently in a ‘Live...