Emma RadmoreAFME has published a paper setting out recommendations to help deliver consistent regulatory treatment of crypto-assets within Europe. It wants to establish a taxonomy; provide clear expectations for market participants...
Category - Topics
FCA consults on fees
FCA has published its annual consultation on fees and levies. Key changes to the current year’s policy include: introducing a £5,000 pa fee for proxy advisers; using income as the basis for calculating periodic...
Gavin EllisonBills not to progress due to election
Parliament has updated its webpages in respect of the Goods Mortgages Bill, the Pension Schemes Bill and the Financial Services Duty of Care Bill. The 2017-2019 Parliamentary Session was dissolved on 6 November ahead...
FCA endorses SEC no action letter
The FCA has endorsed SEC’s extension of its staff ‘no-action letter’ until 3 July 2023. The no-action letter addresses potential conflicts between US regulation and MiFID 2. MiFID 2 permits investment...
Jonny WilliamsBasel Committee consults on AML cooperation
The Basel Committee on Banking Supervision is consulting on draft guidelines on interaction and cooperation between prudential and AML/CFT supervision. It wants to enhance the effectiveness of banks’ AML/CFT...
NCA publishes 2019 SARs report
The latest annual report on SARs from NCA highlights: a record number of SARs processed (over 475,000); an increase of over 50% in DAML SARs; and over £131m denied to criminals as a result of DAML requests. Average...
FSB holds Paris plenary
The FSB Plenary met in Paris to review vulnerabilities in the global financial system and to discuss advances in FinTech. The Plenary also agreed its work programme for 2020. Current vulnerabilities The Plenary...
EU adopts capital markets reforms
The Council of the European Union has adopted several legislative reforms as part of the progress towards the capital markets union. The reforms target: Sustainable finance. The first reform establishes disclosure...
Rachael PrestonUp next from FCA
FCA’s latest Policy Development Update promises a number of publications before the end of the year, including: feedback on the Investment Platforms Market Study remedies; consultation on policy proposals for next...
PRA tells GI firms of focus areas
The PRA has published a ‘Dear CEO’ letter detailing the PRA’s priority areas of supervisory focus for general insurance firms. These include: Reserve adequacy and associated reserving governance and...
Roseyna JahangirPRA publishes feedback on reserving reviews
The PRA has published a ‘Dear Chief Actuary’ letter following its review of firms’ reserving during 2019. The letter contains feedback from the PRA’s reviews which included work on casualty...
Jonathan DrakePRA to use s166 for regulatory returns
PRA has written a Dear CEO letter to banks on the reliability of regulatory returns. The letter highlights the recommendations of the review into the Co-Op bank – specifically that PRA should consider introducing...
FATF consults on digital identity
FATF is consulting on the use of digital ID systems for CDD. It has published some currently unapproved guidance and is asking for views on a number of key issues. It asks for comment by 29 November.
FCA makes new rules
FCA’s latest Handbook Notice summarises various instruments made at the end of September and October: the Overdrafts (Information and Tools) Instrument 2019 takes effect on various dates to 6 April 2020, and...
SRA calls for more AML action
The Solicitors’ Regulation Authority has updated its warning notice to solicitors, stressing the need to have in place appropriate AML measures. Despite previous warnings, it still found many firms did not have...
Treasury Committee calls for bank action on COP and financial crime prevention
The Treasury Committee has published its response to the second strand of the Economic Crime enquiry, looking at the effects of financial crime on consumers. The report focuses on authorised and unauthorised payment...
CCA Unfair Relationships Ruling
In the case of Promontoria (Henrico) Ltd v Jeavons and another [2019], the defendants ran a holiday let business in Cornwall. Clydesdale Bank issued them with a tailored business loan, which they then assigned to the...
Caroline StevensonMore pressure on fund managers to follow ESG voting instructions?
The push to require pension scheme trustees to develop voting policies on environmental, social and governance (ESG) issues (which are considered to be financially material to their investments) is meeting some...
FCA warning to CMCs – ‘play fair with PPI claims’
The FCA has issued its latest ‘Dear CEO‘ letter, this time to CMCs in relation to PPI complaints. The FCA has recognised that lenders are facing very significant operational challenges in being able to deal...
Scott NodderUK Finance responds to IT failures in the financial services sector
UK Finance has responded to the Treasury Committee’s report into IT failures in the financial services sector. The Treasury Committee criticised the unacceptably high level of failures and called on regulators to...
Duty of Care Bill starts Parliamentary passage
A Private Members’ Bill started in the House of Lords by Lord Sharkey has had its first reading. The Bill, the Financial Services Duty of Care Bill, proposes amending FSMA to require FCA to make rules requiring...
FCA confirms TPR extension
FCA has confirmed that: firms no longer need to implement their Brexit emergency plans for 31 October; and the TPR window will be open for notifications from fund managers until 15 January 2020 to let FCA know if they...
EBA reports on potential barriers to cross-border banking and payment services
The EBA has published a report identifying potential impediments to the cross-border provision of banking and payment services in the EU. The report was developed under the EBA’s FinTech Roadmap, and calls on the...
New AML and sanctions articles
We have written extended versions of FIN posts for Financial Regulation International and Money Laundering Bulletin:
Take care before you charge: acquiring criminal property; and
The third arm of US sanctions?
FCA speaks on future of regulation
Nausicaa Delfas spoke on the future of UK financial regulation post-Brexit. She said FCA continued to prepare for Brexit, whatever form it takes and whenever it happens, and referenced its preparations for a no-deal...
Mortgages (Responsible Lending) Instrument 2019
Following consultation CP19/14, the FCA published the Mortgages (Responsible Lending) Instrument (together with feedback to the consultation) 28 October 2019. The final rules (which come into force immediately) set out...
OFSI fines for sanctions breach by phone call facilitation
OFSI has fined a phone carrier company for indirectly facilitating phone calls to an entity designated under the Syrian sanctions regime. Telia Carrier UK Limited indirectly facilitated the calls to SyriaTel, which...
FATF publishes beneficial ownership best practice
FATF has published a report setting out examples of best practices to help jurisdictions establish a satisfactory measure of transparency regarding the identification of the beneficial ownership of legal persons. In...
Consultation on legal entity identifiers for general government entities
The Regulatory Oversight Committee for the legal identity identifier (LEI ROC) has opened a consultation on proposals for LEI Eligibility for General Government Entities. Questions range from whether there is a need...
FCA confirms PSD2 SCA RTS standards to apply in event of no-deal Brexit
The FCA has published a policy statement setting out UK regulatory technical standards and Handbook changes that would apply to customer authentication if the UK were to leave the EU on ‘no deal’ terms. The...
FMLC evaluates exchange tokens
The Financial Markets Law Commission has published a report in which it evaluates some of the live issues and considerations in relation to exchange tokens and virtual currencies. The report provides an overview of...
ESAs issue supervisory statement on PRIIPs Regulation
The European Supervisory Authorities have issued guidance to NCAs on the scope of the application of the PRIIPs Regulation to bond markets. In particular, the supervisory statement sets out considerations on the extent ...
EBA recommends enhanced online disclosure requirements
The EBA has issued an Opinion directed to the EC, setting out recommendations to revise the scope and consistency of disclosure requirements in EU law to take account of the increasing use of digital marketing channels...
SRB consults on banks resolvability best practice
The Single Resolution Board has opened a public consultation on its proposed ‘Expectations for Banks’, which sets out at a general level the capabilities banks will be expected to demonstrate in order to...
FCA outlines five steps to drive the future of regulation
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, recently spoke about the FCA’s thoughts on how it approaches the future of regulation. He commented that the FCA will be issuing an...
ESMA to examine reporting issues in annual financial reports
ESMA has set out the matters it will prioritise when looking at the 2019 annual financial reports of listed companies. Among the specific areas of focus, ESMA has underlined the importance of the inclusion of...
Goods Mortgages Bill starts passage through Parliament
The long awaited Goods Mortgages Bill has completed its first reading in the House of Lords. In its consultation on the draft bill, HM Treasury described it as: providing increased protection for consumers who use goods...
FCA Guidance on new credit broking exemption for registered social landlords
The FCA has updated FG18/6, which provides specific guidance for registered social landlords on when they may be carrying on regulated activities, to reflect the amendment introduced earlier this year to the Financial...
Treasury updates high-risk jurisdictions
Treasury has updated its AML advisory notice, following the recent FATF meeting. There is no change to the advice on North Korea and Iran. The counties in relation to which Treasury recommends firms take appropriate...
Regulatory risks of Stablecoins in focus
The emergence of global stablecoins has been a focus point over the past few days, with the FSB, FATF and the G7 Working Group on Stablecoins all publishing statements on the impact and risks of the development of these...
Market Watch on PA dealing concerns
The latest edition of Market Watch sets out FCA’s concerns about how firms police PA dealing by staff. FCA has noted a number of common problems, such as: employees appearing not to understand their firms’...
OFSI introduces Nicaragua sanctions regime
OFSI has set up a financial sanctions regime in relation to Nicaragua. The EU introduced the sanctions on 14 October and they will be in force in the UK from 6 November.
FCA writes to UK Finance on SARs and STORs
FCA has published a letter it wrote to UK Finance in September explaining its responsibilities in relation to SARs and STORs under MAR. The key point the letter makes is to stress that, while FCA works closely with the...
FCA issues statement for SIPP operators
The FCA has issued a statement following the administration of Berkeley Burke SIPP Administration Ltd (BB) and the administrator’s decision to discontinue BB’s judicial review appeal. BB was involved in...
ESAs consult on changes to PRIIPs KID Regulation
The EBA, EIOPA and ESMA have published a joint consultation on proposed amendments to the PRIIPs Delegated Regulation. The proposed measures are intended to, allow the appropriate application of the PRIIPs KID by UCITS...
EU and Japan hold first joint financial regulatory forum
The Joint EU-Japan financial regulatory forum has held its inaugural meeting. Topics covered at the meeting included: the regulatory cooperation framework under the Japan-EU Economic Partnership Agreement, and the...
EBA publishes further Opinion on SCA implementation deadline
Following the EBA Opinion on the implementation of SCA requirements under PSD2, and the indication of a possible grace period at the discretion of NCAs, the EBA has published a further Opinion providing further details...
FCA publishes feedback statement on climate change disclosures
The FCA has published its proposals for its future work on climate change and green finance, following responses to its Discussion Paper in 2018 . In its work, the FCA will be focusing on three outcomes: Issuers provide...
FCA consults on AML crypto supervision costs
FCA is consulting on how it will recover the costs it will incur when it becomes the AML/CTF supervisor for crypto-asset business from 10 January 2020. Treasury has not yet finalised the regulations that will implement...
FCA consults on motor finance commission bans
FCA is consulting on changes to its rules that would ban the way in which car retailers and other motor finance brokers receive commission. It is concerned at practices that link commission to the interest rate...
FCA updates change in control pages
FCA has updated its guidance on how to submit an application for change in control. The page now includes useful tips on what FCA needs to know to deal with the application quickly, and links to all the required forms.
FCA provides Brexit preparations update for firms
The FCA has published an update on the steps firms will be expected to take in the event that there is a hard Brexit. In particular, the FCA reminds EEA passporting firms of the need to notify the FCA by 30 October if...
SMCR conversion notification – FCA webpage provides explanation
The FCA has published a new webpage setting out specific guidance for the solo-regulated firms that have to complete Form K as part of their preparation for the start of SMCR. The deadline for submission of Form K is...
Payment Systems Regulator invites comments on LINK Specific Direction 8
The PSR is asking for views to be submitted on the operation of Specific Direction 8. This was given to LINK at the end of last year, and is focused on the maintenance of a broad geographic spread of free-to-use ATMs...
FCA imposes £15.4m file for Principles breaches
The FCA has announced that it fined an interdealer broker, Tullett Prebon, £15.4 million, due to ‘serious’ breaches of: Principle 2, by virtue of failing to conduct their business with due skill, care and...
Queen’s Speech suggests post-Brexit FS Bill
Among the list of legislative proposals referred to in the Queen’s Speech is laws that will provide “certainty, stability and new opportunities” for the financial services sector through a Financial...
Prudential appeals annuity transfer judgment
Prudential Plc has confirmed that it has lodged an appeal against the High Court’s refusal to approve the transfer of £11.2 billion worth of annuities from the Prudential Assurance Company to Rothesay Life. The...
OFSI publishes annual report
OFSI’s annual review for 2018-2019 highlights: the first imposition of monetary penalties; work to prepare for Brexit; the positive reaction to OFSI in the FATF evaluation; that during the year 32 regimes were...
Commission produces high-risk third countries “non-paper”
ECOFIN has provided the Permanent Representatives Committee with a Commission “non-paper” setting out how it proposes to refine its methodology for identifying high-risk third countries for AML purposes...
Treasury approves JMLSG Chapter 17 changes
Treasury has approved revisions to Chapter 17 of Part 2 of the JMLSG guidance. The chapter covers syndicated lending, and has been rewritten by the Loan Market Association. Among the changes are content that: explains...
Government responds on regulatory perimeter
The Government has published its response to the Treasury Committee’s report on the regulatory perimeter and how it could be refined and should be policed. The report had criticised the lack of a formal system for...
EIOPA publishes thematic review of, and warning to, travel insurance market
EIOPA has concluded a thematic review focusing on travel insurance products, in particular with a view to identifying sources of potential conduct risk and consumer detriment. The key findings of its review included:...
BoE to stress test for climate change risks
The Governor of the BoE addressed the inaugural Task Force on Climate-related Financial Disclosures (TCFD) summit in Tokyo yesterday. In his speech, Mr Carney warned of the growing challenges climate change brings, and...
Market Watch Brexit special
FCA’s latest Market Watch newsletter is aimed at helping firms prepare for a possible no-deal Brexit. The edition covers: transaction reporting and the temporary transitional power – but noting firms may...
European Banking Authority publishes Communication on preparation for Brexit
The European Banking Authority (EBA) has published a Communication on the remaining issues for financial institutions ahead of the UK’s departure from the EU. In its Communication the EBA urges continued progress...
Government publishes No-Deal Readiness Report
The Government has published its “No-Deal Readiness Report” detailing the UK’s preparedness ahead of Brexit on 31 October. The Report contains a section on financial services which, amongst other...
FCA publishes insurance pricing report
The FCA published its interim report of its market study into the pricing of home and motor insurance on 4 October. The report sets out the FCA’s initial findings and possible remedies to tackle the issues...
Up next from FCA
FCA’s latest Policy Development Update heralds the following publications before the end of the year: consultation on investment platforms market study remedies; policy statement on OPBAS fees; consultation on...
ESAs publish AML risk opinion
The ESAs have published their second joint opinion on the ML/TF risks affecting the EU’s financial sector. Its key concerns are around monitoring and reporting of suspicious transactions, particularly for...
ESMA updates MiFID 2 FAQs
ESMA has updated its Q&As on investor protection and intermediaries issues under MiFID 2 and MiFIR. The new questions focus on best execution and disclosure of reports to the public; and on what “ongoing...
ESMA consults on MAR review
ESMA is consulting on its required review of MAR. Its paper looks at many issues including: whether to include spot FX within MAR; differing concepts of inside information and delayed disclosure of it; whether the...
Changes to Mortgage Reporting Requirements
The FCA published policy statement PS19/23 (PRA – PS22/19) on 30 September 2019. The rules set out the new reporting requirements for regulated mortgage lenders and home finance administrators. The rule changes...
Reminder: EBA Outsourcing Guidelines are in Force
We previously reported that the EBA had published its revision to the European Banking Supervisors’ 2006 Guidelines on outsourcing arrangements. The revised guidelines set out a framework for outsourcing by banks...
Guidance on unfair consumer terms Directive
The European Commission (the “Commission”) has issued guidance on the interpretation and application of Council Directive 93/13/EEC on unfair terms in consumer contracts (“UCTD”) The Commission...
FCA publish PS19/25: Overdraft Pricing and Competition Remedies
The FCA published Policy Statement (PS19/25) on 2 October 2019 which sets out rules being put in place to make overdraft fees clearer and more transparent. The rules will come into force on 6 April 2010 and are...
ESAs Joint Committee defines its priorities for 2020
The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA) (collectively “ESA”) has published its 2020 Work Programme setting out its strategy in the areas of cross-sectoral risk...
PRA strengthens individual accountability expectations
The PRA has published PS20/19, ‘Strengthening individual accountability: resolution assessments and reporting amendments’. This Policy Statement sets out: feedback to responses to CP 12/19, ‘Strengthening...
EU Presidency notes AML way forward
The Presidency of the EU has noted the substantial enhancements to the AML/CFT framework over recent years but has nevertheless expressed concern on: differences in interpretation and wide national discretion in framing...
ESMA calls for evidence on product intervention measures
ESMA has launched a call for evidence to look at how effective the product intervention measures on CFDs and binary options have been. ESMA needs to report to the Commission on its experience, and welcomes views of...
FCA fines Pru for non-advised annuity sales failings
FCA has fined the Prudential Insurance Company Limited £23,875,000 (including a 30% discount) for failures in its non-advised annuity sales business. FCA found that, for a 9 year period ending in late 2017, the non...
FCA makes new rules
FCA has published its latest Handbook Notice with new rules. Most of the changes are minor, and update terminology and cross-references. FCA is also making changes to: SYSC and SUP, including adding a new Annex to SUP...
BoE reports on 2018 cyber simulation exercise
BoE has reported on the outcomes of its 2018 sector wide exercise (SIMEX), which tested how the UK finance sector would react to a prolonged and broad cyber attack. The exercise, which took place in real time, involved...
Not POCA “acquiring” to receive monies obtained by fraud
The Court of Appeal, in the case of R v Haque, has allowed an appeal on the point of whether a person commits the offence under POCA of acquiring criminal property when it arrives into his bank account as a result of a...
Estimated £3.4m redress due to unclear interest term in mortgage agreement
The FCA has published an undertaking from the Co-operative Bank (t/a Platform), relating to a term in its mortgage agreement, and agreeing to amend the term on the grounds that it contravened the transparency...
EC sustainable finance classification system to be developed
The Council of the European Union has agreed a position on the proposed EU-wide sustainable finance taxonomy regulation. This would develop a common language for assessing what economic activities can be considered...
Treasury approves JMLSG updates
Treasury has approved updated chapters in Part II of the JMLSG Guidance. The chapters now approved are:
credit unions
asset finance
brokerage services to funds.
FCA announces next steps for unit-linked funds
FCA has published its findings and next steps on its review of governance practices covering unit-linked funds. It notes that its Asset Management Market Study found asset managers were not good enough at considering...
Barry StimpsonBanking industry commits to climate change action
130 international banks, representing one third of the global banking sector by NAV, have signed the new Principles for Responsible Banking. This initiative commits their firms to strategically align their business...
EBA starts 2019 transparency exercise
The EBA has launched this year’s transparency exercise, which will lead to the release in November of up to 2.2 million data points collated from EU supervisory reporting data. The data that will be released for...
Industry associations raise concerns about timetable for sustainability disclosures
A group of European industry associations have written to the European Commission raising concerns about the timing for implementation of the Regulation on disclosures relating to sustainable investments and...
MEPs criticise poor AML compliance
MEPs say lack of co-operation and poor information sharing between authorities and FIUs are the main obstacles to preventing money laundering, but also say national authorities should have sufficient resource and power...
FCA pleased with MiFID 2 unbundling effects
FCA has published the results of a multi-firm review looking at whether the research unbundling rules brought in under MiFID 2 have improved asset manager accountability over costs. FCA’s research has found that...
UK Finance pledges support for UN responsible banking
UK Finance has pledged its support for the United Nations Environment Programme Finance Initiative’s ‘Principles for Responsible Banking’. The six principles show how the banking industry can make a...
Responsible Lending Changes Implementation Group
The latest meeting of the responsible lending changes implementation group was held on 29 August 2019. This group discussed the feedback they had received to the consultation launched in March (on facilitating...
PRA consults on SII Prudent Persons Principle
The PRA has published a Consultation in relation to the Solvency II Prudent Persons Principle. This sets out the PRA’s proposed expectations for investment by firms in accordance with the Prudent Person Principle...
PSR Updates on card-acquiring services
The PSR is currently undertaking a review into the supply of card-acquiring services. As part of its consultation, it published its proposed approach to the profitability analysis and set out two options – Gross...
Deprived of Cash? Which? report and PSR Response
On 18 September 2019, Which? published a report highlighting that poorer areas are worst hit by the rapid move to fee-charging cashpoints. In fact, the report notes that 9% of free cash points across the country closed...
Borrower can withhold payment because of risk of US secondary sanctions
The High Court has held that a UK borrower was entitled to withhold payments under a loan from an entity that was a US Blocked Entity for fear of possible consequences from US secondary sanctions that would...
EIOPA publishes evaluation of Cyber Risk for Insurers
EIOPA has published the findings of its study of the cyber insurance market, covering both cybersecurity challenges and cyber underwriting practices. To produce its report, EIOPA surveyed 41 large (re)insurance groups...
FCA updates on Brexit preparations
In a recent speech, Andrew Bailey, the chief executive of the FCA, provided an update on the FCA’s state of preparation for Brexit, and in particular for a no-deal, no-transition Brexit scenario. However, while Mr...
No more ink? Law Commission confirms validity of electronic signatures
A Law Commission report confirms that electronic signatures can be used to execute documents as an alternative to wet ink signatures in most circumstances. There are some important exceptions and the report only relates...
Suzanne GadoInvestment Association guidance on authenticity of electronic instructions
The 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...
CMA consults on amending Retail Banking Market Investigation Order 2017
In the light of the forthcoming FCA rules on overdraft notifications, the CMA is consulting on a provision decision to vary the Retail Banking Market Investigation Order 2017, to remove provisions in Part 6 that are...