Emma RadmoreFATF held a plenary meeting on 21-23 October. Many initiatives are on hold while FATF warns firms about the financial crime risks the pandemic has created, but it has continued to work with countries under increased...
Category - Topics
FATF updates recommendations
FATF has updated its recommendations in respect of: Recommendation 1 and its interpretative note, to broaden the existing requirement specifically to require relevant entities to identify and assess the risks of...
Lucy HadrillPRA consults on amendments to Resolution Assessment rules
The PRA proposes to amend the dates in the Resolution Assessment Part of the PRA Rulebook (Rules) as follows: Resolution Assessment 3.1(1), to reflect that the date by which firms must submit a report of their...
PRA consults on BRRD II
The PRA has launched a consultation on its Contractual Recognition of Bail-in (CROB) and Stay in Resolution (Stays) Rules. The proposals will support the UK’s transposition of the Bank Recovery and Resolution...
FCA confirms SMCR extension dates
FCA has confirmed it has extended the date by which all solo-regulated firms must have fully implemented the Certification Regime and Conduct Rules, to 31 March 2021. This follows Treasury making the statutory...
FCA updates on Directory dates
FCA has updated its information page on the Directory of certified and assessed persons. It confirms that dual regulated firms must submit their data by 13 November, and it will start to be published from 23 November...
FCA extends deadline for lenders to offer switching options for mortgage prisoners
In its latest update, the FCA acknowledged that Covid-19 has meant that lenders have not been able to offer switching options for mortgage prisoners as quickly as anticipated. FCA rules require administrators and...
FCA introduces measures to support mortgage borrowers
The FCA has adopted new measures to support closed book and interest-only/ part-and-part mortgage borrowers, some of whom may be mortgage prisoners. The measures are: a new rule that will make it easier for lenders to...
Financial Regulatory Working Group issues joint statement on UK-US
The Financial Regulatory Working Group’s meeting on 20 October was the first since the UK left the EU. The meeting focussed on five key themes: the economic response to, and potential financial stability impacts...
SFO publishes DPA guidance
The SFO has published a chapter from its handbook that gives guidance on how it approaches DPAs and engages with companies when it is considering a DPA. The guidance, which is internal guidance for SFO staff and...
Financial Markets Law Committee publishes report on LIBOR transition
The Financial Markets Law Committee (FMLC) has today published a report entitled “LIBOR Transition – Issues of Legal Uncertainty”. The paper is intended to survey the uncertainties in the context of...
Rebecca JonesFCA confirms new rules
FCA has issued a Handbook Notice summarising rule changes finalised over recent months. Key among them are: the new section on COBS (22.6) to ban derivatives and ETNs that reference certain cryptoassets to be marketed...
Treasury Committee launches new Economic Crime inquiry
The Treasury Committee has launched a new inquiry to look at what progress has been made in combatting economic crime, building on previous recent inquiries, It will focus on: AML systems and the sanctions regime...
FCA and PRA fine GSI for 1MDB risk management failures
FCA and PRA have fined Goldman Sachs International a total of £96.1m for risk management failures connected to its role in three fund raising transactions for 1Malaysia Development Berhad, a Malaysian state-owned...
Commission consults on AIFMD review
The European Commission has launched a consultation on its review of the AIFMD. The consultation is open until 29 January 2021. The Commission wants to gather views from AIFMs, distributors, industry representatives...
Breathing Space Consultation Launched
The FCA has published its consultation on the handbook changes required as a result of implementation of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales)...
Caroline StevensonFinancial Services Bill starts Parliamentary passage
The Financial Services Bill was introduced into Parliament on 21 October. The key aims of the Bill are: to implement the remaining Basel 3 standards; to create a more proportionate investment firms’ prudential...
Regulators update insurers and others on Brexit expectations
PRA and FCA have written a joint letter to CEOs of insurance firms on the importance of being prepared for the end of the transition period, and FCA has also more generally updated its website. The regulators stress the...
Jonathan DrakeFSB publishes global transition roadmap for LIBOR
On 16 October 2020 the Financial Stability Board (FSB) published a global transition roadmap for LIBOR. The FSB coordinates at the international level the work of national financial authorities and international...
MLR Bank Account Portal not yet ready
FCA has confirmed that the Bank Account Portal, which is being set up under the MLRs to enable credit institutions and providers of safe custody services to respond to requests for information from a law enforcement...
FCA publishes BI High Court declarations
FCA has published the High Court declarations made in the test case, which are the culmination of the test case judgment. The declarations set out how and to what extent the policies in the representative sample used in...
FCA: new webpages on whistleblowing
The FCA has launched two new webpages on whistleblowing. The first webpage sets out the process for reporting concerns of wrongdoing to the FCA in confidence and provides guidance on: Making the decision to speak to the...
EIOPA launches training programme on insurance supervision
The targeted training programme will be delivered to 17 national competent authorities and aims to reinforce high-quality and effective supervision, the protection of policyholders and beneficiaries, and financial...
PRA consults on CRD V
PRA is consulting on further proposed changes to its rules, supervisory statements and statements of policy to implement elements of CRD V, and also to make changes to the UK framework to take account of parts of CRR II...
Jonny WilliamsFCA says no more excuses for complaint handling delays
FCA says firms have now had enough time to embed the new ways of working the pandemic has demanded, and that any more failures to comply with FCA’s complaint handling requirements should only arise in exceptional...
Crowdfunding Regulation in OJEU
The EU Regulation on Crowdfunding and the accompanying amendments to MiFID 2 have been published in the Official Journal. It will apply from 10 November 2021. Please ask us if you’d like to see the articles...
FCA looks at banking data for understanding consumer wellbeing
FCA has published an occasional paper in which it looks better to understand consumer financial wellbeing through looking at responses to surveys, analysing banking data and considering objective factors most closely...
Commission publishes EU work programme 2021
The European Commission has announced its focus for 2021. As well as continuing to work on managing the effects of the pandemic, its priorities will include: a “Fit for 55” packages to reduce emissions by...
Commission consults on ELTIF Regulation review
The European Commission has launched a consultation in relation to its review of the Regulation on European long-term investment funds (ELTIFs). The Commission is seeking views on various issues grouped under the...
HMT consults on financial services regulatory framework post-Brexit
HM Treasury has published a consultation paper in relation to Phase II of its Financial Services Future Regulatory Framework Review. HMT is seeking views on proposals for the financial services regulatory framework post...
FSB issues final report on CIRR toolkit
The Financial Stability Board (FSB) has published its final report on a toolkit of effective practices for financial institutions’ cyber incident response and recovery (CIRR). The toolkit aims to assist financial...
ESRB publishes Recommendation on identifying legal entities
The European Systemic Risk Board (ESRB)’s Recommendation A proposes that: EU legislation incorporates a common EU legal framework governing the identification of legal entities established in the EU that are...
Lords responds to HMT on equivalence
Baroness Donaghy, chair of the House of Lords EU Services Sub-Committee, has responded to HMT’s letter of 21 September which set out the Government’s responses to previous queries of the Sub-Committee on UK...
BoE speech: financial markets and the fight against climate change
Andrew Hauser, BoE Executive Director for Markets, has spoken about the role capital markets, including asset managers, have to play in the fight against climate change. In his speech, Mr Hauser explored the challenges...
Customers in financial difficulty and coronavirus: Additional guidance for firms
The FCA has set out proposals on how firms should continue to seek to help customers who hold insurance and premium finance products and may be struggling financially due to Covid-19 beyond 31 October 2020. The proposed...
HMRC publishes MLR risk assessment guidance
HMRC has published risk assessment information to help businesses carry out the money laundering and terrorist financing risk assessment required under the MLRs. There are separate documents for each of: money services...
Lloyds report: Building simpler Insurance products
Lloyds has published a report today – Building simpler insurance products to better protect customers which sets out a number of ways the global insurance industry can remove complexity to provide enhanced...
Access to Cash: Call for Evidence launched
HM Treasury today published a call for evidence setting out the Government’s legislative aims for protecting access to cash in the UK. The paper sets out that the Government is aiming to maintain a sustainable...
EBA consults on PSD2 major incident reporting
EBA is consulting on a proposed revision of its guidelines on major incident reporting under PSD2. It wants to make the process better, simpler and more streamlined, and reduce the number of operational incidents that...
Lords seeks clarification on EU crowdfunding legislation
Lord Kinnoull, Chair of the European Union Committee, has written to John Glen MP in response to HM Treasury’s letter of 11 August which set out the Government’s views on the EU Crowdfunding Regulation. The...
Current accounts for expats post-Brexit
The Treasury Committee recently wrote to the FCA seeking clarification on the notice period that should be given to current account customers who are being told their accounts will be closed once the transition period...
FCA fines for short selling disclosure breach
FCA has issued its first fine for breach of the Short Selling Regulation. It fined Asia Research and Capital Management Limited, an asset management firm based in Hong Kong, nearly £875,000 for failing to notify FCA and...
BoE updates timelines for ISO 20022 migration
The BoE published an update today setting out the revised timetable for ISO 20022 migration: Phase 2 (TS2): Implementation date next year has been pushed back from April to June. From June 2022, BoE will require all...
FSB reports on global stablecoins
The Financial Stability Board (FSB) has published its finalised high-level recommendations for the regulation, supervision and oversight of “global stablecoin” (GSC) arrangements. The report says that GSC...
Speech: FCA Regulation of Consumer Credit
Nisha Arora, Director of Consumer and Retail Policy at the FCA gave a speech today at the online Finance and Leasing Association Conference. The speech reminded the audience about the 4 outcomes the FCA wants to see for...
FSB Roadmap to enhance cross-border payments
The FSB has today published a roadmap which has been delivered to G20 Finance Ministers and Central Bank Governors in advance of their meeting tomorrow. The roadmap sets out the FSB’s opinion on how the key...
SFO looks to future challenges
Lisa Osofsky has spoken on future challenges in economic crime. She focused on: the success of the National Economic Crime Centre in its first 2 years of existence; the refreshed Economic Crime Plan; better engagement...
EIOPA calls on insurance industry to be ready for end of transition
EIOPA has reminded the insurance sector that as of 31 December 2020, Solvency II and the IDD will no longer apply to the UK, and that the industry must be prepared for the consequences of UK and Gibraltar firms becoming...
FCA speaks on market abuse in the time of COVID-19
Julia Hoggett has spoken on the importance of regulators maintaining focus on ensuring markets work well for consumers and are orderly and clean, whatever the challenges. She spoke about how FCA aims to place the...
OFSI publishes annual review
OFSI has published its annual review for the year to March 2020. The review highlights: OFSI’s work to prepare for the end of the transition period; its work on reported breaches and how it decides on the...
Mortgage Market Disruptions
The FCA today published Occasional Paper No. 57 on mortgage market disruptions. The paper uses data to document the trends associated with COVID-19 and compares them to the financial crisis of 2007-09. The summary...
HMT writes to House of Lords on equivalence
The Economic Secretary to HM Treasury, John Glen MP, has responded to the House of Lords EU Services Sub-Committee’s queries on UK-EU regulatory cooperation for UK financial services post-Brexit. In its letter to...
EIOPA sets out approach on POG
The European Insurance and Occupational Pensions Authority (EIOPA) has published a paper outlining its approach to the supervision of product oversight and governance (POG) requirements based on the Insurance...
FCA updates on pre-existing conditions directory
FCA has noted the new travel insurance directory launched by MaPS for people with serious pre-existing medical conditions. The directory meets FCA’s criteria for a “Medical Cover Firm Directory” and...
FCA sets mortgage consumer outcome expectations
Jonathan Davidson, speaking at FCA’s webinar on mortgage forbearance, discussed what FCA is seeing the mortgage markets and reiterated its expectations on firms. His key takeaways were: FCA sees an increasing...
New Debt Letter Rules
HM Treasury has announced this morning that the current form of debt letters, including default notices will be changed from December 2020. The changes are expected to include making the notices more user friendly, with...
FCA skilled persons reports update
In July – September 2020, FCA commissioned 14 skilled persons reports – of which half were on the retail side and half the wholesale side. 3 related to retail banking and payments and 2 to retail lending...
FCA bans retail sales of crypto-derivatives
FCA has published final rules to ban the sale to retail customers of derivatives and ETNs that reference certain types of crypto-assets. The new rules define “unregulated transferable cryptoassets” as...
EP approves crowdfunding proposals
The European Parliament has approved, in plenary, the proposal for EU-wide regulation of crowdfunding services and platforms. Given that the Council’s position was approved unamended, the text was deemed adopted...
Another breach of the SME Banking Undertakings
The CMA has published details of another firm breaching the SME Banking Undertakings 2002. Between December 2019 and August 2020, AIB NI had failed to inform staff that SME customers were not required to open or...
FCA opens 2 sandbox windows
FCA has opened two new application windows in its Sandbox – applications for Cohort 7 of the now established regulatory sandbox, and the pilot of a new Digital Sandbox. The emphasis is on firms providing products...
Leapfrog certificates granted in BI test case
FCA has confirmed the granting of “leapfrog” certificates to it, six of the insurers involved and the Hiscox Action Group for an appeal to the Supreme Court, and may now apply for permission to appeal. At...
FGC updated for MLR changes
The Financial Crime Guide has been updated to reflect necessary changes consequent on implementation of MLD5. In particular, it now covers new high-risk factor considerations; changed e-money thresholds for CDD; updated...
Up next from FCA
FCA’s latest Policy Development Update promises, by the end of the calendar year: consultation on amendments to CONC and MCOB to accommodate the Breathing Space Regulations consultation on the new regulatory...
OFSI publishes quarterly TAFA report
OFSI has published its quarterly report on the operation of TAFA, covering the quarter to end March 2020. At the end of the quarter, just over £100,000 were frozen, but mainly relating to the EU Al-Qaida Regulation...
Finalised Guidance: Cancellations and refunds
Following our report on the draft guidance published on 31 July, the FCA has published its finalised guidance on its expectations for insurance and card providers helping consumers claim money back. The guidance which...
Working Group updates on key LIBOR milestones for 2020/2021
The Working Group on Sterling Risk-Free Reference Rates has updated its LIBOR transition roadmap to include key priorities and revised milestones for 2020 and 2021. The roadmap is a guide to help both lenders and...
FCA files skeleton arguments for leapfrog BI hearing
FCA and the insurers involved in the business interruption insurance test case did not reach the hoped-for agreement on the interpretation of some key points in the judgment. As a result they have filed skeleton...
PRA consults on IRB approach to UK mortgage risk weights
PRA is consulting on rule changes to address the prudential risks that stem from inappropriately low IRB mortgage risk weights. A by-product of the proposals would also narrow the differentials between IRB and...
EU updates on AML initiatives
Valdis Dombrovskis has spoken on financial crime prevention and, in particular on the AML action plan. He is pleased at the support the plan received, and the overwhelming agreement that no action is not an option. They...
FCA extends 10% depreciation guidance
FCA is giving a further 6 month extension to its measures on 10% depreciation notifications. Its first set of measures expire on 30 September, and it is extending them such that it will not take action for breach of...
FCA writes to investment and insurance CEOs on client assets and Covid-19
FCA has written 2 Dear CEO letters to firms that hold client money or custody assets, whether in the context of investment or insurance business, to remind them of their obligations under CASS. The letters stress that...
FCA updates on Brexit preparations
FCA has urged firms to make sure they have considered how the end of the transition period will impact them and their customers. It has updated its webpage to include stressing that firms with any client money or...
Overdrafts and Coronavirus: Finalised FCA Guidance
Further to the draft guidance which we wrote about on the 16th, the FCA has today published its finalised guidance which is to take effect from 2nd October. The guidance sets out the FCA’s expectation on how firms...
Consumer Credit and Coronavirus: Final FCA Guidance
Further to the draft guidance which we wrote about on the 16th, the FCA has today published its finalised guidance which is to take effect from 2nd October. The guidance, which covers credit cards, loans, rent to own...
FCA reopens TPR window and tells fund managers to update
FCA has reopened the TPR window for EEA firms and fund managers that have not previously done so to make notifications if they wish to use the regime. The window will close on 30 December. Fund managers are also able...
Ex-banker acquitted in FCA document destruction trial
In a case brought by the FCA, Konstantin Vishnyak has been found not guilty of one count of destroying documents in September 2018. The FCA was investigating Mr Vishnyak for suspected insider dealing when it brought the...
EU to recognise UK CCPs from 1 January 2021
The European Securities and Markets Authority (ESMA) has announced that it will recognise the three central counterparties (CCPs) established in the UK as third country CCPs (TC-CCPs) from 1 January 2021. The decision...
CMA letter re PPI Order breaches
The CMA has written to Cardiff Pinnacle about two breaches of the PPI Order: breach 1: 77 customers did not receive their Annual Reviews on time; and breach 2: 167 customers did not receive accurate information in their...
FCA reports on regulatory perimeter
FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...
FCA updates on BI appeal and lodges leapfrog application
FCA has updated its information page on the consequences from the judgment in the business interruption insurance test case. It noted that it held meetings with policyholders and their lawyers over 4 days in the week of...
ESMA publishes draft third country RTS
ESMA has published draft RTS and ITS for third country investment firms under MiFID 2/MiFIR. It needed to make changes following the IFR and IFD, which requires information to go to ESMA even where the third-country...
ESMA issues report on MAR
The European Securities and Markets Authority (ESMA) has published its first in-depth review of the Market Abuse Regulation (MAR) since its implementation in 2016. It is expected that the report will feed into the...
EU launches new capital markets union action plan
The European Commission (EC) has adopted a new capital markets union (CMU) action plan which proposes legislative changes and new objectives. The EU’s top priority is to ensure that Europe recovers from the...
EC adopts retail payments strategy
The European Commission (EC) has adopted a Retail Payments Strategy as part of its new Digital Finance Package. The strategy draws on the findings of the public consultation launched earlier this year and identifies key...
FCA updates on new COVID-19 issues
FCA has updated firms following the most recent Government announcement on COVID-19 restrictions. It says firms should continue to follow Government advice to work from home, and has updated its statements on...
EU proposes crypto-asset market Regulation
The EU has published a proposal for a Regulation on markets in crypto-assets, as part of its Digital Finance package. The proposal notes many Member States have legislated on issues relating to crypto-assets which has...
BoE reports on supplier’s misuse of audio feed
The BoE has published a report of a review into the misuse of its press conference audio feed alongside its response to the report’s recommendations. In November last year, concerns were raised that an audio feed...
FCA launches investigation under Competition Act
The FCA is investigating suspected anti-competitive arrangements under Chapter I of the Competition Act 1998.
ECON adopts draft reports on digital finance and the capital markets union
The European Parliament’s Economic and Monetary Affairs Committee (ECON) has adopted two draft reports on (1) digital finance and FinTech action plan and (2) the further development of the capital markets union...
HMT updates on business support schemes
HM Treasury has published its latest statistics on the amount of businesses that are being supported through government backed support schemes: CBILS – £15.45bn between 66,585 facilities CLBILS – £3.84bn...
Treasury Committee seeks economic crime answers
The Treasury Committee has written to BEIS, FCA, HMRC and the Minister for Security seeking answer to a number of questions in the light of the release of the FinCEN papers. Mel Stride’s letter asks: what needs...
FCA consults on international firm regulation
FCA is consulting on its approach to authorisation and supervision of international firms operating in the UK. The approach will apply to EEA firms seeking authorisation as they exit the TPR, and firms from non-EEA...
FCA publishes insurance pricing report and consults on fundamental change
FCA has published its final report on its market study intro general insurance pricing practices and, alongside it, a consultation on changes to its Handbook, and rules on data publication. The key damning conclusions...
EBA phases out repayment moratoria guidelines
EBA has decided to go ahead with its plan to phase out its Guidelines on legislative and non-legislative payment moratoria from the end of September. It says the Guidelines have provided the necessary flexibility, and...
PRA publishes proprietary trading review
PRA has published a report required by law that looks at the extent of proprietary trading by deposit takers and dual-authorised investment firms. The report looks at: the extent of trading; the risks trading poses to...
FCA speaks on culture in investment management sector
Marc Teasdale has spoken on FCA’s work with the asset management sector, and how it is intended more closely to align the sector with its essential purpose – that is, protecting and growing the capital and...
BI consequentials hearing set for 2 October
FCA says the Court has confirmed the consequentials hearing following judgment in the BI insurance test case will take place on 2 October, probably in the morning. FCA will live stream the hearing, at which the parties...
FCA writes to CEOs on BI judgment
FCA has written to the CEOs of insurers following publication of the High Court judgment on the BI test case. It expresses its gratitude to the insurers that were parties to the case and to all those who have co...
EBA wants clarity on aspects of “credit institution” definition
EBA has published an Opinion noting its views that several aspects of the current definition of “credit institution” could benefit from clarification – not least the notions of “deposit”...
FCA sets out views on cannabis-related businesses
FCA has set out its views on how it is assessing applications for listing from cannabis-related companies. It notes that, although medicinal cannabis has been legalised in the UK, there is a risk that the proceeds from...
Regulatory Initiatives Grid heralds return to “normality”
FCA has published the second edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. The grid, first published in May, is aimed to help firms see upcoming regulatory work...
FCA sets up LIBOR transition page
FCA has created a new page on its website, telling firms what they need to know about LIBOR transition. The page focuses on balance sheet exposure and how affected firms can move their LIBOR-linked contracts to...