FIN.

AFME calls for crypto supervision convergence

AFME 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...

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...

Bills 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...

Basel 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...

Up 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...

PRA 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...

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...

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...

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...

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...

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’...

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...

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 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.

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...