Emma RadmoreTreasury has published the quarterly report on activity under the Terrorist Asset Freezing etc Act 2010. The report covers the quarter to end of September 2020, and shows only £108,000 frozen in 47 accounts, and two...
Category - Topics
Regulators consult on FSCS levy
PRA and FCA are consulting on proposals for the FSCS Management Expenses Levy Limit for 2021/22. The consultation is supported by the FSCS’s proposed Plan and Budget for 2021/22. The proposed limit for 2021/22 is...
Lucy HadrillQuincecare Duty is limited to agents of the customer and does not extend to individual customers
In a decision that will be welcomed by the banking industry, the High Court in the case of Philipp v Barclays Bank UK plc [2021] EWHC 10 (Comm) has confirmed that the “Quincecare Duty” placed upon banks is...
Scott NodderFCA updates on DB transfer business
FCA has published data collected from firms on the DB pension advice market. The data is already nearly a year old, covering an 18 month period to March 2020. FCA stresses its continued belief that it is not in the...
PRA consults on depositor protection I/D verification
PRA is consulting on new rules aimed at avoiding FSCS eligibility issues arising if a firm has failed to conduct adequate AML checks. It stresses the changes are intended merely to provide a backstop if firms’...
FCA writes to Debt Purchasers, Collectors and Administrators
The FCA has written to Debt Purchasers, Debt Collectors and Debt Administrators outlining: its view of the key risks debt purchase, debt collection and debt administration firms pose to their customers or the markets in...
Angie BamboulisFCA reports on protecting consumers from harm
FCA has published a report looking at how it looks to protect consumers from investment harm. It includes details of applications that have been stopped, and notes that FCA opened nearly 350 supervisory cases involving...
FCA reminds firms to check permissions regularly
FCA has reminded firms they should regularly check that they have all the right regulatory permissions for their businesses. Firms need not only to seek a variation of permission to add new activities, but should also...
Supreme Court backs FCA on BI judgment
The Supreme Court has released its judgment on the business interruption insurance test case. Commenting, on the judgment, FCA noted that the Court has substantially allowed FCA’s appeal on behalf of policyholders...
JMLSG signposts Brexit effects
JMLSG has noted the parts of its guidance affected by Brexit. In particular: EEA countries are now third countries; the same level of information is to be provided by UK PSPs regardless of whether funds are being...
FCA publishes whistleblowing VREQ
FCA has published the outcome of an application by Tokio Marine Kiln Insurance Limited and Tokio Marine Kiln Syndicates Limited to put in place a Voluntary Requirement in respect of whistleblowing policies and...
FS Bill finishes Commons stages
The Financial Services Bill has now completed its journey through the House of Commons and now moves to the House of Lords. Among the key changes now being debated are extensions to penalties for financial crime-related...
FCA consults on mortgage and consumer credit Covid guidance update
FCA is consulting, until 10:00am on 18 January, on updating its guidance for mortgage and consumer credit borrowers in financial difficulties as a result of Covid. Key proposals are: an extension on the ban on...
FCA publishes FAQ on insurance pricing plans
FCA has published a set of FAQs on its draft rules to remedy its concerns on general insurance pricing practices. It hopes the document will help firms understand the intention behind the proposals, but stresses that...
UK makes Swiss MiFIR equivalence rules
The Markets in Financial Instruments (Swiss Equivalence) Regulations 2021 take effect on 3 February, and designate BX Swiss AG and SIX Swiss Exchange AG as “equivalent” for the purposes of trading under...
ESMA reminds firms about MiFID 2 reverse solicitation and Brexit
ESMA has written to firms noting that some “questionable practices” around reverse solicitation in the context of MiFID 2 have become apparent since Brexit. It gives as an example, pop up “I...
FCA updates on BI case and insurance expectations
FCA says the Supreme Court will deliver its judgment in the business interruption insurance test case on the morning of 15 January. The judgment will be live-streamed and then published. FCA has also updated its...
UK Government announces expansion of the Dormant Assets Scheme
The UK Government has announced the expansion of the Dormant Assets Scheme, which is a major boost as the UK recovers from the coronavirus pandemic. £800 million is set to be made available to communities across the UK...
Market Watch on recordings and alternative working arrangements
The latest edition of FCA’s Market Watch looks at FCA’s expectations on firms on recording telephone conversations and electronic communications while alternative working arrangements are in place. FCA had...
PRA consults on supervision of international banks
The PRA is consulting on proposals regarding its approach to supervising the UK activities of PRA-authorised banks and designated investment firms that are headquartered outside of the UK. This includes those firms...
HMRC updates on MLR non-compliance
HMRC has updated its published data on businesses that do not comply with the MLRs. Between February and September 2020 it issued 4 substantial fines for failure to comply with obligations, including a fine of nearly...
FCA Covid financial crime guidance to expire
FCA has updated its pages giving guidance to firms on how to act during the pandemic. As part of this, it has noted that its statement on how firms should apply financial crime systems and controls will no longer apply...
FCA publishes Covid resilience survey results
FCA has published the results of the survey it sent to 23,000 forms on the real-time effect the pandemic is having on their resilience. Among its conclusions are: failures of firms due to the economic downturn are...
Pay.UK reports on impact of Covid-19 on bank account switching
Pay.UK has published its report on how the Covid-19 pandemic has affected switching attitudes and behaviours in the UK. The report explains that research commissioned by the Current Account Switch Service (CASS)...
Insolvency Service Guidance: Breathing Space
The Insolvency Service has published its guidance on the Debt Respite Scheme (Breathing Space). The guidance is intended to support creditors in understanding the Breathing Space Regulations and sets out information on:...
Reminder: changes to MLRs
Various amendments to the MLRs were made in the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations. Some are already in force, with others yet to take effect some of the changes were minor...
FCA reminds firms to be prepared for Brexit
With the end of the Brexit transition period in sight, the FCA has issued a press release reminding firms to be prepared. The FCA expects firms to have assessed the impact of the changes that will take effect, on both...
PRA finalises BRRD II rules
PRA has published its policy statement and final guidance on BRRD II. it has also published its final policy in relation to the amended Contractual Recognition of Bail in and amended Stay in Resolution parts of its...
Parliament publishes corporate criminal liability briefing
The Commons Library has published a research paper on corporate criminal liabilityr. It looks at the circumstances in which corporates can commit crimes in England and Wales and sets out reform options. The paper...
FCA fines Charles Schwab over client asset failings
FCA has fined Charles Schwab UK Ltd nearly £9m for failing adequately to protect client assets, carrying out a regulated activity without permission and making a false statement to FCA . FCA found the firm changed its...
ESMA publishes cloud outsourcing guidelines
ESMA has published its final report on outsourcing to cloud service providers. The guidelines cover: risk assessment and due diligence on providers; governance, organisational and control frameworks for monitoring CSP...
Regulators update on Covid-related SMCR expectations
The regulators have reminded firms of their expectations in respect of the SMCR, bearing in mind the challenges Covid-19 has presented: FCA has reminded firms that it still does not require a single senior manager to be...
FCA censures firm in relation to Connaught investments
FCA has publicly censured Blue Gate Capital Limited and ordered it to pay £203,000 in restitution to investors who invested in the Connaught Income Fund, Series 1. The Fund was a UCIS, which Blue Gate took over as...
Court of Appeal upholds insider dealing convictions
FCA has announced the Court of Appeal’s decision in the case it brought against Fabiana Abdel-Malek and Walid Choucair. The individuals had been convicted of five offences each of insider dealing in 2013/14 and...
TAFA report shows little movement
Treasury has published its quarterly report on the functioning of TAFA, covering April to June 2020. The report shows that: total funds of £9,000 were frozen with 6 accounts or payments being frozen, but no new...
UK publishes 2020 NRA
Treasury and the Home Office have published the 2020 National Risk Assessment under the MLRs and presented it to Parliament. The report: looks at what has been done in recent years, including in terms of bringing new...
Final reports on FCA supervision of LCF and Connaught make damning reading
The Government has published its final report on the outcome of the Independent Investigation into FCA’s regulation and supervision of London Capital & Finance plc. Dame Elizabeth Gloster delivered her report...
Treasury updates special resolution code
Treasury has updated its code of practice that sets out the tools and powers available under the Banking Act 2009 in respect of the special resolution regime.
FCA makes Remuneration Code changes
FCA has published its final rules on updating the dual-regulated firms’ Remuneration Code to reflect CRD V. It has finalised its guidance on proportionality for the dual-regulated firms code, and published a set...
FOS consults on 2021/2 plan and budget
FOS is consulting on its plan and budget for next year. Key elements of the plan set out: its expectation to receive 160,000 complaints and resolve 210,000 whether the individual case fee will be £650 or £750 that the...
PRA evaluates SMCR
PRA has published a report that evaluates the SMCR and whether it has met its aims. In principle, it concludes that it has – it has helped ensure that senior individuals in firms take greater responsibility for...
FCA sets up temporary regime for crypto firms
FCA has set up a temporary registration regime for cryptoasset businesses who have applied for registration with FCA under the MLRs but whose applications FCA is still considering. It is taking FCA longer than hoped to...
Supreme Court dismisses Mastercard’s appeal on collective proceedings
The Supreme Court has dismissed an appeal by Mastercard against a Court of Appeal ruling that annulled the Competition Appeal Tribunal’s (CAT) refusal to grant a collective proceedings order in Mastercard...
EBA pleased at AML college cooperation
EBA has published a report analysing how well AML/CFT supervisory colleges are working. It is pleased that regulators are putting significant effort into setting up colleges, and has reported on good and poor practice...
FCA updates on complaints data
FCA has published its latest firm-specific and aggregate complaints data from firms for H1 2020. It specifically notes: the lowest levels of recorded complaints since H2 2016 – firms received 2.96m; the largest...
PRA writes Dear CEO letters on supervisory priorities
PRA has written to the CEOs of insurers, deposit takers and international banks on its 2021 supervisory priorities: to insurers, it says it will be engaging with stakeholders as it looks to tailor the regulatory regime...
Treasury makes Brexit financial crime laws
Treasury has made: the Sanctions Regulations (EU Exit) (Commencement) Regulations 2020: these bring into force the sanctions regulations made under SAMLA to set up thematic or country based regimes; and the second...
No BI judgment this year
FCA has confirmed the Supreme Court will not be handing down its judgment before January 2021.
FCA fines and bans individual for market abuse
FCA has fined a former portfolio manager, partner and CIO £100,00 and banned him as a result of market abuse. Corrado Abbattista worked for Fenicial Capital Management LLP. FCA found he had created a false and...
FCA fines over treatment of customers in arrears
FCA has fined 3 entities in the Barclays group £26m for breaches of Principles 3 and 6 relating to failures in relation to their treatment of consumer credit customers who fell into arrears or were otherwise in...
Caroline StevensonBoE Financial Stability Report
The Bank of England published the Financial Stability Report for December. The report sets out the Financial Policy Committee’s view on the stability of the UK financial system and what it is doing to remove or...
FCA consults on prudential regulation of MiFID firms
FCA is consulting on the first phase of its proposed rules for the UK Investment Firm Prudential Regime, aimed at simplifying the prudential requirements for solo-regulated firms that fall within MiFID and are subject...
PRA issues statement on capital distributions
In July, the PRA announced its intention to undertake an assessment of large UK banks’ distribution plans for 2020. The PRA has now completed that assessment and, noting that economic uncertainty as a result of...
UK and Singapore announce FTA
The UK and Singapore have announced the signing of a UK-Singapore Free Trade Agreement and negotiations on a UK-Singapore Digital Economy Agreement. For financial services, this means opportunities for UK Qualifying...
FCA makes new rules
At FCA’s latest board meeting, it made a number of Brexit-related instruments, including: general amendments, including amendments to BTS to check they operate effectively in UK law; SMCR and approved person...
FCA consults on proving presence of Covid
FCA is consulting on guidance to help policyholders, insurers and intermediaries to judge how to prove the presence of Covid-19 in a particular area. FCA wants to be able to issue the final guidance as soon as the...
EBA reports on Basel III implementation
The EBA has published a report on the impact of implementing the final Basel III reforms in the EU. The results do not reflect the economic impact of the Covid-19 pandemic as the reference date for this assessment is...
Treasury makes Misappropriation Sanctions Regulations
Treasury has made the Misappropriation (Sanctions)(EU Exit) Regulations under SAMLA. The purpose is to revoke a number of EU regimes covering misappropriation of State funds, which were specific to a particular...
FCA fines firms for unsuitable pensions advice
FCA has fined LJ Financial Planning Ltd £107,200 for recommending that 114 customers transfer their pensions to the value of around £6m into SIPPs over a period of nearly 3 years from March 2010. FCA found the firm...
FCA confirms mini-bond marketing ban
FCA has confirmed that it will permanently ban marketing of speculative illiquid securities, including mini-bonds, to retail investors, from 1 January 2021. The permanent rules will also include a ban on listed bonds...
PRA makes CRD V changes
PRA has published a policy statement on further implementation of CRD V . It has also published its near-final rules which will not be changed, but PRA cannot make the rules until 28 December. The rules will make...
APP CRM Code interim funding to continue to June 2021
UK Finance has confirmed that 7 signatories to the APP CRM Code have agreed to extend the interim funding to compensate victims of scams until the end of June 2021. The funding will apply where the customer and the...
Commission to remove Mongolia from high risk list
The European Commission has published a draft regulation to remove Mongolia from the MLD4 high risk third country list. Once published in the Official Journal, the change will be effective after 20 days.
EIOPA: Peer Review on the collaboration of the insurance NSAs
EIOPA has published the findings of a peer review on the supervisory practices related to the decision concerning the collaboration amongst supervisory authorities in relation to insurance cross-border activities, data...
PRA consults on designating firms within certain banking UK consolidation groups
The PRA has published a consultation paper setting out its proposed approach to designating entities within certain banking UK consolidation groups as responsible for ensuring that consolidated prudential requirements...
EC speaks on evolving payments market
In her speech, EU Commission Executive Vice-President Margrethe Vestager discussed the impact of the Interchange Fee Regulation and noted that: technology has resulted in a proliferation of payment methods available to...
PRA publishes feedback on recovery planning consultation
The PRA has published a Policy Statement providing feedback to responses to the PRA’s consultation on simplified recovery planning, as well as the PRA’s final policy decision. The respondents were supportive...
EPC Report on Payment Threats and Fraud Trends
The European Payments Council (EPC) has published its report on payment threats and fraud trend for 2020. The report attempts to create awareness amongst stakeholders involved in the payments domain to allow them to...
BoE sets out stress test plans for insurance industry
Speaking at the Insurance Risk and Capital EMEA 2020 virtual conference, Charlotte Gerken, Executive Director – Insurance Supervision, addressed the industry’s reaction to the Covid-19 pandemic, the Solvency II...
Treasury consults on insolvency changes for payment and e-money firms
HM Treasury is proposing to introduce changes that will help protect customers in the event of a payment or electronic money institution being put into insolvency. The Government says the changes will strengthen...
PRA notes FCA “long-term absence” consultation
PRA has drawn the attention of firms to a joint chapter in FCA’s latest quarterly consultation on clarifying regulatory expectations for temporary long-term absences. The regulators plan to clarify what they...
Up next from FCA
FCA’s latest policy development update highlights as due before the end of the year consultation on changes to accommodate the Breathing Space Regulations.
Most other consultations are due in the New Year
OFSI says “prepare for Brexit”
OFSI’s latest blog alerts firms to the changes they will see at the end of the transition period. It notes that: SAMLA provides the UK’s autonomous legal framework for its sanctions regime the FCDO has...
FCA updates on MAR and Brexit
The FCA has updated its website to explain what will happen to the EU Market Abuse Regulation (EU MAR) after 31 December 2020. At the end of the transition period, EU MAR will be onshored into UK law by virtue of the...
FCA and PSR Terms of Reference on Access to Cash
On 16 June, the PSR and FCA set out its plans to work with the industry and develop shared solutions to deliver appropriate and sustainable access to cash that meet consumers’ needs, including responding to changing...
FCA publishes RDR and FAMR evaluation
FCA has published an evaluation of the impact of the RDR and FAMR. On the whole, it found a positive impact. It notes that the FAMR has: led to a small increase in the number of adults who receive financial advice, and...
UNEP FI Consultation on Guidance: Reporting on Principles for Responsible Banking
The United Nations (UN) Environment Programme Finance Initiative (UNEP FI) has published a consultation paper on a draft guidance document designed to support signatories of the Principles for Responsible Banking with...
EBA Guidelines on legislative and non-legislative moratoria
The EBA has announced the reactivation of its Guidelines on legislative and non–legislative moratoria on loan repayments applied in the light of the COVID-19 pandemic. The aim of the Guidelines is to ensure that...
FCA launches UK Benchmarks Register
In preparation for the end of the Brexit transition period, FCA has announced the launch of the new UK Benchmarks Register. The Register, which can be accessed from 11pm on 31 December 2020, will replace the ESMA...
FATF consults on enhancing cross-border payments
FATF is consulting on how the challenges of cross border payments – namely high cost, low speed, limited access and limited transparency – can best be addressed. The survey builds on the G20 commitment to...
FCA writes portfolio letters to SIPP operators
FCA’s latest portfolio supervision letter is to SIPP operators. In the letter, FCA notes that, when SIPPs were originally launched, they were designed for higher net worth individuals looking to manage their own...
FCA pleased with RTO price cap
FCA has published an evaluation, which it says shows its rent-to-own price cap, which took effect in April 2019 has been effective in reducing the prices RTO firms charge. It says the prices of the two largest firms in...
Court of Appeal overturns Rothesay Part VII decision
The Court of Appeal has, for the first time, considered the approach courts should adopt to dealing with applications to sanction transfers of long term insurance business. In August 2019, a court had refused Prudential...
Jonathan DrakeMainstream Consumer Credit Lenders portfolio letter published
The FCA has today published the letter it sent to the Board of Directors of mainstream Consumer Credit Lenders. The letter sets out the FCA’s: views of the risks these lenders pose to their consumers or the...
FCA updates on general insurance consultation
FCA is consulting on rules and guidance to implement a package of remedies to address the harms identified in its general insurance pricing practices market study. As part of the consultation process, FCA recently...
EPC publishes the first SRTP scheme rulebook
Following a three-month public consultation, the European Payments Council (EPC) has published the first version of the Single European Payments Area (SEPA) Request-To-Pay (RTP) scheme rulebook. The rulebook covers the...
PSR intends to operate confidentiality ring as part of card-acquiring services market review
The PSR has published a Notice of intention to operate a confidentiality ring following the publication of its interim report in the market review into card-acquiring services in September 2020. Following a request by a...
FOS loses judicial review hearing
The Court has found against FOS in a judicial review hearing brought by a forex firm. TF Global Markets (UK) Ltd has suspended a number of accounts, including those of three individuals who subsequently complained to...
PRA confirms CRDV statement date
PRA has issued a statement explaining to firms when they can expect further information on the implementation of CRD V. PRA issued two separate consultations, the later of which closed on 17 November. It plans to...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made the following rules at its last 3 board meetings: changes to reflect the extension of various SMCR deadlines as a result of the pandemic (made in October); the...
HM Treasury extends consultation deadlines
Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...
FCA announces benefits of RegData
RegData is set to replace Gabriel as the FCA’s data collection platform and will offer an enhanced user experience. FCA says the benefits of RegData will include: Increased speed and faster navigation; Improved...
EU statement on EU-Japan Joint Financial Regulatory Forum
The European Commission has published a statement on the second meeting of the EU-Japan Joint Financial Regulatory Forum which took place on 20 November. Topics of discussion at the meeting included the impact of Covid...
FSCS Outlook November 2020
FSCS has published its half year edition of Outlook, which gives an overview of the levy position. FSCS acknowledges that 2020 has been a challenging year for the financial services sector. It has adapted well to the...
Pay.UK reports on impact of COVID-19 on SME business banking
Pay.UK published its findings from its research into the impact of COVID-19 on SME business banking. Overall, SMEs are more likely to say that they are satisfied (rather than dissatisfied) with their bank’s...
LCF report due to be published before Christmas
In a statement to Parliament, John Glen confirmed that Dame Elizabeth Gloster has delivered her final written report on her investigation into London and Capital Finance to FCA. He has asked FCA now to work with...
FCA outlines its supervision Strategy for Lloyd’s & London Market Insurers
The FCA has published a ‘Dear CEO‘ letter addressed to Lloyd’s and London Market Insurers, providing an overview of the areas of focus of its supervision strategy. In particular, the letter sets out...
FCA fines FX options broker for market misconduct
FCA has fined TFS-ICAP Ltd £3.44m for communicating misleading information to clients. It found that over a 7 year period brokers at the firm had “printed” trades – which meant the told clients a trade...
FCA publishes BI appeal transcript
FCA has published the transcript from the last day of the appeal hearing on the business interruption insurance test case.
Directory person information starts to go live
Directory persons data for dual-regulated firms is now live on the new Directory. FCA has reminded solo-regulated firms that they must have submitted all data by the end of March 2021, and has also noted the dates...
FCA updates on Digital Sandbox
FCA is collaborating with the City of London Corporation on a “digital sandbox” to help innovative firms tackling challenges caused by the pandemic. FCA received 94 applications for 30 spaces on the pilot...
UK publishes retained Blocking Regulation
The DIT has published an information page on the UK Protection of Trading Interests Legislation, which includes the UK retained version of the EU blocking statute. The laws continue to protect UK persons who trade with...
FCA updates on complaints handling during Covid-19
FCA has published an exchange of letters with FOS on how firms have been dealing with complaints handling during the pandemic. As it has previously stated, firms have had enough time now to embed new ways of working...