Emma RadmoreChris McLauchlan has been appointed as a Legal Director to lead WBD’s banking team in Scotland. Joining from Eversheds Sutherland, Chris is a senior banking lawyer with over 15 years of experience advising on...
Category - Topics
Jonny Williams
Regulators publish 2020/2021 MELL
PRA has published a feedback statement and final rules on the FSCS Management Expenses Levy Limit (MELL) for 2020/2021. In CP 1/20, the PRA and FCA consulted on a proposed MELL of £83.2 million for 2020/21, which...
Amelia GreenFCA: List of delayed workstreams (UPDATED)
We’ve scoured the FCA website to bring you a list of the workstreams that have been delayed. Through delaying these workstreams, the FCA can focus on the evolving pressures Covid-19 is putting on firms and...
Caroline StevensonFCA Covid-19 response to date
FCA is constantly updating its website on its response to Covid-19. We have also written an article summarising this advice at at the morning of 26 March. The FIN team will keep updating items as appropriate within...
LSB gives business lending practice examples
LBS has published an updated guide for firms, setting out examples of the approach they may wish to consider on product sales, to be compliant with the Standards of Lending Practice for business customers. The guidance...
FCA updates mortgage firm Covid-19 guidance
FCA had provided additional guidance to mortgage firms on payment holidays relating to Covid-19. We reported in this post on the original guidance. FCA has previously required firms to offer payment holidays if they...
FCA delays Directory publication
FCA had been due to publish the initial directory of certified and assessed persons on its Register at the end of March, but is now delaying it for at least a month. Dual-regulated firms had had to submit their data for...
Treasury Committee seeks ABI answers on insurer behaviour
The Treasury Committee has written to the ABI, asking for information to help understand how the insurance industry is responding to coronavirus and to FCA’s guidance. The letter asks: how many members have ceased...
Jonathan DrakeRegulator Covid-19 Update 26 March
On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...
Regulators give leeway on company accounts
The FRC, PRA and FCA have announced a series of actions to help listed companies during the Covid-19 crisis. Listed companies may have an additional 2 months to publish audited financial statements. But issuers are...
Government confirms extension of TTP
In a statement to Parliament, Lord Agnew of Oulton, the Minister of State, has noted a statement from Treasury that it expects “in general” the same laws and rules to apply as the transition period ends, it...
Regulator Covid-19 Update 25 March
On 25 March: Treasury, BoE and FCA have written to the CEOs of UK banks on Covid-19 and bank lending. The letter explains how the Covid Corporate Financing Facility will help firms of investment grade or equivalent...
Regulators look at Covid-19 effects on LIBOR transition planning
FCA, the BoE and the Sterling Risk-Free Reference Rates group have reminded firms to keep in mind that they should still not rely on LIBOR being published after the end of 2021. However, the regulators understand that...
Rebecca JonesCovid-19 regulator update 24 March
Late on 23 and on 24 March: PRA announced amendments to regulatory reporting for insurers in response to EIOPA’s recommendations. There will be between 2-8 weeks’ delay for most aspects of harmonised...
Contactless limit increasing
UK Finance announced today that the card transactional contactless limit will be increasing from £30 to £45 with the roll out starting on 1 April. The changes may take a while for retailers to implement, especially...
ESMA extends response dates
ESMA has extended the response date of all consultations due to close on or after 16 March by 4 weeks. This includes the consultation on technical standards for the provision of investment services and activities in the...
FSCS comments on LCF judicial review
As a judicial review action starts in respect of eligibility of London Capital & Finance investors for FSCS payment, FSCS commented that this is a large case, and that it had carried out extensive factual...
Covid Corporate Financing Facility exempt from FSMA
Treasury has made legislation to exempt the Government’s Covid Corporate Financing Facility from the need for authorisation under FSMA (except in relation to insurance business – which it is not proposed the...
Regulator Covid-19 update for 20 March, including on key worker categorisation
On 20 March: BoE and PRA announced supervisory and prudential prudential policy measures to address the challenges of Covid-19: including: cancellation of the annual stress test for 2020 pausing until further notice the...
CMA issue directions to Paymentshield Ltd
The CMA has issues directions to Paymentshield Limited for failure to send Annual Reviews to PPI customers as required under the Payment Protection Market Investigation Order 2011. The directions require Paymentshield...
FCA sets out Covid-19 expectations on insurers
FCA has set out its position on how it expects insurers to act given the unprecedented impact of Covid-19. Above all, it expects firms to consider very carefully the needs of customers and to be flexible in how they...
FCA makes statement on fund suspensions
FCA has noted that some managers of commercial real estate funds have suspended dealings on the basis of current material uncertainty over the value of the underlying property, and says that suspension is likely to be...
Barry StimpsonCMA varies Santander directions
CMA has varied the Directions to Santander in respect of its Open Banking Release. It had previously varied the directions in January 2019 and considers Santander’s continued failure to comply with the...
FMLC responds on crypto taxonomy
FMLC has responded to the European Commission’s consultation on classification of crypto assets. The detailed response notes: the current parallel classification of cryptoassets in the UK on the one hand and the...
JMLSG consults on crypto guidance
JMLSG is consulting on a new part to its sectoral guidance, to cover cryptoasset exchange providers and custodian wallet providers. The new Part 22: defines crypto-assets, noting some examples which firms should...
EIOPA takes Covid-19 action
EIOPA has set out its expectations on insurers as they try to manage the risks Covid-19 presents. Its key messages are: the importance of business continuity. It says regulators can help by being flexible on supervisory...
PIFMA concerned about Open Finance
PIFMA has responded to FCA’s call for input on open finance. While it applauds FCA’s stance on encouraging innovation, and feels the financial services sector has lagged behind other sectors in adopting...
Gambling Commission fines for AML failings
The Gambling Commission has fined Betway £11,6m for a series of “social responsibility” and money laundering failings linked to 7 VIP customers. The Gambling Commission found that: generally, because the...
FCA issues Covid-19 guidance for consumers
The FCA has explained that is working closely with the Government, the Bank of England, the Payment Systems Regulator and firms to ensure markets continue to work well for consumers. This includes making regular contact...
Rachael PrestonEU writes to Chancellor on equivalence
Valdis Dombrovskis has written to Rishi Sunak on equivalence assessments. The letter merely notes that both sides should start to assess equivalence as soon as possible, on the basis of the Political Declaration, with a...
FOS looks at insurance coverage
FOS’s latest Ombudsman News looks at: coronavirus: so far, FOS has not seen many complaints on the impact of the virus, but expects it will see more complaints particularly in relation to travel insurance, medical...
BoE looks at open platform for SME finance
BoE has published its views on developing an open platform for SME finance. It says that a global identity standard and safe information sharing could harness novel data sources and advanced analytics to provide SMEs...
Treasury Committee responds on IT failure and economic crime reports
The Treasury Committee has commented on the responses from Government and regulators on: its October report on failures in the IT industry. The report had concluded, among other things, that: regulators need to improve...
Invalidly executed deeds of guarantee still enforceable
In Signature Living Hotel Ltd v Sulyok [2020] EWHC 257 (Ch), the High Court was asked to consider whether two deeds of guarantee were enforceable in circumstances where the signature of the director of the surety had...
Scott NodderTI welcomes economic crime levy
Transparency International has welcomed the Government’s announcement of an economic crime levy on firms subject to the MLRs. The Government will consult on its plans later in the spring.
Treasury feeds back on pre-paid funeral plans
Treasury has published the outcome of its consultation on pre-paid funeral plans. Respondents to its consultation were concerned at current consumer detriment, and called for compulsory regulation for the sector. The...
Treasury publishes outcome of regulatory framework review
Treasury has published the outcome of the consultation on the financial services future regulatory framework. The Government’s view is that the institutional architecture for regulation remains appropriate and is...
Treasury consults on overseas funds regime
Treasury is consulting on the process for allowing overseas investment funds to be marketed in the UK. It says the current regime (Brexit apart) is not viable in the long-term, and proposes two new regimes, one for...
Treasury consults on UK/Gibraltar FS access
Treasury is consulting on the post-Brexit market access arrangements between the UK and Gibraltar. Constitutionally, Gibraltar is an Overseas Territory with internal self-government. Responsibility for financial...
FCA publishes insights from the Cyber Coordination Groups
As cyber risk continues to be a complex challenge for the financial sector, in 2017 the FCA brought together over 175 firms to collaborate in groups on cyber security and operational resilience. These Cyber Coordination...
FSCS allocation of claims regarding IFAs and SIPP operators
The Financial Services Compensation Scheme (“FSCS“) has issued guidance on compensation payments as a result of failed investments made via a Self-invested Personal Pension scheme (a “SIPP”). The guidance...
ESMA publishes its 2019 Annual Report 2020 Supervision Work Programme
The European Securities and Markets Authority (“ESMA“) has published jointly (i) its annual report to highlight its direct supervisory activities during 2019 regarding credit rating agencies...
Budget 2020: Key notes for Financial Services
The Regulatory update within the 2020 Budget included the following key notes: Financial Services Bill – this will provide long-term market access between the UK and Gibraltar for financial services firms...
Bank of England implements new measures to respond to the economic shock from Covid-19
The Bank of England (“BoE”) has announced a comprehensive and timely package of measures to help UK businesses and households bridge across the economic disruption that is likely to be associated with Covid...
Bank of England slashes interest rate in response to Covid-19
The Bank of England (“BoE”) has reduced the Bank Rate by 50 basis points to 0.25%. The aim of the reduction is to help support business and consumer confidence amidst the Covid-19 outbreak, to bolster the...
EBA says no need for LGD on credit insurance claims
EBA has published an Opinion on treatment of credit insurance in the prudential framework. It has previously consulted on credit risk mitigation for institutions that apply the IRB approach with own estimates of Loss...
Treasury Committee calls for better carbon footprint awareness
The Treasury Committee, as part of its inquiry on decarbonisation and green finance, is concerned that consumers need better help to understand the carbon footprint of financial products and has written to BoE and FCA...
FCA publishes mortgage switching research
FCA has released its latest report on mortgage switching, from which it concludes there is a case for intervening to help customers who do not switch. It has found that the reasons people have for not switching...
Working Group updates on progress towards key 2020 LIBOR milestones
The Working Group on Sterling Risk-Free Reference Rates has today published a series of updates on progress made towards the key 2020 milestones for LIBOR transition. The first update is a statement on how bond markets...
FCA compares bank fraud controls
FCA has published data on the fraud controls banks have in place, intended to help consumers compare what different banks do. UK Finance asked banks: what their approach to fraud prevention was; what controls the firm...
FCA calls for evidence on wholesale market data
FCA has launched a call for input on access and use of data and advanced analytics in the wholesale markets. It wants to understand the value to market participants and whether the information is being competitively...
FATF publishes guidance on digital ID
FATF has published a report giving guidance to regulators and firms on how to determine whether a digital ID is an appropriate CDD tool. The report looks at how digital ID systems work, and what their key features are...
UK Finance shines a spotlight on resolving Section 75 claims
UK Finance has published a blog post on resolving Section 75 claims made in relation to failed home improvements. It explains that due to the significant number of contractors ceasing to trade each year (nearly 80,000)...
FCA speaks on digital assets
Therese Chambers has spoken on the financial crime risks presented by stablecoins and other digital assets. She spoke of: early attempts to launch non-state backed digital currency, and Bitcoin’s predecessors...
The FCA announces proposals to improve climate-related disclosures by listed companies
The FCA has today published proposals outlining new climate-related disclosure requirements for premium listed issuers. The new rule will require all commercial companies with a premium listing to either make climate...
The Treasury Committees approves Bailey, but says it will keep an eye on the FCA
The Treasury Committee has today published its report on the appointment of Andrew Bailey as Governor of the Bank of England. Whilst it is satisfied that Mr Bailey has the professional competence and personal...
Up next from FCA
FCA plans the following publications: consultation on exit fees in investment platforms and comparable firms (March); consultation on listing of OEICs (Q1); consultation on changes to DEPP, EG and the financial crime...
FCA speaks on vulnerable customers
Nisha Arora has spoken on FCA’s approach to ensuring firms treat vulnerable customers fairly. She stressed the need to move away from a tick-box approach to having policies to deal with vulnerability to showing...
Updated SEPA Rulebooks published
On 5 March 2020, the European Payments Council published the updated rulebooks covering: SEPA Credit Transfers, SEPA Instant Credit Transfers, SEPA Direct Debits, and SEPA Direct Debits Business-to-Business. They...
FCA drives forward culture changes
FCA has published a Discussion Paper on how to drive purposeful cultures. The paper comprises a number of essays looking at how a good purposeful culture should lead to better outcomes for consumers, markets and...
FCA makes Covid-19 statement
Regulators are working to ensure firms are responding effectively to the consequences of the Covid-19 outbreak. FCA expects all firms to have contingency plans in place to deal with major events, and says it is working...
PRA writes to chairs on board diversity
PRA has written to the chairs of dual regulated firms reinforcing the importance it places on diversity within boards for improving decision making and providing effective challenge. It reminds firms it expects them to...
EIOPA speaks on digital finance risks
Fausto Parente, EIOPA executive director, has spoken on managing the risks of digital finance in cyber underwriting. He spoke of the value of data to insurers in enabling them to customise customer products, but the...
FCA publishes life insurance outsourcing review
FCA has published the findings from its review into outsourcing in the life insurance sector. The review stemmed from FCA’s awareness that the sector relies heavily on outsourcing and third party providers, and...
FCA publishes research report on its TechSprint Approach
The FCA has published a Research Report called “Fostering innovation through collaboration: The evolution of the FCA TechSprint Approach“. TechSprints are typically 2 day events that bring together...
Lloyd’s launches new cryptocurrency wallet insurance solution
A Lloyd’s syndicate has launched the first liability to protect against losses arising from theft of, or malicious hacks to, cyptocurrencies held in online wallets. The policy will have dynamic limits that...
Deputy Governor of Financial Stability says “It’s time to talk about money”
Sir Jon Cunliffe delivered a speech on the future of the banking system and of cash payments. He noted that the forms money takes in society change as the structure of economies changes, as the ways in which we transact...
Have a look at our retail banking timeline
In conjunction with the FIN. blog, we have today launched a retail banking timeline over on the Womble Bond Dickinson website. Our timeline highlights key dates, legislation, events and insights relevant to the retail...
Lucy HadrillLegal Privilege in Investigations
In Sports Direct International plc v Financial Reporting Council [2020] EWCA Civ 177, the Court of Appeal (CoA) has allowed an appeal, overturning a lower court’s decision that certain emails had to be disclosed...
Luke HolmesFCA publishes 2019 data on STORs
The FCA has published its suspicious transaction and order reports (STORs) figures for the year ending December 2019. The number of STORs had increased consistently since 2016; however, the data for 2019 appears to buck...
CLLS views on TRS extension
CLLS has input its view on the extension to the TRS. As with other respondents, it notes several types of trust it thinks should be out of scope, including: trust arrangements that are incidental to a corporate...
Government “considering” corporate economic crime offence
In response to a question in Parliament, the Government said it is still considering its response on introducing a corporate offence for economic crime – on which consultation closed in 2017.
FCA makes new travel insurance and other rules
FCA has made 3 sets of new rules. changes to COBS 19 to ensure that pension scheme members can properly find the information they need about costs and charges to ensure they get good value for money from their pension...
FCA feeds back on Patient Capital
FCA has published feedback on its discussion paper on Patient Capital and authorised funds. The paper had asked whether there are any unnecessary barriers to investing in long term (patient) assets through authorised...
FCA writes to CEOs on end of LIBOR
FCA has written a Dear CEO letter to asset management firms on preparing for the end of LIBOR. It expects firms to take all reasonable steps to ensure the end of LIBOR does not lead to markets being disrupted or...
APP Scams Interim Funding Extension
UK Finance confirmed on 27 February that the payment service providers who have provided the interim funding arrangement since May last year, have agreed to extend their funding to the end of the year (31/12/20). This...
ECB Speech: Climate Change in FS
Christine Lagarde made a speech on climate change and the financial sector on 27 February 2020. Christine identified both the threat and significant opportunity caused by climate change. She urged central banks to...
Commission publishes PRIIPs information test results
The Commission has carried out a project testing the effectiveness of presented information to retail investors within the PRIIPs framework. It sent out 10 different versions of performance scenarios and past...
More UK/EU policies revealed
The Government has published a policy paper on its approach to the future relationship with the EU. It sets out the Government’s suite of proposals, based around the desire for a comprehensive Free Trade...
Mental Health: Practical Guide
The Money and Mental Health Policy Institute and the Money Advice Trust have jointly created a practical guide to understanding and evidencing customers’ mental health problems. The guide is aimed primarily at...
Bank of England speech: turbo-charging LIBOR transition
Andrew Hauser of the Bank of England has announced two new initiatives to encourage Sterling LIBOR transition in a speech on 26 February 2020. Firstly, the Bank is going to publish a daily SONIA Compounded Index from...
LSB: Access to Banking Standard Summary Report
The LSB published its Access to Banking Standard Summary Report on 24 February 2020. The report sets out the LSB’s findings following its latest review of relevant firms’ compliance with the Access To...
Treasury updates AML advisory
Treasury has updated its AML advisory in the light of the most recent FATF plenary. The notice confirms that counter measures and enhanced due diligence should be applied in respect of North Korea and Iran, and...
Barnier to be EU negotiator on post-Brexit issues
The Council of the EU has adopted a decision authorising negotiations between the EU and UK towards a new partnership and authorising the European Commission, in the person of Michel Barnier, as the EU negotiator. The...
Lawyers and industry call for more TRS exclusions
ICAEW has responded to the Treasury/HMRC consultation on the extension to the Trust Registration Service in the wake of MLD5. While it welcomes the efforts to narrow the scope of express trusts that will be required to...
ESRB reports on systemic cyber risk
The European Systemic Risk Board (the “ESRB“) has published a report on cyber risks and incidents, which, owing to the interconnectedness of various information systems, spread quickly and widely. The ESRB...
FATF blacklists Iran
At FATF’s February plenary meeting it: updated its list of high risk jurisdictions. Notably, it decided Iran has not met commitments to complete its action plan, or enact the Palermo and Terrorist Financing...
Dormant Assets Scheme Consultation
This morning, HM Treasury published a consultation document setting out its proposals for expanding the dormant assets scheme. The consultation discusses the background to the current scheme and then sets out proposals...
FSB priorities published
The FSB published a letter addressed to all G20 Finance Ministers and Central Bank Governors on 18 February 2020. The letter sets out the areas that the FSB are focusing their efforts on. All of the measures are to...
Financial services after Brexit updates
The EU Financial Affairs Sub-committee has opened an inquiry into financial services after Brexit and has been taking evidence. Most recently it has been questioning the BoE and FCA. They largely discussed the key...
Latest current account data released
The FCA has today published the latest table of data provided to them by current account providers (both business and personal). The data allows consumers and small businesses to compare the services provided by each...
MPs debate Consumer Rights Act 2015 and Consumer Ombudsman Scheme
Last week, MPs debated the Consumer Rights Act 2015 and the Consumer Ombudsman Scheme (COS) in the House of Commons. Sir Roger Gale chaired the 30 minute debate brought by Martyn Day (SNP) who previously raised the Act...
FCA publishes annual sector views
The FCA has just published its annual sector views report which comprises a state of the nation in terms of the financial services industry. The report sets out the drivers for change in each financial services sector...
Commission consults on MiFID 2/MiFIR framework
The European Commission is consulting on the effectiveness of the regulatory framework for investment firms and market operators under MiFID 2 and MiFIR. The consultation runs until 20 April and requests responses by...
ESMA updates MiFID 2 FAQs
ESMA has updated its MiFID 2 and MiFIR FAQs on investor protection. The new questions focus on how the revised BRRD applies
TI writes to SFO on DPA regime
In the light of the Airbus DPA, Transparency International and Spotlight on Corruption have written to Lisa Osofsky asking that SFO evaluates how DPAs are used to ensure the regime is fair and consistent and provides a...
FCA bans motor finance ads
FCA has banned a range of adverts for motor finance issued by Rix Motor Company Limited. The ads, variously: did not include representative examples of the costs of credit, or included them in a way that made them...
HMRC investigating 30 for CFA breach
In response to several FOIA requests, HMRC has published statistics on what it is doing to police the CFA offence of failure to prevent facilitation of tax evasion. As at the end of 2019, it had 9 live investigations...
Unfair Treatment lands Moneybarn big fine
The FCA announced today that it was imposing a £2.77 million fine on Moneybarn Limited for not treating customers fairly between 1 April 2014 and 4 October 2017. The car finance provider had failed to provide adequate...
FCA speech on penalties, remediation and General Principles
On 12 February, Mark Steward, Executive Director of Enforcement and Market Oversight made a speech at an event on Investigations and Enforcement: A Guide to Managing Regulatory Action. Key takeaways from the speech...
Natasha BrownleePSR makes policy statement on Confirmation of Payee and Specific Direction 10
On 20 January 2020, the PSR consulted on varying specific direction 10 (SD10) on confirmation of payee. SD10 was given to the six largest banks in August 2019, requiring them to implement confirmation of payee from 31...
ESMA Chair delivers speech on sustainable finance issues
On 12 February, Steven Maijoor delivered a keynote speech on sustainable financial markets at the European Financial Forum in Dublin. In his speech, Mr Maijoor discussed the role of regulatory authorities in tackling...
FCA appoints Interim Executive Director of Strategy and Competition
The FCA has appointed Sheldon Mills as the Interim Executive Director of Strategy and Competition. Sheldon will begin the role on 16 March 2020 and replaces Christopher Woolard as he steps into the role of Interim Chief...