Emma RadmoreThe FCA has refused to authorise Alexander Jon Compliance Consulting Limited (AJCC) to provide regulatory hosting services. AJCC applied to take responsibility for appointed representatives (ARs) carrying out regulated...
Category - Topics
Harshil Patel
Lucy HadrillEU Commission consults public on impact of PSD2 and open finance
The Commission has launched a public consultation seeking views on the impact that the Second Payment Services Directive (PSD2) has had on: innovation and competition in the market for payment services; the way in which...
Duncan Scott
Rawa HussainEU reaches deal on DORA
The EU Commission, EU Council and EU Parliament have reached agreement on the Commission’s proposal for a Digital Operational Resilience Act (DORA). The new rules aim to harmonise and strengthen digital...
FCA highlights the risks of investing in crypto
The FCA has issued a statement following some recent social media posts regarding cryptoassets and NFTs. Whilst it cannot comment on individual products, it has warned consumers that there are no consumer protections...
TPT launches consultation on climate transition plans
The Transition Plan Taskforce (TPT) has launched a call for evidence on a sector-neutral framework for private sector transition plans. The framework will inform UK regulations for certain financial sector firms and...
Queen’s Speech 2022 – FS elements
The Queen’s Speech 2022 outlined the government’s legislative priorities for the next parliamentary session. The measures announced include two bills of particular interest to financial services...
ESAs call for improvements to PRIIPs KID
The ESAs have issued a joint supervisory statement regarding the ‘What is this product?’ section of the KID for PRIIPs. It aims to improve the quality of descriptions provided by PRIIPs manufacturers and thereby...
FCA issues update on multi-occupancy buildings insurance
FCA has written to Michael Gove MP, Secretary of State for the Department for Levelling Up, Housing and Communities, to provide an update on the FCA’s review of the annual price increases for multi-occupancy...
Government sets out approach to APP scam reimbursements
HM Treasury has published a policy paper outlining how the government and PSR intend to improve the reimbursement of APP scam victims. The government intends to legislate in the Financial Services and Markets Bill to...
FMSB is changing its name
FMSB has announced that it is changing its name from the FICC Markets Standards Board to the Financial Markets Standards Board. It will continue to use “FMSB”. FMSB says the change will help support...
FCA bans 5 directors for causing losses to pension customers
The FCA has banned five directors of financial advice firms from working in financial services, after they caused significant losses to pension customers. The bans, and fines of over £1m, follow findings by the Upper...
FCA delivers speech on learning from the past
Nikhil Rathi, CEO at the FCA, spoke on learning from the last 30 years to face the next 30 years at the Chartered Institute for Securities & Investment (CISI) 30th anniversary dinner. Highlights include: the world...
PRA issues policy statement on trading activity wind-down
Following the four responses received to its consultation paper, the PRA has published its final policy on trading activity wind down. The policy statement is relevant to all PRA-authorised UK banks, their qualifying...
FCA launches new IFPR webpage
The FCA has launched a new webpage which sets out how to submit MIFIDPRU applications and notifications. It also includes information for IFPR firms about MIF returns.
FCA warns firms to stop using misleading credit ads
The FCA has written to c.28,000 consumer credit firms warning them not to use terms such as ‘no credit check loans’, ‘loan guaranteed’, ‘pre-approved’ or ‘no credit...
FCA launches latest “scam smart” campaign
FCA has launched its latest “scam smart” campaign with case studies on increasingly sophisticated scams including those involving screen sharing which enabled scammers to take £48,000 from a consumer’s...
LSB publishes its 2022/23 Business Plan
On 3 May 2022, the Lending Standards Board (LSB) published its Business Plan and Budget for 2022/23. in the plan, the LSB sets out its strategic priorities and provides further information on the activities it intends...
FCA publishes investment platforms market study findings
As part of its Investment Platforms Market Study in 2019, the FCA said it would keep the role of platforms in helping consumers understand their investment costs under review. The FCA has now published a new webpage...
PRA launches biennial insurance stress test
PRA has launched its biennial stress test for life and general insurers. It has sent the test to the largest firms and has asked for submissions by 28 September, and is hosting a seminar on 11 May with a Q&A...
European Commission calls for views on consumer participation in capital markets
The European Commission has opened a call for evidence on a proposed Regulation to improve market outcomes and increase consumer participation in capital markets. The consultation period is short, lasting only until...
ESAs propose PRIIPs KID changes
The ESAs have published their technical advice to the European Commission on making the PRIIPs Key Information Document more user friendly, The advice recommends several changes and encourages the Commission to...
Treasury Committee publishes response to fraud, scams and economic crime report
The Treasury Committee has published responses from the Government, FCA and PSR to its report on economic crime. The key message is that the Government is creating a second Economic Crime Plan which it will publish...
ESMA issues recommendations to improve investor protection
ESMA published its final report to enable investors to get the key information required to make well-informed investment decisions both quickly and easily, whilst also protecting them from aggressive marketing...
FCA confirms no change to payment account linked services list
FCA has completed its review of the list of linked services list for the purposes of the Payment Account Regulations, and has decided not to make any changes.
FCA publishes H1 2022 complaints data
FCA has published its H1 2022 complaints data. In 2021 H2, financial services firms received 1.84m complaints, 10% lower than in 2021 H1 (2.04m). This is the lowest level recorded since 2016 H2. The insurance and pure...
FCA issues consultation on protecting investors in authorised funds affected by the invasion of Ukraine
FCA is consulting on rules which will allow Authorised Fund Managers to create separate unit classes (side pockets) for retail investment funds affected by the invasion of Ukraine. The Russian invasion of Ukraine has...
PRA outlines progress on its ‘Operational Resilience Roadmap’
David Bailey, PRA’s Executive Director responsible for Deposit Takers Supervision, has given a speech at the UK Finance Webinar “Operational Resilience and Beyond”. In his introduction, Mr Bailey noted...
FCA speech on critical issues in financial regulation
On 26 April 2022, the FCA published a speech given by Nikhil Rathi, FCA Chief Executive, on the FCA’s view of critical issues in financial regulation. Mr Rathi sets out the challenges and opportunities confronting...
Treasury consults on reforms to Solvency II
HM Treasury has published its consultation on post-Brexit reforms to the Solvency II regime which it hopes will unlock investment, increase market access for new insurers and offer greater consumer choice. The reforms...
Government sets out approach to protecting wholesale cash infrastructure
HM Treasury has published its policy statement on protecting UK wholesale cash infrastructure. The government intends to create an oversight regime which will: give the BoE oversight over, and the ability to regulate...
PRA poses alternative approach to bank capital requirements
PRA CEO, Sam Woods, delivered a speech at City Week 2022 in which he set out “a radical, alternative approach” to bank capital requirements. The proposed approach would involve: a single capital buffer...
EU Council publishes note on proposal for regulation on transfer of funds and cryptoassets
On 21 April 2022, the Council of the EU has published a note to commence trilogues with a three-column table summarising and comparing the European Commission’s proposals, the European Parliament and Council’s...
FCA launches Early and High Growth Oversight initiative
Following a successful pilot, FCA are expanding their Early and High Growth Oversight initiative, to provide targeted support for 300 newly authorised firms by the end of 2023. FCA will provide enhanced supervision for...
FCA uses emergency powers on BSPS advisers
FCA has made rules using its emergency powers to prevent firms taking steps to dispose of their assets to avoid paying compensation in relation to BSPS pension transfer advice. It says it is introducing the rules...
Head of Insurance Policy at PRA gives speech on the future of international insurance
Alan Sheppard, the head of Insurance Policy at the PRA, discussed how the PRA can foster the role of the UK as an international centre for insurance and reinsurance business. His speech focused on: the importance of...
Funeral plans update: RAO amendments made
The FSMA (Regulated Activities) (Amendment) Order 2022 has been published, together with an explanatory memorandum. It makes several amendments to FSMA and secondary legislation, primarily the RAO, in preparation for...
FCA calls on challenger banks to improve financial crime controls
FCA has published a thematic review on how challenger banks assess financial crime risk, and has highlighted significant failings. Among the findings of the review, which it carried out during 2021, focussing on banks...
Post-Trade Task Force publishes report
The industry led Post-Trade Task Force has published its report on the future of post-trade. Its work will now be taken forward by the FICC Markets Standards Board (FMSB). The report looks at key challenges which it...
FCA updates FUND disclosure form
FCA has published an updated version of the disclosure checklist required for AIFMs under the FUND requirements.
FCA stops further pension adviser from disposing of assets
FCA has imposed a requirement preventing David Stock & Co Limited, a firm which advised on BSPS transfers, from disposing of assets without FCA’s permission. FCA had noted to all relevant firms that they...
PRA consults on fees and levies for 2022/23
PRA has issued a consultation paper setting out proposals for its fees for 2022/23. The proposals include: the fee rates to meet the PRA’s 2022/23 AFR; fees applicable to firms in the temporary regimes; changes to the...
PRA publishes Business Plan 2022/23
The PRA Business Plan sets out the PRA’s strategy, workplan, and budget for 2022/23. The PRA’s strategy will be delivered through the following strategic goals: Retain and build on the strength of the banking and...
FATF reports on effectiveness and compliance with FATF standards
FATF has published a report based on data from mutual evaluation reports since 2013, which finds that overall countries have made huge progress. Many have enacted a range of laws and regulations, with 76% of countries...
CMA updates on retail banking market investigation
The latest updates to CMA’s information page show correspondence between the OBIE and CMA on the status of the roadmap. The OBIE updated CMA on progress and items that require updating, and CMA welcomed the update...
Permission to apply for judicial review of 16 FOS decisions refused
In the case of Portal Financial Services LLP v Financial Ombudsman Service Limited [2022] EWHC 710 (Admin) the court has, on appeal, refused Portal permission to apply for Judicial Review of 16 decisions of FOS. The...
Scott NodderFOS publishes complaints data from H2 2021
Between 1 July and 31 December 2021, FOS received a total of c.73,200 complaints of which 37% were upheld.
FOS has also published its latest half-yearly data on the number of complaints received about CMCs.
PRA updates on capital arbitrage transactions approach
The PRA has issued a statement acknowledging that some PRA-regulated firms have conducted (or may be considering doing so) deficit reduction transactions with their defined benefit pension schemes that are structured to...
Court finds mortgage loan not “by way of business”
The High Court has handed down its judgment in the case of Arthistory Ltd and Mr and Mrs Campbell. The Campbells own a property and had granted an option to Arthistory (the Claimant) to acquire it. The Claimant sought...
FCA to remove credit broker permissions
FCA has published its first supervisory notice against Semantic Business Services Ltd, a secondary credit broker. It plans to remove the firm’s permissions because: the firm has links with a number of other firms...
FCA publishes thematic review on wind-down planning
FCA has published its thematic review looking at wind-down planning across different business models, with a focus on liquidity needs during wind-down, intra-group dependencies and wind-down triggers. It has reiterated...
FCA confirms non-opposition to Amigo scheme
FCA has written to Amigo Loans to confirm it will not be attending the hearings to oppose its proposals for its Scheme of Arrangement. FCA has previously said the new proposal is an improvement on the failed proposal of...
Lords Committee writes to Treasury on commercial insurance and reinsurance regulation
Lord Hollick, Chair of the Industry and Regulators Committee, has written to John Glen following Mr Glen giving evidence to the Committee’s inquiry into commercial insurance and reinsurance regulation. Amongst...
PSR updates on competition in pre-paid cards sector
The PSR has publishes the non-confidential version of its decision following its investigation into two cartels in the pre-paid cards market. In January it confirmed its fines totalling around £33m on Mastercard...
FCA talks of a “digital regulator”
Jessica Rusu, FCA’s Chief Data, Information and Intelligence Officer, has spoken on how FCA is building its digital regulatory future. Its work will focus on fostering innovation, being intelligence led and...
EU adopts additional equivalence decisions for US exchanges
The European Commission (EC) has adopted a decision declaring that a number of US exchanges supervised by the US Securities Exchange Commission (SEC) are equivalent to EU regulated markets. Derivatives traded on such US...
Cynthia MaUK gearing up to be a global cryptoasset technology hub
Alongside Treasury’s decision to regulate stablecoins, the government has announced wider plans to make the UK a global hub for cryptoasset technology and investment. In a speech delivered at the Innovate Finance...
FCA, Bank of England and PRA joint statement on LME and LME Clear
The London Metal Exchange (LME) suspended nickel trading on 8 March 2022, having concluded that a disorderly market had arisen due to challenging commodity market conditions following the events in Ukraine. Nickel...
Government to regulate stablecoins
Following its consultation last year, Treasury has decided it will regulate stablecoins. It plans to bring activities that issue or facilitate the use of stablecoins that are used as a means of payment within the UK...
FSCP backs FCA’s plans to strengthen fin prom rules for high risk investments
The Financial Services Consumer Panel (FSCP) has published its response to the FCA’s consultation on how to improve its financial promotion rules for high risk investments, which closed on 23 March. The FSCP...
MEPs vote on draft crypto legislation
MEPs from ECON and the Committee on Civil Liberties have voted to adopt their position on draft crypto legislation which forms part of the EU’s wider package of measures aimed at strengthening AML/CFT rules in the...
FCA publishes BSPS compensation scheme proposals
FCA has published its proposals for a compensation scheme to compensate former members of the British Steel Pension Scheme who received unsuitable advice to transfer out. FCA says that almost half the advice it reviewed...
PRA issues discussion paper on supporting liquid asset usability
PRA has today issued a discussion paper on supporting liquid asset usability. In response to the global financial crisis 2007/2008, banks were required to have a large enough stock of HQLA to meet their payment...
Ombudsman News looks at storm damage
The latest edition of Ombudsman News from FOS covers not only its plan and budget for 2022/23 (which FIN has covered separately) but also guidance for consumers about storm damage complaints. The guidance contains...
CMA issues SME banking directions to HSBC
CMA has issued directions to HSBC under the SME banking undertakings 2002. The directions stem from breaches notified over the past 18 months in respect of 221 loans impacting 204 customers since 2002. They primarily...
FCA seeks input on use of synthetic data to support financial services innovation
FCA wants to better understand different market participants’ views on the extent to which synthetic data can expand data access and data sharing opportunities in the market. FCA is evaluating the maturity of...
PSR publishes its annual plan and budget for 2022/23
PSR has published its 2022/23 annual plan and budget. PSR stated that the payments landscape is evolving and there are issues that need to be addressed. These include the prevalence of APP fraud, risks to effective...
ESMA addresses asset management industry on sustainable finance and systemic risk
On 24 March 2022, Natasha Cazenave, Executive Director of the European Securities and Markets Authority (ESMA), delivered her keynote speech to the participants of the ICI Investment Management Conference 2022. In her...
Wolfsberg Group publishes digital risk management guidance
The Wolfsberg Group has published guidance on Digital Customer Lifecycle Risk Management. The guidance looks at how non face-to-face customer interaction could be considered a standard or even lower-risk channel for a...
FCA fines asset manager and former investment director
FCA has fined GAM International Management Limited £9m, and its former Investment Director and Business Unit Head Timothy Haywood £230,000 following failure to conduct business with due care and attention, and failure...
FOS outlines strategic plans for 2022/23
FOS has published its plans and budget for 2022/23. In the coming year, FOS: expects to receive 177,000 complaints and resolve 220,500 complaints; will continue to ensure it is equipped to respond to complexity and...
Pension adviser refused judicial review of FOS decision
A pensions transfer and opt out adviser, Portal Financial Services LLP, had given advice to several clients introduced by a third party advisory firm which was the AR (Cherish) of another firm whose permissions did not...
New high-risk jurisdictions list in force from 29 March
The latest amendment Regulations setting out high-risk countries for ML/TF purposes took effect on 29 March. The list is: 1. Albania 2. Barbados 3. Burkina Faso 4. Cambodia 5. Cayman Islands 6. Democratic People’s...
FCA provides market insights on its Innovation Hub
FCA’s Innovation Hub has been helping firms to develop innovative products and services since it was launched in 2014. FCA has recently provided an insight update on the data which it has gathered on the...
FCA consults on update to electronic reporting under DTR
FCA currently allows issuers to use, among other taxonomies, the UK Single Electronic Format (UKSEF) 2022 taxonomy from the Financial Reporting Council (FRC) to mark up their annual financial statements within the...
CMA makes recommendations for the future oversight of Open Banking
The CMA launched a public consultation on the future oversight of Open Banking in March 2021, and has now published the responses to that consultation. CMA’s recommendations are that the future entity should: have...
FCA publishes operational resilience insights for insurance firms
On 29 March 2021, the FCA, together with the BoE and PRA, published a shared policy statement on requirements to strengthen operational resilience in the financial services sector. The rules and guidance will come into...
FCA confirms changes to PRIIPs regulation
Following its consultation in 2021, the FCA has confirmed it is making changes to the PRIIPs regulation to: clarify the scope of the PRIIPs regulation for corporate bonds, making it clearer that certain common features...
ESMA extends recognition decisions for UK CCPs
ESMA has announced that it has decided to extend the application of the recognition decisions under Article 25 of EMIR for three CCPs established in the UK. As such, the recognition and tiering decisions in relation to...
FCA updates on operational and cyber resilience following Russian invasion
The FCA has published some pointers that firms should consider regarding operational and cyber resilience following Russia’s invasion of Ukraine. Firms are advised to consider the following: the firm’s ability...
CMA publishes Annual Plan for 2022/23
The CMA has published its Annual Plan which explains how it will protect consumers, promote competition and help support the economy in the year ahead. It aims to encourage innovation, productivity, and sustainable...
Regulators remind firms of crypto risks
PRA and FCA have written to firms reminding them of their obligations when interacting with or exposed to crypto-assets and related services. FCA reminds firms that crypto can offer benefits but also increased risk to...
Update on Overseas Entities Register
Read our updated article on the creation of the Overseas Entities Register under the Economic Crime (Transparency and Enforcement) Act 2022. The article highlights that the grace period given to overseas entities to...
CMA updates on OBIE roadmap
CMA has replied to the OBIE roadmap status highlighting areas that need updating and has written to the OBIE asking it to continue to update it on progress and saying the CMA will review progress in the summer.
EBA finds AML and CFT supervision of banks is improving
EBA published the findings from its assessment of competent authorities’ approaches to AML and CFT supervision of banks. Since the EBA started its reviews in 2019 and strengthened its AML/CFT guidance, national...
FCA speaks on credit regulation in tough times
Brian Corr, Interim Director of Retail Lending at FCA delivered a speech on 23 March 2022 to the Credit Summit addressing the impact credit will have on consumers as the economic situation continues to deteriorate and...
EP reports on crypto Regulation proposal
The European Parliament has published its report on the proposal for a Regulation of crypto asset service providers. A key change is to specify that any person providing any relevant services to EU citizens must both...
ASA cracks down on misleading crypto ads
ASA has issued an Enforcement Notice to over 50 firms which advertise cryptocurrencies, instructing them to review their ads and to ensure they understand and are complying with the rules so that consumers are treated...
FCA portfolio strategy letter on custody
FCA’s latest letter on its portfolio supervision strategy relates to custody and fund services. It sees 4 areas of potential harm: disruption to consumers and market participants, or the loss, compromise, or lack...
BoE to consult on Basel 3.1 at end of 2022
BoE has confirmed that it is continuing to develop proposals to implement Basel 3.1, following the two PRA policy statements of 2021. It notes that the timing of implementation was dependent on a number of factors, not...
Jonny WilliamsCMA writes to banks on banking order breaches
CMA has written to both Barclays and Lloyds about breaches of the Retail Banking Order. It found Barclays had breached the Order 13 times and Lloyds 10 times through inaccurate publication of information through APIs.
IOSCO consults on retail market conduct
IOSCO has published a consultation report from the Retail Market Conduct Task Force. The report looks at recent retail investor trends and the development of a regulatory toolkit to help regulators consider emerging...
Treasury and FCA discuss regulatory perimeter
The government has published a summary of the 15 December 2021 meeting between John Glen and Nikhil Rathi in which they discussed FCA’s Perimeter Report (published 21 October 2021). The meeting focussed the topics...
Bank of England responds to Committee report on digital currencies
The Bank of England (the Bank) has thanked the House of Lords Economic Affairs Committee for its report on the Central Bank Digital Currency and in a letter addressed to the House of Lords, the Bank addresses the...
NAO reports on BSPS
The National Audit Office has published its report on its investigation into the British Steel Pension Scheme. When BSPS was restructured in 2017 44,000 of its members had the opportunity to transfer out of the scheme...
Treasury updates AML advisory
The latest AML advisory to update the list of high risk third countries has been updated to reflect FATF’s latest list. The list now comprises Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, DPRK...
Government introduces Online Safety Bill to parliament
The government has agreed to make changes to the Online Safety Bill and has now introduced the Bill into the Commons. The government has also responded to the Joint Committee on draft Online Safety Bill’s report...
Final Report on UK Payments Regulation Review
UK Finance has published its final report on the regulation of UK payments. The UK enjoys a robust and successful regulatory and supervisory regime for payment services and payment systems. However, the degree of...
Consumers warned on the risks of crypto-assets
The European Supervisory Authorities (EBA, ESMA and EIOPA – the ESAs) warn consumers that many crypto-assets are “highly risky” and speculative. The ESAs advised that sufficient measures are needed to...
Lloyd’s responds to market misconduct
Lloyd’s has issued a notice of censure to Atrium, a managing agent in the Lloyd’s market. The firm admitted three charges of misconduct, and Lloyd’s Enforcement Board levied its largest ever fine of...
HM Treasury publishes ringfencing Review
In 2020, the Treasury appointed an independent panel to: review the operation of the legislation related to ring-fencing; and review banks’ proprietary trading activities following a statutory report from the PRA...
APP Fraud and the extent of the Banks Duty – to be determined at trial
In the case of Philipp v Barclays Bank UK plc [2022] EWCA Civ 318, the Court of Appeal has allowed the appeal from Mrs Philipp against the decision of the High Court in 2021 to give judgment to Barclays Bank UK plc on...
FCA starts thinking about “side pockets” for Russian-exposed funds
FCA has started discussions in advance of a formal consultation on options that would allow UK authorised retail funds to make exceptional use of “side pockets” so they can separate Russian and Belarussian...
FMLC letter to Treasury: Financial Promotions Rules for Cryptoassets
The Financial Markets Law Committee (FMLC) has issued a letter to Treasury following the Treasury’s response to its 2020 Consultation on cryptoasset promotions. The letter highlights that the FMLC has identified...
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