FIN.

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...

FCA 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...

Regulator 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...

Covid-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...

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...

CMA 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...

EU 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...

TI 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 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 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...

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...

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...

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...

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...

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...

Legal 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...

FCA 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...

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...

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...

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...

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...

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...

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...