Emma RadmoreThe Government has published its response to the Lords Liaison Committee report on tackling financial exclusion. Key elements of the response consider: access to cash: the response notes that the FS Act 2021 will allow...
Category - Topics
Taskforce reports on regulatory reform
The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...
Gavin EllisonECB consults on “fit and proper”
ECB has issued a consultation draft of its requirements when assessing members of management boards and those holding key functions within regulated institutions as “fit and proper”. It asks for comment by ...
PRA speech: Solvency II and policyholder protection
Anna Sweeney – Executive Director, Insurance at the PRA – delivered a speech on the Solvency II review at the JP Morgan European Insurance Conference. The speech covered the work the PRA will do with HM Treasury to...
Lucy HadrillFSB overview of responses to public consultation on outsourcing and third-party relationships
The Financial Stability Board (FSB) has published an overview of the responses it received to its November 2020 discussion paper on regulatory and supervisory issues relating to outsourcing and third-party relationships...
Hannah FrostArtificial intelligence in financial services
The Alan Turing Institute has published a report which looks at the use of AI and the importance of responsible innovation in the financial services sector. The FCA-commissioned report is split into 4 key sections:...
EBA reports on industry readiness for SCA
The EBA has published a report on data provided by PSPs on their readiness to apply strong customer authentication (SCA) for e-commerce card-based payment transactions. Despite PSPs in some jurisdictions lagging behind...
Treasury Committee to hold economic crime hearing
The Treasury Committee will hold its next evidence session in its Economic Crime Inquiry on 14 June. The witnesses will come from the FCA, PSR, HMRC and Companies House.
FCA takes 13 firms into new sandbox cohort
FCA has accepted 13 firms into cohort 7 of the regulatory sandbox. It received 58 applications, mainly from firms in the retail investment and retail lending sectors. FCA was interested in proposals that saw more...
Basel Committee consults on prudential treatment of crypto exposures
The Basel Committee is consulting on preliminary proposals on how to treat banks’ cryptoasset exposures. It notes that exposure is currently limited, but there is the prospect that heightened exposures could...
Outsourcing and operational resilience: Meeting FCA and PRA requirements by 31 March 2022 (and beyond)
In March this year, the FCA and PRA issued their finalised policies on operational resilience, outsourcing and third party risk management (our earlier post provides an introduction to these). With the one year...
Howard DuckworthPSR consults on new 5-year strategy
The Payment Systems Regulator (PSR) has announced plans for a new five-year strategy. The proposals set out an approach that aims to make sure payments and payment systems work well for everyone and that there is fair...
EBA finalises PSD2 incident reporting guidelines
EBA has finalised and published its revised guidelines for major incident reporting under PSD2. PSD2 requires PSPs to report major operational or security incidents to their supervisors where those incidents are likely...
New expert group to help tackle ‘greenwashing’
The Green Technical Advisory Group (GTAG) has been set up to provide independent, non-binding advice to the government on standards for green investment. GTAG will oversee the government’s delivery of a...
Law Commission consults on corporate criminal liability
The long-awaited Law Commission consultation on corporate criminal liability was published on 9 June. The Law Commission notes that companies can only be found guilty of offences that require proof of a certain mental...
EBA consults on the reclassification of investment firms
The Investment Firms Directive ((EU) 2019/2034) (IFD) and the Investment Firms Regulation ((EU) 2019/2033) (IFR) establish a new framework for prudential requirements for investment firms. To aid implementation of the...
Prime Minister speaks with financial services leaders
Boris Johnson hosted a virtual roundtable with financial services leaders alongside the Chancellor Rishi Sunak and the BoE Governor Andrew Bailey. Topics discussed include: boosting home ownership by transforming...
LSB launches Access to Banking Standard Review
LSB has published a consultation paper on the review of the Access to Banking Standard. The Review is aimed at determining whether the Standard is still an effective way to achieve fair outcomes for customers (consumers...
FS Act 2021 starts to come into force
The first commencement order for the FS Act 2021 bring into force: on 9 June, sections 3-5 and Schedule 3 on prudential regulation of credit institutions by PRA on 26 June, section 7 and part of Schedule 4 on amendments...
FCA consults on CONC and other miscellaneous changes
FCA’s latest quarterly consultation on minor rule changes focuses on: changes to CONC to enable firms that provide credit cards to offer instalment plans without applying for a rule modification make minor changes...
CPS updates on failure to disclose prosecution factors
CPS has updated its guidance on prosecuting “standalone” failure to disclose offences under s330 POCA. It can now (from 2 June) bring a prosecution regardless of whether a predicate money laundering offence...
FCA extends temporary crypto registration regime
FCA has extended the date of the Temporary Registrations Regime for cryptoasset businesses until 31 March 2022. The regime, which allows businesses that were in existence and applied for registration before 16 December...
ASA Continues Focus on Debt Advice Service Ads
ASA has ruled against three Instagram stories for lead generation company Ashteck Media Ltd t/a Debt Slayers, seen in December 2020 and January 2021. The ruling, published on 2 June, covers 4 issues: The three...
Nicky StrongTreasury extends UCITS PRIIPS exemption
Treasury is to extend the exemption from the requirements of the PRIIPs Regulation for UCITS until 31 December 2026.
EBA and ESMA update on IFR permitted funds
EBA and ESMA have published a provisional list of additional instruments and funds that some of the smallest investment firms may use as own funds under the IFR. The list is designed to help firms in advance of the IFR...
FSB consults on cross-border payments
The FSB is consulting on global targets for addressing the challenges of cross-border payments. The proposed targets set goals for improving cost, speed, transparency and access for cross-border payments in the coming...
Market Watch looks at use of orderbook data
The latest edition of Market Watch explains how FCA uses orderbook data to help conduct surveillance to identify suspected market manipulation. It uses its own data combined the STORs and other notifications it...
FCA and PRA make new accountability rules for long term absence
FCA and PRA have confirmed their policy on long term absences. FCA has made new rules on individual accountability, requiring firms to notify it when a Senior Manager or Approved Person at an AR takes more than 12...
FCA finalises value pricing and loyalty penalty measures
FCA has finalised its package of remedies that will protect home and motor insurance customers from loyalty penalties and improve competition. The package of rules will: require insurers to offer renewing customers a...
PRA publishes policy statements on OCIR policy
In October 2020, BoE and PRA consulted on a package of proposals relating to operational continuity in resolution (OCIR) policy and the May 2020 resolution measures, to ease operational burdens on firms in response to...
EC seeks views on plan to review EU distance marketing rules
The European Commission is seeking feedback on its proposals to review the EU legislation on distance marketing of financial services, following concerns that it is not fit for purpose. The current legislation supports...
Ombudsman News looks at annual complaints data
Following the publication of the FOS complaints data for 2020/21, the latest edition of Ombudsman News looks at key trends FOS has seen in a year impacted by Covid-19. Highlights include: Banking – banks’...
Pensions Dashboard call for input
The Pensions Dashboards Programme has called for input on plans for the staged compulsory connection of pension providers to the new ecosystem. The DWP, FCA and TPR have been involved in developing the proposals, which...
ESMA finalises marketing guidelines
ESMA has clarified its guidelines on standards for fund marketing. Following its consultation, the guidelines detail how all marketing communications should: be identifiable as such; describe the risks and rewards of...
ASA rules against Cryptocurrency Ad
ASA has ruled against Luno Money’s poster ad for its cryptocurrency exchange service for failing to contain any risk warning that the value of Bitcoin could go down as well as up, in breach of CAP Code 3.1, 3.3...
ASA publishes further ruling on delayed payment services
Continuing the flurry of rulings against delayed payment service ads, ASA published a further ruling on 26 May, this time against a claim appearing on the Laybuy UK website. Text on the website stated: “…...
ESMA calls for evidence on digital finance
ESMA has launched a call for evidence which aims to gather information on various issues relating to digital finance. It is particularly seeking to understand: more fragmented or non-integrated value chains, which arise...
FOS publishes Annual Complaints Data
FOS has published its annual complaints data for April 2020 – March 2021. Key highlights include: an overall increase in new complaints of 2% from the previous year – but a 58% increase when PPI complaints...
FCA intervenes on high risk CFDs
FCA has stopped ICC Intercertus, a Cypriot firm operating under the TPR, from conducting any regulated or marketing activities in the UK. The firm’s wider group traded as “EverFX” and used the...
FCA confirms role in RLS
FCA has confirmed its approach to regulating firms in relation to the Government Recovery Loan Scheme that was launched by the British Business Bank on 6 April to replace the BBLs and CBILS which are now closed to new...
PRA speaks on Cyber Risk
Lyndon Nelson has spoken about the steps PRA takes to counter cyber risk. He described how PRA has looked at operational resilience in the context of cyber risk by testing, capabilities and coordination. It has carried...
PRA updates on MRTs
PRA has published an update on the requirements applicable to material risk takers. The EU did not adopt an updated version of the MRT Regulation before the transposition date of CRD V, and so PRA is currently using...
BoE speech: responsible openness in the insurance sector
BoE’s Anna Sweeney (Executive Director, Insurance) delivered a speech at the Association of British Insurers Prudential Regulation Webinar on how the UK will regulate insurance services post-Brexit. The speech...
FCA publishes updated information sheets
The FCA has issued updated consumer credit information sheets in accordance with the CCA 1974. The updates are to provide more targeted and useful help to customers, particularly those with mental wellbeing issues. The...
Report calls on UK to lead on global crypto regulation
TheCityUK’s report calls on UK policymakers to capitalise on the regulatory freedoms afforded by Brexit and to lead the global regulatory approach to cryptoassets. The report sets out five principles for shaping...
FCA responds to Amigo Scheme rejection
The High Court has refused to sanction Amigo’s proposed Scheme of Arrangement. The FCA, having previously objected to the Scheme, has now responded to the ruling. The FCA considers the decision is an important...
UK-US Financial Regulatory Working Group issues joint statement
The Financial Regulatory Working Group has published a joint statement on its meeting on 20 May. The meeting focussed on seven key themes: international and bilateral cooperation; sustainable finance; updates on...
FCA orders firm to terminate AR agreements
FCA has published a first supervisory notice to Marshall Sterling Investment Management Limited, requiring it to terminate its relationships with 2 appointed representative firms within 14 days of the notice, and with a...
PRA publishes 2021/22 Business Plan
The PRA Business Plan sets out the PRA’s strategy, workplan, and budget for 2021/22. The PRA’s strategy will be delivered through the following strategic goals: Have in place robust prudential standards and...
No timescale on BNPL
In answer to a question in Parliament, the Government confirmed its intention is still to bring forward secondary legislation to bring forward currently unregulated BNPL products “when Parliamentary time...
PSR consults on CoP for all
The PSR has issued a call for views on whether it should direct additional banks, building societies and financial institutions to offer Confirmation of Payee. Currently only the 6 biggest banking groups offer it. The...
Update on AIFMD Delegation Rules
The EU has been saying for some time that it wishes to review the rules by which EU AIFMs may delegate investment management to entities outside of the EU. In its August 2020 letter regarding the review of the AIFMD...
Barry StimpsonFCA brings charges for unauthorised activities
FCA has taken criminal proceedings against Ian Hudson for carrying on his business, Richmond Associates, with the intention to defraud creditors and for carrying on the regulated activities of accepting deposits and...
FCA extends SCA deadline to March 2022
The FCA has extended the deadline for implementing Strong Customer Authentication for e-commerce transactions from 14 September 2021 to 14 March 2022. This further 6-month extension is in response to concerns about...
HM Treasury consults on amendments to the insolvency arrangements for insurers
The government is consulting on amendments to the insolvency arrangements for insurers, with a view to enabling UK authorities to better manage insurer distress. The government is proposing a series of targeted...
ICO fines Amex for direct marketing messaging without consent
The ICO has fined American Express Services Europe Limited for sending, or instigating the sending of, over 4 million direct marketing messages over the period of a year, for which subscribers had not provided consent. ...
Rebranded BSB updates website
The former Banking Standards Board has been rebranded as the Financial Services Culture Board from May 2021. It is now open to all financial services firms operating in the UK
FCA Call for Input: Pensions Consumer Journey
The FCA has launched a call for input, to better understand consumer behaviour at key points in the pension saving journey. The FCA acknowledged that the pensions and retirement income markets have evolved significantly...
FCA writes to CEOs of EMIs on client money
FCA has written a Dear CEO letter asking e-money firms to write to their customers to explain how their money is protected. It is worried that these firms’ promotions to customers give the impression that their...
FCA delivers speech on the rise in online scams
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, spoke at the FCA Investigations & Enforcement Summit on the rise in scams and the threat to a legitimate financial services industry...
IAIS consults on AML guidance
IAIS is consulting on changes to its “application paper” on AML and CFT in the insurance industry. The paper was originally published in 2013, and IAIS has revised it in light of various FATF updates and...
FCA clarifies application of EBA outsourcing guidelines
FCA has updated its webpage on outsourcing and operational resilience to clarify the application of EBA’s guidelines on outsourcing. It has confirmed that it expects relevant firms to continue to comply with them...
FCA launches consultation on CMC phoenixing
The FCA has announced proposals to stop the practice of ‘claims management phoenixing’ by banning claims management companies (CMCs) from managing FSCS claims where they have a relevant connection to the claim. Claims...
FCA consults on new Consumer Duty
The FCA has set out plans for a new Consumer Duty which will set clearer and higher expectations for firms’ standards of care towards consumers. It is hoped that the proposals will drive a shift in culture and behaviour...
SFO publishes business plan
SFO’s business plan for 2021/22 includes nothing of great surprise. Its main priorities remain: investigating and prosecuting the most complex cases of fraud, bribery and corruption; delivering justice, upholding...
BoE publishes “Productive Finance” statement
The Bank of England (BoE) has published a statement on the progress of the Working Group on Productive Finance (the Working Group) which was set up in November 2020 by BoE, HM Treasury and FCA. The statement provides a...
Duncan ScottDormant Assets Bill introduced in Lords
The Dormant Assets Bill has been introduced into the House of Lords and has had its first reading. The Bill proposes expansions to the current scheme to include not only bank and building society assets, but also long...
FSCS confirms 2021/22 levy forecast
FSCS has confirmed its levy forecast for 2021/22 at £833m. This is slightly lower than the indicative levy announced in January, partly because extensions of government support are likely to mean some firms will...
FCA reminds that complaints handling should be back to normal
FCA has reminded firms that its guidance on complaints handling during the pandemic expired on 1 May, and firms should now be back to normal.
FCA and PSR make statement on access to cash
A joint statement from FCA and PSR stresses that although there has been an overall decline in use of cash, withdrawals have started again as restrictions ease, and there must remain access to cash and banking services...
Banking industry supports access to cash
UK Finance and the UK’s largest retail banks and building societies have announced their commitment to continue to preserve access to cash for consumers and businesses over the long term. The 8 financial...
Treasury clarifies CIS exemption for P2P operators
Treasury has amended the FSMA (CIS) Order to clarify that the exemption that means operators of peer-to-peer lending platforms are not operating CIS when they carry out activities closely associated with platform...
FCA to issue credit broking permissions survey
FCA is asking regulated firms that hold the credit broking permission to complete a short survey to update the information FCA holds on how they are using this permission. A pilot survey will be sent to 300 firms on 20...
FCA updates supervisory statement on MiFID markets regime
FCA has updated its statement on the operation of the MiFID markets regime post-Brexit to include the latest published non-equity transparency results for the UK. These results cover the 2021 annual bonds threshold...
Pay.UK announces Confirmation of Payee extension
Pay.UK has confirmed that, from July 2021, the reach of the Confirmation of Payee Service (CoP) will be extended with a revised capability and simplified processes. This will allow CoP to be introduced more widely to...
Up next from FCA
The latest Policy Development Update from FCA heralds: a consultation on a new ESG sourcebook for enhancing climate-related disclosure requirements, coming in June; and a consultation on exit fees in investment...
FCA updates on property funds and liquidity and consults on LTAFs
FCA has updated on its August 2020 proposals to reduce the potential harm to investors from the liquidity mismatch in property open-ended funds. It had proposed that funds should have notice periods before an...
FCA publishes latest Regulatory Initiatives Grid
FCA has published the third edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. This edition marks the end of a successful one-year pilot exercise – the FCA has confirmed that...
FCA speaks on UK regulation and FCA transformation
Nikhil Rathi has spoken on FCA’s vision for regulation of the future. His audience was overseas banks, and he focussed on FCA’s priorities in regulating overseas firms at the same standards as domestic...
FOS focuses on economic and domestic abuse complaints
FOS has launched a new webpage on complaints involving economic and domestic abuse. The webpage sets out the types of complaint FOS sees in this area including people saying: I’ve been pressured into guaranteeing...
EBA consults on AML/CTF database
EBA has published for consultation draft RTS on a central AML/CTF database. The idea is for the database to contain details of weaknesses in systems and controls within individual firms identified by their national...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
FCA fines for financial crime failings in cum/ex trading
FCA has imposed its first fine for failings in cum/ex trading, dividend arbitrage and withholding tax reclaim schemes. It fined Sapien Capital £178,000 for systems and controls failings that led to the risk of...
BoE speech: operational resilience – outcomes in practice
Lyndon Nelson, Deputy CEO & Executive Director, Regulatory Operations and Supervisory Risk Specialists at the BoE, delivered a speech at the UK Finance Operational Resilience Webinar on recent policy on operational...
Treasury updates on economic crime plan
Treasury has updated on the Government’s progress on its Economic Crime Plan. It is pleased to see an improved understanding of the threats to the economy and the moves that have been made to address...
Law Commission: call for evidence on digital assets
The Law Commission has been asked by the government to make recommendations for reform to ensure that the law is capable of accommodating both cryptoassets and other digital assets in a way which allows the...
CMA publishes policy paper on digital regulatory landscape
The Digital Regulatory Cooperation Forum (DRCF) has submitted its response to the Department of Digital, Culture, Media and Sport on the future of the digital regulatory landscape and how to achieve coherence in...
FCA publishes new buildings insurance webpage
FCA has published a new webpage setting out its expectations of regulated firms when arranging and providing fair value buildings insurance for leasehold apartment buildings. The webpage is not an exhaustive description...
FCA consults on Pension Wise referrals
FCA has proposed new rules to require pension providers to ‘nudge’ consumers to Pension Wise in order to benefit from guidance before they access their pension. Currently, take up of Pension Wise guidance...
Breathing Space scheme takes effect
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 took effect on 4 May 2021. The scheme aims to help millions of people in debt crisis get...
PRA reports on collections in non-systemic banks
PRA has published a letter setting out the findings of its thematic review on collections. The letter follows PRA asking the internal audit function within non-systemic UK deposit takers to review their: collection...
UK sanctions and AML regulations extended to the Isle of Man and overseas territories
The UK government has published the Global Anti-Corruption Sanctions (Isle of Man) Order 2021 and the Global Anti-Corruption Sanctions (Overseas Territories) Order 2021 which came into effect on 29 April 2021. The Order...
FCA publishes Insights from Cyber Coordination Groups
FCA has shared a broad overview and insight into the discussions held at its quarterly Cyber Coordination Group (CCG) meetings in 2020. In 2020 FCA convened 157 firms in 7 CCGs, with each CCG representing a specific sub...
FCA publishes H2 2020 complaints data
FCA’s most recent complaints data report shows: a significant drop in complaints over the H1 2020 figure; a large decrease in insurance and pure protection complaints – with the largest being in PPI...
FCA publishes DP on high risk investment promotions
Following feedback to its Call for Input on Consumer Investments, FCA has published a discussion paper on proposals to strengthen its financial promotion rules for high-risk investments. The paper focuses on three main...
FCA consults on changes to UK MiFID firm organisational requirements
FCA is consulting, as part of its wider capital markets reform work, on a set of changes to the conduct and organisational requirements on research and best execution. The aim is that the rules continue to achieve...
Court considers “by way of business” test
The High Court has considered the scope of the “by way of business” test for the purposes of FSMA. Mr and Mrs A were involved in property development. They took a loan from a Mr P when they were unable to...
FCA publishes Digital Sandbox pilot evaluation
FCA has published an evaluation report of the Digital Sandbox pilot. The report sets out the findings of the pilot, including how it accelerated the development of innovative products and solutions within financial...
FCA speaks on compliance and culture
Mark Steward, FCA’s Executive Director of Enforcement and Market Oversight, has delivered a speech at NYU Law School entitled “Compliance, Culture and Evolving Regulatory Expectations“. In it, he...
House of Lords publishes financial exclusion report
The House of Lords Liaison Committee has published its third follow-up report, “Tackling Financial Exclusion: A country that works for everyone? Follow-up report.” The report analyses the progress made by...
FCA speaks to FLA on post-Covid regulation
Charles Randell, Chair of FCA and PSR has given a speech to the Finance & Leasing Association in which he outlined the ways in which the financial services sector has changed post-Covid and how FCA must adapt to...
PSR consults on Brexit changes to IFR guidance
PSR has opened a consultation into changes to its guidance on the Interchange Fee Regulation (IFR) as a result of Brexit and changes to the regulatory framework. Following Brexit, the IFR is now retained EU law, which...
HM Treasury publishes response to consultation on Insolvency changes for payment and electronic money institutions
The Insolvency changes for payment and electronic money institutions consultation was launched on the 3 December 2020. The Government received 15 written responses to the consultation, and these responses have been...