Emma RadmoreThe LSB has published updates to the CRM Code following its review. The new provisions include those on governance and oversight, and will take effect from 14 June 2021.
Category - Topics
PRA issues Mortgage Guarantee Scheme statement
PRA has issued a statement on the prudential treatment of residential mortgage loans made under the government’s new Mortgage Guarantee Scheme (MGS). Under the MGS the government guarantees a portion of the first...
Duncan Scott
Treasury Committee starts Greensill Capital inquiry
The Treasury Committee has launched an inquiry into lessons that can be learnt from the failure of Greensill Capital. The inquiry is supported by letters to various regulators, including a letter to FCA asking for...
FCA publishes statement on approach to LCF complaints
FCA has published a statement confirming the broad approach it intends to take to complaints made specifically to it in relation to London Capital & Finance (LCF). This approach will reflect what FCA considers...
BoE and Treasury announce creation of Central Bank Digital Currency Taskforce
The Bank of England (BoE) has announced, jointly with HM Treasury, the creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential UK CBDC. The BoE has also published the...
FCA delivers speech on innovation
Nikhil Rathi, CEO at the FCA, spoke at UK FinTech Week on innovation in the service of consumers and the market. Highlights include: success in financial innovation has been enabled by regulatory open-mindedness;...
Lucy HadrillEuropean Commission performs ‘mini-sweep’ on consumer credit
The European Commission has published details of a ‘mini-sweep’ on websites advertising and selling consumer credit products in 13 EU member states and 2 EEA countries. The Commission’s main objective...
Financial Services Bill passed by Lords
Following day three of its Report stage, the House of Lords has passed the Financial Services Bill with amendments. The final amendments to be agreed by the Lords include: an amendment that, in certain circumstances...
Treasury announces mini-bond compensation scheme
HM Treasury has set out details of a scheme to compensate bondholders who lost money due to the collapse of London Capital & Finance (LCF). The scheme will provide 80% of LCF bondholders’ initial investment up...
Government to boost UK Fintech and financial services
The Department for International Trade (DIT) has set out a series of measures that will help boost the UK’s Fintech presence in overseas markets. This announcement is in response to the publication of the Kalifa...
FCA issues second IFPR consultation
FCA has published its promised second consultation on the IFPR. The IFPR creates a new regime for solo-regulated MiFID investment firms. The consultation covers: aspects of own funds requirements not previously...
Nausicaa Delfas to join FOS
FOS has announced that Nausciaa Delfas will take up the post of Interim Chief Executive and Chief Ombudsman from mid-May. Meanwhile, Stephanie Cohen will take up the permanent role of FCA COO in June.
FCA stops Cypriot firm offering CFDs in UK
FCA has stopped a Cypriot firm that was operating in the UK under the TPR from conducting any regulated activities in the UK and to close all its trading positions and return money to customers. It found the firm, which...
FCA fines and bans unapproved adviser
FCA has banned a financial adviser and fined him £68,300. Simon Varley was a director and held the (then) CF10 function at Dickinsons Financial Management Limited. He was also a CF30 customer adviser until 2013, when...
PRA issues supervisory expectations for new banks
PRA has issued its final form Supervisory Statement on its expectations on “new and growing” non-systemic UK banks. The statement takes effect from its publication on 15 April, and follows PRA’s...
Jonny WilliamsFCA and PRA issue statement on FSB UK remuneration peer review
FCA and PRA have issued a joint statement on the findings from the FSB’s peer assessment of the effectiveness of remuneration reforms in the financial sector. FCA has also updated a webpage to highlight the...
Lender’s duties limited in asset disposal
In a helpful decision for Banks and lenders, the Court of Appeal decision in Morley (trading as Morley Estates) v Royal Bank of Scotland plc [2021] EWCA Civ 338 confirmed the limited extent of the duties a lender owes...
Scott NodderFinancial Services Bill continues in Lords
The House of Lords has continued its scrutiny of the Financial Services Bill during the report stage. The proposals debated on 14 April include amendments to: remove the prohibition under the Market Abuse Regulation on...
FCA publishes Covid-19 BI claims data
On 22 January 2021, the FCA sent a Dear CEO letter to the insurers affected by the BI insurance test case. The letter set out the FCA’s intention to gather information from all affected insurers regulatory on the...
FCA issues reminder to consumer credit firms about post-Brexit disclosure changes
FCA has issued a statement and published an updated webpage to remind firms subject to regulations 8, 10 and 11 of the Disclosure Regulations 2010 and the corresponding rules in the FCA Handbook of the changes they will...
LSB looks at APP scam prevention
LSB has stressed the importance of preventing APP fraud in the first place, rather than just ensuring customers who suffer can be reimbursed – critical though that is. It notes that the increase in online and...
FS Bill: Further amendments tabled for debate in Lords
Parliament has published a marshalled list of the latest amendments to the Financial Services Bill to be debated in the House of Lords. The proposed amendments include: a requirement for the FCA and PRA to give...
BCBS publishes operational resilience Principles
The Basel Committee on Bank Supervision (“BCBS“) has published a report setting out its “Principles for Operational Resilience”. In the report, BCBS notes that the Covid-19 pandemic has...
ASA rules on more debt advice service ads
On 7 April, ASA published 2 more rulings on the advertising of debt advice services, this time by Flexible Digital Solutions Ltd (FDS) and TFLI Ltd t/a Wise Old Mary (TFLI). As with their previous rulings, both resulted...
Nicky StrongFS Bill continues in Lords
The Financial Services Bill is scheduled to continue its Report stage in the House of Lords next week, with some further amendments being tabled.
FCA publishes fin prom data
FCA has published data showing the number of financial promotions that have been amended or withdrawn in the first quarter of 2021. The figures do not include any actions FCA took as a result of unapproved promotions...
FCA speaks on AML controls
Mark Steward has spoken on the importance of “purposeful” AML controls. He headlined: the current prosecution for failings in systems and controls to monitor and scrutinise significant cash deposits, and the...
OFSI updates guidance suite
OFSI has updated its suite of guidance on financial sanctions, including its guidance on monetary penalties, which incorporates some of the lessons OFSI has learned through its case work. The new guidance will apply for...
PSR board meets to discuss current and future agenda
The PSR has published the minutes of a board meeting held on 20 January 2021. The board discussed various items on the PSR’s agenda, including: Access to Cash – the PSR is working closely with industry and the FCA...
FCA finalises cancellations and refunds guidance extension
FCA has published its finalised guidance extending its temporary guidance on how it expects firms to act when customers are making claims for cancelled events or travel arrangements. The guidance takes effect from 2...
ESAs publish report on complaints-handling
The Joint Committee of three European Supervisory Authorities (EBA, EIOPA and ESMA) (ESAs) have published a report on the application of their guidelines on complaints-handling. The report assesses how the guidelines...
FCA concerned on Amigo scheme of arrangement
FCA has taken the relatively unusual step of publishing a letter of concerns it lodged in relation to Amigo Loans’ application to implement a Scheme of Arrangement. FCA does not support the scheme for a number of...
FOS publishes 2021/22 plans and budget
FOS has published its plans and budget for 2021/22 which were consulted on between December 2019 and January 2020. FOS has forecast a reduced caseload in 2021/22 following the unprecedented increase during 2020...
FCA tells CMCs and High Cost Lenders to work together on complaints
FCA has received several communications from high cost lenders and CMCs who are not happy with how each other has dealt with complaints brought by consumers against high cost lenders using CMCs. Amongst the...
European Commission consults on instant payments
The European Commission has issued a consultation paper seeking the views of consumers, corporate users and payment service providers (PSPs) on the use of instant payment transfers. The objective of the consultation is...
PSR provisionally identifies pre-paid card cartel
PSR has announced that it has issued a Statement of Objections that alleges that Mastercard, allpay, APS, PFS and Sulion engaged in anti-competitive behaviour by agreeing not to compete or poach each other’s clients...
FCA extends financial crime reporting obligation
Following its consultation in August 2020, the FCA has announced it is increasing the number of firms that need to submit an annual REP-CRIM return from c.2,500 to c.7,000 firms. In summary, the following additional...
UK and US continue to co-ordinate on insurance and reinsurance supervision
On 25 March 2021, UK and US participants held the first Joint Committee meeting under the UK-US Bilateral Agreement on Prudential Measures regarding Insurance and Reinsurance (Agreement). Attendees discussed progress...
EIOPA publishes IDD “general good” analysis
EIOPA has analysed Member State rules implementing the IDD and identified some practices that are not in the interests of the general good. For example, it has asked some Member States to adjust their requirements where...
CMA writes to Danske Bank on bundling breach
Danske Bank required 305 of its SME customers to open a business current account in order to progress their application for a loan under the Bounce Back Loan Scheme. The CMA has now written to Danske Bank to explain...
ESMA updates funds FAQs
ESMA has updated its FAQs in respect of the AIFMD and the UCITS Directive, both in respect of performance fees.
FCA confirms DB transfer guidance
FCA has confirmed its finalised guidance on DB transfers for advisers. The guidance does not show many changes from the version on which FCA consulted. It confirms FCA’s view that it is normally in the best...
FCA and PRA publish operational resilience materials
FCA and PRA have each published a number of documents addressed to firms across a range of sectors on the subject of operational resilience. FCA and PRA have each issued policy statements (PS21/3 and PS6/21) which...
FCA takes action against non-financial misconduct
The FCA has published a decision notice in respect of Jon Frensham (formerly known as Jonathan James Hunt), an independent financial adviser and sole director at Frensham Wealth Limited. In March 2017, Mr Frensham was...
FCA responds to Treasury Committee on LCF
Andrew Bailey has responded to the Treasury Committee on aspects of its supervision in respect of the LCF investigation. Key elements of the response looked at: the need for the report to separate accountability with...
FCA feeds back on Open Finance
FCA has published a policy statement following its call for input on Open Finance. The statement looks at how Open Banking is paving the way for more innovation, and notes the large number of regulatory sandbox...
High Court finds company and individual in breach of FSMA
The High Court has delivered a summary judgement after FCA issued proceedings against 24HR Trading Academy Limited and Mohammed Maricar, who ran the firm. It found the firm breached FSMA by providing unauthorised...
PRA issues policy statement entitled “Depositor protection: Identity verification”
The PRA has issued a policy statement entitled “Depositor protection: Identity verification” which provides feedback to consultation paper (CP) 3/21 on the same subject. The final policy set out in the...
CMA publishes annual plan for 2021/2022
Following consultation, the CMA has now published its annual plan for 2021-2022. The CMA has identified four key themes on which it intends to concentrate: protecting consumers and driving recovery during and after the...
European Parliament reports on Digital Finance Package legislation
The European Parliament’s Committee on Economic and Monetary Affairs has published a draft report setting out proposed changes to a range of existing legislation to ensure alignment with the regulation on digital...
Treasury updates high risk jurisdictions list
Treasury has updated its AML advisory notice on high risk jurisdictions. The UK is introducing legislation that will define high risk third countries and will replicate the FATF list, in place of referencing the EU MLD4...
PSR publishes plan and budget
The PSR’s annual plan and budget for 2021/22 focuses on what it can do to improve outcomes by encouraging innovation and competition. It will look at scam prevention and access to cash, and will have a focus on...
EU consults on instant payments
The European Commission has launched a targeted consultation on instant payments. Open until 2 June, the consultation seeks to get technical information from PSPs and providers of technical services, with a view to the...
Government urged to reduce barriers to UK-EU services trade
The House of Lords EU Services Sub-Committee has published a report which examines the UK-EU Trade and Cooperation Agreement (TCA) and the future UK-EU relationship on trade in services. In terms of financial services...
FCA encourages individuals to report wrongdoing
The FCA has launched its campaign ‘In confidence, with confidence’ to encourage individuals working in financial services to report potential wrongdoing to the FCA. The campaign highlights circumstances...
Hannah FrostFCA updates on non-damage BI settlements and deductions
FCA has updated its guidance aimed at insurers who have made deductions from business interruption insurance claim payouts for some types of Government support that policyholders benefited from. Back in August 2020, FCA...
FATF updates guidance on risk-based approach to VAs and VASPs
FATF is updating its guidance on the risk-based approach to virtual assets (VAs) and virtual asset service providers (VASPs). The guidance is updated in six key areas and amendments seek to: clarify the definitions of...
EIOPA publishes IDD FAQs
EIOPA has updated its FAQs on the IDD. The 8 new questions cover: the appropriateness assessment product oversight and governance; adaptation of existing product; protect testing and review for existing products;...
FCA updates on timetable for insurance pricing rules
FCA has updated firms on its plans for the introduction of new rules following its consultation on general insurance pricing practices. It had originally proposed to give firms 4 months from the time it finalised its...
EU Council backs plans for EU-wide payment solutions
In September 2020, the EU Commission launched its strategy for the further development of the retail payments market in the EU. The European Council has now responded by announcing its full support of the overall aims...
FMLC responds on cryptoasset regulation
FMLC has responded to Treasury’s call for evidence on the regulation of cryptoassets and stablecoins. Unsurprisingly, it notes many legal uncertainties, not least how to identify a “token”, and...
IRSG publishes report promoting global regulatory coherence
The International Regulatory Strategy Group (“IRSG“) published a report entitled “Global Solutions to Global Problems”. The report aims to promote regulatory coherence in financial services to...
FCA gives speech on diversity and inclusion
Georgina Philippou, Senior Adviser to FCA on the Public Sector Equality Duty gave a speech at the launch of a report by the Investment Associate and Eversheds entitled “Building Ethnic Diversity and Inclusion in...
HMRC publishes AML supervision self-assessment
HMRC has published its assessment of its own performance as AML supervisor. It notes that it currently supervises over 30,000 businesses across the various sectors within its remit. It says its performance is broadly...
Investment Association reports on diversity
The Investment Association has published a report which sets out steps to improve ethnic diversity and inclusion in investment management. The report found that: 75% of firms currently collect, or have begun work...
EBA consults on AML guideline change
EBA is consulting on changes to its guidance on risk-based supervision for AML/CFT purposes. It plans to include practical step-by-step approaches to help regulators understand some of the aspects of supervision they...
FCA speaks on importance of diversity and inclusion
Nihil Rathi, speaking at Treasury’s Women in Finance Charter Annual review, stressed that diversity and inclusion are regulatory issues. He noted the breadth of characteristics that “diversity”...
Regulation of the insurance sector set to change
In a speech given at the Association of British Insurers, Sam Woods, CEO of the PRA, said that the regulation of the UK insurance sector is set to change. Mr Woods stated that rules for insurers would be set out in the...
Complaints Commissioner criticises FCA internal communications
The Financial Services Complaints Commissioner has published a final report in respect of a complaint raised against FCA for failing to keep a complainant informed as to the progress of its investigation into the firm...
FCA takes action against NatWest for MLR breaches
FCA has started criminal proceedings against Nat West for breaches of the MLR 2007. It alleges that, over a 5 year period up to late 2016, the bank breached MLR 8(1), 8(3) and 14(1) in relation to funds deposited into...
FCA updates on duty of care
In its Feedback Statement on duty of care and potential alternative approaches, the FCA committed to reviewing how it applies the regulatory framework and how new or revised Principles for Businesses could strengthen...
FCA updates BI list
FCA has updated its information pages on business interruption insurance by providing a list of insurers and policies, submitted by insurers, of the non-damage business interruption insurance policies that are, in...
NCA updates SARs guidance for supervisors
NCA has published an updated version of its guidance to AML supervisors on submitting better quality SARs. It reiterates the importance of: the SAR being clear and concise, explicitly setting out the reason for...
Up next from FCA
FCA’s latest Policy Development update heralds the annual consultation on fees in April, and the proposed consultation on exit fees in investment platforms and comparable firms at some stage this year.
FS Bill finishes Lords Committee stage
The Financial Services Bill has finished its discussions at Committee Stage in the Lords. The next stage, the Report stage, has not yet been announced.
IHRP review independent report provided to FCA
John Swift QC, the Independent Reviewer appointed to look at FCA’s regulatory interventions in respect of the sale of of Interest Rate Hedging Products to SMEs. has provided FCA with his draft report. It is...
OFSI updates sanctions penalty guidance
OFSI has published an updated version of its guidance on monetary penalties for breach of financial sanctions, which will apply from 1 April and will apply for all cases where OFSI becomes aware of a potential breach...
LSB considers the customer journey in a digital world
In January this year the Lending Standards Board (LSB) released a thought piece on the customer journey in the digital space, with the aim of promoting best practice and good customer outcomes in the provision of...
European Parliament issues draft report on proposed markets in crypto-assets regulation
The European Parliament’s Committee on Economic and Monetary Affairs has issued a draft report containing suggested amendments to the text of a regulation on markets in crypto-assets and amending Directive (EU)...
CMA consults on future oversight of open banking
The CMA has published a consultation paper seeking views on what arrangements it would be appropriate to put in place to ensure the effective oversight and governance of open banking following the implementation of the...
Covid-19: FCA updates on support for mortgage customers
The FCA is consulting on proposed updates to its “Mortgages and Coronavirus: Tailored Support Guidance.” The guidance is intended to ensure that mortgage customers whose homes may be repossessed are treated...
FS Bill at Committee Stage in Lords – including new FTP offence
The Financial Services Bill is currently going through line by line scrutiny in the Committee stage in the House of Lords. Among the changes for debate are: an requirement for a member of the FCA governing body to have...
FATF publishes RBA guidance
FATF has published guidance for supervisors in applying a risk based approach to supervision of the AML supervised community. It aims to help those supervisors who have traditionally applied rules-based approaches to...
Proprietary injunction and Bankers Trust Order made in fraud case involving cryptocurrency
In the unreported case of Ion Science Ltd v Persons unknown and others (21 December 2020 – Commercial Court), the Commercial Court granted a proprietary injunction, worldwide freezing order and ancillary...
FCA fines and bans trader for market abuse
FCA has fined and banned a former market making trader for market abuse. Adrian Horn, formerly of Stifel Nicolaus Europe Limited executed trades with himself in a series of 129 wash trades in a particular security over...
FCA increases contactless payment thresholds
FCA has published a policy statement outlining the amendments to Article 11 of the strong customer authentication RTS. The changes increase the single transaction threshold for contactless payments from £45 to £100 and...
FCA publishes “presence of Covid” guidance
FCA has finalised and published its guidance on proving the presence of Covid-19. The guidance builds on the High Court and Supreme Court judgments in the FCA’s business interruption insurance test case, and sets...
EBA publishes ML risk opinion
EBA has published its biennial opinion on the ML and TF risks affecting the EU financial sector. The risks cover those of the whole sector as well as parts of it, and cover risks previously identified as well as new...
Sign up now: what’s new in financial crime prevention 10 March
In a change from the normal, we are hosting the first quarterly update of 2021 for MLROs.com. Sign up here and see you at 9:00 on 10 March.
FCA publishes funeral plan consultation paper
The FCA has published a consultation paper on its proposed approach to the regulation of pre-paid funeral plans. Such plans are due to become fully subject to FCA regulation from 29 July 2022. The majority of the...
EU and Japan exchange letters on co-operation
The European Insurance and Occupational Pensions Authority (EIOPA) and Japan’s Financial Services Agency (FSA) have agreed to co-operate on insurance regulation and supervision. The exchange of letters aims to...
FCA publishes details of STORs
FCA has published the number of STORs it received in 2020. There was a small dip at the beginning of the pandemic, but the amounts increased as the year went on, peaking at 421 in October, with a total of 3553 for the...
EBA revises guidelines on AML/CFT risk factors
EBA has published updated guidelines on money laundering and terrorist financing risk factors under MLD4. The changes: take account of legislative change; address new risks; strengthen the risk based approach; specify...
LSB sets roadmap for CRM Code review
LSB has published its planned activities for 2021 including updates on the wording of the CRM Bode and a call for input. Separate to its original plans it is already working on a review of the provision on its approach...
Home Office launches Modern Slavery statement registry
The Home Office has updated its guidance page on modern slavery statements following the launch of its new voluntary registry. The registry launched on 23 February, but the page was not active at the time we checked...
FATF publishes plenary outcome
FATF has published the outcome of its February plenary meeting. it approved new guidance on risk-based supervision; it will update its guidance on virtual assets and VASPs; it has agreed new guidance on proliferation...
FCA publishes MiFID 2 product governance review
FCA has published the results of a review that looked at product governance in 8 asset management firms who are manufacturers of products. It examined particularly how the firms take into account the interests of end...
FCA finalises Breathing Space rule changes
FCA has published its final changes to CONC to clarify how its rules apply where the Breathing Space Regulations also apply. Its aim is to avoid any unnecessary duplication of requirements. The Regulations allow ...
Treasury publishes Kalifa Fintech Review
Treasury has published the Kalifa Review of UK Fintech, which launched last summer. The report sets out proposals for the UK to build on its existing strengths in the sector. The review looks at the development...
Treasury and FCA discuss perimeter report
Treasury and FCA have met to discuss the September 2020 report on the regulatory perimeter. Discussions focused on: high risk investments and the potential need to review the current exemptions that allow marketing to...
ESMA publishes crowdfunding FAQs
ESMA has published its first FAQs on the new crowdfunding Regulation, looking at SPVs and how they can be used in crowfunding models.
PRA corrects MRT definition
PRA has noted a mistake in the Rulebook definition of “higher paid material risk taker” in Rule 1.3 of the Remuneration Part. The definition currently states that a person will be an HPMRT where: (a) their...
CMA publishes PPI breach letter
CMA has written to Cardif Pinnacle about two breaches of the PPI order. The breaches mean that nearly 5,000 customers have been receiving inaccurate Annual Reviews since 2012, an 4 customers received annual reviews that...