Emma RadmoreFCA has reminded firms they should regularly check that they have all the right regulatory permissions for their businesses. Firms need not only to seek a variation of permission to add new activities, but should also...
Category - Conduct
FCA publishes Covid resilience survey results
FCA has published the results of the survey it sent to 23,000 forms on the real-time effect the pandemic is having on their resilience. Among its conclusions are: failures of firms due to the economic downturn are...
Regulators update on Covid-related SMCR expectations
The regulators have reminded firms of their expectations in respect of the SMCR, bearing in mind the challenges Covid-19 has presented: FCA has reminded firms that it still does not require a single senior manager to be...
FCA censures firm in relation to Connaught investments
FCA has publicly censured Blue Gate Capital Limited and ordered it to pay £203,000 in restitution to investors who invested in the Connaught Income Fund, Series 1. The Fund was a UCIS, which Blue Gate took over as...
Treasury updates special resolution code
Treasury has updated its code of practice that sets out the tools and powers available under the Banking Act 2009 in respect of the special resolution regime.
PRA evaluates SMCR
PRA has published a report that evaluates the SMCR and whether it has met its aims. In principle, it concludes that it has – it has helped ensure that senior individuals in firms take greater responsibility for...
PRA writes Dear CEO letters on supervisory priorities
PRA has written to the CEOs of insurers, deposit takers and international banks on its 2021 supervisory priorities: to insurers, it says it will be engaging with stakeholders as it looks to tailor the regulatory regime...
PRA issues statement on capital distributions
In July, the PRA announced its intention to undertake an assessment of large UK banks’ distribution plans for 2020. The PRA has now completed that assessment and, noting that economic uncertainty as a result of...
Lucy HadrillFCA makes new rules
At FCA’s latest board meeting, it made a number of Brexit-related instruments, including: general amendments, including amendments to BTS to check they operate effectively in UK law; SMCR and approved person...
PRA notes FCA “long-term absence” consultation
PRA has drawn the attention of firms to a joint chapter in FCA’s latest quarterly consultation on clarifying regulatory expectations for temporary long-term absences. The regulators plan to clarify what they...
FCA publishes RDR and FAMR evaluation
FCA has published an evaluation of the impact of the RDR and FAMR. On the whole, it found a positive impact. It notes that the FAMR has: led to a small increase in the number of adults who receive financial advice, and...
PRA confirms CRDV statement date
PRA has issued a statement explaining to firms when they can expect further information on the implementation of CRD V. PRA issued two separate consultations, the later of which closed on 17 November. It plans to...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made the following rules at its last 3 board meetings: changes to reflect the extension of various SMCR deadlines as a result of the pandemic (made in October); the...
FCA announces benefits of RegData
RegData is set to replace Gabriel as the FCA’s data collection platform and will offer an enhanced user experience. FCA says the benefits of RegData will include: Increased speed and faster navigation; Improved...
FCA outlines its supervision Strategy for Lloyd’s & London Market Insurers
The FCA has published a ‘Dear CEO‘ letter addressed to Lloyd’s and London Market Insurers, providing an overview of the areas of focus of its supervision strategy. In particular, the letter sets out...
Angie BamboulisDirectory person information starts to go live
Directory persons data for dual-regulated firms is now live on the new Directory. FCA has reminded solo-regulated firms that they must have submitted all data by the end of March 2021, and has also noted the dates...
FCA writes supervision letter to PCWs
FCA has written a portfolio supervision letter to CEOs of price comparison websites. The letter notes the key priority that customers buying products through PCWs should buy products consistent with their demands and...
FOS publishes Q2 information
FOS has published complaints figures for July – September 2020 (Q2 2020). It: received 69,000 complaints in total received over 5,900 Covid-related complaints referred over 9,000 complaints to an Ombudsman upheld...
FCA updates statement on workplace arrangements
The FCA has updated its statement on workplace arrangements and work-related travel given the recent changes in coronavirus restrictions. The FCA stresses that firms should: continue to follow relevant guidance to...
Covid-19 measures weekly summary
It’s been a while since we needed to do a digest of these. In the light of the new English lockdown and the expiry of various measures, the last week has seen: FCA consultation on updated guidance for consumer...
EBA urges consumers first in POG supervision
EBA has published a report encouraging firms to put consumers’ interests first when they are applying product oversight and governance arrangements. It has found this focus is lacking in many firms. This report...
EBA publishes SREP expectations on TF/ML risks
EBA has published its Opinion in which it sets out how prudential supervisors should consider ML/TF risks as part of the SREP process. The Opinion is another expression of EBA’s exhortation on supervisors to...
FCA to propose mortgage and consumer credit support update
FCA reacted to the announcement of the further measures to contain Covid-19 by saying it will review its measures to support mortgage borrowers impacted by the pandemic. Although FCA stresses borrowers should always try...
FCA reminds of insurance product value importance
FCA has reminded insurance firms that they need to complete their reviews of the value of their products in the light of the pandemic. The reviews follow FCA’s guidance published in June, highlighting that there...
Second Bill reading due 9 November
The second reading of the Financial Services Bill in Parliament is scheduled for 9 November.
FCA confirms SMCR extension dates
FCA has confirmed it has extended the date by which all solo-regulated firms must have fully implemented the Certification Regime and Conduct Rules, to 31 March 2021. This follows Treasury making the statutory...
FCA updates on Directory dates
FCA has updated its information page on the Directory of certified and assessed persons. It confirms that dual regulated firms must submit their data by 13 November, and it will start to be published from 23 November...
FCA and PRA fine GSI for 1MDB risk management failures
FCA and PRA have fined Goldman Sachs International a total of £96.1m for risk management failures connected to its role in three fund raising transactions for 1Malaysia Development Berhad, a Malaysian state-owned...
FCA: new webpages on whistleblowing
The FCA has launched two new webpages on whistleblowing. The first webpage sets out the process for reporting concerns of wrongdoing to the FCA in confidence and provides guidance on: Making the decision to speak to the...
PRA consults on CRD V
PRA is consulting on further proposed changes to its rules, supervisory statements and statements of policy to implement elements of CRD V, and also to make changes to the UK framework to take account of parts of CRR II...
Jonny WilliamsFCA says no more excuses for complaint handling delays
FCA says firms have now had enough time to embed the new ways of working the pandemic has demanded, and that any more failures to comply with FCA’s complaint handling requirements should only arise in exceptional...
FCA skilled persons reports update
In July – September 2020, FCA commissioned 14 skilled persons reports – of which half were on the retail side and half the wholesale side. 3 related to retail banking and payments and 2 to retail lending...
FCA bans retail sales of crypto-derivatives
FCA has published final rules to ban the sale to retail customers of derivatives and ETNs that reference certain types of crypto-assets. The new rules define “unregulated transferable cryptoassets” as...
FCA writes to investment and insurance CEOs on client assets and Covid-19
FCA has written 2 Dear CEO letters to firms that hold client money or custody assets, whether in the context of investment or insurance business, to remind them of their obligations under CASS. The letters stress that...
FCA updates on new COVID-19 issues
FCA has updated firms following the most recent Government announcement on COVID-19 restrictions. It says firms should continue to follow Government advice to work from home, and has updated its statements on...
FCA consults on international firm regulation
FCA is consulting on its approach to authorisation and supervision of international firms operating in the UK. The approach will apply to EEA firms seeking authorisation as they exit the TPR, and firms from non-EEA...
FCA speaks on culture in investment management sector
Marc Teasdale has spoken on FCA’s work with the asset management sector, and how it is intended more closely to align the sector with its essential purpose – that is, protecting and growing the capital and...
EBA wants clarity on aspects of “credit institution” definition
EBA has published an Opinion noting its views that several aspects of the current definition of “credit institution” could benefit from clarification – not least the notions of “deposit”...
FCA confirms new mortgages guidance
FCA has finalised its additional guidance to firms in the mortgage markets, setting out how they should provide tailored support to borrowers who have had payment deferrals but continue to struggle, and to those whose...
Caroline StevensonFCA and PSR publish annual reports
FCA has published its annual report and accounts for 2019/20. The report notes FCa’s key achievements for the year. Apart from the obvious measures to address the problems caused by Covid-19, it highlights:...
FCA to update mandatory resilience survey
FCA is to repeat the survey it carried out with a sample of firms in June, to assess the changes in firms’ financial positions as a result of the pandemic. It will be contacting firms between 16-22 September with...
PRA finalises minor rule changes
PRA has published its policy statement on proposals in one of its Occasional Consultations. The changes confirmed will cover: minor updates on liquidity reporting; LIBOR updates for non-Solvency II insurers; other minor...
FCA writes to insurance intermediaries on supervision
FCA has written a supervision strategy letter to the CEOs of personal and commercial lines intermediaries. The letter is intended for general insurance intermediaries with retail and/or commercial customers, loss...
Jonathan DrakeFCA publishes latest Conduct Questions update
FCA has published its latest report on its “5 Conduct Questions” initiative. It notes the changes that wholesale banking firms have been making to their conduct and culture as a result of it since 2015, and...
FCA confirms delay to first F&P assessment
FCA has confirmed that solo-regulated firms will now have until 31 March 2021 to complete their first fitness and propriety assessments on Certified Persons. Treasury has made a statutory instrument to confirm the...
FCA updates on SMCR and reporting
FCA has reminded solo-regulated firms of the new annual reporting requirement that will oblige them to tell FCA whether they have taken disciplinary action against individuals who are not senior managers for Conduct...
EBA seeks views on Regtech
EBA has published a RegTech industry survey to seek views on how RegTech solutions are being, and could be, used. It wants to understand current activity, raise awareness of it, and have information to inform future...
CMA revokes HSBC directions
The CMA has on 6 August revoked the Directions given to HSBC under the Retail Banking Market Investigation, as the Implementation Trustee confirmed HSBC’s compliance with the Order on App-to-App Redirection...
Basel consults on operational risk and resilience
The Basel Committee is consulting on proposals for principles for operational resilience and updates to its principles for the sound management of operational risk. The updates will reflect the growth of technology...
Committee highlights Breathing Space regulations’ importance
The House of Lords Secondary Legislation Scrutiny Committee has published its report in which it discussed the Breathing Space regulations. It drew attention to the importance of the regulations, and recommended that...
FCA updates on Covid-19 and complaints handling
FCA has reviewed and updated its webpage on how firms should handle complaints during Covid-19. It has made some minor changes to its previous statement and will review it again at the end of October. The guidance...
ESAs consult on management body suitability guidelines
EBA and ESMA have published a joint consultation on updating their guidelines on assessing the suitability of members of the management body and key function holders in regulated firms. The revised guidelines stress...
PRA consults on CRD V
PRA is consulting on changes to its rules, supervisory statements and statements of policy needed to implement parts of CRD V. This consultation is the first part of PRA’s preparation for implementation, and it...
FCA Guidance on Vulnerable Customers
The FCA has set out new best practice guidance for firms to do more to protect vulnerable customers, and ensure they are receiving positive outcomes. The first phase of the FCA consultation in July 2019 found that some...
Andrew Graham-SmithFCA Guide: Prepare Your Firm for Brexit
The Brexit transition period is currently operating until 31 December 2020. The FCA have produced a list of key considerations to help firms consider how they will be impacted by this and what action they may need to...
FCA publishes Intergenerational differences summary
The FCA has today published feedback statement FS20/12 summarising the responses and next steps following discussion paper DP19/2 on intergenerational differences. The paper summarises the average financial...
Treasury consults on fin proms approval “gateway”
Treasury is consulting on a fundamental change to the rights of authorised firms to approve financial promotions of unauthorised firms. Both it and FCA have become increasingly concerned that some firms are approving...
FCA consults on more time for SMCR
FCA is consulting on extending the implementation deadlines for parts of the SMCR for solo regulated firms. It plans that the 9 December 2020 deadline should be extended to 31 March 2021 for: the Conduct Rules taking...
Court rules “No DSS” unlawful under the Equality Act
York County Court has ruled that so called “no DSS” policies – which put in place a ban on renting property to people who are on housing benefit – are discriminatory and unlawful under the...
Regulation round up highlights refunds, SMRC delays and next steps in Covid-19 consumer protection
FCA’s latest Regulation Round up covers the usual update of FCA’s recent publications, and reminds them of some earlier, still relevant, statements, not least: the confirmed new guidance for motor finance...
FCA takes action against unauthorised mortgage and SRB agreements
The Financial Conduct Authority (“FCA“) has issued a statement confirming that it has commenced proceedings in the High Court against London Property Investments (U.K) Limited (“LPI“), NPI...
Amelia GreenPRA consults on updating SM&CR Forms
The Prudential Regulatory Authority (“PRA“) has issued a consultation paper (“CP“) setting out its proposals to make minor amendments to the PRA Rulebook, the Notifications Form and the Senior...
Basel Committee updates on Regulatory Framework Adoption
BIS has recently published a report from its Basel Committee. It provides an update to the October 2019 report on the adoption of Basel Standards across each BCBS member jurisdiction as of May 2020. The Committee note...
FCA to reopen TPR
FCA has updated its webpages on the temporary permissions regime, to note it will reopen the TPR windows for inbound passporting EEA firms and funds on 30 September, and will also allow fund managers to update their...
Consumer Panel mulls digital advertising
The Financial Services Consumer Panel has published a discussion paper on digital advertising in financial services. It is deeply concerned about the use of “adtech” to create detailed profiles of...
PRA writes to firms on climate-related risks
Sam Woods has written to CEOs of all PRA-regulated firms with PRA’s conclusions from its thematic review of firm’s climate-related risk plans. The letter notes that firms were asked to have in place by...
FCA updates on SMCR and approved persons
FCA has updated on SMCR implementation periods in the times of Covid-19. It has extended the deadline for solo-regulated firms to have undertaking the first assessment of fitness and propriety of Certified Persons to 31...
Barnier speaks on Brexit
Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations. He noted the desire to give the EU/UK negotiations “every chance of succeeding”. He noted he had rescheduled many other meetings...
FCA makes new rules
FCA has published a Handbook Notice covering the rules it made at its May and June Board meetings. changes to COBs in relation to pension transfers, introducing a ban on contingent charging in respect of most advice on...
FCA updates on Covid-19 delayed activities
FCA has confirmed some further delays to projects and extensions to proposed deadlines, in light of Covid-19. Various deadlines now postponed until later in 2020-or to 2021 include: The Directory of Certified Persons...
FCA comments on planned amendments to the Benchmarks Regulation
The FCA has issued a statement welcoming the Government’s intention to bring forward legislation to amend the Benchmarks Regulation (“BMR“) to give the FCA enhanced powers. The FCA says these could...
Chancellor updates on FS laws and Brexit
Rishi Sunak has made a written statement about the UK’s approach to implementing key financial services reforms before the end of 2020. The statement notes the UK’s policy intention, and the manner in which...
FCA ready with Gabriel replacement
FCA has announced that its new platform, which replaces Gabriel, is called RegData, and that it is preparing to move all firms across to it. It will move firms over in groups, depending on the nature of their reporting...
EBA updates risk taker RTS
EBA has published its final draft RTS on the criteria to define material risk takers for CRD purposes. It has published the revised standards to define and harmonise the criteria across the EU. An individual member of...
Randell speaks on supporting the recovery
Charles Randell has spoken to a virtual roundtable of bank chairs on how the financial services industry can work to support recovery from the Covid-19 pandemic. He noted the great efforts that banks and other market...
Government responds on FS post-Brexit inquiry
The Government has published its response (dated 27 May) to the EU financial affairs sub-committee on financial services after Brexit. The letter, from John Glen: confirms that EU negotiations continue to be a priority...
FCA finalises financial resource assessment guidance
FCA has published its finalised guidance explaining how it assesses what is “adequate financial resources“. The draft guidance was published for consultation around a year ago, and FCA has largely...
EIOPA consults on digitalisation and the value chain
EIOPA is consulting on how the continued evolution of technology is affecting business models and bringing beneficial innovation and a new set of risks that need to be taken into account. Firms are increasingly relying...
FCA looks at conduct, culture and Covid-19
FCA has looked at how the measures taken to adapt to working in the times of Covid-19 have affected conduct and culture. It notes that, for those that can work at home, there may be no return to the office for some...
FCA publishes Covid-19 guidance for SMEs
FCA has added to its suite of guidance on Covid-19 issues with a pages setting out help available to SMEs. The guidance explains what BBLS and CBILS do, and explains the guidance FCA has given to banks and insurers on...
ESMA opines on compliance function
ESMA has given new guidance on the MiFID 2 compliance function, replacing 2012 guidance. The new version aims to provide more clarity and more convergence in implementation and supervision of the requirements of MiFID...
EVENT: Retail Banking Mixer Webinar
Our next r=Retail Banking Mixer will be held by webinar on 18th June at 10am. We are delighted to be joined by Rosemary Ford and Amber Andrade from Deloitte this time. The webinar continues the focus on COVID-19. Our...
FCA speaks on current concerns and crisis response
Megan Butler has spoken to PIFMA on FCA’s response to Covid-19 and its expectations for the rest of the year, with a focus on its actions and expectations in respect of wealth managers. Generally, she thought the...
FOS updates on priorities
FOS has published its three strategic priorities for the next 5 years: enhancing its service preventing complaints and unfairness arising and building an organisation with the capabilities it needs for the future It...
FCA finalises SMCR rules for benchmark administrators
FCA has published its final rules on extending the SMCR to employees at benchmark administrators. The rules, bespoke to firms that undertake no other regulated activities, take effect from 7 December. UK-based...
PRA confirms stance on e-signatures
PRA has confirmed its position on acceptability of electronic signatures when firms are submitting forms and other regulatory documents. It confirms this is permissible, in the absence of any legal provisions to the...
IOSCO consults on outsourcing principles
IOSCO has published a consultation paper on updating its guidance on the principles of outsourcing. It delayed publishing the consultation because of Covid-19 but now feels it is right to publish it, not least because...
FCA updates on CPD and Covid-19
FCA has previously said that is expects firm to be able to show that individuals are competent to carry out their work during the pandemic. It notes that effective and consistent CPD is a part of this, but that it is...
PRA updates on “prudent person” principle
PRA has updated its policy documents following its consultation on the Prudent Person principle under Solvency 2. PRA received only 7 responses to its consultation, but have made some clarificatory changes following...
FCA makes new rules
At FCA’s May Board Meeting it made 3 new sets of rules: the Covid-19 Premium Finance Instrument, which took effect from 18 May and introduced the new requirements on payment deferrals and other measures for...
Regulator Covid-19 update 22 May
After a relatively quiet week, on 22 May: FCA announced further support for customers struggling to pay mortgages due to Covid-19. It is consulting on what options firms will need to provide to customers reaching the...
Government publishes draft EU/UK FTA
The Government has published a draft Comprehensive Free Trade Agreement between the UK and EU. Chapter 17 of the agreement relates to financial services, which it defines as “any service of a financial nature...
FCA clarifies paper issues during Covid-19
FCA has set out its expectations on how firms should deal with post and paper-based processes during the pandemic. It says it recognises firms will be finding it hard to process post and comply with paper-based...
FCA sets out planned initiatives
FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months. The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...
FCA speaks on response to Covid-19 and Brexit
Nausicaa Delfas has spoken on FCA’s national and international response to Covid-19 and Brexit. On Covid-19, she noted: FCA’s priority to keep markets open and orderly, help firms continue to operate...
Regulator Covid-19 update 6 May: SMCR, financial crime systems and other updates
On 6 May: FCA published a modification by consent and a direction to enable all solo-regulated firms to arrange for an unapproved senior manager to cover SMFs in an emergency, from the normal 12 weeks to 36 weeks, as...
Regulator Covid-19 update 1 May
On 1 May, FCA: announced proposals for a Court declaration on business interruption claims proposed guidance for insurers on assessing whether products still offer value and appropriate action to take where they do not...
PRA agrees time-limited SMF approval
PRA has agreed that an individual currently approved to the Chair role at four insurance entities within the Bank of Scotland/Lloyds Bank group (and an approved NED of the two banks pre-SMCR) may take on the SMF10 role...
Regulator Covid-19 update 22 April
On 22 April FCA published a new webpage on PII cover for financial advisers. It recognises that firms may be concerned about their ability to renew their PII during the Covid-19 crisis, which may impact on their...
Regulator Covid-19 update 21 April
FCA has updated its information page for firms, in respect of professional qualification exams. It notes that while professional exams are being cancelled, firms must still ensure employees have the skills, knowledge...
PRA updates on skilled persons reports
PRA has published details of the skilled persons reports it commissioned in Q3 2019/20. There were 8 in total, of which 3 related to technology and information management in banks, and 2 to controls and risk management...
Regulator Covid-19 update 17 April
In addition to FCA’s consultation on further measures to help consumers who have motor finance or high cost credit products, covering motor finance, rent-to-own, BNPL and pawnbroking and HCSTC, it has also updated...
Dear CEO Letter: SME Lending
The FCA published a Dear CEO Letter today setting out its expectations of Banks who lend to SMEs. Whilst SME lending sits mostly outside the FCA’s scope, the FCA has called out that any activity undertaken by a...