Emma RadmoreThe FSCB survey shows that, over the seven years since it started, firms have shown steady improvement overall in scores related to leadership, taking responsibility and speaking up and being open to challenge. ...
Category - Conduct
Principals to respond to AR requests by 28 February 2023
Following confirmation that it will be sending principal firms that have ARs a s165 information request in December, the FCA has updated its webpage to let firms know that they should expect to receive this via Connect...
Court finds mortgage adviser had no duty to investigate underlying investment
The High Court has ruled on a case brought by investment fraud victims in a clarification of mortgage advisers’ duties. The judgment in Taylor & Anor v Legal and General Partnership Services Ltd [2022] EWHC...
Nicola RadfordFurther FSMB revisions released
Parliament has published the latest raft of proposed amendments to the FSM Bill. These include: a change to the very first sub-clause, replacing the revocation of the EU and EU-derived legislation in the schedule so...
Emma RadmoreFCA publishes H1 complaints data
FCA has published the complaints data for H1 2022, which shows: a 1% increase in complaints from the previous period (1.88m complaints) the biggest increase was in the decumulation and pensions group (15%) with a 5%...
PRA fines MS Amlin for governance failings
PRA has fined MS Amlin Underwriting Limited nearly £10m for failings in its governance, controls and risk management. The failings lasted for over 5 years and related to the governance and oversight of underwriting...
First day of FSMB Committee hearing
As scheduled, the Public Bill Committee scrutinising the FSM Bill had its first day of scheduled evidence sessions on 19 October, and an updated amendment paper was published. The Committee heard in the morning from...
ASA finds HSBC sustainability-focused adverts misleading
The UK advertising watchdog, the ASA, held that HSBC misled consumers with two advertising posters, which were displayed in the run up to COP26, focused upon sustainability commitments. The posters made claims about the...
Ashley BorthwickLMA publishes managing agent Consumer Duty guidance
The LMA has published guidance for managing agents on the implementation of the Consumer Duty. It notes (as FCA did in its insurance-focussed webinar) that the insurance industry should be well prepared for the...
FSMB Committee stage timetable published
Following the announcement that the Committee stage in the Commons will begin on 19 October, a timetable for the sessions has now been published. Key witnesses scheduled to appear on that day include BoE, PRA, FCA and...
FSMB Committee stage scheduled for 19 October
An update to the Parliament website shows the Committee stage for the Financial Services and Markets Bill will start on 19 October. After the line by line debate is complete, the Bill will be republished for report...
FCA finalises branch closure guidance
FCA has published new, updated guidance for banks, setting additional expectations on them when they are considering closing branches or ATMs. FCA has seen some good practices develop since it originally published...
BoE consults on AI discussion paper
The BoE is consulting on its discussion paper about how artificial intelligence (AI) may affect financial regulation. The discussion paper looks at how the current regulatory framework applies to AI; it considers how...
FCA launches new webpage on Consumer Duty
The FCA has published a new webpage containing information on the Consumer Duty. The webpage, which will be kept up to date, currently contains guidance for firms on: implementation plans and the FCA’s...
Lucy HadrillMarket Watch focuses on transaction reporting
The latest edition of Market Watch looks at how many firms have accessed FCA’s Market Data Processor Entity Portal over the past 4 years – and there has been a gradual increase. There has however been a...
FCA consults on creating baseline financial resilience return
FCA is consulting on a proposed replacement for the Financial Resilience Survey. It plans to create a new return for solo-regulated firms, which it hopes will both reduce the burden of ad hoc surveys and increase the...
FCA speech: Consumer Duty
Sheldon Mills (Executive Director, Consumers and Competition at the FCA) has delivered a speech on what firms and customers can expect from the Consumer Duty. Mr Mills stressed that, whilst the Duty is not yet in force...
Consumer Duty: FCA update and events
The FCA has published a new webpage on Consumer Duty, which outs out the timeline and key milestones for implementation and contains links to register for FCA webinars and email updates. You can also register to attend...
FCA speaks on role of regulation in growth
Sarah Pritchard, Executive Director at FCA, has spoken on the regulator’s role in encouraging growth. Key points in her wide-ranging speech included: FCA’s commitment to showing speed and agility, providing...
FCA confirms SMCR Covid guidance no longer current
FCA has updated its website in relation to the SMCR to confirm that its Covid-related guidance on workplace arrangements and work-related travel and its expectations on firms is no longer current.
PRA’s future approach to policy
On 8 September 2022, PRA published its intended future approach to policy in a new discussion paper (the ‘paper’) which is summarised on the Bank of England’s website. The paper is based on the FSM...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation. It proposes changes to: the schemes regime under s272, and consequential changes to COLL, the Glossary, DEPP and EG. The changes specifically relate to what FCA...
FCA updates attestations stats
FCA has published details of the number of attestations it has received in the first quarter of 2022/3. It has received only 4, all in respect of retail business, and none from dedicated supervision firms. Over the...
PSR to regulate Sterling Fnality Payment System
HM Treasury has designated Sterling Fnality Payment System as a regulated payment system from 31 August 2022. Accordingly, PSR has confirmed that Sterling Fnality Payment System will be subject to PSR regulation from 31...
Harshil PatelThe future of Open Banking and the Joint Regulatory Oversight Committee
FCA, PSR, CMA and HM Treasury have published a joint statement on the future of open banking, announcing the creation of a joint regulatory oversight committee. The committee, co-chaired by the FCA’s Executive Director...
Consumer Duty: building an implementation plan
UK Finance has outlined four key elements firms should be focussing on when building their Consumer Duty implementation plans. These are: definition of the target end state as an input to the gap assessment – to define...
No further action against HBOS senior managers
PRA and FCA have finished their investigations into certain former senior managers at HBOS in relation to its 2008 failure. The regulators started the investigations in 2016 following the Green report on the scope of...
FCA to send AR requests in December
FCA has confirmed it will be sending principal firms that have appointed representatives a s165 information request in December. The request (which FCA had previously said it would issue later this year) will seek...
FCA to consult on SMCR enhanced scope coverage
FCA is to consult shortly on changes to clarify the scope of firms that fall within the scope of Enhanced Scope SMCR firms. When it renamed and moved the definition of “Significant IFPRU firm” as part of...
Clarity for lenders dealing with borrowers in distress
The Supreme Court has refused the Appellant’s application for permission to appeal against the Court of Appeal’s decision in Morley (t/a Morley Estates) (Appellant) v The Royal Bank of Scotland Plc...
PRA removes deposit taking permission from Sonali Bank
PRA has varied Sonali Bank’s permission so that it no longer has permission to accept deposits. The decision, published in a second supervisory notice, states that the firm is failing to meet the threshold...
FCA publishes “alternatives” supervisory letter
FCA has published its supervisory strategy letter for “alternatives” – that is firms that are predominantly active in the alternative investment sector. Although the letter, as usual, is addressed to...
Read our article on the new Consumer Duty
Following up on our headline post, we have written an article giving more detail on the Consumer Duty and highlighting some of the key changes since the FCA’s second consultation paper. The implementation deadline...
FCA confirms new AR rules
FCA has confirmed its new rules to make principal firms more responsible for their ARs. The package of rules, which will take effect from 8 December, will: require principals to notify FCA of future AR appointments 30...
FCA publishes 2022 “Dear Remco Chair” letter
FCA has updated its materials on SYSC 19D to include its “Dear Remuneration Chair” letter for 2022, which sets out its expectations as the Remuneration Committees determine the year’s remuneration...
EIOPA consults on governance arrangements in third countries
EIOPA has launched a public consultation relating to a draft supervisory statement on the use of governance arrangements in third countries. EIOPA’s aim with the supervisory statement is to enhance the supervision and...
Climate-related disclosures improve but could still be better
FRC and FCA have published two reports which found that premium listed companies have made significant steps forward in the quality of climate-related information provided in their financial reports, but further...
FCA says applicants must prove ability to comply with Consumer Duty
FCA has updated its website in relation to applications for authorisation in light of its publication of the final rules on the Consumer Duty. It now says that it expects all applicants for authorisation or VOPs to be...
Employee fairly dismissed for failing to disclose that he had been made bankrupt
We have commented on the recent Employment Appeal Tribunal (EAT) decision in Pubbi v Your-Move.co.uk [2022] EAT 96 in which an employee was dismissed for failing to disclose that he had been made redundant, following up...
Ben DuxburyNeed more detail on the Financial Services and Markets Bill?
We’ve produced a detailed summary of the key aspects of the Financial Services and Markets Bill, following up on our headline post. While the Bill won’t be having its second reading until September, keep an...
FCA publishes final rules on Consumer Duty
Following two consultations on its proposals, the FCA has confirmed its plans for a new Consumer Duty which will require firms to put their customers’ needs first. The FCA has a parliamentary mandate, via the...
CMA finds that six high street banks broke CMA banking rules
Six high street banks have broken rules imposed by the CMA under the Retail Banking Market Investigation Order 2017. Banks and building societies are required to follow strict rules when it comes to informing customers...
BoE and FCA accept transformation programme recommendations
BoE and FCA are leading a joint transformation programme with industry to transform data collection from the UK financial sector. They have published an initial set of recommendations from the programme and the response...
UK Government publishes proposals for a new AI rulebook
The UK Government has published its plans to regulate the use of AI which aim to to develop consistent rules that promote innovation. The approach is based on six core principles that regulators must apply, with...
New Financial Services and Markets Bill in Parliament
The Government has introduced the Financial Services and Markets Bill into Parliament. The Bill was introduced on 20 July and had its first reading, but no date was set for the second reading. In his first Mansion House...
FCA publishes Annual Report
FCA has published its Annual Report and supporting papers. It highlighted: how nearly 600,000 people are paying less in interest and charges on credit card debt following rule changes; how further rule changes have...
FCA’s CEO speaks on how the UK will regulate for the future
Nikhil Rathi, Chief Executive of the FCA, gave a speech on how it intends to regulate financial services for the future. A different regulator? He stressed that the FCA was: redesigning its operational platform to...
FSB reports on climate change roadmap
FSB has published its first annual progress report in the roadmap for addressing financial risks from climate change. FSB reported that good progress had been made against all four blocks of the roadmap: Firm-level...
PRA finds evidence that banks are reluctant to use their capital buffers
Victoria Saporta, Executive Director of Prudential Policy, gave a speech discussing banks’ reluctance to use their capital buffers. PRA requires UK banks to hold capital ‘buffers’, but the PRA has found evidence...
FCA responds to Treasury Committee on responsibilities regarding financial sanctions
FCA has written to the Treasury Committee to respond to questions regarding its financial sanctions responsibilities. FCA confirmed that its role was to ensure that regulated firms have appropriate systems and controls...
High Court finds that Robert Tchenguiz was correctly classified as an elective professional client and that there was no breach of COBS rules
Background Investor Robert Tchenguiz (T) had opened a spread betting account with CMC Spreadbet plc (CMC), and CMC had elected to treat T as a ‘professional client’. T’s classification as an elective...
FSB writes to G20 Finance Ministers and Central Bank Governors
FSB has written to the G20 Finance Ministers and Central Bank Governors highlighting that lower growth, rising inflation and tighter global financial conditions may crystallise pre-existing vulnerabilities in the global...
FCA publishes findings of SME collections and recoveries review
The FCA has set out the findings of its review on how retail banks treat SME customers who are in collections and recoveries. The FCA reviewed 11 retail banks which provide SME lending services, including BBLS, and...
FCA issues guidance on its approach to compromises
FCA has seen an increase in the number of regulated firms proposing compromises to deal with significant liabilities to consumers, in particular redress liabilities. FCA has issued guidance to clarify how it will...
FCA board discusses Consumer Duty
The FCA has published the minutes of a board meeting held on 26 May 2022 at which, amongst other items, the board discussed the new Consumer Duty. Highlights include: feedback from external stakeholders on the proposed...
Joint Statement issued by the Russian Elites, Proxies, and Oligarchs Task Force
The Russian Elites, Proxies, and Oligarchs (REPO) Task Force has released a joint statement outlining how they have been able to isolate sanctioned Russians by freezing, seizure, forfeiture and/or disposal of assets...
FIN. TeamPRA consults on model risk management principles for banks
PRA has issued a consultation which proposes that all firms adopt five proposed principles to establish an effective model risk management (MRM) framework. The five proposed principles are: Model identification and...
FCA update on market abuse and manipulation
Tackling market abuse is one of the FCA’s strategic priorities. Given recent press reports about the FCA’s approach, the FCA outlined the work it does to tackle insider trading and manipulation and to warn...
Eurogroup issues statement on the future of the Banking Union
Since its creation in 2014, the Banking Union has made significant progress on an EU single rulebook, concerning the establishment of a new European architecture for supervision and resolution, and on reducing risks. In...
Upper Tribunal confirms compensation and validation possible for credit breaches
In its recent decision, the Upper Tribunal drew a distinction between the compensation regime available to consumers under section 28(2) of FSMA and the enforceability of a regulated credit agreement under section 28(3)...
OFSI updates sanctions enforcement guidance
OFSI has updated its guidance on sanctions enforcement and monetary penalties, which will take effect from 15 June 2022. The changes reflect the amendments to enforcement powers created in the Economic Crime...
Treasury to introduce service provider “critical third party” regime
Treasury has been working with BoE, PRA, FCA and other stakeholders to develop a proposal to protect against the failure of key service providers. Over recent years, firms have become increasingly reliant on key service...
FCA to act to prevent CMC phoenixing
New rules being introduced by the FCA will prohibit CMCs from carrying out regulated claims management activity in certain circumstances on claims or potential claims to the FSCS, where the CMCs have relevant...
CMA publishes report on lessons learned review of Open Banking remedy
On 27 May 2022, the CMA published the final report of an independent review of the “lessons learned” review of the Open Banking remedy, which is part of the package of remedies introduced following the...
FCA fines and bans firms and individuals over pensions advice
FCA has issued final notices to two firms in relation to their pension advice business and misleading the FCA. The fact pattern for both firms was similar, involving their use of a Pension Review and Advice Process...
FCA refuses to authorise compliance firm to operate investment network
The FCA has refused to authorise Alexander Jon Compliance Consulting Limited (AJCC) to provide regulatory hosting services. AJCC applied to take responsibility for appointed representatives (ARs) carrying out regulated...
TPT launches consultation on climate transition plans
The Transition Plan Taskforce (TPT) has launched a call for evidence on a sector-neutral framework for private sector transition plans. The framework will inform UK regulations for certain financial sector firms and...
FCA bans 5 directors for causing losses to pension customers
The FCA has banned five directors of financial advice firms from working in financial services, after they caused significant losses to pension customers. The bans, and fines of over £1m, follow findings by the Upper...
ESMA issues recommendations to improve investor protection
ESMA published its final report to enable investors to get the key information required to make well-informed investment decisions both quickly and easily, whilst also protecting them from aggressive marketing...
FCA publishes H1 2022 complaints data
FCA has published its H1 2022 complaints data. In 2021 H2, financial services firms received 1.84m complaints, 10% lower than in 2021 H1 (2.04m). This is the lowest level recorded since 2016 H2. The insurance and pure...
FCA speech on critical issues in financial regulation
On 26 April 2022, the FCA published a speech given by Nikhil Rathi, FCA Chief Executive, on the FCA’s view of critical issues in financial regulation. Mr Rathi sets out the challenges and opportunities confronting...
PRA updates on capital arbitrage transactions approach
The PRA has issued a statement acknowledging that some PRA-regulated firms have conducted (or may be considering doing so) deficit reduction transactions with their defined benefit pension schemes that are structured to...
FCA publishes thematic review on wind-down planning
FCA has published its thematic review looking at wind-down planning across different business models, with a focus on liquidity needs during wind-down, intra-group dependencies and wind-down triggers. It has reiterated...
FCA fines asset manager and former investment director
FCA has fined GAM International Management Limited £9m, and its former Investment Director and Business Unit Head Timothy Haywood £230,000 following failure to conduct business with due care and attention, and failure...
FCA consults on update to electronic reporting under DTR
FCA currently allows issuers to use, among other taxonomies, the UK Single Electronic Format (UKSEF) 2022 taxonomy from the Financial Reporting Council (FRC) to mark up their annual financial statements within the...
CMA makes recommendations for the future oversight of Open Banking
The CMA launched a public consultation on the future oversight of Open Banking in March 2021, and has now published the responses to that consultation. CMA’s recommendations are that the future entity should: have...
FCA publishes operational resilience insights for insurance firms
On 29 March 2021, the FCA, together with the BoE and PRA, published a shared policy statement on requirements to strengthen operational resilience in the financial services sector. The rules and guidance will come into...
FCA updates on operational and cyber resilience following Russian invasion
The FCA has published some pointers that firms should consider regarding operational and cyber resilience following Russia’s invasion of Ukraine. Firms are advised to consider the following: the firm’s ability...
Regulators remind firms of crypto risks
PRA and FCA have written to firms reminding them of their obligations when interacting with or exposed to crypto-assets and related services. FCA reminds firms that crypto can offer benefits but also increased risk to...
EBA finds AML and CFT supervision of banks is improving
EBA published the findings from its assessment of competent authorities’ approaches to AML and CFT supervision of banks. Since the EBA started its reviews in 2019 and strengthened its AML/CFT guidance, national...
Treasury and FCA discuss regulatory perimeter
The government has published a summary of the 15 December 2021 meeting between John Glen and Nikhil Rathi in which they discussed FCA’s Perimeter Report (published 21 October 2021). The meeting focussed the topics...
European Commission adopts RTS on disclosure of firms’ investment policy under the IFR
Following the EBA’s publication of draft RTS last year, the European Commission has now adopted a Delegated Regulation containing RTS on the disclosure of firms’ investment policy under the IFR. Article 52...
FCA consults on miscellaneous rule changes
FCA’s latest quarterly consultation covers: proposed changes to PERG in respect of the MiFID 2 ancillary activities test; making collective investment portfolio managers subject to the same research and inducement...
FCA fines Barclays over collapsed payment firm oversight
FCA has fined Barclays £783,800 for oversight failings in its relationship with Premier FX, a payments firm which is in liquidation. Barclays was Premier’s sole UK banker. FCA found that Barclays failed to make...
Employment tribunal orders reinstatement of dismissed trader
An employment tribunal has determined an application for reinstatement in Bradley Jones v JP Morgan Securities plc in favour of the applicant. Mr Jones was a financial analyst and cash equities trader employed by JPM...
Treasury Committee hears from financial regulators
As part of its inquiry into the Future of Financial Services post-Brexit, the Treasury Committee held a session on Monday 21st February with representatives from the PRA, FCA and the Bank of England. The aim of the...
Tribunal upholds FCA’s Decision Notice
HMCTS (Tribunal) has dismissed two applications made by an applicant against the Financial Conduct Authority (FCA). The FCA had given a Decision Notice to Przemyslaw Soszynski t/a Phenix Consultancy (Applicant) refusing...
UK Finance publishes response on Consumer Duty
UK Finance has published its response to the FCA’s second consultation on proposals for a new Consumer Duty. UK Finance welcomes the changes FCA has made since its first consultation (in particular dropping the...
CMA writes to Tesco Bank acknowledging action taken to end breach
The CMA has written to Tesco Bank acknowledging the steps it has taken to end the breach of the Private Motor Insurance Market Investigation Order 2015 (the Order). Article 3 of the Order requires that any additional...
FCA publishes guidance on competency and capability
The FCA has added a webpage to its website explaining the competency and capability requirements of heads of compliance and MLROs as SMF holders under the SMCR regime. The FCA notes that firms should carefully consider...
Emma BondRegulators publish Wider Implications Framework
FOS, FCA, FSCS, TPR and MaPS (the Members) have jointly published a formal agreement for collaboration on matters of common interest: the Wider Implications Framework. The Framework establishes a structure to enable...
FCA proposes guidance for firms seeking to limit their liabilities
The FCA has identified an increase in firms developing proposals, such as Schemes of Arrangements, to deal with significant liabilities to consumers. This is particularly so in relation to redress liabilities. In...
FCA publishes new MIFIDPRU webpage
FCA has published a new webpage on how the MIFIDPRU Remuneration Code (SYSC 19G) applies to MIFIDPRU Investment firms. The webpage gives an overview of the Code and provides information on proportionality, performance...
FCA updates on skilled persons reviews
FCA has published the figures for the skilled persons reviews commissioned in October – December 2021. There were 12 in total, of which 4 were on retail banking and payments firms and 3 on investment management...
FCA to redo financial resilience survey
Firms should look out for a new version of the FCA Covid financial resilience survey. It has already run the survey 5 times and will now start a 6th review. Completion of the survey is mandatory, and FCA will be...
Check out our new and improved regulatory timeline
In conjunction with the FIN. blog, we have launched our new and improved horizon scanning tool over on the Womble Bond Dickinson website. Our timeline highlights key regulatory deadlines, legislation and insights...
PRA fines Standard Chartered for governance and transparency failings
PRA has fined Standard Chartered Bank £46.55m for: failings in its regulatory reporting governance and controls: PRA had imposed a temporary additional liquidity expectation on the bank in late 2017. Over a 14 month...
FCA updates on rule changes
FCA’s latest Handbook Notice confirms, among other things: changes to SUP to clarify what FCA expects to see reported on form FIN-A changes to LIBOR rules (previously reported in FIN) and changes to the value...
PRA publishes policy statement on identification of MRTs
The PRA has published a policy statement (PS28/21) on the identification of material risk takers (MRTs) for the purposes of its remuneration regime. Following the feedback received on its proposals, the PRA has: made a...
BoE publishes inventory of senior manager responsibilities
The Bank of England (BoE) has published an inventory of senior manager responsibilities. This publication follows feedback on the BoE’s ‘Evaluation of the Senior Managers and Certification Regime...
Court finds no breach of COBS Rules by spread betting firm
The High Court has ruled on an application for, amongst other things, damages for alleged breaches of the COBS 2.1 (Client’s Best Interests) and COBS 11.2.1 (Best Execution). The Claimant had opened an Account...
FCA and PRA publish dear CEO letter to global equity finance businesses
The PRA and FCA have jointly published a Dear CEO letter regarding the supervisory exercise which they undertook following the default of Archegos Capital Management. The default resulted in over $10 billion of reported...
FCA publishes second consultation on Consumer Duty
Following its initial consultation in Q2 this year (CP21/13), the FCA has set out the responses it received and has published a second consultation on its plans for a new Consumer Duty (CP21/36). The FCA received 235...
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