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PRA makes fees rules

Following on from FCA’s confirmation of its fees and levies for 2020/21, PRA has now made its policy statement. It made no changes to its proposals, and has now published the necessary rule changes which take...

FCA serves BI insurance Reply

FCA has published its Reply and defence to Counterclaims to the Defences of the insurers in its Business Interruption Insurance test case, as well as its amended Particulars of Claim, the judgment from the first Case...

Up next from FCA

Over the rest of 2020, FCA plans the following: consultations on mortgage borrowing and mortgage prisoners (now overdue), debt advice levy rates and exist fees in investment platforms (Summer 2020) and on financial...

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 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...

EIOPA updates on stress testing

EIOPA has published a further discussion paper on the methodological principles of insurance stress testing.  Following its first paper, last year, it is now planning to add some new elements to its stress test toolbox...

FCA publishes defences in BI test case

FCA’s latest update on its business interruption insurance test case: published the sealed Court Order from the Case Management Conference on 16 June; published the Defences of the defendants to the test case...

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...

PRA writes to insurers on 2019 stress test

PRA has written a Dear CEO letter to firms participating in the 2019 Insurance Stress Test. The letter covers: Covid-19 resilience: tests showed the sector was robust to downside stresses, with the highest uncertainty...

FCA updates on BI insurance test case

FCA has published a new set of documents relating to the test case it is bringing to get clarity on the coverage of business interruption insurance during the Covid-19 crisis. It has on 10 June (today) announced that it...

ESRB gives guidance on distributions

The BoE and PRA have acknowledged the ESRB recommendations on the restriction of distributions during Covid-19.  They note the recommendation will apply to the UK throughout the Transition period, and also note that...

Up next from FCA

FCA’s latest Policy Development Update highlights the following publications due over the next few months: CP on marketing speculative illiquid securities to retail investors (including speculative mini-bonds); CP...

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...

FOS publishes 2019/20 data

FOS has published details of the complaints it received and dealt with in 2019/2020.  It received around 270,000 complaints and dealt with nearly 300,000, with the Ombudsman making nearly 30,000 decisions.  As ever, the...

Compulsory FCA survey coming to firms

FCA is to send a survey by email with a link to 13,000 solo regulated firms,  aimed to helping FCA understand the impact of Covid 19 on regulated firms and their financial resilience, where the greatest impacts are for...

Full details on BI case progress

We have now written a detailed article on the progress in FCA’s Business Interruption insurance test case, including summaries of FCA’s draft guidance, and its selection of polices, wordings and assumed...

FCA updates on BI test case

FCA has updated on its progress towards its test court case on business interruption insurance policies.  It has now reviewed around 500 policies from 40 insurers, and has identified 17 policy wordings that capture most...

Green guide for supervisors

The Network for Greening the Financial System has published a guide for central banks and supervisors, looking at how financial institutions have worked with green, non-green and brown financial assets, and how...

PRA updates on ISPV supervision

PRA has updated on authorisation and supervision of insurance SPVs following consultation, and has published updated rules, an updated supervisory statement and an updated multi-arrangement insurance SPV new risk...

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 updates on Innovation Hub help

FCA has updated its information on requesting Innovation Hub support in light of Covid-19. It wants to hear from firms who have creative and innovative solutions to the challenges the virus is posing, and is...

FCA updates on Covid-19 and complaints

FCA has updated its webpage on  how firms should be handling consumers’ complaints during Covid-19. The page explains that FCA has asked firms to prioritise making payments where consumers have accepted offers or...

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...

Government sets out equivalence views

John Glen has written to the Chair of the European Scrutiny Committee explaining the Government’s stance on equivalence in financial services.  The Government cannot provide great detail given the early stage of...

Up next from FCA

Unsurprisingly, FCA’s recent publications have almost exclusively focused on Covid-19. However, in BAU, it still proposes: a consultation on exit fees on investment platforms and comparable firms over the summer;...

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...

UK and Switzerland work to strengthen ties

Economiesuisse and The CityUK have been working on a joint position paper setting out how to strengthen the countries’ relationship in the time of coronavirus and in the future. In terms of financial services, the...

Regulator Covid-19 update 23 April

On 23 April: PRA followed up on its letter to insurers, noting that all insurers should consider carefully the previous letter and guidance on use of unrated assets and assessments of creditworthiness, and the...

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...

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...

FCA publishes complaints figures for H2 2019

The FCA has today published the complaints figures for regulated firms for the second half of 2019. The data showed an increase in complaints from 4.29m in the first half of 2019 to 6.02m in the second half of 2019. In...

FOS updates on Covid-19 activities

The latest edition of Ombudsman News focuses on: how it is working to help complainants during the Covid-19 crisis, including on how it has changed its helpline hours – for which it apologises but asks that it...

PRA publishes Business Plan

PRA has published its Business Plan for 2020/21.  Like FCA, PRA comments that Covid-19 has made it reassess its plans and reprioritise its work, and it will continue to assess the effects of the outbreak on its actions...

PRA consults on fees

PRA has published its consultation on fees and levies for 2020/21. The consultation covers: the fee rates to meet the Annual Funding Requirement, which has increased by 8% from the current year, primarily because of...

Regulator Covid-19 Update 8 April

On 8 April: PRA welcomed the decision by some insurance companies to pause dividends. The decisions followed PRA’s letter of 31 March; PRA’s credit union supervision team wrote to firms explaining...

FCA consults on fees

FCA has published its fees and levies proposals for 2020/2021.  Covid-19 has affected FCA’s plans, and it is taking action to protect small and medium sized firms from the burden of regulatory fees.  Comments are...

Regulator Covid-19 Update 7 April

Regulatory fatigue may be starting to set in, as there were fewer regulatory announcements directly consequent on Covid-19 on 7 April. FCA made its rules on deferring commencement of various handbook provisions on...

FCA Business Plan 20/21

The FCA published its business plan for the coming year this morning.  The plan focuses around 5 key priorities for the year.  It has been significantly reshaped because of coronavirus as it was intended to show the...

Regulator Covid-19 Update 6 April

On 6 April, the regulators further update their Covid-19 measures: FCA updated its expectations on solo-regulated firms in respect of the SMCR; FCA published a summary of queries it has received on client assets...

Regulator Covid-19 update 3 April

On 3 April: PRA and FCA updated dual-regulated firms on how their should deal with furloughing and compliance with the SMCR; EBA published guidelines on the criteria for public and private moratoria applied before 30...

Regulator Covid-19 Update 2 April

On 2 April, the main regulatory initiative was FCA’s emergency consultation on consumer protection measures in the regulated lending markets.  Also: PRA and Treasury confirmed the delay of Basel 3.1 by one year...

Regulator Covid-19 update 1 April

Further updates from the regulators, in addition to FCA’s Dear CEO letter to retail investment firms, include: PRA welcoming the agreement by the boards of large UK banks to suspend dividends and buybacks on...

Lords calls for UK/EU cooperation

The House of Lords EU Financial Affairs Committee has written to Rishi Sunak urging the government to set up a structured dialogue with the EU that will support cross-border financial services.  It wants: to minimise...

Regulator Covid-19 Update 26 March

On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...

Government confirms extension of TTP

In a statement to Parliament, Lord Agnew of Oulton, the Minister of State, has noted a statement from Treasury that it expects “in general” the same laws and rules to apply as the transition period ends, it...

Covid-19 regulator update 24 March

Late on 23 and on 24 March: PRA announced amendments to regulatory reporting for insurers in response to EIOPA’s recommendations. There will be between 2-8 weeks’ delay for most aspects of harmonised...

EIOPA takes Covid-19 action

EIOPA has set out its expectations on insurers as they try to manage the risks Covid-19 presents. Its key messages are: the importance of business continuity. It says regulators can help by being flexible on supervisory...

FCA issues Covid-19 guidance for consumers

The FCA has explained that is working closely with the Government, the Bank of England, the Payment Systems Regulator and firms to ensure markets continue to work well for consumers. This includes making regular contact...

EU writes to Chancellor on equivalence

Valdis Dombrovskis has written to Rishi Sunak on equivalence assessments. The letter merely notes that both sides should start to assess equivalence as soon as possible, on the basis of the Political Declaration, with a...

FOS looks at insurance coverage

FOS’s latest Ombudsman News looks at: coronavirus: so far, FOS has not seen many complaints on the impact of the virus, but expects it will see more complaints particularly in relation to travel insurance, medical...

Treasury feeds back on pre-paid funeral plans

Treasury has published the outcome of its consultation on pre-paid funeral plans. Respondents to its consultation were concerned at current consumer detriment, and called for compulsory regulation for the sector. The...

Treasury consults on UK/Gibraltar FS access

Treasury is consulting on the post-Brexit market access arrangements between the UK and Gibraltar. Constitutionally, Gibraltar is an Overseas Territory with internal self-government. Responsibility for financial...

PRA writes to chairs on board diversity

PRA has written to the chairs of dual regulated firms reinforcing the importance it places on diversity within boards for improving decision making and providing effective challenge. It reminds firms it expects them to...

EIOPA speaks on digital finance risks

Fausto Parente, EIOPA executive director, has spoken on managing the risks of digital finance in cyber underwriting.  He spoke of the value of data to insurers in enabling them to customise customer products, but the...

ECB Speech: Climate Change in FS

Christine Lagarde made a speech on climate change and the financial sector on 27 February 2020.  Christine identified both the threat and significant opportunity caused by climate change. She urged central banks to...

More UK/EU policies revealed

The Government has published a policy paper on its approach to the future relationship with the EU. It sets out the Government’s suite of proposals, based around the desire for a comprehensive Free Trade...

Dormant Assets Scheme Consultation

This morning, HM Treasury published a consultation document setting out its proposals for expanding the dormant assets scheme. The consultation discusses the background to the current scheme and then sets out proposals...

FSB priorities published

The FSB published a letter addressed to all G20 Finance Ministers and Central Bank Governors on 18 February 2020. The letter sets out the areas that the FSB are focusing their efforts on.  All of the measures are to...

Financial services after Brexit updates

The EU Financial Affairs Sub-committee has opened an inquiry into financial services after Brexit and has been taking evidence. Most recently it has been questioning the BoE and FCA.  They largely discussed the key...

FCA publishes annual sector views

The FCA has just published its annual sector views report which comprises a state of the nation in terms of the financial services industry. The report sets out the drivers for change in each financial services sector...

EP publishes negotiating mandate with UK

The European Parliament has published its proposed mandate for a new partnership with the UK.  The declaration acknowledges that the “close relationship” that will subsist and which, according to the...