Emma RadmoreFCA plans a number of important publications during Q1 2020 including: consultation on exit fees in investment platforms and comparable firms potential policy statement on general insurance value reporting measures and...
Category - Insurance
Jonathan DrakeFCA writes to insurance CEOs on non-financial misconduct
FCA has written to the CEOs of wholesale general insurance firms reminding them of the importance of high standards of culture and conduct throughout their business. It expects CEOs to identify what drives behaviour...
Amy Rose-McMullenQueen’s Speech highlights Brexit free trade hopes
The Queen’s Speech, as expected, highlighted Brexit, noting the priority to deliver it on 31 January, and thereafter to seek a free trade agreement with the EU and other leading global economies. The accompanying...
EVENT: Retail Banking Mixer
Bringing together professionals in the insurance, banking and other financial services sectors, we will be hosting the first of our quarterly RETAIL BANKING MIXERS at our Edinburgh office on 9th January from 4pm –...
Caroline StevensonEurope reaches agreement on ‘green taxonomy’ regulation
Negotiations between the European Parliament and Council have reached agreement on environmental objectives for determining the sustainability of an economic activity. The Commission proposal for a ‘taxonomy...
Rachael PrestonFCA calls for input on open finance
FCA has launched a Call for Input on Open Finance. The concept builds on the principles of open banking and extends it to a wider range of products. FCA has a vision that open finance will allow consumers and...
Jonny WilliamsFCA fines CMC for misleading communications
FCA has published its first fine since taking over regulation of Claims Management Companies. It has fined Professional Personal Claims Limited £70,000 for misleading customers through its website and printed materials...
FOS consults on plans and budget
FOS has published its consultation on its strategic plans and budget for 2020/2021. Next year, it expects to receive 245,000 complaints and resolve 290,000 (just under half in each case relating to PPI). It expects to...
EIOPA proposes Guidelines for ICT security and governance
In the context of the increasing complexity of ICT and frequency of cyber incidents with a material detrimental impact on operations, EIOPA has published a consultation paper on proposed Guidelines on Information and...
Roseyna JahangirExtension of the Senior Managers and Certification Regime comes into force
The FCA has extended the Senior Managers and Certification Regime (SM&CR) to solo-regulated firms, including senior managers and certification staff in those firms. The SM&CR already applies to the banking and...
Up next from FCA
FCA’s latest Policy Development Update indicates several key publications scheduled for Q1 2020, including: potential policy statement on general insurance value measures reporting; consultation or discussion...
Regulators develop work on Operational Resilience
The BoE, the PRA and the FCA have developed a joint policy summary setting out new requirements for operational resilience for regulated firms and financial market infrastructures (FMI). The work is spearheaded by...
PRA to modernise outsourcing and risk management expectations
In the light of the development of various European Guidelines regarding outsourcing requirements, as well as recent practical ‘failures’ such as IT systems going down, the PRA is consulting on proposals to...
Mark Carney named UN’s Special Envoy for Climate Action and Finance
On 1 December 2019 the United Nations Secretary-General António Guterres announced the appointment of the Governor of the Bank of England, Mark Carney, as UN Special Envoy for Climate Action and Finance. Mark Carney...
FCA publishes IDD general good table
FCA has published on its website the IDD “general good” rules that apply to incoming firms. The table refers to the existing guidance in SUP 13A Annex 1, and notes that many parts of FCA’s rules apply...
FCA publishes ‘approving financial promotions’ webpage
In the light of its new temporary restrictions on the financial promotion of ‘mini-bonds’, the FCA has provided guidance for firms approving the financial promotions of unauthorised persons. The new page on...
Financial Inclusion
On Tuesday night, we hosted our first ever Talking Money event in partnership with the Scotsman newspaper in our Edinburgh office. The event focused on the topic of tackling financial exclusion in Scotland. The...
FCA publishes GI distribution chain guidance
FCA has published its finalised guidance for general insurance product manufacturers and distributors on the distribution chain. The guidance follows the findings from FCA’s thematic review in 2017 and 2018, and...
PRA tells GI firms of focus areas
The PRA has published a ‘Dear CEO’ letter detailing the PRA’s priority areas of supervisory focus for general insurance firms. These include: Reserve adequacy and associated reserving governance and...
PRA publishes feedback on reserving reviews
The PRA has published a ‘Dear Chief Actuary’ letter following its review of firms’ reserving during 2019. The letter contains feedback from the PRA’s reviews which included work on casualty...
FCA confirms TPR extension
FCA has confirmed that: firms no longer need to implement their Brexit emergency plans for 31 October; and the TPR window will be open for notifications from fund managers until 15 January 2020 to let FCA know if they...
FCA speaks on future of regulation
Nausicaa Delfas spoke on the future of UK financial regulation post-Brexit. She said FCA continued to prepare for Brexit, whatever form it takes and whenever it happens, and referenced its preparations for a no-deal...
EBA recommends enhanced online disclosure requirements
The EBA has issued an Opinion directed to the EC, setting out recommendations to revise the scope and consistency of disclosure requirements in EU law to take account of the increasing use of digital marketing channels...
FCA outlines five steps to drive the future of regulation
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, recently spoke about the FCA’s thoughts on how it approaches the future of regulation. He commented that the FCA will be issuing an...
ESMA to examine reporting issues in annual financial reports
ESMA has set out the matters it will prioritise when looking at the 2019 annual financial reports of listed companies. Among the specific areas of focus, ESMA has underlined the importance of the inclusion of...
ESAs consult on changes to PRIIPs KID Regulation
The EBA, EIOPA and ESMA have published a joint consultation on proposed amendments to the PRIIPs Delegated Regulation. The proposed measures are intended to, allow the appropriate application of the PRIIPs KID by UCITS...
EU and Japan hold first joint financial regulatory forum
The Joint EU-Japan financial regulatory forum has held its inaugural meeting. Topics covered at the meeting included: the regulatory cooperation framework under the Japan-EU Economic Partnership Agreement, and the...
FCA publishes feedback statement on climate change disclosures
The FCA has published its proposals for its future work on climate change and green finance, following responses to its Discussion Paper in 2018 . In its work, the FCA will be focusing on three outcomes: Issuers provide...
FCA updates change in control pages
FCA has updated its guidance on how to submit an application for change in control. The page now includes useful tips on what FCA needs to know to deal with the application quickly, and links to all the required forms.
FCA provides Brexit preparations update for firms
The FCA has published an update on the steps firms will be expected to take in the event that there is a hard Brexit. In particular, the FCA reminds EEA passporting firms of the need to notify the FCA by 30 October if...
Queen’s Speech suggests post-Brexit FS Bill
Among the list of legislative proposals referred to in the Queen’s Speech is laws that will provide “certainty, stability and new opportunities” for the financial services sector through a Financial...
Government responds on regulatory perimeter
The Government has published its response to the Treasury Committee’s report on the regulatory perimeter and how it could be refined and should be policed. The report had criticised the lack of a formal system for...
EIOPA publishes thematic review of, and warning to, travel insurance market
EIOPA has concluded a thematic review focusing on travel insurance products, in particular with a view to identifying sources of potential conduct risk and consumer detriment. The key findings of its review included:...
BoE to stress test for climate change risks
The Governor of the BoE addressed the inaugural Task Force on Climate-related Financial Disclosures (TCFD) summit in Tokyo yesterday. In his speech, Mr Carney warned of the growing challenges climate change brings, and...
Government publishes No-Deal Readiness Report
The Government has published its “No-Deal Readiness Report” detailing the UK’s preparedness ahead of Brexit on 31 October. The Report contains a section on financial services which, amongst other...
FCA publishes insurance pricing report
The FCA published its interim report of its market study into the pricing of home and motor insurance on 4 October. The report sets out the FCA’s initial findings and possible remedies to tackle the issues...
Up next from FCA
FCA’s latest Policy Development Update heralds the following publications before the end of the year: consultation on investment platforms market study remedies; policy statement on OPBAS fees; consultation on...
Guidance on unfair consumer terms Directive
The European Commission (the “Commission”) has issued guidance on the interpretation and application of Council Directive 93/13/EEC on unfair terms in consumer contracts (“UCTD”) The Commission...
ESAs Joint Committee defines its priorities for 2020
The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA) (collectively “ESA”) has published its 2020 Work Programme setting out its strategy in the areas of cross-sectoral risk...
PRA strengthens individual accountability expectations
The PRA has published PS20/19, ‘Strengthening individual accountability: resolution assessments and reporting amendments’. This Policy Statement sets out: feedback to responses to CP 12/19, ‘Strengthening...
EC sustainable finance classification system to be developed
The Council of the European Union has agreed a position on the proposed EU-wide sustainable finance taxonomy regulation. This would develop a common language for assessing what economic activities can be considered...
FCA announces next steps for unit-linked funds
FCA has published its findings and next steps on its review of governance practices covering unit-linked funds. It notes that its Asset Management Market Study found asset managers were not good enough at considering...
Barry StimpsonIndustry associations raise concerns about timetable for sustainability disclosures
A group of European industry associations have written to the European Commission raising concerns about the timing for implementation of the Regulation on disclosures relating to sustainable investments and...
PRA consults on SII Prudent Persons Principle
The PRA has published a Consultation in relation to the Solvency II Prudent Persons Principle. This sets out the PRA’s proposed expectations for investment by firms in accordance with the Prudent Person Principle...
EIOPA publishes evaluation of Cyber Risk for Insurers
EIOPA has published the findings of its study of the cyber insurance market, covering both cybersecurity challenges and cyber underwriting practices. To produce its report, EIOPA surveyed 41 large (re)insurance groups...
FCA updates on Brexit preparations
In a recent speech, Andrew Bailey, the chief executive of the FCA, provided an update on the FCA’s state of preparation for Brexit, and in particular for a no-deal, no-transition Brexit scenario. However, while Mr...
No more ink? Law Commission confirms validity of electronic signatures
A Law Commission report confirms that electronic signatures can be used to execute documents as an alternative to wet ink signatures in most circumstances. There are some important exceptions and the report only relates...
Suzanne GadoFCA offers Brexit help
FCA has set up a dedicated phone line for firms needing to ensure they are prepared for a no-deal Brexit, and also worked to signpost all its online resources. It expects firms to have planned properly for it. It notes...
FCA updates on consultations and feedback
The latest Policy Development Update highlights a number of papers due before the end of 2019: feedback on the investment platforms market study remedies; policy proposals on regulatory fees and levies; permitted links...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation covers a number of minor changes to the rules that will be made only if there is a no-deal Brexit on 31 October, and also other miscellaneous amendments including: minor...
EC calls for action with publication of no-deal Brexit checklist
The EC is urging EU businesses and citizens to consider whether they are prepared for the UK leaving the UK on ‘no-deal’ terms on 31 October, reminding them in this scenario there will be no transition...
PRA consults on updates to ISPVs authorisation and supervision approach
The PRA is consulting on changes to certain aspects in its approach to the authorisation and supervision of ISPVs, in the light of experience gained of operating the regime since its introduction. The proposed changes...
Big Data Analytics consultation by IAIS
The IAIS has published a draft issues paper on the use of Big Data Analytics in Insurance. The draft issues paper focuses on potential benefits and risks to consumers of the use of personal and other data by insurers...
CMA takes action over PPI reminder failures
CMA has ordered RBS and Santander to take remedial action after they did not send, or sent inaccurate annual PPI reminders to customers. The banks must now appoint independent bodies to audit their PPI processes and put...
FCA updates skilled persons statistics
FCA has released the figures for skilled persons reports it commissioned in Q1 2019/20. It commissioned 9 reports in total – of which 3 related to each of retail lending and wholesale financial markets, 2 to...
Up next from FCA
The latest version of FCA’s Policy Development Update highlights: expected feedback on Investment Platforms Market Study Remedies by the end of the year; potential policy statement on general insurance value...
ABI updates guidelines addressing customers with criminal convictions
The ABI has published updated guidelines aimed at helping insurers ensure they are treating fairly customers who have convictions or related offences. The existing guidelines have been reviewed to take account of...
Publication of AG Opinion on consequence of removing unfair terms in consumer contracts
The European Court of Justice has published the AG’s Opinion in a case concerning the effect of a declaration of unfair terms for the purposes of the Unfair Contract Terms Directive (in UK law as the Consumer...
EC sets out position statement on equivalence decisions
The EC has published a communication about equivalence decisions (the timing of which is no doubt entirely unrelated to the ascension of pro-Brexit Boris Johnson to the Prime Ministership of the UK). The communication...
FCA publishes SMCR final rules
FCA has at last published its final rules on extending the SMCR to solo-regulated firms, including CMCs. It has, in the main, implemented the changes it consulted on in its consultation on “optimising” the...
Regulators tweak exit arrangement rules
FCA has announced an extension to the directions made under its temporary transitional power which it introduced in February. The direction will now give firms until 31 December 2020 to make the necessary adjustments...
‘General good’ report published by EIOPA
EIOPA has conducted a review of the approaches of NCA to ‘greater good’ rules. The findings of the report included the assessment that divergence between Member States in relation to, in particular, the...
PRA consults on group own funds for insurance firms
The PRA is consulting on its approach to the determination of the availability of subordinated liabilities and preference shares in group own funds under Solvency II. Views on the PRA’s statements regarding...
Commission adopts unfair terms guidance
The European Commission has adopted a guidance note on the Unfair Contract Terms Directive. The note covers: the objectives and scope of the directive; key terminology such as “supplier” and...
EIOPA discussion paper on insurance stress testing
EIOPA is inviting views from stakeholders on the methodological principles of insurance stress testing. The discussion paper considers aspects of stress tests such as: process and objectives; scope scenario design; and...
Updated FCA and PRA MoU published
The FCA and the PRA have updated the MoU setting out the relationship between the two regulators and the way in which they respectively operate, particularly in common areas. The MoU was first published at the time of...
FCA fines Standard Life for non-advised sales failings
FCA has fined Standard Life Assurance Limited £30,792,500. The fine relates to non-advised sales of annuities, and sales practices over nearly 8 years. Although the sales were non-advised, FCA found that the firm...
FCA publishes feedback statement on fair pricing
In the context of ongoing work by both the FCA and CMA on fair pricing and loyalty penalties, the FCA has published a feedback statement setting out a framework for how it will evaluate the fairness of a given pricing...
FCA to help travel insurance customers with pre-existing medical conditions
The FCA has launched a consultation on a new ‘signposting’ rule, aimed at helping customers with pre-existing medical conditions (PEMC) purchase travel insurance. The rule would specify circumstances in...
FCA discusses AI in financial services
In a recent speech, Christopher Woolard of the FCA considered three lenses through which the FCA views the issues relating to AI: what are new, and what are existing issues; how to ensure that AI creates value for...
FCA invites feedback on Gabriel replacement
The FCA has announced that it is planning a replacement for Gabriel, its data collection system. It has therefore asked current Gabriel users to complete a feedback survey to provide views that can be considered in the...
The Government responds to the Treasury Committee Report on Consumers’ Access to Financial Services
The Government’s response to the Treasury Committee report was published on 11th July. The document sets out the Government’s response to each of the report’s conclusions and recommendations. The key...
ESA evaluates cross-border supervision of retail financial services
A report published by the Joint Committee of European Supervisory Authorities, ie the EBA, ESMA and EIOPA, has reviewed the current landscape of cross-border supervision, in particular in the light of the regulatory...
BEIS review of Consumer Contracts (Information, Cancellation and Additional Charges) Regulations
The Department of Business, Energy and Industrial Strategy has completed its 5 year review of the Consumer Contracts Regulations. While these regulations broadly exclude financial services, they may be engaged where...
EBA reports on POG guidance implementation
EBA has reported on how industry has implemented its Product Oversight and Governance arrangements guidelines. It found a mix of good and bad practices. Some of its criticisms were that: often the manufacturer’s...
CMA launches digital advertising market study
The CMA has launched a study into online platforms and digital advertising. The study will focus on harm caused by consumers in connection with three areas of digital advertising: the extent online platforms (such as...
Alex LouchUK financial regulators publish climate change Joint Declaration
The FCA, PRA, TPR and FRC have jointly issued a declaration reiterating their commitment to work on the enhancement of climate-related disclosures. The Joint Declaration also welcomes the UK’s Green Finance...
UK government launch Green Finance Strategy
HM Treasury and BEIS have launched a Green Finance Strategy to meet the government’s target of reducing emissions to net zero by 2050, to boost sustainable investment, and to help make the UK a ‘green...
EIOPA consults on cloud outsourcing guidelines
EIOPA is consulting on draft guidelines regarding outsourcing to cloud service providers. The areas covered by the draft guidelines include: guidance on determining whether or not cloud services should be considered to...
FCA publishes general insurance Notice of Undertaking
The FCA has published a Notice of Undertaking under the Consumer Rights Act 2015 from ETA Services Ltd in relation to a Cycle Insurance Policy. The FCA was concerned that the policy in question had two terms that...
Treasury promotes InsurTech for low-income renter help
Treasury and FCA organised an industry workshop aimed at helping low-income renters to get better access to contents insurance. Many contents insurance products are not suitable for the needs of these renters, so the...
“Not all about Brexit” says Philip Hammond
Philip Hammond, speaking at the Mansion House dinner, highlighted the many ways in which a no-deal Brexit would be damaging for the financial services industry and the UK as a whole. He noted also the political...
ABI comments on ‘loyalty penalty’ issue
In a recent speech, the Director General of the ABI noted that, amid the current government and regulatory focus on this issue, member firms have committed to a set of Guiding Principles and Action Points for GI Pricing...
Solvency II amended Delegated Regulation published in OJ
Delegated Regulation (EU) 2019/981 was published in the OJ on 18 June 2019. This Delegated Regulation amends the Solvency II Delegated Regulation in a number of respects primarily relating to capital and risk. It will...
CMA may be given enhanced powers to impose fines for consumer law breaches
The government has announced that it will consult on whether the CMA should be given the power to fine businesses directly if they have breached consumer law, for example through the ‘loyalty penalty’ and...
FCA publishes first perimeter report
FCA has published the first of what will be an annual report on its regulatory perimeter. Among other things, the report is designed to explain what challenges the perimeter is presenting and whether there might be a...
CMA updates on loyalty penalty work
CMA has updated on its work on the loyalty penalty. It says key decisions are due shortly and that two enforcement cases are underway. It says it expects regulators to take strong action where they find problems and...
PRA feeds back on fees and levies
PRA has published its policy statement on proposed rates for 2019/2020. It will be implementing the proposals unchanged, and its updated rules and supervisory statement will take effect on 1 July.
Up next from FCA
FCA’s latest Policy Development Update heralds a few interesting papers on the near horizon, including: a consultation in June on alternatives to high cost credit; perhaps, a policy statement on general insurance...
PRA proposes minor form changes
PRA’s latest Occasional Consultation Paper proposes minor changes to miscellaneous Rulebook Parts, Supervisory Statements and templates and LOG files in respect of: Solvency II: The quality of capital instruments...
Treasury Committee announces inquiry into decarbonisation of the UK Economy and Green Finance
The Treasury Committee has announced an inquiry that will look at the respective roles of HMT, regulators and financial service firms in supporting the government’s climate change commitment. The terms of...
IUA publishes cyber exclusion clauses
The International Underwriting Association (IUA) has published two new cyber exclusion clauses: Cyber Loss Absolute Exclusion Clause (IUA 09-081): provides a broad exclusion against losses arising from the use of a...
FCA and Dutch Authority agree on closer partnership
The FCA and the Dutch Authority for the Financial Markets have agreed to work more closely together in order to protect and enhance the integrity of their financial systems. The regulators will share information to...
Angie BamboulisFCA tells CMCs what it expects
FCA has written a Dear CEO letter to CMCs who have temporary permissions telling them how it expects them to behave then making financial promotions or acting for their customers. There has been an increase in cases...
Treasury consults on funeral plan pressure sales
Treasury is consulting on how to deal with pressure sales of pre-paid funeral plans. Most of the sector is subject to voluntary regulation only through the Funeral Planning Authority. There is an increasing demand for...
FCA makes shareholder engagement and transparency rules
FCA has made new rules to improve shareholder engagement and increase transparency around stewardship. The new requirements take effect from 10 June. FCA will require: asset managers and life insurers to publish their...
FCA extends temporary permissions deadline
FCA has confirmed the deadline for EEA firms to notify it of their intention to use the temporary permissions regime is now 30 October. FCA has updated its website with details of how the TPR applies, and its policy for...
PRA framework for climate change risk management
Earlier this year, the PRA published PS11/19 and SS319 on ‘Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change’. Following on from this, they have now published a...
FOS Annual Review 2018/2019
The Financial Ombudsman Service (FOS) has published its Annual Review 2018/2019. The Annual Review highlights that FOS has: received more than 388,000 complaints over the past 12 months, which is up 14% on 2017/2018...
Inside FCA Podcast: Andrew Bailey on the Business Plan and future of regulation
On 14th May 2019, the FCA published a podcast interview with Andrew Bailey on the FCA’s Business Plan and future of regulation. Key topics can be summarised as follows:- Brexit – Brexit has affected the...
Treasury committee report on access to financial services
On 13 May 2019, the Treasury Committee published its 29th report on consumers’ access to financial services. The report urges financial services providers, the Government, and financial regulators to ensure...
ICO fines for spam PPI claim texts
The ICO has fined a claims management company £120,000 for sending spam texts. It found Hall and Hanley Ltd, using a third party, had sent over 3.5m direct marketing texts about PPI claims without having valid consents...
65% of insurers to use cloud over next 3 years
EIOPA has published its study on the use of big data analytics in motor and health insurance. It had noted a strong trend towards data-driven business models throughout the insurance value chain. Insurers have always...