FIN.

Tribunal upholds CMC fine

The First-tier Tribunal has upheld a fine the Claims Management Regulator had imposed on a company, in an action taken over now by FCA. The CMR found Hall and Hanley: had sent marketing texts to customers without taking...

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 –...

FCA 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...

FCA 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...

ESAs publish AML/CFT cooperation guidance

The ESAs have published guidelines for supervisors designed to ensure effective cooperation and information exchanges between supervisors to combat money laundering and terrorist finance.  The guidelines include a...

Open-ended funds review progresses

The Bank of England and FCA have issued a joint statement following a report by the FPC of the progress of their joint investigation into risks poses by liquidity mismatches of open-ended funds. The FPC noted a number...

Basel Framework published

BIS has published a consolidated version of the standards prepared by the Basel Committee on Banking Supervision. The resulting Basel Framework pulls together the 14 standards and also includes current, historic and...

ESMA publishes MAR review papers

ESMA has published a series of papers relating to the operation of MAR. The papers include: a peer review report on how regulators handle STORs. The review showed there had been a significant increase in market...

FCA makes new rules

FCA has published new rules on: conduct of business in what it refers to as “speculative illiquid securities” (taking effect on 1 January 2020 and 1 December 2020). These rules create a temporary product...

FCA makes platform transfer rules

FCA has made new rules to make it easier for consumers to move between investment platforms and thereby improve competition.  The rules form part of the Investment Platforms Market Study remedy package and will take...

EMIR updating Regulation published in OJ

Regulation (EU) 2019/2099 amending EMIR (commonly known as EMIR 2.2) has been published in the OJ. The objective of amendments introduced by this regulation includes the establishment of a CCP supervisory committee to...

EPC notes key payment threats

The European Payments Council has published its third annual Payment Threats and Fraud Trends report. The report discusses the risks and trends, including those caused by: social engineering; malware; “advanced...

FATF speaks at AML conference

David Lewis, executive secretary of FATF, has spoken on the importance of stamping out a tick box culture in AML, and ensuring that industry and supervisors treat financial crime prevention as seriously as they should. ...

EU calls for halt on stablecoins

The European Council and Commission have called for a halt on any stablecoin arrangements in the EU, saying they should not start operating until the legal, regulatory and oversight challenges and risks have been...

European Council set out next AML actions

The European Council has adopted new priorities on AML and CFT measures, in which MLD5, CRD5 and the ESAs will be critical. The Council now wants the Commission to look at how it can further enhance the rules, in...

Investment firm legislation in OJEU

The Directive and Regulation making changes to existing laws on prudential requirements for, and supervision of, investment firms, have been published in the Official Journal. The legislation makes several significant...

FCA publishes quarterly consultation

FCA’s latest quarterly consultation – on minor miscellaneous handbook changes, proposes, among other changes: clarification on how FSCS cover applies to claims against appointed representatives 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...

FUNDamentals Series: Event 2

This Tuesday we hosted the second seminar in our FUNDamentals series in our Edinburgh office.  The session was jointly hosted with NCM Fund Services and Aberdeen Standard Investments and focussed on exploring Real...

ESMA updates MiFID 2 and AIFMD FAQs

ESMA has updated: its FAQs on MiFID 2 and MiFIR investor protection and intermediaries in respect of information on costs and charges in respect of portfolio management services; and product intervention –...

Complaints Commissioner publishes responses

The Complaints Commissioner has: ordered FCA to pay compensation (but of a very small amount – adding £250 to the £50 already offered by FCA) to a complainant whose application for authorisation ran out of time...

EP publishes position on NPLs

The European Parliament has published its draft report on the proposal for a Directive on credit servicers, credit purchasers and the recovery of collateral.  The proposal is intended to make sales of non-performing...

FMLC responds on MAR review

The FMLC has responded to ESMA’s consultation on the MAR review. Its response makes 2 key points: although the current definition of market abuse is not perfect, it should not be changed now, given the efforts...

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...

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...

BIS report on Open Banking and APIs

BIS has published a report that looks at the growing trend in many jurisdictions towards an open banking.  In particular, the report focuses on those aspects relating to customer-permissioned data sharing, ie where...

FCA addresses LIBOR transition issues

As part of its work on the transition from LIBOR from 2021, the FCA has published a webpage covering conduct risks arising from the transition. The matters covered are set out in question and answer format, addressing...

FCA fines for fund investor TCF failings

FCA has fined Henderson Investment Funds Limited (HIFL) nearly £2m for failure to treat fairly over 4,500 retail investors in two of its funds, thereby breaching Principle 6. FCA found the funds’ investment...

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...

EPC 2019 SEPA scheme rulebooks in force

The European Payments Council has confirmed that its rulebooks covering: SEPA Credit Transfers, SEPA Instant Credit Transfers, SEPA Direct Debits, and SEPA Direct Debits Business-to-Business, came into force from 17...

Reserve your place: FUNDamental Series

Join us for our next FUNDamentals seminar in Edinburgh exploring Real Estate funds in more detail on 3rd December from 8.30am. This seminar will be hosted jointly with NCM Fund Services and Aberdeen Standard Investments...

NCA updates SAR guidance

NCA has published updated guidance and glossary codes for use when making SARs. The booklet includes a checklist, detail on codes, an alphabetical list, examples and an aide memoire.

AFME calls for crypto supervision convergence

AFME has published a paper setting out recommendations to help deliver consistent regulatory treatment of crypto-assets within Europe. It wants to establish a taxonomy; provide clear expectations for market participants...

OFSI confirms Turkey sanctions regime

OFSI has confirmed that the EU has introduced a sanctions regime relating to Turkey, with a view to designating those involved in unauthorised drilling activities in the Eastern Mediterranean. No names are on the list...

FCA consults on fees

FCA has published its annual consultation on fees and levies. Key changes to the current year’s policy include: introducing a £5,000 pa fee for proxy advisers; using income as the basis for calculating periodic...

Bills not to progress due to election

Parliament has updated its webpages in respect of the Goods Mortgages Bill, the Pension Schemes Bill and the Financial Services Duty of Care Bill.  The 2017-2019 Parliamentary Session was dissolved on 6 November ahead...

FCA endorses SEC no action letter

The FCA has endorsed SEC’s extension of its staff ‘no-action letter’ until 3 July 2023.  The no-action letter addresses potential conflicts between US regulation and MiFID 2. MiFID 2 permits investment...

Basel Committee consults on AML cooperation

The Basel Committee on Banking Supervision is consulting on draft guidelines on interaction and cooperation between prudential and AML/CFT supervision. It wants to enhance the effectiveness of banks’ AML/CFT...

NCA publishes 2019 SARs report

The latest annual report on SARs from NCA highlights: a record number of SARs processed (over 475,000); an increase of over 50% in DAML SARs; and over £131m denied to criminals as a result of DAML requests. Average...

FSB holds Paris plenary

The FSB Plenary met in Paris to review vulnerabilities in the global financial system and to discuss advances in FinTech.  The Plenary also agreed its work programme for 2020. Current vulnerabilities The Plenary...

EU adopts capital markets reforms

The Council of the European Union has adopted several legislative reforms as part of the progress towards the capital markets union. The reforms target: Sustainable finance. The first reform establishes disclosure...

Up next from FCA

FCA’s latest Policy Development Update promises a number of publications before the end of the year, including: feedback on the Investment Platforms Market Study remedies; consultation on policy proposals for next...

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 to use s166 for regulatory returns

PRA has written a Dear CEO letter to banks on the reliability of regulatory returns.  The letter highlights the recommendations of the review into the Co-Op bank – specifically that PRA should consider introducing...

FATF consults on digital identity

FATF is consulting on the use of digital ID systems for CDD.  It has published some currently unapproved guidance and is asking for views on a number of key issues. It asks for comment by 29 November.

FCA makes new rules

FCA’s latest Handbook Notice summarises various instruments made at the end of September and October: the Overdrafts (Information and Tools) Instrument 2019 takes effect on various dates to 6 April 2020, and...

SRA calls for more AML action

The Solicitors’ Regulation Authority has updated its warning notice to solicitors, stressing the need to have in place appropriate AML measures.  Despite previous warnings, it still found many firms did not have...

CCA Unfair Relationships Ruling

 In the case of Promontoria (Henrico) Ltd v Jeavons and another [2019], the defendants ran a holiday let business in Cornwall.  Clydesdale Bank issued them with a tailored business loan, which they then assigned to the...

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...

New AML and sanctions articles

We have written extended versions of FIN posts for Financial Regulation International and Money Laundering Bulletin:

Take care before you charge: acquiring criminal property; and
The third arm of US sanctions?

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...

FMLC evaluates exchange tokens

The Financial Markets Law Commission has published a report in which it evaluates some of the live issues and considerations in relation to exchange tokens and virtual currencies. The report provides an overview of...