The FCA has published the findings of its review of firms’ Consumer Duty implementation. The findings are split into six key areas and include examples of good practice and areas for improvement. Good practice –...
Category - Topics
Lucy HadrillFCA secures fraud conviction
Guy Flintham has pleased guilty to fraud in relation to an investment scheme he operated. FCA brought the prosecution, for fraud by false representation and for carrying on regulated activities without authorisation by...
Emma RadmorePensions dashboard operation becomes regulated
“Operating a pensions dashboard service” which connects to the MAPS dashboards will become a regulated activity under the RAO with effect from 11 March. For these purposes, any pension in respect of which...
Illegal money lender jailed for failing to pay confiscation order
FCA has issued a press release highlighting the nearly 8 year prison sentence handed down to Dharam Prakash Gopee by the City of London Magistrates’ Court for wilfully refusing to adhere to a confiscation order...
Duncan ScottBoE publishes policy statement on CCP discretionary payments
Following its consultation, BoE has published a policy statement (SoP) setting out its final approach to the power to temporarily restrict or prohibit discretionary payments by CCPs to ensure continuity of critical...
Vida FatemiGovernment requests AI update from regulators
Following its response to the Government’s AI White Paper consultation, the Department for Science, Innovation and Technology has asked the FCA and BoE to publish information outlining their strategic approach to...
Former analyst guilty of insider dealing and fraud
Following a 12-week trial brought by the FCA, Mr Mohammed Zina has been sentenced to 22 months’ imprisonment for insider dealing and fraud. Through his analyst role at Goldman Sachs International , Mr Zina came...
FCA publishes CMC review on unregulated claims activity
FCA has carried out a multi-firm review looking at whether CMCs have been using their FCA-authorised status to legitimise unregulated services. It has found that some firms in the sample actually carried out very little...
OFSI publishes ransomware guidance
OFSI has published financial sanctions guidance for ransomware. The guidance explains that the government uses the financial sanctions regime to target the ransomware threat actors who cause the highest harm to the UK...
FCA asks advice firms for information on ongoing charges and Consumer Duty
FCA has asked 20 large financial advisory firms for information on whether, and if so how, they have assessed their delivery of ongoing services against the Consumer Duty. The survey follows on from a letter FCA sent to...
Market Watch focuses on organised crime
The latest edition of FCA’s Market Watch looks at actions firms can take to mitigate the risks of being used by Organised Crime Groups. It says suspicious trading by members of OCGs forms a large proportion of the...
FCA intervenes in 10,000 ads in 2023
FCA has published its financial promotions data for the last quarter of 2023 and the entire past year. It has: caused over 10,000 promotions to be withdrawn or changed in 2023 (a 17% increase on the previous year);...
LSB publishes lending standards consultation responses
The Lending Standards Board (LSB) has published its response to the views received on its consultation on a review of the Standards of Lending Practice (the Standards) for business customers. The review itself was...
OFSI updates guidance
2024 will see OFSI move to digital guidance which it says will enhance accessibility and user experience. It will not be making fundamental content changes as it starts to make the changes. As a start, it has updated...
FCA Panels respond on FOS 2024 Plans and Budget
FCA Practitioner Panel and FCA Smaller Business Practitioner Panel have responded to FOS 2024/25 Plans and Budget and the consultation on charging professional representatives. The Practitioner Panel: supports the £100...
FCA improves service metrics
FCA’s latest set of authorisations metrics, covering the quarter to December 2023, shows 9 green metrics, 6 amber and no red. It determined 97.8% of applications overall within the statutory deadlines. No areas...
FCA fines and bans individual over LCF fin proms
FCA has fined Floris Huisamen, former director of LCF, £31,800 and banned him. Mr Huisamen had signed off financial promotions that gave a misleadingly positive impression of the minibonds LCF marketed. He had been...
Pay.uk responds on VRP expansion
Pay.uk has responded to PSR’s proposal to expand variable recurring payments. In principle, it supports a multilateral agreement as the best way to deal with expansion, and says it has the appropriate expertise to...
Home Office responds on SARs regime review
The Home Office has published its response to the 2019 Law Commission report and recommendations on the SARs regime. The report had made 19 recommendations, of which the Home Office accepts 13. The uncontended...
HMRC updates MSB guidance
HMRC has updated its AML guidance for money service businesses. The guidance is dated May 2023 and has just been approved by Treasury.
Tribunal backs FCA on EMI
The Upper Tribunal has agreed not to suspend the restrictions FCA placed on EMI Nvayo Limited last year. The wide restrictions stop the firm carrying on EMR business or disposing of assets. FCA welcomed the decision...
Firms pause sales of GAP insurance
At FCA’s request, multiple insurance firms have agreed to pause sales of GAP insurance. These firms account for 80% of the GAP market. FCA is concerned that GAP insurance is failing to provide fair value to...
BoE discussion papers on RTGS
BoE has released two discussion papers on RTGS (Real-Time Gross Settlement) service operating hours and access policies. BoE aims for these papers to be the basis for further research and dialogue with the private...
FCA updates on reducing and preventing financial crime
FCA is now half way through its 3 year strategy on reducing and preventing financial crime, and has summarised its work over the last 18 months. It notes that: when it set its strategy, there was no national plan (the...
FCA welcomes call for input on ‘Big Tech’ competition issues
FCA has issued a letter welcoming the Competition Division’s call for input on the potential competition impacts from data asymmetry between Big Tech and firms in financial services. In particular, FCA notes that...
FCA Practitioner Panel responds to access to cash proposals
The Practitioner Panel has responded to the FCA’s access to cash proposals (CP23/29). The Practitioner Panel believes that: the approach is responsive to changes in need which may derive not only from shifts in...
UK Finance responds on stablecoins
UK Finance has responded to the FCA and BoE discussion papers on regulating stablecoins. It is generally supportive of the broad proposal to build upon the existing regulatory/legislative regime for stablecoins used for...
BoE extends stablecoin consultation deadline
The BoE is keen to receive a wide range of feedback in response to its discussion paper on regulating stablecoins. It has therefore extended the consultation period which will now close at 10am on 12 February 2024. As a...
FCA publishes blockchain research
FCA has published a research note entitled ‘Review of Maximal Extractable value (MEV) and Blockchain Oracles’ in collaboration with Futuresight Business Intelligence Ltd, the Financial Industry Regulatory...
FCA issues insurers mandatory survey on non-financial misconduct
The FCA has issued a notice requiring regulated Lloyd’s Managing Agents, London Market Insurers (including P&I Clubs), and Lloyd’s and London Market Insurance Intermediaries (and Managing General Agents)...
FIN. TeamFCA speech: the UK listing regime
Clare Cole, Director of Market Oversight at FCA, has delivered a speech about developments since the UK Listing Review and the next steps for reform. Highlights include: In December, FCA set out detailed proposals for...
Government publishes response to AI Regulation White Paper
The Government has published the response to its AI Regulation White Paper consultation. Whilst the Government acknowledges that legislative action will eventually be needed to tackle the challenges of AI, the response...
HMRC publishes details of live FTP tax evasion offences under investigation
HMRC has published details of the number of live corporate criminal offences (CCO) for the failure to prevent tax evasion under investigation as at 1 January 2024. HMRC has 35 potential cases underway, including: 11...
New FCA webpage on sustainability disclosure and labelling regime
Following the publication of its policy statement in November 2023, the FCA has launched a new webpage on the sustainability disclosure and labelling regime. The webpage sets out the steps firms should take in...
Changes to FPO exemptions
Changes to the exemptions for “business angel” investors took effect on 31 January. Read our article on the changes for promotions to HNWIs and SCSIs.
Court refuses judicial review of debt packager rules
The Administrative Court refused permission for a judicial review claim of FCA’s decision to ban referral fees for debt packagers. The rules took effect last year. FCA made them to remove a strong incentive for...
ABI says motor premiums still rising
ABI’s Motor Insurance Tracker shows the average price paid for motor insurance has continued to rise. The cost to insurers to pay claims is main cause of these rises. The Tracker shows that between 1 October and...
PRA consults on approach to rule permissions
PRA has proposed a new Statement of Policy setting out its approach to the granting of rule permissions under s.138BA of FSMA – a new power for PRA to enable firms not to apply certain rules, or to apply them in a...
Treasury creates “designated activities” regime for public offers
The Public Offers and Admissions to Trading Regulations 2024, which Treasury made on 29 January, replace the assimilated EU Prospectus Regulation and create UK regime to replace the former EU regime. In doing so, it...
FCA appeal against Tribunal decision allowed
Following the Upper Tribunal’s decision last year in relation to FCA’s decision to fine and ban Markos Markou, when the Tribunal concluded FCA’s decisions were unreasonable, FCA announced its intention...
EEA states “equivalent” for overseas funds
Baroness Vere of Norbiton, Treasury Lords Minister, has announced that the Government has decided that all EEA states have been assessed as “equivalent” for the purposes of the UK’s Overseas Funds...
FCA reports on “flying” and “printing”
FCA has reported on the practices of ‘flying’ and ‘printing’ in Market Watch 76. It has described these practices (which it originally raised in Market Watch 57) as: ‘Flying’ is...
BoE updates enforcement approach
BoE has published its final policy and feedback to its consultation on its approach to enforcement. We covered the consultation here. The changes (including changes from the original consultation that BoE has made in...
PRA fines for deposit protection failings
PRA has fined 2 entities in the HSBC group £57m for long-lasting historic failure properly to implement its Depositor Protection Rules. The failings occurred in HSBC Bank plc (HBEU) between 2015 and 2022, and in HSBC UK...
CPI 2023 shows poor performance from top countries
Transparency International’s Corruption Perception Index for 2023 makes for worrying reading – particularly in relation to countries which score best. TI notes that only Ireland and the Seychelles have...
FCA confirms rule updates
FCA’s latest Handbook Notice confirms rule changes its Board agreed in December, and the new motor finance complaints rules, as well as two changes agreed on 25 January. The two latest changes: update SUP 12.4...
BoE speaks on core payments infrastructure and policies
Victoria Cleland, Executive Director for banking, payments and innovation, spoke about how BoE is enhancing its core payments infrastructure and policies using technological innovation. The focus was on wholesale...
PRA reviews ring-fencing rules
PRA has published a report setting out conclusions to its review of its ring-fencing rules. PRA looked at the intents of the ring-fencing regime, its statutory objectives, the legal ring-fencing requirements and...
PSR heralds priorities for 2024
Chris Helmsley has looked ahead to a busy year ahead for payments. He spoke on: implementation of the mandatory APP reimbursement rules which will be a real step-change in the way the industry approaches fraud...
FCA publishes guidance on motor finance complaints
FCA has published a new page on its website giving guidance to firms on what it expects of them, if they are affected by the DCA review. The guidance covers: keeping customers informed: responding in line with existing...
FOS gives guidance on motor finance complaints
Following its consultation on its plan and budget for 2024/25 (which closes on 30 January), FOS has reiterated its expectation that complaints to it will increase in the next financial year. It has identified a number...
BoE responds on PRC remit
BoE Governor Andrew Bailey has written to the Chancellor, updating last year’s response to the letter setting out the Chancellor’s recommendations to the Prudential Regulation Committee (PRC). The letter...
FCA speaks on consumer tech
Chief Executive of FCA, Nikhil Rathi, has spoken on how consumer-facing technology helps to keep consumer markets “honest”. The key highlights from his speech were: FCA must use and adapt existing regulatory...
PRA consults on solvent exit planning for insurers
The PRA has issued a Consultation Paper (CP2/24) outlining proposals for PRA-regulated insurers to prepare for an orderly ‘solvent exit’ as part of their business-as-usual activities. The PRA aims to enhance...
FCA takes criminal proceedings for unauthorised activities
FCA has started criminal proceedings against an individual who persuaded over 200 investors to invest £19m in an investment scheme. It alleges that Guy Flintham made several fraudulent claims about the scheme and...
ML High Risk countries re-defined
From 22 January, a change to the MLRs means that Treasury will no longer periodically update Schedule 3ZA to the MLRs. The definition of “High risk third country” is now a country named on the FATF lists of...
Corporate Transparency and Companies House – 2024 changes
We’ve written this article on the changes to the role of Companies House in improving corporate transparency under the EECTA from March.
Suzanne GadoTheCityUK shows strength of UK financial services sector
TheCityUK’s annual report on the UK’s position as an international financial centre says that exports relative to imports of financial and related professional services shows how competitive UK industry is...
BSA hopeful of update to 1986 Act
The Building Societies Association welcomed the upcoming 2nd reading of the Building Societies Act 1986 (Amendment) Bill which will take place on 19 January. The Bill aims to put building societies on a level playing...
EU Council and Parliament progress AML proposals
The EU Council and Parliament have reached agreement on the new EU AML package which will, among other things: extend the concept of “obliged entity” to cover most of the crypto sector and also (from 2029)...
CMA consults on change to home credit market order
CMA is inviting comments on a potential review of part of the Home Credit Market Investigation Order 2007. The Order followed a market investigation that showed there was a lack of competition in home credit. The...
FCA Practitioner Panel responds to D&I proposals
The FCA Practitioner Panel has responded to CP23/20, the consultation paper on diversity and inclusion in the financial sector. Key points in the response include: Mandating that firms collect data across all...
FCA sets expectations on crowdfunders
In two portfolio letters, FCA has set out its expectations for Loan-based Peer-to-Peer (P2P) Lending platforms and Investment-based crowdfunding platforms. It supervises both types of platform in the Consumer...
PSR consults on changes to card-acquiring market remedy lists
PSR plans to update the list of “directed legal entities” for the purposes of the supply of card0-acquiring services and the method for updating it in the future. PSR says several providers have told it...
PRA writes to international banks on 2024 priorities
In a ‘Dear CEO’ letter, PRA has updated international banks and designated investment firms on its 2024 priorities. As with the other letters published today, the general themes will complement firm-specific...
PRA writes to insurers on supervisory priorities
Charlotte Gerken and Shoid Khan of PRA have written to insurers on PRA’s 2024 supervisory priorities. As with banks, the letter complements firm-specific communications from PRA following its periodic summary...
PRA consults on FSCS MELL 2024/25
PRA is consulting on the FSCS MELL for 2024/25. Under FSMA, PRA and FCA must set a limit for the total management expenses that the FSCS can levy on financial services firms. The MELL is the maximum amount that the FSCS...
PRA writes to deposit takers on 2024 priorities
David Bailey and Laura Wicks of PRA have written to UK deposit takers about supervisory priorities for 2024. The Dear CEO letter stresses that this sets out the regulator’s thematic priorities, and complements its...
Treasury consults on enhancements to the Special Resolution Regime
HM Treasury has issued a consultation on proposals for enhancing the Special Resolution Regime (SRR). Specifically, the consultation seeks views on plans to introduce a new mechanism to facilitate the use of certain...
FCA takes action on motor finance complaints
FCA is unhappy that motor finance firms are rejecting high numbers of consumer complaints about commission arrangements. After FCA banned discretionary commission arrangements in 2021, many consumers complained and...
PRA fines former CEO for Conduct Rules breaches
The PRA has fined the former CEO of Wyelands Bank Plc £118,808 for breaching three Conduct Rules between March 2016 and May 2020. Mr Hunter breached Individual Conduct Rule 2 and Senior Manager Conduct Rules 1 and 2 –...
Home Office publishes DAML exemption guidance
The Home Office has published guidance on money laundering reporting obligations in relation to the DAML exemption provisions the ECCTA has introduced. Before the ECCTA took effect, the threshold amount below which...
JR application on climate-risk disclosure fails
The High Court has refused an application by ClientEarth for permission to apply for judicial review of FCA’s approval of Ithaca Energy plc’s prospectus. The Court said it could not be argued that the...
Court says s138D FSMA claims outside s14A Limitation Act
The High Court has held that a claim for breach of statutory duty under s138D FSMA does not fall within the provisions of s14A Limitation Act, which would allow the limitation period to be extended in certain...
Supreme Court Justice speaks on law and AI
Lord Hodge, Deputy President of the Supreme Court gave a speech at De Montfort University, Leicester entitled ‘Law and AI: Where are we going?’ In it, he first considered the risks in the use of...
OFSI updates guidance
OFSI has updated several pieces of guidance. There are December 2023 versions of: general guidance on financial sanctions; guidance on enforcement and financial penalties; and guidance specific to the Russian sanctions...
Responses to D&I in the Financial Services Sector
Following UK Finance’s response, several further responses to the PRA and FCA consultation papers (CP 23/20 and PRA’s CP 18/23) share insights into diversity and inclusion in the financial services sector...
OFSI updates on Russian correspondent banking restrictions
OFSI has published an update summarising the impact of the changes to the Russian sanctions regulations that took effect from 15 December 2023. The changes mean that a bank cannot process any payment that has...
FCA reflects on 2023
Nikhil Rathi has reflected on some of FCA’s key achievements and milestones from 2023. He highlighted: the implementation of the Consumer Duty and changes firms have already made as a result; FCA telling GAP...
UK and Switzerland sign groundbreaking cooperation agreement
The new Berne Financial Services Agreement will permit UK and Swiss financial services businesses to provide services more easily to each other’s domestic markets. Each country will mutually recognise the...
UK Finance responds on D&I
UK Finance has published its responses to the PRA and FCA papers on D&I in the financial sector. Key points in its response include: that the regulatory approach in terms of transparency and accountability should...
FCA updates on retained EU laws
FCA has updated its website with details of the current state of play in relation to the repeal and replacement of retained EU laws in the financial services sector. Coming up in 2024 will be many changes and papers...
BoE consults on use of requirements on FMIs
The BoE is consulting on how it plans to use its powers under FSMA 2023 to place requirements on CSDs and CCPs mandating that they take, or don’t take, a particular action. It must use its power proportionately...
Pensions dashboard operation to become regulated activity
Treasury has published a draft Statutory Instrument that will make operating a pensions dashboard service that connects to the Money and Pensions Service dashboards digital architecture a new regulated activity. This...
FCA sets out expectations on firms selling client banks
FCA has explained what it will look at and how it will act when firms are selling their client banks. Client banks are key assets of firms, and may include a right to income streams from past clients. While firms may...
Regulators publish 2023 cyber findings
The BoE, PRA and FCA have published their latest annual CBEST thematic report. The report, which has been published in full for the first time, contains cyber resilience good practice, lessons learned and insight...
PSR publishes final APP fraud reimbursement details
PSR has made all its policy decisions and published details of the full APP fraud reimbursement regime which will take effect on 7 October 2024. It has confirmed: the upper claim limit will be £415,000 to match the FOS...
Treasury review of international sanctions Regs
Treasury has published the results of an independent review on the operation of the Counter Terrorism (International Sanctions) (EU Exit) Regulations 2019. The review looks at the purpose of the Regulations and the...
Open banking and VRP progress reports
The Joint Regulatory Oversight Committee has updated on progress in open banking. It is pleased with the significant progress made since its April report, and has summarised what has been happening across all its...
Complaints Commissioner criticises FCA over Premier FX failure
The Complaints Commissioner has published its report on complaints from people affected by the 2018 collapse of Premier FX Limited. The payments firm had failed when, following the death of its sole director, it...
BoE publishes FMI supervision report
BoE has published its annual report on its supervision of FMIs. The report looks at what FMIs are, and BoE’s supervisory focuses over the past year. Its priorities for the future will include enhancing both...
Government commissions Transition Finance Market Review
The Government has now commissioned the market-led review into growing transition finance in the UK, originally announced in its 2023 Green Finance Strategy to help higher emitting companies and activities to...
Treasury makes Digital Sandbox Regulations
Treasury has made Regulations under FSMA 2023 to create the digital securities sandbox under which firms can apply for a place to test developing technology to help FMI activities. The sandbox is open to UK Recognised...
New Complaints Commissioner for 2024
Rachel Kent has been appointed the new Financial Regulators Complaints Commissioner. This is the first Commissioner appointment made by Treasury, as a result of changes in FSMA 2023. She starts a 5 year appointment on...
ABI research shows personalised guidance enhances financial decisions
The recent research conducted by the Association of British Insurers (ABI) in collaboration with Thinks Insight and Strategy’s Behavioural Team underscores the substantial impact of personalised guidance on...
FCA makes new rules
FCA has published new rules including amendments to: introduce the requirements on Sustainability Labelling and Disclosure (from 28 November 2023) update SYSC from 8 December in respect of changes to the proportionality...
FCA finalises new rules to replace IDD
FCA has published its policy statement and final rules which will replace the IDD Delegated Regulations with rules and guidance in the FCA Handbook. The Regulations included: the standardised IPID format; product...
MLR changes address domestic PEPs
Changes to the MLRs will take effect from 10 January 2024, which meet the requirements of s77 FSMA 2023 and provide that the starting point for EDD assessments where a customer is a domestic PEP or is a family member or...
New Russian sanctions take effect
The Government has introduced a new set of financial and trade sanctions against Russia. Taking effect from 14 December, the package includes broadening the existing sanctions in respect of correspondent banking and...
OFSI publishes Annual Review
OFSI has published its annual review for 2022-23. The review looks at how OFSI has expanded to meet its increased workload and how it has transformed its practices to deliver more effective implementation and...