Category S(I)MR & Governance

PRA confirms SMCR insurance extension rules

PRA has published a policy statement to its second consultation on extending the SMCR to insurers.  Following FCA’s finalisation of its rules on the extension, PRA now confirms it had no responses to its consultation and has made no changes to the rules it consulted on. As a result, it has now made the rules, […]

PRA updates approach documents

PRA has updated its “approach” documents in relation to banking and insurance supervision.  Key changes to the previous versions include: an update on the changes to supervisory approach following implementation of the SMR and SIMR (and, in the case of insurers, looking forward to the SIMR changing to the SMCR at the end of the […]

PRA publishes extension of SM&CR to insurers policy statement

On 18 October 2018, the PRA published responses to its consultation paper (CP) 18/18 ‘Strengthening accountability:  implementing the extension of the SM&CR to insurers’.  The policy statement (PS) 26/18 also includes amendments to the final rules for implementing the regime to insurers and corrections to the Insurance General Application Part of the PRA Rulebook. Background […]

FCA consults on Statements of Responsibilities and Responsibilities Map guidance

The FCA has published a consultation on proposed  guidance to help solo-regulated firms draft their Statements of Responsibilities (SoR) and (for enhanced firms) Responsibilities Maps, in preparation for the SMCR extension in December 2019. Although targeted at solo-regulated firms, the FCA notes that the guidance may also be useful for dual-regulated firms preparing or updating […]

FCA makes new rules

FCA has made three new rules instruments at its September board meetings: the Individual Accountability (Dual-Regulated Firms) Instrument 2018: this instrument makes significant changes to SYSC as well as to COCON, COND, APER FIT and SUP, and several other changes to many other handbook modules and guides. The changes mainly take effect on 10 December […]

Second consultation on extending SM&CR to insurers

The PRA has published the second part of its consultation on the extension of SM&CR to insurers. These proposed amendment to its rules consist of ‘technical consequential changes’ and ‘minor administrative amendments’ arising from this extension, for example refining the scope of those individuals for whom insurers may consider seeking approval for a PRA senior […]

Treasury makes SMCR extension Regulations

Treasury has made the Regulations extending the SMCR to insurers. The Regulations bring into force certain provisions of the Bank of England and Financial Services Act 2016 from 13 September to enable the making of the measures necessary to apply the SMCR to insurers from 10 December 2018. There are also transitional provisions delaying the […]

Extension of SM&CR to insurers: PRA consults on implementation

The PRA is consulting on proposed changes to its Rulebook, to provide for: a technical correction to the Solvency II firms: Insurance General Application Part; and consequential changes and minor administrative amendments relating to the extension of the SM&CR to insurers. The proposed amendments include the application of an ‘overlap’ rule for individuals with ‘FCA […]

FCA updated guidance for firms outsourcing IT

The FCA has updated FG 16/5, ‘Guidance for firms outsourcing to the ‘cloud’ and other third party IT services’. This update takes account of the publication of the European Banking Authority’s recommendations, and changes to relevant legislation.    

FCA publishes intervention approach documents

On a new page on its website, ‘Measuring our impact before we intervene‘, the FCA has published a group of documents that aim to provide an indication of how the FCA assesses the likely impact of its policies. These documents consist of: a paper setting out the FCA’s approach to conducting cost benefit analyses for […]

FCA publishes Annual Report

FCA has published its Annual Report and Accounts for 2017/18. The report includes details of: FCA’s work preparing for Brexit; key regulatory changes such as MiFID 2 and PSD 2; work on SMCR extension; thematic work on high cost credit and consumer debt; and the PPI customer information campaign. It also articulates what FCA has done […]

FCA and PSR Chair discusses potential future algocracy

Charles Randell, the recently appointed Chair of the FCA and the PSR, has delivered a speech, in which he discussed the increasing dominance of algorithms in our day to day lives, and noted some of the consequent issues that will need to be grappled with, as  the rise of Big Data, AI and machine learning […]

Changes in terminology. PRA updates its Supervisory Statements

The PRA updated a number of its Supervisory Statements (SSs) on 4 July 2018 to reflect changes in terminology, following the publication of policy statement 15/18 “Strengthening individual accountability in insurance: Extension of the Senior Managers and Certification Regime to insurers”. A list of those SSs can be found below. SS28/15 “Strengthening individual accountability in […]

PRA publishes policy statement on extension of the SM&CR to insurers

On 4 July 2018, the PRA published policy statement (PS)15/18 in response to Consultation Paper (CP) 14/17 ‘Strengthening individual accountability in insurance: extension of the Senior Managers and Certification Regime to insurers’ and CP 28/17 ‘Strengthening accountability: implementing the extension of the SM&CR to insurers and other amendments’.  As well as feedback to responses to […]

FCA feeds back on SMCR extension

FCA has published a suite of papers feeding back on the SMCR extension, and has proposed the creation of a new directory of individuals working in financial services to enable their status and history to be checked. The directory would include all individuals who require FCA approval to hold SMFs and those who fall within […]

Treasury Committee calls for abolition of “alpha male” culture in finance

The Treasury Committee has published its report following its Women in Finance inquiry, which sought to identify the barriers to women entering and progressing in the financial services industry.  It also examined the value to financial firms of having greater gender balance across all job grades and functions. The average gender pay gap in UK […]

Book now: SMCR seminar

We are delighted to speak at and host a half day seminar on 2 October with the Compliance Register on the extension to the SMCR.  For details and to book, please contact the Compliance Register.

Treasury Committee engages with FCA over TSB IT migration

Nicky Morgan and Andrew Bailey have exchanged letters of the problems customers faced following TSB’s IT migration. The Treasury Committee had asked about the work FCA had done in advance of the planned migration, its assessment of the problems and its views on TSB’s evidence to the Committee and its communications with customers as well […]

FCA develops its focus on improving culture in financial services

The FCA has published an event summary describing output from a conference it held in March on Transforming Culture.  Following the conference, and the publication of its Discussion Paper on Transforming Culture in Financial Services, the FCA has identified four key thematic lines of enquiry around which to focus ongoing engagement with the financial services […]

Regulators fine Barclays CEO for breach of SMR requirements

PRA and FCA have published the first final notice for breach of an Individual Conduct Rule. They have jointly fined James (Jes) Staley £642,430 for breach of Individual Conduct Rule 2 (failure to act with due skill, care and diligence), after he tried to find out who had sent an anonymous letter. The letter claimed […]

FCA publishes second 5 Conduct Questions report

The FCA has published its second annual report setting out responses from wholesale banking firms to the FCA’s conduct question set.  The FCA notes that the second report indicates progress has been made from the time when 5 Conduct Questions were first introduced, in 2015. The FCA indicates that they intend to extend the 5 […]

FCA and PRA publish business plans

The FCA and the PRA have both published their business plans for 2018/2019. The FCA’s business plan shines a spotlight on consumer protection, including in relation to pension products and high-cost credit, as an area of concern for the forthcoming year, as well as ongoing programmes such as Brexit, and firms’ culture and governance (including […]

FCA publishes package of asset management remedies

FCA has released several documents resulting from its asset management market study. The key documents are: final rules focussing on the duties of fund managers as agents of the fund investors. The changes will require fund managers to make an annual assessment of value and to appoint at least 2 independent directors comprising at least 25% of […]

FCA sets out supervision and enforcement approach

FCA has published a draft of its approach to enforcement and supervision. The documents follow its publication of its Mission, in which it committed to publishing a series of documents setting out how it carries out its main activities. The approach to supervision explains FCA’s commitment to being forward-looking and pre-emptive, focusing on firms’ cultures […]

Andrew Bailey speaks on transforming culture in financial services

The FCA has published a speech by Andrew Bailey, FCA Chief Executive, on transforming culture in financial services. Mr Bailey highlights the following issues: work on firm culture is an important priority for the FCA; essays in the FCA’s Discussion Paper on transforming culture in financial services indicate that culture is about encouraging and incentivising good things, […]

FCA speaks on affordability

Jonathan Davidson has spoken on getting affordability right in consumer credit. He said that as the UK consumer credit sector is growing, so are concerns about excessive debt. FCA does not consider the sector has yet reached levels of debt that are likely to be harmful to lenders. His focus was on harm to borrowers, […]

BSB publishes annual review

The Banking Standards Board has published its annual review.  Its key point is that, last year, it carried out the largest ever survey of behaviours, competence and culture in UK banking. It noted that the scores to its 36 questions improved in comparison with the previous year for 25 of the questions, and declined for […]

FCA outlines approach to authorisation

Sarah Rapson has spoken of FCA’s approach to authorising firms. She focused on FCA’s use of authorisation as a way to prevent harm, and its focus on using it proportionately. As a result, the information it asks firms for, and the degree of scrutiny it gives it, has to be linked to its assessment of […]

FCA looks back on past 5 years

John Griffith-Jones has reflected on FCA’s first 5 years of operation, since it took over from the FSA.  He outlined: highlights – specifying FCA’s engagement with pension exit charges, general insurance renewals, interest-only mortgage work, FX and LIBOR issues and reform, MiFID 2 implementation, the Innovation Hub, market abuse enforcement, fixing PPI, the asset management […]

FCA Discussion Paper on transforming culture in financial services

As part of its ongoing work on culture and governance, the FCA has published a discussion paper, comprising a series of essays from academics and industry thought leaders covering: what a ‘good’ culture might look like; the role of regulation and regulators; how firms might go beyond incentives; and how to change behaviour for the […]

FSB publishes final version of supplementary guidance on sound compensation practices

The Financial Stability Board (FSB) has published the final version of its Supplementary Guidance to the FSB Principles and Standards on Sound Compensation Practices.  It consulted upon this guidance in June 2017, as part of its work on misconduct risk management. The Guidance is aimed at ‘significant’ firms and supervisors, and provides a framework to […]

FCA updates on product governance

FCA has provided an update on its work on product governance in small and medium sized retail banks.  Its recent review looked at 2 year fixed rate savings products and how firms’ product governance frameworks help them to identify and manage the ongoing conduct risks of their products. It specifically wanted to assess how firms […]

FCA Statement on proposals to introduce a public register

The FCA has published a statement  announcing that it will consult on proposals to make information available on a wider range of individuals at authorised firms. Under the FCA’s proposals to extend the Senior Managers and Certification Regime, the FCA will only approve the most senior individuals within firms, resulting in only senior managers appearing […]

BSB publishes fit and proper guidance

The Banking Standards Board has published some supporting guidance to its principles on fitness and propriety assessments.  It focuses on helping firms identify and deal with the risks and issues that may arise when they are carrying out the fit and proper assessment of their certified staff. The guidance addresses establishing pass/fail criteria and evidencing […]

FCA updates on service standards

FCA’s new-look update on its service standards shows that it met most of its targets for various regulatory tasks, including authorisations, passport notifications, dealing with queries and customer satisfaction. However, it did fall slightly short on some applications, particularly consumer-credit related ones, and some of its work on passports.

FCA explains perimeter to Treasury Committee

Andrew Bailey has written to the Treasury Select Committee setting out a summary of the powers “FCA does not have”. It has been asked many questions in the context of the RBS GRG investigation. The letter sets out: FCA’s basic remit over regulated activities and its role as the UKLA as well as its powers […]

PRA publishes policy statement on strengthening individual accountability in insurance

PRA has published a policy statement on strengthening individual accountability in insurance: optimisations to the SIMR. The policy statement follows on from an ealier consultation (CP8/17) and includes: feedback on the proposed optimisations to the SIMR and PRA’s final policy; feedback on PRA’s proposals for diversity at boards of insurers and PRA’s final policy; the […]

FCA sends “Dear CEO” letter on APP fraud

FCA has published a “Dear CEO” letter emphasising the work required to combat authorised push payment (APP) fraud. This follows the Which? super-complaint in September 2017, and the Payment Systems Regulator’s response in November. FCA explains combating APP fraud and financial crime in general is a priority articulated in its 2017/2018 Business Plan. FCA hopes […]

Memorandum of Understanding between the FRC and FCA

The Financial Reporting Council (FRC) and Financial Conduct Authority (FCA) have published a Memorandum of Understanding (MOU) setting out: the respective statutory regulatory responsibilities of the FRC and FCA;  the arrangement for co-operation between the two bodies; and the exchange of relevant information. In addition, the MoU aims to aid, through clarity and transparency, understanding of the above […]

Law Commission to address electronic signatures and smart contracts in 13th Programme of Law Reform

The Law Commission has announced the programme of reforms it will be working on over the next 3 years.  The projects include: Electronic signatures: there is an absence of explicit case law or legislation confirming that documents executed with an electronic signature satisfy statutory requirements for documents to be in writing and/or signed and/or under […]

Regulators update on SMCR

FCA is consulting on how firms and individuals will manage the transition to the extended SMCR. Its key proposal is to grandfather persons from the existing approved persons regime, so that firms can focus on embedding the cultural changes required rather than filling in forms. FCA also seeks views on whether to extend the duty […]

FCA sets out future approach to authorisation and competition

FCA has outlined its approach to authorisation and to competition. It notes it is one of the few financial regulators in the world with an objective that includes promoting competition. It wants to understand, in relation to authorisations: whether applicants clearly understand how to meet the Threshold Conditions – and, if not, how FCA could […]

FCA feeds back on FAMR

FCA has published a policy statement on its consultation on FAMR and insistent clients.  Respondents were generally supportive of FCA’s proposed PERG guidance and also asked for more guidance in some areas. FCA will publish the new guidance in early 2018 and directs firms wanting to make use of the amendment to the RAO definition […]

FCA makes new rules

At FCA’s Board meeting on & December, it made several new rule instruments, covering (among other things), several changes to take effect from 3 January 2018: minor changes relating to MiFID 2 implementation, including a new definition of “high frequency algorithmic trading technique”, amending various definitions relating to derivatives to ensure they reflect changes to […]

FCA consults on market conduct codes

FCA has published a consultation paper setting out its approach to supervising and enforcing the SMCR, and a wider discussion on extending Principle 5 (standards of market conduct) to the unregulated activities of authorised firms. The consultation paper explains how FCA expects firms and their senior management to consider market codes when they are determining […]

PRA publishes framework for authorisation and supervision of insurance special purpose vehicles

Following a period of consultation, PRA has published a policy statement and supervisory statement that are relevant to all parties who wish to apply to PRA for, or have obtained authorisation as, an insurance special purpose vehicle (ISPV). It is also relevant to insurers and reinsurers seeking to use UK insurance special purpose vehicles (ISPVs) as […]

Bond Dickinson financial services team ranked in Legal 500

The Bond Dickinson financial services team is delighted to have achieved a Legal 500 ranking. The new directory described the team as providing  ‘responsive, practical, commercial and cost-effective’ advice to a wide variety of clients within the retail sector of the financial services industry. It says that  “‘Very knowledgeable’ team head Andrew Barber has ‘in-depth […]

PRA comments on “Geofinance”

Sam Woods, speaking at Mansion House,  commented on what he predicts to be an increasingly prevailing dynamic in financial institutions and financial regulation. Geofinance is the impact of geography on how banks, insurers and regulators operate, and Woods remarks that it “is likely to be the defining challenge of the next few years.” Woods stated “stability begins at home” […]

What does SMCR extension mean for you?

We have written an article summarising the key elements of the proposed SMCR extension.

PRA updates SMR forms

PRA has updated its forms firms must submit under the SMR. From 12 November, firms must use the following new forms: Long and Short Form As Form E Statement of Responsibilities Third Country Statement of Responsibilities

FCA speaks on asset management regulation

Meghan Butler has spoken on how FCA is clarifying its supervisory approach to asset managers. She looked at FCA’s mission and its recognition of the importance of the asset management industry. She spoke of the findings of the asset management review and said FCA is still working through responses. In the meantime, the CMA has […]

Failure to prevent facilitation of tax evasion

The new corporate offence under the Criminal Finances Act trips off the tongue!  It takes effect from 30 September, and “relevant bodies” must have considered their exposure to it and put in place reasonable procedures to guard against committing it.  We have written an article on the offence and the expectations of HMRC.

FCA speaks on SMR extension

Jonathan Davidson has spoken on culture and conduct in the context of FCA’s proposals to extend the SMR. Key points of his speech included: that business models often create commercial incentives for behaviours that lead to poor consumer outcomes, and FCA tries to understand how business models evolve to anticipate risks so it can use […]

BOE releases consultation on extension of SM&CR to insurers

Today the PRA has published proposals to extend the Senior Managers and Certification Regime (SM&CR) to insurers. These proposals seek to implement a consistent but proportionate regulatory framework to strengthening individual accountability and promoting effective corporate governance for all PRA-regulated firms. In March 2016 the PRA implemented the Senior Insurance Managers Regime. The proposals would […]

FCA releases details of consultations on the extension of SM&CR to all firms

The long-awaited consultations on the extension of the SM&CR have been released: CP17/25 – Individual accountability – extending the Senior Managers and Certification Regime to all FCA firms. Banks are told to read Chapters 9 and 10 in the CP about the extra SM&CR regulations that will affect the banking sector. CP17/26 – Individual accountability – extending […]

FCA makes new rules

At FCA’s July Board meeting it made several new rulebook instruments. Key changes are: to make minor changes to approved persons application forms with effect from 12 September; to set the fees payable to the PSR from 21 July; to amend COBS in respect of pension projections from 24 July so firms can prepare risk […]

Banking Standards Board consults on certification risks and issues

The Banking Standards Board is consulting on guidance that will help firms identify and deal with risks and issues that arise when they are assessing fitness and propriety under the SMCR. The draft guidance covers: factors for firms to take into account when evaluating the evidence they use to assess fitness and propriety what options […]

FCA publishes annual report

FCA’s Annual Report and accounts for 2016/17 sets out its highlights from the past year, and includes specific sectoral reports for competition, enforcement, AML and diversity. FCA regards the year’s highlights as: its asset management market study its PPI work, leading up to proposals for a time limit on claims MIFID 2 and MAR implementation […]

Treasury makes MiFID 2 Regulations

Treasury has made the FSMA (Markets in Financial Instruments) Regulations 2017 which make changes to FSMA and other primary and secondary legislation to make the legislative amendments necessary to implement MiFID 2 that are not separately addressed by the Regulations amending the RAO and putting in place the authorisation and supervision process for DSRPs. The […]

PRA consults on SMR/SIMR changes

PRA has published a consultation paper proposing changes to both the SMR and SIMR, but focuses predominantly on the SIMR, introducing what PRA describes as “optimisations”. The proposed changes will apply to all Solvency II insurance firms and to large NDFs, and are designed to bring the SIMR more closely into line with the SMR. They include: creating […]

BoE speaks on operational resilience

Charlotte Gerken has spoken of the BoE’s approach to operational resilience. She focussed on how it is developing its approach in co-operation with firms and other regulators. BoE’s aim is to improve the ability of the financial services sector to absorb the impact of an unexpected event while continuing to perform its key activities.  Part […]

ABI speaks on UK insurance industry

The ABI has spoken on the opportunities regulation can offer for the industry, which are getting wider – for example, willingness of the industry to see the competition regulator becoming involved in their markets.  A key transformational project has been Flood Re and it has helped insurers to work with the Government. Key current points, in […]

PRA updates policy statements on accountability regimes

Following feedback received on Consultation Paper 34/16, PRA has published its policy statement on strengthening individual accountability in banking and insurance: amendments and optimisations. The updates in the policy statement include: the final rules amending the Senior Managers and Certification and Senior Insurance Managers Regime; updates to Supervisory Statement 28/15 Strengthening individual accountability in banking and […]

Up next from FCA

FCA’s latest Policy Development Newsletter promises only a policy statement on enhancing COB rules for firms providing CFDs to retail clients following before the end of June. Many other papers are due later in the year, or with a publication date to be confirmed.  Strangely (in the version published on 5 May), there is no […]

FCA updates on duty of responsibility

FCA has published guidance in DEPP on how it will enforce the duty of responsibility.  The guidance is already in force, applying from 3 May. It applies to UK banks, building societies, credit unions, PRA-designated investment firms, and incoming branches of overseas firms, and their Senior Managers. A new rule explains when FCA can take […]

FCA makes whistleblowing rules for foreign bank branches

FCA has made its final rules on whistleblowing requirements for UK branches of foreign banks.  The rules cover UK branches of both EEA and third-country banks and require them to implement whistleblowing rules by 7 September. FCA made only minor changes from its consultation version. Under the new rules, firms must tell their employees of […]

FCA makes CRD IV remuneration guidance

FCA has made its final rules and guidance on remuneration in CRD IV firms, which it has aligned to EBA guidelines. The changes take effect immediately, since the EBA guidelines came into force at the beginning of 2017. Firms should ensure they comply with the new standards for the 2017 performance year onwards.

FCA makes conduct rules for NEDs

FCA has made its new rules applying individual conduct rules to NEDs in the banking and insurance sectors. The new rules, which take effect on 3 July, apply the provisions of COCON to “standard” NEDs in the banking and insurance sectors. It has not made any changes to its proposals, but noted respondents’ requests to […]

PRA makes MiFID 2 rules and opens for notifications

PRA has published its policy statement with relevant supervisory statements and rule changes in relation to MiFID 2 implementation. The changes: introduce new PRA rules to implement the MiFID 2 requirements on the management body and organisational requirements; delete several rules that are now superseded by the directly applicable Level 2 Regulation on organisational issues […]

PRA makes branch whistleblowing rules

PRA has made policy statements and rules requiring UK branches of non-EEA banks and insurers to tell their staff about the PRA and FCA’s whistleblowing services. Any non-EEA bank that has both a branch and a subsidiary in the UK must also tell its branch staff about the whistleblowing procedures the subsidiary has in place. […]

FCA publishes Mission Statement and Business Plan

FCA’s latest Mission and Business Plan contain few surprises, but indicate a lot of work in diverse areas. The Mission, which takes into account stakeholder views, seeks to explain to firms how and why FCA prioritises its focus to meet its statutory objectives. It stresses that it regulates to promote the public interest and with […]

FCA updates on conduct risk priorities

FCA has published a series of new webpages following its annual conduct meetings with the largest firms in the regulated community. It asks the largest wholesale banks the following 5 conduct questions: What proactive steps do you take as a firm to identify the conduct risks inherent within your business? How do you encourage the […]

FCA speaks on the next phase of Project Innovate

On 10 April 2017, Christopher Woolard, the FCA’s Executive Director of Strategy and Competition delivered a speech at the Innovate Finance Global Summit in London. The speech considers the work of the FCA’s Project Innovate to date including the Regulatory Sandbox initiative. Mr Woolard explained the FCA’s commitment to supporting innovation and its desire for […]

FCA publishes discussion paper on distributed ledger technology

The FCA has published a discussion paper on distributed ledger technology (DLT). The discussion paper describes DLT and acknowledges blockchain as a type of DLT. The FCA invites a discussion on two sets of issues: What new risks and opportunities does DLT present to the FCA’s statutory objectives of market integrity, consumer protection and competition? Can DLT […]

HMT issues regulatory innovation plan

The government’s vision is for UK financial services to be the most competitive and innovative in the world, supplementing existing services with greater choice and value for consumers. The innovation plan covers how financial services regulators are adapting and encouraging new technologies and disruptive business models, and better utilising new technologies to reduce regulatory burdens […]

FCA speaks on corporate misconduct and individual accountability

Mark Steward, FCA Director of Enforcement and Market Oversight, has spoken on tackling conduct issues and individual and corporate accountability. He gave examples of where parties to investigations had strongly felt a fault within an institution had either been wrongly blamed on an individual when it was an institutional failing, or where an institution felt […]

pra publishes march regulatory digest

The March Regulatory Digest has been published by the PRA. Top news covered this month: insurance supervision at the PRA – speech by Sam Woods and report by the Independent Evaluation Office (IEO) consultation on its regulated fees and levies rates proposals for 2017/18 reminds firms that requirements related to two aspects of the strengthening accountability regime […]

FCA fines former investment banker for sharing confidential information over WhatsApp

The former Jeffries International banker (managing director (CF30)) received a 30% reduction to his penalty, still amounting to a hefty £37,198 fine. On a number of occasions between 24 January 2016 and 16 May 2016, Mr Niehaus shared client confidential information which he had received during the course of his employment with both a personal […]

PRA Chief Executive Officer delivers speech on insurance supervision

On 20 March 2017, Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the PRA delivered a speech on insurance supervision at the PRA. Mr Woods commented that a precondition to the success of the UK’s world leading insurance sector is world-class insurance supervision, which is what the PRA aims to deliver. […]

BoE speaks on ethics and culture in banking

Mark Carney has spoken on the work to improve the culture of the banking industry. He commented that the banking industry has suffered twin crises of solvency and legitimacy. The solvency problems are being addressed by significant regulatory reforms to make banks more liquid, more focused and stronger. Meanwhile, multiple examples of misconduct have led many […]

FCA speaks on culture

Andrew Bailey has given a speech at the Hong Kong Monetary Authority (HKMA) Annual Conference for Independent Non-Executive Directors in Hong Kong. He spoke about the culture in financial institutions, setting out what he meant by culture, what he sees as the respective roles of firms’ governing bodies and management and public authorities, and two […]

BSB report shows areas for improvement

The Banking Standards Board’s first annual review has found some good practices across the banking industry, but also several areas that need improvement. Firms generally still need to work on responsiveness, accountability, personal resilience and openness. BSB plans to work with firms over the next year to help them improve.

FCA heralds SMR 1 year on

FCA has noted the anniversary of the SMR taking effect, as the rules on regulatory references now come into force. Firms also had to have issued certificates for all staff who fall within the certification regime, and the Conduct Rules now apply to all staff except those in purely ancillary functions. FCA is in principle […]

BSB publishes certification guidance

The Banking Standards Board (BSB) has published good practice guidance for banks and building societies putting in place procedures to assess the fitness and propriety of staff under the Certification Regime. This takes the form of a high-level set of principles on the assessment of fitness and propriety. The BSB has also issued supporting guidance on […]

FCA to consult on SMR extension

FCA is to consult on the extension of the SMR to all authorised firms during the second quarter of 2017.

FCA invites views on website

If you, like us, have views on FCA’s recently revamped website, you have a chance to let FCA know. It has invited views, in an online survey.

PRA fines BTMU firms for failure to be open with it

PRA has fined the Bank of Tokyo-Mitsubishi UFJ Limited £17.95m and MUFJ Securities EMEA plc £8.925m. The fine relates to a failure of the firms to be open and honest with PRA in respect of a US enforcement action, in breach of Fundamental Rules 6 and 7 in the case of BTMU and Fundamental Rule […]

FCA publishes Regulation Round-up

FCA’s latest “Regulation Round up” focuses on: some big issues FCA plans to address in 2017, such as the progress of the FAMR, the extension of the SMR and the closure of lending reviews; the interim report on the Asset Management Market Study, reminding that the consultation period for responding on the remedies FCA proposed […]

FCA speaks on responsibility and priorities

Mark Steward, Director of Enforcement and Market Oversight at FCA, spoke at the Practising Law Institute’s annual seminar on securities regulation in Europe. His speech was headlined as looking at the practical implications of US law on EU practice, but instead he focussed on three topics: financial penalties, senior manager’s regime and the new ways in […]

AFME responds on whistleblowing

AFME (The Association for Financial Markets in Europe) has published its response to the FCA and PRA consultation papers on whistleblowing in UK branches of overseas banks. The FCA and PRA propose that UK branches of overseas banks tell their UK-based employees about the FCA and PRA whistleblowing services. Where a branch of an overseas […]

FCA’s Future Mission: key themes from feedback

FCA has published initial feedback from the consultation process into its proposed mission statement. Key themes include: a desire for a clearer rationale for FCA decisions, and what FCA chooses to do and not to do; more protection for vulnerable consumers but there are different views on who a vulnerable consumer is. FCA welcomes views […]

ESMA publishes MAR FAQs

ESMA has published an updated questions and answers document on MAR. New questions cover whether transactions should be aggregated for the purpose of the trigger for the notification obligation for PDMRs and their closely associated persons, how the price of gifts should be calculated for these purposes, and whether shares received as part of a […]

Article: FinTech firms navigate regulatory uncertainty

Current laws and regulations weren’t designed with FinTech or InsurTech in mind, so startups must – on top of their business proposition – implement appropriate compliance procedures and grapple with legal uncertainties. Brett Carr discusses the challenges of this in an article just published by Compliance Monitor.

FCA makes it crystal clear that 2016/2017 Remuneration must be directly linked to Effective Risk Management

The FCA will crack down hard on firms which incentivise behaviours that are not in the best interests of consumers, market integrity or fair competition and will look closely at Material Risk Takers, bonus pools and individual performance assessments. The FCA’s letter to all UK banks, building societies and investment firms (with relevant total assets […]

PRA consults further on MiFID 2

PRA has published its second consultation paper on changes it needs to make to its rules as a result of MiFID 2. This paper focuses on the changes needed to take account of the requirements in the MiFID 2 Delegated Regulation on Organisational Requirements, and deals also with the practicalities of variations of permission to […]

PRA consults on cyber insurance underwriting risk

PRA is consulting on a proposed new supervisory statement that sets out how it expects all Solvency 2 firms to prudently manage cyber underwriting risk. PRA carried out thematic work which highlighted a number of risks the insurance industry faces from underwriting insurance contracts that are exposed to losses resulting from a cyber attack. Its […]

PRA and FCA make regulatory references rules

PRA and FCA have published the final text of the rules applicable to banks, Solvency 2 insurers and PRA-regulated investment firms when they provide regulatory references for key positions. The rules will apply from 7 March 2017. See our article explaining the impact of the changes.

PRA and FCA final rules on regulatory references

Following a period of joint consultation, the PRA and FCA have recently published policy statements setting out the final rules on regulatory references. The final rules will come into force on 7 March 2017 and will apply to banks and insurers. The final rules on regulatory references follow on from the Senior Managers and Certification […]

PRA and FCA feed back on accountability

PRA and FCA have published several papers on the SMR, SIMR and accountability standards. FCA’s supervisory review of the SMR highlights its views that firms have, in general, engaged well. It gives detailed feedback, separately, in respect of UK banks and building societies, branches from both inside and outside the EEA, and credit unions. It […]

FCA plans to ban Barclays Wealth director

FCA has published its decision notice proposing a public censure and ban on Andrew Tinney, former COO of Barclays Wealth and Investment Management. FCA found Mr Tinney had taken steps to conceal the content and existence of a report commissioned on Barclays Wealth America’s Culture Audit following the SEC identifying regulatory deficiencies. FCA considered his […]