FIN.

Category - Supervision

FSB writes to G20 on 2021 work programme

FSB has published its work programme for 2021, which focuses on: addressing vulnerabilities resulting from the pandemic; increasing the resilience of non-bank financial intermediation; improving efficiency and access in...

PRA corrects MRT definition

PRA has noted a mistake in the Rulebook definition of “higher paid material risk taker” in Rule 1.3 of the Remuneration Part.  The definition currently states that a person will be an HPMRT where: (a) their...

BoE updates on data collection

The Bank of England has published its paper and the way forward for data collection. As more data than ever is created and captured, and expectations on regulators become greater, current systems of collection have been...

FCA finalises vulnerability guidance

FCA has finalised its guidance on its expectations of firms in respect of vulnerable customers. The guidance stresses that FCA expects firms to ensure consumers have the appropriate degree of protection, and that key to...

PRA reports on positive iNED meetings

PRA has written a letter to iNEDs, who participated in its pilot programme of virtual meetings. The meetings discussed current challenges, and PRA was pleased that, in principle: iNEDs thought firms had reacted well to...

PRA consults on Basel implementation

PRA is proposing a new CRR rule instrument to implement part of the Basel standards that still need to be implemented in the UK.  The consultation forms part of a wider exercise to transfer the text of existing rules...

PRA speaks on insurer capital

Anna Sweeney has spoken on the Solvency II review and how much capital is enough.  She stressed that PRA wants to get its reforms right, and to see them within the context of the entire relevant package of measures. ...

Up next from FCA

FCA’s latest Policy Development Update gives very little indication of any imminent papers, promising only the consultation on exit fees in investment platforms and comparable firms, feedback on the SEAR and a...

Regulators update on Covid reporting

FCA has updated its guidance on submitting regulatory returns during the pandemic. Firms can now have a 2 month extension to the deadline for submitting their annual report and accounts for submissions due up to 31 July...

PRA publishes capital buffers modification

PRA has published a direction for modification by consent of 5.1 – 5.3 and 5.5 of the Capital Buffers Part of its rulebook. The changes are relevant to firms applying for a VREQ in respect of a Pillar 2A...

PRA updates SMCR forms

PRA has updated its SMCR forms, to reflect: FCA’s relatively recent move and new logo; minor corrections; and a reinstatement of question 3.05 on form L, in respect of notifications of disciplinary actions. The...

BoE confirms 2021 stress test

The BoE has confirmed the content of the 2021 stress test.  It will assess the major UK banks and building societies against a UK and global scenario based on a severe path for the macroeconomic outlook.  The results...

FCA reports on protecting consumers from harm

FCA has published a report looking at how it looks to protect consumers from investment harm. It includes details of applications that have been stopped, and notes that FCA opened nearly 350 supervisory cases involving...

FCA publishes whistleblowing VREQ

FCA has published the outcome of an application by Tokio Marine Kiln Insurance Limited and Tokio Marine Kiln Syndicates Limited to put in place a Voluntary Requirement in respect of whistleblowing policies and...

FCA updates on EU MoUs

FCA has updated its website to reflect the Memoranda of Understanding it has signed with various European authorities on co-operation and exchange of information. It has MoUs with ESMA, EIOPA and EBA as well as...

FS Bill finishes Commons stages

The Financial Services Bill has now completed its journey through the House of Commons and now moves to the House of Lords. Among the key changes now being debated are extensions to penalties for financial crime-related...

FCA Covid financial crime guidance to expire

FCA has updated its pages giving guidance to firms on how to act during the pandemic.  As part of this, it has noted that its statement on how firms should apply financial crime systems and controls will no longer apply...

PRA finalises BRRD II rules

PRA has published its policy statement and final guidance on BRRD II. it has also published its final policy in relation to the amended Contractual Recognition of Bail in and amended Stay in Resolution parts of its...

ESMA publishes cloud outsourcing guidelines

ESMA has published its final report on outsourcing to cloud service providers. The guidelines cover: risk assessment and due diligence on providers; governance, organisational and control frameworks for monitoring CSP...

FCA makes Remuneration Code changes

FCA has published its final rules on updating the dual-regulated firms’ Remuneration Code to reflect CRD V.  It has finalised its guidance on proportionality for the dual-regulated firms code,  and published a set...

FCA makes new executive appointments

Following the creation of the new post of Executive Director, Consumers and Competition, the FCA has announced that Sheldon Mills has been appointed to the role. Siobhán Sheridan has been appointed as Chief People...

FCA confirms mini-bond marketing ban

FCA has confirmed that it will permanently ban marketing of speculative illiquid securities, including mini-bonds, to retail investors, from 1 January 2021. The permanent rules will also include a ban on listed bonds...

PRA makes CRD V changes

PRA has published a policy statement on further implementation of CRD V .  It has also published its near-final rules which will not be changed, but PRA cannot make the rules until 28 December.  The rules will make...

FCA consults on guidance for IPs

FCA has published a guidance consultation to help insolvency practitioners in their approach to insolvencies of regulated firms – particularly solo-regulated firms.  It is aimed to help minimise the impact of...

FCA publishes RDR and FAMR evaluation

FCA has published an evaluation of the impact of the RDR and FAMR. On the whole, it found a positive impact. It notes that the FAMR has: led to a small increase in the number of adults who receive financial advice, and...

FCA launches UK Benchmarks Register

In preparation for the end of the Brexit transition period, FCA has announced the launch of the new UK Benchmarks Register. The Register, which can be accessed from 11pm on 31 December 2020, will replace the ESMA...

FCA pleased with RTO price cap

FCA has published an evaluation, which it says shows its rent-to-own price cap, which took effect in April 2019 has been effective in reducing the prices RTO firms charge.  It says the prices of the two largest firms in...

HM Treasury extends consultation deadlines

Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...

FCA announces benefits of RegData

RegData is set to replace Gabriel as the FCA’s data collection platform and will offer an enhanced user experience. FCA says the benefits of RegData will include: Increased speed and faster navigation; Improved...

Treasury Select Committee letter to FOS

Rt Hon. Mel Stride MP has written to Caroline Wayman at FOS to ask her to produce evidence and answers to a number of questions. The questions focus on case handling and costs, complaints against FOS and FOS funding and...

FCA consults on fees

FCA is consulting on proposed policy changes to the way it will raise FCA fees from 2021/22. The consultation applies to: any businesses considering applying for FCA authorisation or registration, and any existing fee...

FCA Regulatory Round-up

The FCA has published its latest regulatory round up. The publications summarises the latest FCA publications, most of which we have already covered in FIN and also reminds firms that they should not use the FCA logo on...

FCA consults on use of FSB Benchmark powers

FCA is consulting on how it proposes to use its new powers under the FS Bill to ensure an orderly wind-down of LIBOR, following the announcement by ICE Benchmark Administrations that it plans to cease its euro...

FSB publishes 2020 Resolution Report

The Financial Stability Board (FSB) has published its 2020 Resolution Report which highlights the need for resolution preparedness. It also looks at lessons learnt from the Covid-19 pandemic, which stressed the...

FCA updates on regulatory returns

The FCA has confirmed that any regulatory returns due after 1 October 2020 must be submitted by their usual deadlines.  Failing which, a late fee will be charged. This confirmation comes on the back of the Covid-19...

FCA writes supervision letter to PCWs

FCA has written a portfolio supervision letter to CEOs of price comparison websites.  The letter notes the key priority that customers buying products through PCWs should buy products consistent with their demands and...

Nikhil Rathi Speech

Nikhil Rathi, CEO of the FCA gave a speech yesterday at the Address to the City Regulators, Mansion House. The speech kicked off by focusing on the current environment.  He confirmed that more than 4.4. million payment...

PRA Statement on Covid Guidance

The PRA has reiterated its position on Covid and suggested that firms continue to monitor GOV.UK/coronavirus for guidance on: who should work from home, ensuring safe workplaces; use of face coverings (inc for branch...

FSB consults on outsourcing

The Financial Stability Board (FSB) is consulting on “Regulatory and Supervisory Issues Relating to Outsourcing and Third-Party Relationships” following a survey conducted among the FSB members. Whilst...

EBA reminds firms to finalise Brexit plans

EBA has reminded firms that, from the end of the transition period, UK firms can no longer provide services to EU customers on a passporting basis. It notes that: UK financial institutions offering services to EU...

Delay to ESEF standard reporting

The FCA has published information about changes to the way issuers file their annual financial reports to the FCA for publication on the National Storage Mechanism (supporting implementation of the European Single...

Covid-19 measures weekly summary

It’s been a while since we needed to do a digest of these.  In the light of the new English lockdown and the expiry of various measures, the last week has seen: FCA consultation on updated guidance for consumer...

EBA urges consumers first in POG supervision

EBA has published a report encouraging firms to put consumers’ interests first when they are applying product oversight and governance arrangements. It has found this focus is lacking in many firms. This report...

FCA writes to CEOs of LLMI firms

FCA has written a portfolio strategy letter to Lloyd’s and London Market Intermediaries and Managing General agents. It sees the key risks these firms present in: financial resilience and orderly wind-down...

BoE consults on OCIR policy

The BoE is consulting on various proposals relating to operational continuity in resolution (OCIR) policy. The BoE proposes the following amendments: Changes to the OCIR section of the Approach to Assessing...

PRA consults on BRRD II

The PRA has launched a consultation on its Contractual Recognition of Bail-in (CROB) and Stay in Resolution (Stays) Rules. The proposals will support the UK’s transposition of the Bank Recovery and Resolution...

FCA confirms SMCR extension dates

FCA has confirmed it has extended the date by which all solo-regulated firms must have fully implemented the Certification Regime and Conduct Rules, to 31 March 2021.  This follows Treasury making the statutory...

FCA: new webpages on whistleblowing

The FCA has launched two new webpages on whistleblowing. The first webpage sets out the process for reporting concerns of wrongdoing to the FCA in confidence and provides guidance on: Making the decision to speak to the...