FIN.

Category - Supervision

FCA speeds up “use it or lose it” powers

FCA has confirmed new rules that will make it easier for it to cancel permissions that firms are not using. Following a change in the law in the FS Act 2021 that allows it to streamline and shorten the process, FCA will...

FCA publishes issue 69 of Market Watch

On 17 May 2022, the FCA published Market Watch 69, its newsletter on market conduct and transaction reporting issues. The newsletter focuses on firms’ arrangements for market abuse surveillance, drawing on the...

EU reaches deal on DORA

The EU Commission, EU Council and EU Parliament have reached agreement on the Commission’s proposal for a Digital Operational Resilience Act (DORA). The new rules aim to harmonise and strengthen digital...

FCA launches new IFPR webpage

The FCA has launched a new webpage which sets out how to submit MIFIDPRU applications and notifications. It also includes information for IFPR firms about MIF returns.

FCA hires trio of senior individuals

As part of its transformation programme, FCA announced that: Mel Gunewardena will take up a senior advisor role at the FCA; Graeme Reynolds has been appointed director of competition; and Simon Walls has been appointed...

PRA launches biennial insurance stress test

PRA has launched its biennial stress test for life and general insurers.  It has sent the test to the largest firms and has asked for submissions by 28 September, and is hosting a seminar on 11 May with a Q&A...

FCA publishes H1 2022 complaints data

FCA has published its H1 2022 complaints data. In 2021 H2, financial services firms received 1.84m complaints, 10% lower than in 2021 H1 (2.04m). This is the lowest level recorded since 2016 H2. The insurance and pure...

Treasury consults on reforms to Solvency II

HM Treasury has published its consultation on post-Brexit reforms to the Solvency II regime which it hopes will unlock investment, increase market access for new insurers and offer greater consumer choice. The reforms...

FCA uses emergency powers on BSPS advisers

FCA has made rules using its emergency powers to prevent firms taking steps to dispose of their assets to avoid paying compensation in relation to BSPS pension transfer advice. It says it is introducing the rules...

FCA revised Complaints Scheme delayed

Following a joint consultation with the Bank of England and the PRA which ended on 12 October 2020, the FCA has advised they are still in the process of updating their Complaints Scheme which promises to be more user...

Funeral plans update: RAO amendments made

The FSMA (Regulated Activities) (Amendment) Order 2022 has been published, together with an explanatory memorandum. It makes several amendments to FSMA and secondary legislation, primarily the RAO, in preparation for...

PRA updates on Gibraltar passporting

The PRA has confirmed that the transitional passporting rules will continue for firms operating between the UK and Gibraltar until 31 December 2022. These transitional arrangements can be further extended until the...

PRA consults on fees and levies for 2022/23

PRA has issued a consultation paper setting out proposals for its fees for 2022/23. The proposals include: the fee rates to meet the PRA’s 2022/23 AFR; fees applicable to firms in the temporary regimes; changes to the...

FCA confirms non-opposition to Amigo scheme

FCA has written to Amigo Loans to confirm it will not be attending the hearings to oppose its proposals for its Scheme of Arrangement. FCA has previously said the new proposal is an improvement on the failed proposal of...

FCA sets out strategy to improve outcomes

FCA has published its Business Plan with its new 3 year strategy aimed at preventing serious harm, setting higher standards and promoting competition. Among the measures it is taking is the creation of 80 new roles to...

FCA boosts authorisation capability

FCA has appointed Laura Dawes and Dominic Cashman as Directors of Authorisations, starting from late April/early May. It will also appoint a new Finance Director, Craig Chapman. The appointments come as FCA commits to a...

FCA talks of a “digital regulator”

Jessica Rusu, FCA’s Chief Data, Information and Intelligence Officer, has spoken on how FCA is building its digital regulatory future. Its work will focus on fostering innovation, being intelligence led and...

MEPs vote on draft crypto legislation

MEPs from ECON and the Committee on Civil Liberties have voted to adopt their position on draft crypto legislation which forms part of the EU’s wider package of measures aimed at strengthening AML/CFT rules in the...

FOS outlines strategic plans for 2022/23

FOS has published its plans and budget for 2022/23. In the coming year, FOS: expects to receive 177,000 complaints and resolve 220,500 complaints; will continue to ensure it is equipped to respond to complexity and...

Regulators remind firms of crypto risks

PRA and FCA have written to firms reminding them of their obligations when interacting with or exposed to crypto-assets and related services. FCA reminds firms that crypto can offer benefits but also increased risk to...

ASA cracks down on misleading crypto ads

ASA has issued an Enforcement Notice to over 50 firms which advertise cryptocurrencies, instructing them to review their ads and to ensure they understand and are complying with the rules so that consumers are treated...

FCA portfolio strategy letter on custody

FCA’s latest letter on its portfolio supervision strategy relates to custody and fund services. It sees 4 areas of potential harm: disruption to consumers and market participants, or the loss, compromise, or lack...

BoE to consult on Basel 3.1 at end of 2022

BoE has confirmed that it is continuing to develop proposals to implement Basel 3.1, following the two PRA policy statements of 2021. It notes that the timing of implementation was dependent on a number of factors, not...

IOSCO consults on retail market conduct

IOSCO has published a consultation report from the Retail Market Conduct Task Force. The report looks at recent retail investor trends and the development of a regulatory toolkit to help regulators consider emerging...

FOS award limits increased

FCA has confirmed the increase to the FOS award limits. From 1 April 2022, these will change to: £375,000 for complaints referred to FOS on or after 1 April 2022 about acts or omissions by firms on or after 1 April...

Lloyd’s responds to market misconduct

Lloyd’s has issued a notice of censure to Atrium, a managing agent in the Lloyd’s market. The firm admitted three charges of misconduct, and Lloyd’s Enforcement Board levied its largest ever fine of...

HM Treasury publishes ringfencing Review

In 2020, the Treasury appointed an independent panel to: review the operation of the legislation related to ring-fencing; and review banks’ proprietary trading activities following a statutory report from the PRA...

New rules on cryptocurrencies in the EU

MEPs have agreed on draft rules on supervision, consumer protection and environmental sustainability of crypto-assets, including cryptocurrencies such as bitcoins. For those issuing and trading crypto-assets, the new...

PRA Occasional Consultation on minor changes

The PRA has issued a Consultation Paper setting out proposals to make minor amendments to UK Technical Standards (UKTS), PRA rules, supervisory statements, Legacy Supervisory Statements, and a Statement of Policy...

FCA publishes lender portfolio letters

FCA has published its most recent porfolio strategy letters for: retail mortgage lenders; non-bank lenders; and building societies. Common themes in the letters are: that the response to the pandemic has shown FCA and...

FCA portfolio letter for Credit Unions

The FCA has published a portfolio letter to Credit Union Boards setting out the usual key risks of harm that are present for Credit Unions, their members and the markets in which they operate. The letter asks firms to...

FCA comments on Amigo Scheme proposal

FCA has published a letter that it wrote to Amigo Loans confirming that it does not plan to attend the hearing to oppose the proposed Scheme of Arrangement. It thinks the new proposals are preferable to the ones in the...

FCA consults on miscellaneous rule changes

FCA’s latest quarterly consultation covers: proposed changes to PERG in respect of the MiFID 2 ancillary activities test; making collective investment portfolio managers subject to the same research and inducement...

PSR issues new Specific Direction 12 to LINK

The PSR has given Specific Direction 12 (SD12) to Link Scheme Holdings Ltd (LINK) allowing them to maintain the broad geographic spread of the UK’s free-to-use (FTU) cash machine network. The new Direction follows...

FCA updates on Green FinTech Challenge 2021

FCA has accepted 10 firms into its Green FinTech Challenge 2021 which aims to enable the FCA to take a more active role in driving innovation in products and services that will aid the transition to a net-zero economy...

FCA publishes Consumer investments data review

The FCA has published its third Consumer investments data review. The review provides an overview of FCA’s work to protect consumers from investment harm between April and September 2021. This follows FCA’s...

ASA successfully challenges crypto ads

The ASA challenged an ad for Floki Inu, a cryptocurrency, which was made via a poster displayed on the Tube in November 2021.  The poster had a cartoon dog in a Viking helmet with text saying “Missed Doge. Get...

FCA makes new rules

The FCA’s latest Handbook Notice confirms changes to: apply the rules set out in the Funeral Planning Conduct of Business (FPCOB) sourcebook to funeral plan providers selling their own plans directly to customers...

Dormant Assets Act gets Royal Assent

The Dormant Assets Act got Royal Assent on 24 February,  The Act expands the scope of “dormant assets” that has encompassed cash in bank and building society accounts since 2008 to include a greater range of...

FOS publishes latest quarterly complaints data

The Financial Ombudsman Service (FOS) has published its latest quarterly data on complaints in relation to financial products. This data covers the period October to December 2021, and is available in full as a...

FSCB publishes report on inclusion survey

The Financial Services Culture Board (FSCB) and Financial Services Skills Commission (FSSC) have published a report on their survey of inclusivity in the financial services sector. The report contains data from the...

FCA responds to APPG letter before claim

The FCA has responded to a letter before claim under the pre-action protocol for judicial review from the All Party Parliamentary Group on Fair Business Banking (APPG). APPG’s letter before claim refers to the...

New courses for compliance professionals

We are excited to have agreed with the Compliance Register to present at several key courses over the coming months. We will be presenting on: financial crime prevention SMCR the regulatory regime financial promotions...

Tribunal upholds FCA’s Decision Notice

HMCTS (Tribunal) has dismissed two applications made by an applicant against the Financial Conduct Authority (FCA). The FCA had given a Decision Notice to Przemyslaw Soszynski t/a Phenix Consultancy (Applicant) refusing...