On 15 March 2024, the Financial Conduct Authority (FCA) announced a review into firms’ treatment of customers in vulnerable circumstances. The supports the FCA’s 2021 commitment. The announcement is in parallel with the Consumer Duty’s overarching objective, as firms are required to act to deliver good outcomes for all customers, including those with characteristics of … Continue Reading
On 8 February 2024, the FCA published a statement confirming that the Upper Tribunal (UT) had decided not to suspend restrictions that the Financial Conduct Authority (FCA) has placed on e-money firm Nvayo Limited (Nvayo). These restrictions, which appear on the FCA’s register, include restrictions on the business the firm can do. They were imposed … Continue Reading
On 14 March 2024, the European Commission (Commission) adopted a Delegated Regulation amending Delegated Regulation 2016/1675 as regards adding Kenya and Namibia to the table in point I of the Annex and deleting Barbados, Gibraltar, Panama, Uganda and the United Arab Emirates from that table. Article 9(2) of the Fourth Anti-Money Laundering Directive (4MLD) empowers … Continue Reading
On 14 March 2024, the FCA published a speech by its CEO, Nikhil Rathi, entitled ‘Investing in outcomes: a regulatory approach to deliver for consumers, markets and competitiveness’. In his speech Mr Rathi touches on some of the big issues investors have on their minds: In relation to the Consumer Duty, Mr Rathi notes that … Continue Reading
On 14 March 2024, HM Treasury (HMT) published a near final version of the Payment Services (Contract Terminations Amendment) Regulations 2024 together with a policy note. The draft statutory instrument and policy note follows HMT’s earlier policy statement published last November on payment service contract termination rule changes. The policy statement was published following a … Continue Reading
On 5 March 2024, the Financial Conduct Authority (FCA) issued a warning to firms about common failings it has identified in firms’ financial crime controls. It wrote to CEOs of Annex 1 firms, setting out the findings from its recent assessments of how firms are complying with anti-money laundering (AML) regulations. The letter warns that … Continue Reading
On 13 March 2024, the Chief Executive of the Financial Conduct Authority (FCA), Nikhil Rathi, delivered a speech on the future of pensions at the JP Morgan Pensions and Savings Symposium. Key points Mr Rathi acknowledged that pensions auto-enrolment processes have been a success, but emphasised the importance of addressing the gaps and inadequacies that … Continue Reading
On 12 March 2024, the Bank of England (BoE) published Policy Statement PS5/24 on solvent exit planning for non-systemic banks and building societies, setting out how these types of firm in the UK should prepare, as part of their business-as-usual (BAU) activities, for an orderly ‘solvent exit’ and, if needed, be able to execute one. … Continue Reading
On 12 March 2024, HM Treasury published a draft statutory instrument (SI): The Payment Services (Amendment) Regulations 2024, along with an accompanying policy note. The draft SI amends the Payment Services Regulations (PSRs) 2017 to allow payment service providers (PSPs) to delay the execution of an outbound payment transaction by up to four business days, … Continue Reading
On 12 March 2024, the Financial Action Task Force (FATF) published guidance on beneficial ownership and transparency of legal arrangements. The guidance, which is non-binding, aims to assist stakeholders from public and private sectors that regulate, supervise, enforce, form, manage, or administer trusts or similar legal arrangements. It focuses on the Recommendation 25 requirements and … Continue Reading
On 11 March 2024, the Financial Conduct Authority (FCA) published a statement updating its position on cryptoasset-backed Exchange Traded Notes (cETNs) for professional investors. The statement explains that the FCA will not object to requests from Recognised Investment Exchanges (RIEs) to create a UK listed market segment for cETNs. These products would be available for … Continue Reading
On 11 March 2024, HM Treasury (HMT) published a consultation on improving the effectiveness of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs), which place requirements onto a range of businesses to identify and prevent money laundering and terrorist financing. HMT committed to consulting on changes … Continue Reading
On 11 March 2024, the City of London Corporation published a paper that seeks to give a practical explanation of the Berne Financial Services Agreement which was published last December.… Continue Reading
On 8 March 2024, the House of Commons Treasury Committee (the Committee) published a report as part of its current inquiry into Sexism in the City, in order to evaluate the progress made in relation to gender based inequality within the financial services sector, since its predecessor Committee highlighted the problem in 2018. The issues … Continue Reading
On 8 March 2024, the Investment Association (IA) issued a report ‘Insights and Suggested Actions on the FCA’s TCFD Rules for Asset Managers: Lessons from Year 1 Reporting and Recommendations Going Forward’. The report sets out the IA’s review of investment managers’ entity, product and on-demand reporting, some of the key challenges faced in implementing … Continue Reading
On 8 March 2024, the FCA issued a report by the Synthetic Data Expert Group which discusses how synthetic data can be used to overcome data challenges and its practical applications in financial services. In particular the report focuses on 3 key themes across the data lifecycle: The FCA set up the Synthetic Data Expert … Continue Reading
In the latest episode of our Decisions Decoded podcast series, we discuss the key points from the Final Notice issued against Floris Huisamen, former director of London Capital & Finance plc (LCF). In October 2023, LCF was publicly censured for its unfair and misleading financial promotions of minibonds. In connection with this, Mr Huisamen has … Continue Reading
On 7 March 2024, the Financial Conduct Authority (FCA) published a statement regarding changes to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (FPO). The statement highlights that the FCA and industry implemented the changes to the high net worth exemption by 31 January 2024, as required under the law. The changes … Continue Reading
On 7 March 2024, Statutory Instrument 2024 No.301 – the Financial Services and Markets Act 2000 (Amendment and Transitional Provision) Order 2024 – (the SI) was published. Background The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (FPO) contains exemptions from the restriction on communicating financial promotions, including exemptions that enable financial promotions … Continue Reading
On 7 March 2024, the Bank of England’s (BoE) Executive Director for Data and Analytics Transformation and Chief Data Officer, James Benford, delivered a speech on the steps being taken by the BoE to update its data and analytics strategy. Mr Benford explained that the BoE is carrying out a seven-step approach to refresh its … Continue Reading
On 6 March 2024, HM Treasury (HMT) published a consultation setting out the Government’s proposal for a new innovative market that aims to allow private companies to scale and grow, and to boost the pipeline of future initial public offerings (IPOs) in the UK. The consultation outlines a proposal for a new platform that will … Continue Reading
On 7 March 2024, the Basel Committee on Banking Supervision (Basel Committee) published a Consultative Document setting out proposed amendments to its assessment methodology for global systemically important banks (G-SIBs). The proposed changes are intended to address “window-dressing” behaviour by some banks in the context of the G-SIB framework where regulatory arbitrage behaviour seeks to … Continue Reading
In March 2022, a year after Russia’s invasion of Ukraine, the Treasury Committee published a report regarding the development, implementation and impact of economic sanctions on Russia (the 2022 Report). In brief, the 2022 Report found that: The UK’s sanctions framework has continued to evolve, with businesses left to navigate the increasing complexity of implementing … Continue Reading