On 28 September 2023, the FCA published a portfolio letter addressed to the CEOs of corporate finance firms (CFFs). The letter outlines the harms to consumers and markets that the FCA thinks are most likely to arise from the business models of CFFs, and sets out its strategy to address these harms and its expectations … Continue Reading
On 27 September 2023, the City of London Corporation and the FCA announced the launch of an authorised push payment (APP) synthetic dataset to develop products and services that can minimise fraud. The dataset will be hosted on the FCA’s permanent Digital Sandbox and provides a foundation to better understand how useful data could be … Continue Reading
On 15 September 2023, the Payment Systems Regulator (PSR) published Consultation Paper 23/8: Cycle 2 – Additional changes to timelines and reporting periods (CP23/8). CP23/8 follows on from the PSR’s March 2023 Policy Statement 23/1: APP scams: Measure 1 Collection and publication of performance data. In that Policy Statement the PSR stated that it would … Continue Reading
On 7 September 2023, the FCA published a letter to firms setting out its findings from meetings with various cryptoasset firms regarding their preparations for the cryptoasset financial promotions regime, and additional actions it is taking to support firms in complying with the regime. The FCA’s rules on financial promotions for cryptoassets, which were set … Continue Reading
On 7 September 2023, the Financial Stability Board (FSB) and the International Monetary Fund (IMF) published a joint synthesis paper on policies for crypto-assets. The report synthesises the IMF’s and FSB’s policy recommendations and standards. The report illustrates macroeconomic and financial stability implications of crypto-asset activities, how they may interact, and how the IMF and … Continue Reading
On 17 August 2023, the FCA published on its website a statement setting out its expectations for UK cryptoasset businesses complying with the Travel Rule. From 1 September 2023, cryptoasset businesses in the UK will be required to collect, verify and share information about cryptoasset transfers, known as the ‘Travel Rule’. The statement provides that … Continue Reading
On 15 August 2023, the Payment Systems Regulator (PSR) published two consultations in the lead up to its new authorised push payment (APP) fraud reimbursement requirements. Consultation on consumer standard of caution The first consultation proposes that the consumer standard of caution should consist of the following three things: Consultation on the maximum level of … Continue Reading
On 9 August 2023, UK Finance published an updated version of its ‘How to’ interpretative guidance on the Funds Transfer Regulation (FTR, also known as the Wire Transfer Regulation). The updated FTR was published in 2015 and in 2017, the European Supervisory Authorities (ESAs) published their guidance for the FTR, with an implementation date of … Continue Reading
Our global financial services team has launched a new platform, CryptoNavigator, which provides a mixture of plug-and-play products and tailored advisory services to help firms navigate ever expanding regulatory requirements across the cryptoassets landscape. These include products and services to provide support with financial promotions and authorisations, as well as a global legal and regulatory … Continue Reading
On 1 August 2023, the FCA launched a new webpage: Digital Sandbox pilots. The webpage outlines the FCA’s first Digital Sandbox pilot, which ran between October 2020 and February 2021, and provides a link to the evaluation report. The webpage also gives an overview of the FCA’s second Digital Sandbox pilot, which focussed on testing … Continue Reading
On 20 July 2023, the House of Commons’ Treasury Committee published the government’s response to its report on Regulating Crypto. In the report, which was published in May 2023, the cross-party Committee of MPs called for consumer trading in unbacked crypto to be regulated as gambling. The Committee had outlined concerns that the government’s proposals … Continue Reading
On 18 July 2023, the Financial Markets Standards Board (FMSB) published a transparency draft of a statement of good practice for the application of a model risk management framework to electronic trading algorithms. The purpose of the statement is to support firms in applying model risk management frameworks in a proportionate manner to models deployed … Continue Reading
On 12 July 2023, the FCA published Feedback Statement 23/4: The potential competition impacts of Big tech entry and expansion in retail financial services (FS23/4). FS23/4 summarises feedback to the FCA’s October 2022 discussion paper (DP22/5) which aimed to stimulate conversation on areas where Big Tech entry is likely to create the biggest competition benefits … Continue Reading
On 12 July 2023, the European Securities and Markets Authority (ESMA) published a report on the call for evidence on pre-hedging. The practice of pre-hedging is not defined in EU law. Market participants understand pre-hedging as a practice which takes place when liquidity providers aim to hedge their inventory risk in an anticipatory manner. In … Continue Reading
On 11 July 2023, HM Treasury published a call for input to inform the Future of Payments Review 2023. The Review was launched in July 2023 to consider how payments are likely to be made in the future and make recommendations on the steps needed to successfully deliver world leading retail payments, further boosting UK … Continue Reading
On 11 July 2023, HM Treasury published an interim report produced by the Digitisation Taskforce, which was established in July 2022 as a recommendation taken forward from Mark Austin’s Secondary Capital Raising Review. The Taskforce aims to drive forward the full digitisation of the UK shareholding framework by eliminating the use of paper share certificates … Continue Reading
On 11 July 2023, HM Treasury published its response to the consultation on information requirements in the Payment Accounts Regulations 2015 (PARs). The consultation was published on 9 December 2022 as part of the Edinburgh Reforms. As well as providing an overview of the feedback to the consultation, the response document also outlines the government’s … Continue Reading
On 7 July 2023, the Payments Systems Regulator (PSR) published a consultation paper concerning the legal instruments with which it will implement its authorised push payment (APP) scam reimbursement requirement policy. The consultation paper follows the PSR’s Policy Statement 23/3: Fighting authorised push payment fraud: a new reimbursement requirement – response to September 2022 consultation … Continue Reading
On 4 July 2023, the FCA published a letter addressed to cryptoasset firms, warning them that they must get ready for the financial promotions regime by 8 October 2023. The letter explains that the UK Government has now legislated to bring qualifying cryptoassets within scope of the financial promotions regime and reminds firms that once … Continue Reading
On 27 June 2023, the Law Commission published its final report on digital assets, which sets out recommendations for reform and development of the law on digital assets with the aim of securing the UK’s position as a global crypto hub. In March 2020, the UK Government asked the Commission to review the law on … Continue Reading
On 28 June 2023, the European Commission (Commission) issued legislative proposals intended to bring payments and the wider financial sector into the digital age. The legislative proposals consist of a proposed: The first two legislative proposals fulfil a commitment in the Commission’s 2020 Retail Payments Strategy and complement the Commission’s proposal from 2022 for a … Continue Reading
On 26 June 2023, the FCA updated its webpage on The future of open banking and the Joint Regulatory Oversight Committee (JROC). The updated webpage includes a new section on the set up of the variable recurring payments (VRP) working group and the future entity working group.… Continue Reading
On 26 June 2023, the Joint Regulatory Oversight Committee (JROC), which is co-chaired by the FCA and the Payment Systems Regulator (PSR), published a joint paper on principles for commercial frameworks for premium application programming interfaces (APIs). The paper sets out five high-level principles for banks and registered third parties to follow when agreeing a … Continue Reading
On 22 June 2023, the Payment Systems Regulator (PSR) published a letter in response to HM Treasury and the Bank of England’s (BoE) consultation on the ‘digital pound’. In the letter, the PSR sets out the following views:… Continue Reading
