United Kingdom (and EU regulation)

New briefing note – Inside the FCA: Insights from 3 ex-regulators

A number of the members of our Financial Services team in London have experience of working at the Financial Conduct Authority and in our latest briefing note, they discuss the insights that their different experiences at the regulator have provided and how we translate that to advising clients across the full spectrum of financial services … Continue Reading

FCA publishes new webpage: FCA and Industry Working Group on interest-only mortgages

On 21 February 2024, the Financial Conduct Authority (FCA) published a webpage outlining its working group on interest-only (IO) mortgages. The FCA is working with 12 mortgage lenders and administrators to continue its work in the interest-only mortgage market. The group’s primary purpose is to support and inform the FCA’s review of its existing IO … Continue Reading

PRA publishes Policy Statement on the review of rules (PS4/24)

On 22 February 2024, the Prudential Regulation Authority (PRA) published Policy Statement PS4/24, which provides feedback to responses to Consultation Paper CP11/23 on its proposed approach to reviewing its rules. PS4/24 also contains the PRA’s final statement on the review of rules, which the PRA is required to publish under section 3RB of the Financial … Continue Reading

APPG publishes report on de-banking

On 21 February 2024, the All-Party Parliamentary Group (APPG) on Fair Business Banking published a report on de-banking. The report was commissioned to explore the extent of the problem of de-banking and then, if problems were identified, to suggest remedies. The work was prompted by a growing number of individuals, companies and trade organisations approaching … Continue Reading

UK Finance Blog: Consumer Duty and how to assess fair value

On 21 February 2024, UK Finance published a blog on how to assess fair value under the Consumer Duty.   As 2024 will see the first annual Consumer Duty board reports delivered, as well as the implementation deadline of the Duty for closed products (the deadline for both is 31 July 2024), the FCA has … Continue Reading

New briefing note – PRA enforcement changes: what you need to know

On 30 January 2024, the Bank of England (the Bank) and Prudential Regulation Authority (PRA) published Policy Statement PS1/24 which sets out a revised approach to enforcement for both PRA firms and financial market infrastructure firms. It followed Consultation Paper CP9/23 published in May 2023. There is now a new consolidated Bank enforcement approach which … Continue Reading

FCA publishes speech on ‘Open regulators and open markets’

On 21 February 2024, Ashley Alder, Chair of the Financial Conduct Authority (FCA), delivered a speech on ‘Open regulators and open markets’. The speech centred around the importance of effective global cooperation in enabling the FCA to manage the considerable risks that accompany extremely large volumes of cross-border financial activity. This includes activity between the … Continue Reading

FCA publishes speech by Sheldon Mills on the Consumer Duty – “the art of the possible in a year”

On 20 February 2024, Sheldon Mills, FCA Executive Director of Consumers and Competition delivered a speech on the progress of the Consumer Duty since it came into force just over half a year ago. The speech identified the progress firms have made in these six months, whilst also identifying some challenges and looking ahead to … Continue Reading

FCA publishes guidance on good practice and areas for improvement in Consumer Duty implementation

On 20 February 2024, the Financial Conduct Authority (FCA) published guidance on what firms are doing well, and what could be improved, in relation to their implementation of the Consumer Duty. The Consumer Duty came into force for open products and services on 31 July 2023 and while the FCA welcomes the improvements made by … Continue Reading

The Financial Services and Markets Act 2023 (Regulated Activities) (Amendment) Order 2024 is published

On 20 February 2024, the Financial Services and Markets Act 2023 (Regulated Activities) (Amendment) Order 2024 (the Order) was published, along with an explanatory memorandum. The Order amends the regulatory framework, to make operating a pension dashboard service which connects to the Money and Pensions Service (MaPS) dashboards digital architecture a regulated activity. Such dashboards … Continue Reading

ESG updater – next issue

The next issue of our ESG updater which tracks regulatory developments in the ESG space is now available. Should you wish to receive the updater please sign up here. For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.… Continue Reading

Government writes to FCA and BoE on delivering a pro-innovation approach to AI regulation

On 16 February 2024, the Government published correspondence from the Secretary of State for Science, Innovation and Technology, Michelle Donelan, and the Economic Secretary to the Treasury and City Minister, Bim Afolami, asking a set of regulators to publish an update on their strategic approach to artificial intelligence (AI). The correspondence included letters to the … Continue Reading

New Regulation Tomorrow Plus Podcast: FCA intervention in the motor finance sector

In this latest Regulation Tomorrow Plus podcast we consider the FCA’s recent intervention in the motor finance sector including the action that firms will need to take. Listen to the episode here.… Continue Reading

BoE Policy Statement: Ensuring continuity of critical clearing services – approach to discretionary payments by CCPs

On 16 February 2024, the Bank of England (BoE) published a Policy Statement providing feedback on responses to an earlier Consultation Paper on the BoE’s proposed approach to its power to temporarily restrict or prohibit discretionary payments to employees or shareholders of recognised UK central counterparties (CCPs). The BoE’s final Statement of Policy on its … Continue Reading

FCA publishes key findings of multi-firm work on CMCs carrying out unregulated claims

On 15 February 2024, the FCA published the key findings of its multi-firm review of Claims Management Companies (CMCs) carrying out unregulated claims, to assess whether firms were using their FCA authorisation to legitimise services that are not regulated. This stemmed from the FCA’s concerns that consumers may mistakenly assume that all the services CMCs … Continue Reading

OFSI publishes guidance on ransomware and financial sanctions

On 15 February 2024, the Office of Financial Sanctions Implementation (OFSI) published guidance on ransomware and financial sanctions, covering cyber sanctions legislation, sectoral sanctions risk and licensing. The guidance is intended to assist with the UK Government’s aim of disrupting and reducing the profitability of ransomware through using financial sanctions against the ransomware threat actors … Continue Reading

FCA statement: FCA requests information from firms about delivery on their ongoing advice services and the Consumer Duty

On 15 February 2024, the Financial Conduct Authority (FCA) requested information from several financial services firms concerning their delivery of ongoing services, for which their clients continue to be charged after advice has been given. The survey asks whether firms have assessed their ongoing services in light of the introduction of the Consumer Duty, and … Continue Reading

New appointment to the FCA board announced

On 15 February 2024, the Economic Secretary to the Treasury Bim Afolami appointed Bryan Zhang to the board of the Financial Conduct Authority (FCA). Mr Zhang, who is a Co-Founder and the Executive Director of the Cambridge Centre for Alternative Finance at the Cambridge Judge Business School, will take up a role as Non-Executive Director … Continue Reading

FCA Market Watch 77

On 14 February 2024, the Financial Conduct Authority (FCA) published Market Watch 77. In this edition of Market Watch, the FCA shares its observations on trade by organised crime groups (OCGs) and how firms can mitigate the risks of being used to facilitate their trade. Trading by organised crime groups The FCA warns that suspicious … Continue Reading

FCA outlines progress in stopping misleading financial promotions

On 14 February 2024, the Financial Conduct Authority (FCA) published a press release outlining its progress in stopping misleading advertisements and promotions. The press release was published in conjunction with its financial promotions quarterly data for Q4 2023 and its financial promotions data for all of 2023. The data reveals that during 2023, over 10,000 … Continue Reading

Streamlining variation margin in centrally cleared markets – examples of effective practices

On 13 February 2024, the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report ‘Streamlining variation margin in centrally cleared markets – examples of effective practices’. In September 2022, the Basel Committee on Banking Supervision, CPMI and IOSCO published a final report … Continue Reading

SRB launches its “SRM Vision 2028” Strategy

On 13 February 2024, the Single Resolution Board (SRB) announced the Single Resolution Mechanism’s (SRM) new strategic vision up until 2028.   The SRB’s early work was heavily focused on policy development and the main attributes for resolution mandated by the SRM Regulation. By the end of 2023, the SRB reached various key milestones. These … Continue Reading

ESMA public statement on reporting requirements under RTS 28

On 13 February 2024, the European Securities and Markets Authority (ESMA) issued a public statement concerning Regulatory Technical Standard (RTS) 28 under MiFID II. The public statement follows an earlier public statement that ESMA issued on 14 December 2022 on the deprioritisation of supervisory actions on the obligation to publish RTS 27 reports after 28 … Continue Reading

BoE publishes discussion papers on RTGS operating hours and access policies

On 8 February 2024, the Bank of England (BoE) published two discussion papers on its Real Time Gross Settlement (RTGS) service operating hours and access policies. The discussion papers are part of the BoE’s work to renew its RTGS services, which will include the introduction of a new core ledger settlement engine this year. The … Continue Reading
LexBlog