Regulators see good governance, which enables effective oversight of decision making, as critical to the delivery of sound business management and reducing potential harm to consumers and market participants. Within the current climate, the FCA is also recognising that firms directly affected by coronavirus will need to keep their governance arrangements under review and make … Continue Reading
On 7 April 2020, the FCA issued guidance for pension providers and defined benefits (DB) transfer advisers in light of the COVID-19 pandemic. On the web page the FCA explains how it has deferred the implementation date for the final suite of Retirement Outcomes Review remedies: Investment Pathways, active decision to invest in cash and … Continue Reading
The Financial Ombudsman Service (FOS) has published some operational information about their service that might be helpful for businesses, and sets out some detail about their approach to complaints caused or affected by Coronavirus. In relation to travel insurance The FOS will pay particular attention to: individual circumstances, policy terms, when bookings were made and … Continue Reading
On 8 April 2020, the FCA announced a series of measures to help listed companies to raise new funding while retaining an appropriate degree of investor protection. The package includes a combination of temporary policy interventions and reminders of some existing options for companies and their current and prospective shareholders. These include: providing clarity on … Continue Reading
On 7 April 2020, the FCA published a web page concerning the stock market volatility that has been caused by the COVID-19 pandemic. On the web page the FCA explains how firms can avoid straying into making personal recommendations when bringing out the implications for customers of realising their investments or cancelling life assurance. The … Continue Reading
The FCA’s business plan 2020/2021 Over the coming weeks, partners from our financial services team will be sharing with clients and contacts a series of video diaries setting out their views on the latest developments in respect of COVID 19 impacts in the various areas of financial services. In our fifth video diary, John Coley … Continue Reading
On 6 April 2020, the FCA published a new web page concerning client assets and COVID-19. The FCA reports that it has received queries on client assets (CASS) compliance related to the current disruption caused by the COVID-19 pandemic. On the web page the FCA summarises queries received on the following topics and its position … Continue Reading
On 6 April 2020, the FCA published a webpage setting out its expectations regarding funds in light of the COVID-19 pandemic. The FCA reports that firms have raised queries that focus mainly on the associated challenges that they are facing both operationally and as a result of significantly increased volatility in global markets. The web … Continue Reading
The FCA expects all firms to have business continuity arrangements and contingency plans in place to deal with major events. The FCA’s expectations for firms dealing with the impact of COVID-19 sits within this broader regulatory context. The FCA and the PRA are currently consulting on a specific operational resilience regime (see in particular, Consultation … Continue Reading
The coronavirus outbreak has upended the AGM season, which traditionally commences in April in the northern hemisphere. Many companies are grappling with whether to stage the events when most countries have restricted travel and banned mass gatherings, or to postpone the meetings until restrictions are lifted. We set out below, a summary of some of … Continue Reading
On 31 March 2020, the Prudential Regulation Authority (PRA) published a Dear CEO letter from Sam Woods, Deputy Governor, to the CEOs of UK insurers regarding distribution of profits. The letter outlines an expectation on insurers to pay close attention to the need to protect policyholders and maintain safety and soundness in order to ensure … Continue Reading
Over the coming weeks, partners from our financial services team will be sharing with clients and contacts a series of video diaries setting out their views on the latest developments in respect of COVID 19 impacts in the various areas of financial services. In our fourth video diary, Matthew Gregory discusses today’s FCA proposals (made … Continue Reading
Over the coming weeks, partners from our financial services team will be sharing with clients and contacts a series of video diaries setting out their views on the latest developments in respect of COVID 19 impacts in the various areas of financial services. In our third video diary, Iain Hawthorn discusses the recent government announcements … Continue Reading
On 1 April 2020, the Financial Action Task Force (FATF) published a statement in response to the ongoing COVID-19 pandemic. The statement touched on a number of areas of which the key ones for the financial services industry were: Remaining vigilant in light of the COVID-19-related financial crime risks: FATF has flagged an increase in … Continue Reading
On 31 March 2020, the Single Resolution Board (SRB) published its Expectations for Banks document. The SRB has updated this document to reflect industry feedback and sets out the capabilities the SRB expects banks to demonstrate in order to show that they are resolvable. It describes best practice and sets benchmarks for assessing resolvability. It … Continue Reading
On 31 March 2020, the European Banking Authority (EBA) published the following: Statement on supervisory reporting and Pillar 3 disclosures in light of COVID-19. Among other things the EBA states that Member State competent and resolution authorities should assess the extent to which a delayed submission of all the data or subsets of the data … Continue Reading
On 1 April 2020, the European Securities and Markets Authority (ESMA) published its final report to the European Commission on inducements and costs and charges disclosures under MiFID II. The final report deals with technical advice in relation to certain investor protection topics under MiFID II. In this respect, in line with the previous mandate … Continue Reading
On 1 April 2020, the European Securities and Markets Authority (ESMA) issued a public statement intended to clarify issues regarding the publication by execution venues and firms of the general best execution reports required under Regulatory Technical Standards (RTS) 27 and 28 of MiFID II. The statement notes that the next general best execution reports … Continue Reading
On 2 April, 2020 the FCA proposed several measures, intended to come into effect within seven days, to provide relief to consumers across a range of consumer credit products. The measures complement the announcement from HM Government to provide support to mortgage holders, and the assistance to be provided to furloughed employees and the self-employed. … Continue Reading
Mel Stride MP, Committee Chair of the House of Commons Treasury Committee, has written a letter to Huw Evans, Director General of the Association of British Insurers (ABI) seeking responses to a series of questions about how insurance companies are responding to the coronavirus. The letter opens by stating that “many will be looking to … Continue Reading
On 31 March 2020, the Financial Conduct Authority (FCA) updated its statement on what it expects insurers and brokers to do during the covid-19 pandemic. The update concerns the expectations for MOTs, product suspension and renewals. For the previous statement please read our earlier blog. Vehicle MOTs In light of the guidance from the Department … Continue Reading
On 27 March 2020, the European Central Bank (ECB) updated its recommendation to banks on dividend distributions. The ECB recommends that at least until 1 October 2020 no dividends are paid out and no irrevocable commitment to pay out dividends is undertaken by credit institutions for the financial year 2019 and 2020 and that credit … Continue Reading
On 30 March 2020, the PRA published statements on: value at risk (VAR) back-testing exceptions temporary approach. The PRA is aware that the exceptional levels of market volatility over the past few weeks has led to an elevated level of VAR back-testing breaches across the industry. In order to mitigate the possibility of procyclical market … Continue Reading
On 29 March 2020, the FCA issued a statement making it clear to firms how they should prioritise who should need to travel to the office and the responsibilities of senior managers in doing so. The statement applies to all FCA-regulated firms across the UK.… Continue Reading
