United Kingdom

Topic: Financial Services

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FCA publish CP21/27: Quarterly Consultation Paper No. 33

On 3 September the Financial Conduct Authority (FCA) published CP21/27, its quarterly consultation on changes to the handbook. As part of this consultation, the FCA is proposing Handbook amendments in the following areas: An amendment to how legal expenses insurance is reported under our value measures reporting To move application forms from the Handbook To … Continue Reading

FCA sends Dear CEO letter to Portfolio Platforms

On 26 July, the Financial Conduct Authority (FCA) sent a Dear CEO letter to Portfolio Platforms, setting out reminders of their expectations in the following areas: Operational resilience; SUP 15 notification requirements; Transfer times; and Brexit In respect of operational resilience, the FCA reminds firms that they expect firms to invest in their systems to … Continue Reading

FCA publishes PS 21/9: Implementation of the Investment Firms Prudential Regime

On 26 July the Financial Conduct Authority (FCA) published policy statement 21/9, which enacts the much anticipated implementation of the Investment Firms Prudential Regime (IFPR). This particular consultation paper follows CP21/7 which was published in April this year. It is in fact the second policy statement on the IFPR, the first being PS 21/6 which … Continue Reading

PRA publishes direction for modification by consent to exclude individuals from identification as risk takers

On 23 July 2021, the Prudential Regulation Authority (PRA) published a direction for modification by consent concerning the Remuneration Part of the PRA Rulebook relating to the identification of individuals as material risk takers (MRTs). It has also published guidelines on the modification, in addition to updating its webpage on waivers and modifications. Article 7 … Continue Reading

FOS board commission independent review

The commissioning of independent reviews is something the board of the Financial Ombudsman Service (FOS) undertakes periodically. On 23 July, the FOS website published a press release stating that another independent review had been commissioned into whether the FOS can continue to meet the needs of its customers, both businesses and consumers. The review will … Continue Reading

Bank of England to review its approach to setting a minimum requirement for own funds and eligible liabilities

On 22 July, the Bank of England published a Consultation Paper (CP) as part of its review of the UK’s framework for the Minimum Requirement for Own Funds and Eligible Liabilities (MREL). The CP is the second stage of the MREL Review and sets out the Bank’s proposed changes to its MREL framework. It follows … Continue Reading

Bank of England publishes an operational guide to executing bail-in

Bail-in is a key stabilisation tool afforded to the Bank of England by the Banking Act 2009, that ensures investors rather than public funds bear the burden of resolving failing banks. This operational guide published on 22 July provides practical information on the ways in which the Bank of England might execute a bail-in resolution, … Continue Reading

Treasury publishes response to Call for Evidence on Overseas Framework

On 22 July, the Treasury published the response to the Call for Evidence on the Overseas Framework, which was initially issued in December 2020. The Call for Evidence received 34 responses, with submissions from stakeholders from a range of sectors spanning banking, legal, wholesale, trading venues, insurance and trade bodies. Submissions also emanated from a … Continue Reading

FCA issues statement for firms using certain exemptions to the Financial Promotions Order

The FCA has issued a statement to address an error made during the on-shoring of the The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the FPO). During the on-shoring of the FPO, the definition of Relevant Market inadvertently failed to include relevant UK markets. Presently, this means that the exemptions under Articles … Continue Reading

PRA issues PS18/21 to correct the definition of ‘higher paid material risk taker’

The Prudential Regulation Authority’s (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 9/21 ‘Remuneration: Correction to the definition of ‘higher paid material risk taker’. It also contains the PRA’s final policy, as follows: amendments to the Remuneration Part of the PRA Rulebook (Appendix 1); and an updated Supervisory Statement (SS) 2/17 … Continue Reading

‘In confidence, with confidence’ – new FCA whistleblowing campaign

Culture and governance remains a key focus for the FCA and line with this, the FCA has today launched a new whistleblowing campaign called ‘In confidence, with confidence’ to encourage more reporting of potential misconduct to the FCA by those working in financial services. To support the campaign the FCA has produced: materials for firms … Continue Reading

Enhancing regulatory accountability through increased challenge

Executive summary The ability of firms to effectively challenge regulatory decisions on rule-making and rule application is a key part of holding regulators properly to account. Whilst there are existing review mechanisms in place for firms such as the ability to seek judicial review through the courts, some features of these mechanisms may currently be … Continue Reading

Strengthening accountability: SM&CR forms update – PS1/21

On 22 January 2021, the PRA published Policy Statement 1/21: Strengthening Accountability: SM&CR forms update (PS1/21). Due to the short nature of PS1/21 the PRA has presented the text on a webpage without a separate document. With PS1/21 the PRA is: Amending the Notification Form to reflect the new FCA address following their move to … Continue Reading

European Commission proposes to boost the EU’s financial and economic system

On 19 January 2021, the European Commission published a Communication on the European economic and financial system: fostering openness, strength and resilience . The Communication and strategy set out therein for development of the European financial markets is designed as one of the early steps of the Commission under Ursula von der Leyen’s leadership to … Continue Reading

Council organises first working group on DORA proposal in 2021

On Thursday, 21 January, the Portuguese presidency of the Council holds its first working group on the review of the European Commission’s proposal for a Regulation on digital operational resilience for the financial sector (DORA). The Council is still in its initial phase of examining the proposal. The Council Presidency Is taking an issue-by-issue approach, … Continue Reading

The FCA publishes its first report on consumer investments data

The FCA published a report today on its consumer investments data review, covering the period between 1 January and 31 October 2020. The report details the action the FCA has taken over the same period, in line with its consumer investment objectives, stated as: Stopping and disrupting firms causing consumer harm; Supporting and guiding consumers … Continue Reading

Regulation Tomorrow Podcast – Episode 1 now on Apple Podcasts

We are pleased to announce that the Regulation Tomorrow Podcast is now available on the Apple Podcasts app (and also on iTunes). Please click here to listen and subscribe to the podcast. Episode 1 focusses on Brexit, featuring interviews with Jonathan Herbst, Imogen Garner and Hannah Meakin.… Continue Reading

2 December 2020: Senior management and compliance 40-minute briefing – MiFID 2 / MiFIR for 2021

We are evolving our successful 40-minute briefings into webinars for financial services professionals. This includes senior management and those in legal, compliance and risk teams who have or are developing financial services expertise. The webinars will be led by senior members of our financial services team from legal, risk consulting and government affairs backgrounds and … Continue Reading

4 November 2020: Senior management and compliance 40-minute briefing – Sustainable finance regulation

We are evolving our successful 40-minute briefings into webinars for financial services professionals. This includes senior management and those in legal, compliance and risk teams who have or are developing financial services expertise. The webinars will be led by senior members of our financial services team from legal, risk consulting and government affairs backgrounds and … Continue Reading

ESMA confirms Securitisation Regulation requirements entry into force on 23 September 2020

On 4 September 2020, the European Securities and Markets Authority (ESMA) issued a statement confirming that different elements of the new regime under the Securitisation Regulation will come into force on 23 September 2020. The statement follows the publication of seven technical standards implementing the Securitisation Regulation in the Official Journal of the EU. The … Continue Reading

SWIFT publishes “Follow the Money” report to aid comprehension of money laundering risks underpinning large-scale cyber-heists

In September 2020, SWIFT (a global member-owned cooperative and provider of secure financial messaging services) published a report to support market participants in understanding the money laundering techniques which underpin large-scale cyber-attacks. The report sets out the end-to-end journey commonly used by criminals to launder funds obtained through illicit cyber-crime related activities, and focusses on … Continue Reading

FCA continues to promote innovation through DataSprint and digital sandbox to solve Covid-19 challenges

On 2 September 2020, the Financial Conduct Authority (FCA) launched a new webpage updating market participants on the pilot of its “digital sandbox” and recent DataSprint. The FCA notes that its latest DataSprint, held in July and August 2020, enabled 120 market participants from multiple sectors and disciplines to collaborate to develop data models and … Continue Reading

Risk Consulting Hot Topic Series: Governance

Robust governance is the cornerstone of any well-run business. Global regulators will also always look at the strength of this area when they find problems or issues. Organisations therefore need to have a strong board who hold management to account and good governance practices that permeate throughout the business. Global accountability regimes only amplify the … Continue Reading

COVID-19: FCA extends submission deadline for complaints returns

On 28 August 2020, the Financial Conduct Authority (FCA) published an update to its webpage focused on changes to regulatory reporting during the COVID-19 pandemic. The FCA has permitted extensions to complaints data returns in relation to the 31 August 2020 deadline required by the Dispute Resolution: Complaints Sourcebook (DISP) rule DISP 1.10A.3R(1). The FCA … Continue Reading