United Kingdom

Topic: Financial Services

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Bank of England provides Data Standards Review update

On 26 October 2022, the Bank of England (the Bank) provided an update on the Data Standards Review, which has been commissioned by the Transforming Data Collection joint transformation programme being led by the Bank of England and FCA with industry. The joint transformation programme’s vision is that ‘The Bank of England and the FCA … Continue Reading

Bank of England updates webpage on waivers and modification of rules

On 26 October 2022, the Bank of England updated its webpage on waivers and modification of rules. The webpage has updated its section on available waivers and modifications by consent to include the following: Modification by Consent of Rule 6.57 of Annex II of Part 6 (Templates and instructions) of the Reporting (CRR) part of … Continue Reading

Commission proposes to accelerate the rollout of instant payment in euro

On 26 October 2022, the European Commission adopted a legislative proposal to make instant payments in euro available to all citizens and businesses holding a bank account in the EU and EEA countries. The proposal aims to ensure that instant payments in euro are affordable, secure, and processed without hindrance across the EU. The proposal, … Continue Reading

Chancellor unveils ‘Growth Plan’

On 23 September 2022, the Chancellor of the Exchequer, Kwasi Kwarteng, unveiled the new ‘Growth Plan’. Key takeaways for the financial services sector announced within the plan include: Later this autumn the Government will bring forward an ambitious deregulatory package with its aim being to unleash the potential of the UK financial services sector. This … Continue Reading

Current trends in UK litigation and investigations for financial institutions

In this post, we summarise emerging litigation and investigations trends and their practical implications for financial institutions (FIs). Litigation Litigation trends are largely dependent on social and political changes and we continue to see the impact of the global pandemic and the related financial downturn on emerging litigation trends. Civil fraud claims 2022 has seen … Continue Reading

The Economic Crime (Transparency and Enforcement) Act 2022 – the conundrum of strict liability

The Economic Crime (Transparency and Enforcement) Act 2022 (the Act), which came into force in March 2022, aimed amongst other things, to give UK sanctions authorities greater power to take enforcement action and impose penalties on persons that breach sanctions restrictions, through the introduction of a “strict liability” test. These new powers of the UK’s … Continue Reading

Spotlight on the Appointed Representatives regime: what is changing and how best to prepare

Ahead of the anticipated FCA policy statement and final rules on the changes to the Appointed Representatives regime, which were expected to be published in H1 2022, in this briefing paper we consider some of the steps that firms should be taking to prepare for the anticipated changes in the FCA’s final policy.… Continue Reading

Cyber-attacks are on the increase: reminder of FCA and PRA expectations on regulated firms

It has been reported that, in 2021, the FCA experienced a 52% increase in reports of “material” cyber security incidents and we expect this upward trend to continue into 2022.  The rise in ransomware in particular was highlighted in the very recent paper published by UK Finance, which called on UK authorities to focus on … Continue Reading

Blog: FCA review finds Challenger Banks need to enhance financial crime controls

The FCA has recently conducted a review of financial crime controls at a sample of six challenger banks  in order to identify the key financial crime risks to which such banks are exposed. The review was prompted by a substantial increase in the volume of Suspicious Activity Reports (SARs) filed by challenger banks. Whilst the … Continue Reading

New resource hub: Governance reviews – are you prepared?

The pandemic, and the associated move to hybrid working, and the current geopolitical environment are creating a number of unique governance challenges for regulated firms across the financial services industry. Whilst regulators understand the broader backdrop that firms face, they have also remained clear throughout that firms must take reasonable steps to meet their regulatory … Continue Reading

Financial Institutions and the hybrid work environment

The onset of the pandemic in March 2020 forced financial institutions (FIs) across the world to change their working practices. Large numbers of employees moved from working in an office five days a week to working from home as countries locked down. Today, it appears unlikely that FIs will return to their previous working models … Continue Reading

Fraud-related investigations and their impact on financial institutions

Since the pandemic began in March 2020, there has been a rise in fraudulent behaviour as fraudsters look to take advantage of members of the public and financial institutions (FIs). Phishing, text scams and small-scale fraudulent activity targeting the British public were up 285% in the first half of 2021; HM Revenue and Customs estimates … Continue Reading

Financial Institutions – Regulatory outlook for 2022

As 2021 draws to a close, we look ahead to the trends and new requirements that we may see over the next twelve months for financial institutions (FIs) in the white collar crime sphere as regulators, legislators and individuals continue to adapt to the pandemic and prevailing public opinion. 1. An increase in fraud-related investigations … Continue Reading

New RT Plus podcast on FCA Authorisations – out now

A new RT Plus episode covering the FCA authorisation process is out now to stream and download. In this episode, Head of Risk Consulting EMEA Advisory, Lisa Lee Lewis, is joined by Compliance Manager, Victoria Pridmore, to discuss various aspects of the authorisation process. They look at recent issues and updates from the FCA in … Continue Reading

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
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