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
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
On 11 March 2022, there was published on the legislation.gov.uk website The Economic Crime (Anti-Money Laundering) Levy Regulations 2022. The statutory instrument makes provision relating to the assessment, payment, collection and recovery of the Economic Crime (Anti-Money Laundering) Levy.… Continue Reading
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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 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
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
