UK Financial Services and Markets Regulators
Financial Conduct Authority (FCA)
FCA updates on CRR forms: FCA has updated its website in respect of implementation of the fourth Capital Requirements Directive (CRD4) and Capital Requirements Regulation (CRR) with details of how to apply for waivers and "CRR permissions". The page links to the relevant forms and explains when and how firms should complete them, and when firms should apply to FCA and when to PRA. FCA will deal with applications on receipt and plans to publish all waivers and permissions (which it will refer to publicly as "discretions") on the Financial Services Register. (Source: FCA Updates on CRR Forms)
FCA publishes Moneysupermarket requirements: FCA has published a voluntary application for imposition of requirements from Moneysupermarket.com Financial Group Limited (MSM). FCA had expressed concern that two MSM advertisements might give the impression that MSM prices for certain home and car insurance products were cheaper than competitor websites over half the time. This was not true. MSM agreed not to broadcast the advertisements again in the same form and to include a notice on the relevant part of its website for four weeks outlining FCA's concerns. (Source: FCA Publishes Moneysupermarket Requirements)
FCA publishes consumer credit information sheets: FCA has published its version of the Office of Fair Trading's information sheets on arrears and default, which firms must use from 1 April. It also plans to publish variants of the sheets for high-cost short-term credit providers and peer-to-peer lending platforms to use. The Consumer Credit Act requires lenders to send these sheets to customers when they write to tell the customer it is in arrears or default. (Source: FCA Publishes Consumer Credit Information Sheets)
FCA updates Handbook Guide: FCA and PRA have updated the readers' guide to the Handbook. The changes reflect the newly launched PRA Rulebook (see below). (Source: FCA Updates Handbook Guide)
FCA publishes MMR FAQs: FCA has published a further set of FAQs on the mortgage market review (MMR) stemming from its workshops. New questions relate to disclosure, execution only and advice. (Source: FCA Publishes MMR FAQs)
FCA updates AIFMD pages: FCA has drawn firms' attention to its prudential classification for UK investment fund managers. Its policy statement on CRD4 for investment firms (see FReD 20 December 2013) updated the classification and provides clarifications as a result of consequential amendments to the prudential requirements for Collective Portfolio Management (CPM) firms and Collective Portfolio Management Investment (CPMI) firms. (Source: FCA Updates AIFMD Pages)
Prudential Regulation Authority (PRA)
PRA publishes new Rulebook: A new page of the "FS Handbook" website now links directly to those parts of the PRA Rulebook that have been made. Currently this is only the capital requirements rules adopted at the end of 2013. PRA's aim is gradually to make rules and, where they apply to PRA-regulated firms only, present them in a new, more user-friendly manner, to the rest of the Handbook. PRA firms can access the new rules directly or via the links to relevant Handbook modules. (Source: PRA Publishes New Handbook and PRA Handbook and Rulebook Information)
Regulators confirm Co-op investigation: PRA and FCA have confirmed they are to undertake enforcement investigations into the Co-operative Bank. PRA said its investigation would include looking into the role of former senior managers. FCA said its investigation would be looking at decisions and events up to 2013. Treasury had previously announced it would arrange an independent review of the bank, and the regulators confirm this will be "sequenced" appropriately so as not to prejudice or interfere with the investigations. (Source: PRA Confirms Co-op Investigation and FCA Confirms Co-op Investigation)
PRA updates on CRR forms: PRA has updated its website to include:
- information on applying for waivers and permissions under the CRD4/CRR package;
- reporting requirements for CRR firms; and
- its supervisory statement on third country equivalence aspects of the credit risk provisions in the CRR and on recognised exchanges. PRA has set out its approach while it waits for the Commission to adopt determinations.
(Source: PRA CRR Permissions, PRA CRD Regulatory Data Forms and PRA Statement on Credit Risk Equivalence)
PRA updates on passporting: PRA's website now contains updated information on applying for, and the operation of, inward and outward passports under relevant Directives. (Source: PRA Updates on Passporting)
PRA updates on authorisations: PRA has published further information on authorisations, including:
- a list of "designated" investment firms (there are currently nine); and
- confirmation of how the Financial Services Compensation Scheme applies.
(Source: PRA Publishes Designated Firm List and PRA Confirms FSCS Coverage)
PRA warns credit unions on marketing: PRA has updated its webpage on credit unions to warn unions they must not market themselves as providing the same services as banks or building societies or being regulated in the same way. (Source: PRA Warns Credit Unions on Marketing)
PRA replies on Solvency II guidelines compliance: PRA has communicated to the European Insurance and Occupational Pensions Authority (EIOPA) that it complies or intends to comply with the four guidelines on preparing for the implementation of Solvency II. (Source: EIOPA Guidelines)
Other Regulators/Authorities/Industry Associations
Investment Management Association (IMA)
IMA creates new Global EM Bond funds sector: IMA has created a new sector for funds investing at least 80% of their assets in emerging market (EM) bonds. (Source: IMA Launches New Global Emerging Markets Bond Sector)
IMA creates webpage on the UK's investment strategy: IMA has created a webpage introducing the UK investment management strategy and the Government's and FCA's commitments in this regard. (Source: UK Investment Management Strategy)
Recent Publications
Financial Crime
The Bribery Act – Has It Made A Difference?: We have updated our previous overview of the Bribery Act to take into account the Serious Fraud Office's latest guidance. (updated October 2012)
UK authorities move forward on tougher financial crime prevention: Emma Radmore wrote an article for Financial Regulation International on current consultations on sentencing and deferred prosecution agreements. (August 2013)
Sanctions restrictions do not prevent payment of debts: Richard Caird and Tom Rocher comment on the judgement in DVB Bank SE and others v. Shere Shipping Company Limited and others. (August 2013)
Deferred Prosecution Agreements: Emma Radmore has written an article for Financial Regulation International on the introduction of Deferred Prosecution Agreements in the UK. (June 2013)
Anti-Bribery and Corruption Laws in Key Jurisdictions: Lawyers from Dentons offices in six jurisdictions prepared a table comparing key provisions of anti-corruption laws for Thomson Reuters Compliance Complete. (May 2013)
Preventing Financial Crime: Emma Radmore has written an article for Financial Regulation International on recent developments in financial crime prevention. (April 2013)
The Evolving Financial Sanctions Landscape – UK and US Perspectives: Emma Radmore, Thomas Laryea, Michael Zolandz and Peter Feldman have written an article for Financial Regulation International on financial sanctions under the UK and US regimes. (November 2012)
Dealing with Anti-Corruption Laws – the Bribery Act and FCPA in Context: This article summarises the effects of the Bribery Act and US Foreign Corrupt Practices Act. For further information, please contact Emma Radmore or Dominic Sedghi (London), or Michelle Shapiro (New York). (May 2012)
Investment Services and Markets Reform
Consumer Credit Regulation: Are you ready for the seismic shift?: Please contact Andrew Barber, Emma Radmore or Howard Cohen if you have any questions about what you need to do to prepare for the transfer of consumer credit regulation to FCA.
Are you clear on EMIR: Rosali Pretorius and Emma Radmore have written an article for Compliance Monitor on EMIR's application and recent developments. (October 2013)
Mobile Banking - FCA sets out the risks: Candice Chapman, Andrew Barber and Winston Green comment on FCA's thematic review of mobile banking. (See also FReD 30 August.) (August 2013)
Mobile Network Operator Billing: Andrew Barber and Alex Haffner have written an alert on the effects of the Payment Services Directive on the development of direct-to-phone-bill purchases by mobile network operators. (August 2013)
US Government announces six-month delay in FATCA rules: John Harrington, Jeffrey Koppele, Marc Teitelbaum and Jerome Walker have written an update on the delay in implementing certain elements of FATCA. (July 2013)
Take aim for AIFMD implementation: Emma Radmore and Kam Dhillon have written an article for Compliance Monitor on the final steps towards implementation of the AIFMD. (July 2013)
Taking the Credit - the Transfer of Consumer Credit Regulation: Andrew Barber, Emma Radmore and Juan Jose Manchado have written an article for Compliance Monitor on the transfer of consumer credit regulation to FCA. (April 2013)
Last Lap to Legal Cut-Over: Emma Radmore has written an article for Compliance Monitor on FSA's first two consultations on preparing for the new regulatory regime. (January 2013)
A New Handbook for a New Era?: Emma Radmore has written an article for Thomson Reuters Compliance Complete on FSA's proposals to update the General Provisions Sourcebook for legal cut-over. (October 2012)
Treasury Publishes Banking Reform Bill: Read our summary of the Bill implementing the Vickers reforms into FSMA. (October 2012)
RDR: How Long Can it Last?: Emma Radmore and Andrew Barber have written an article for Compliance Monitor on the future of the Retail Distribution Review. (October 2012)
What's next for LIBOR? Summary of the Wheatley Review Recommendations: We have written a summary of the Wheatley 10-point plan for the reform of the LIBOR process. (September 2012)
Rate Setting and Regulation: In Everyone's Interests?: Rosali Pretorius and Katharine Harle wrote an article for Financial Regulation International on the background to LIBOR setting and potential regulatory action. (August 2012)
Money through your mobile – regulation of m-payments: Andrew Barber and Emma Radmore have written an article for Compliance Monitor on the regulatory aspects of mobile payments. (May 2012)
MiFID 2 – Prescription and Change: Emma Radmore wrote an article for Compliance Monitor on the breadth of the proposals to amend the Markets in Financial Instruments Directive (MiFID 2). (January 2012)
Prudential Regulation
UK Treasury Publishes Banking Structure Reform Plans: This article summarises the June 2012 White Paper on implementation of structural change to UK banking (as covered in FReD 15 June). For more information, please contact Rosali Pretorius, Emma Radmore or Andrew Barber. (June 2012)
EU Living Wills Plans – the Key Proposals: This article is the latest in our suite of articles about Living Wills and Recovery and Resolution Plans looks at the European Commission's proposals. For further information, please contact Rosali Pretorius or Andrew Barber. (June 2012)
Living Wills update: We have produced an update on FSA's current plans for Recovery and Resolution Plans. For further information, please contact Rosali Pretorius or Andrew Barber. (May 2012)
Asset management
The Alternative Investment Fund Managers Directive – Theory Becomes Reality: Rosali Pretorius and Emma Radmore wrote an article on implementation of the AIFMD for the Global Asset Management & Servicing Review 2013/14 published by Euromoney Yearbooks.
Product Regulation
More Protection for Retail Markets – the EU's PRIPs Package: We have written a detailed summary of the PRIPS, IMD2 and UCITS V proposals. (July 2012)
Another Stable Door?: Emma Radmore and Katharine Harle wrote an article for Thomson Reuters Complinet on IOSCO's proposals for complex product distribution. (April 2012)
Enforcement and Litigation
It is not a misrepresentation to state interest rate swaps carry no premium: Sam Coulthard, Richard Caird and Thomas Rocher have written an article on the summary in another swap mis-selling claim, Nextia Properties Limited v. National Westminster Bank plc and The Royal Bank of Scotland plc. (December 2013)
Court of Appeal dismisses interest rate swap appeal: Richard Caird and Kattalin Truman have written a briefing on the Court of Appeal judgment in the appeal by Mr Green and Mr Rowley against the decision that RBS had not missold an interest rate swap. (October 2013)
Appeal dismissed in first interest swap case: Richard Caird and Kattalin Truman have written an article on the Court of Appeal's decision in the first interest rate swap case in the English courts. (August 2013)
It's all in the detail: a cautionary tale for handling complaints: Richard Caird and Felicity Ewing have written an article on the FCA's fine on Policy Administration Services.
Having Your Cake and Eating It: FOS Award is no Bar to Issuing Proceedings: Katharine Harle has written an article for Compliance Monitor on the High Court award in Clark and another v. In Focus Asset Management & Tax Solutions Ltd. (January 2013)
The Not So Remote Risks of Recommendations: Richard Caird, Sam Coulthard and Kattalin Truman have written an article on the case of Rubenstein v. HSBC Bank plc. (September 2012)
The Long Arm of FSA: Overseas Firms and Senior Management Beware: Emma Radmore and Katharine Harle have written an article for Compliance Monitor on the lessons from recent FSA enforcement cases involving overseas firms and their approved persons. (August 2012)
More Confusion on Client Money: Rosali Pretorius and Josie Day have written an article on the Supreme Court decision in the Lehman client money case. (March 2012)
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
