Regulation Watch

Regulation Watch is a resource aimed at providing our members with updates on the activity of the sector's regulators, highlighting areas of specific interest. 

Recommended:

Recent speech by Mark Steward, Director of Enforcement and Market Oversight at the FCA: The expanding scope of individual accountability for corporate misconduct.

Short speech by Mark Carney, Governor of the Bank of England, in which he states that, "the UK has instituted a unique Senior Managers Regime to embed cultures of risk awareness, openness and ethical behaviour. Based on its early successes, international authorities are now considering following the UK’s lead".

Recent News

The Financial Conduct Authority (FCA) has published a number of important documents. These include its Mission, its Business Plan 2017-18 and for the first time, its Sector Views. 
 
Mortgages: The FCA has published its finalised guidance on the fair treatment of mortgage customers in payment shortfall (FG17/4).  
 
Product Advertising: The FCA has published an occasional paper: From advert to action: behavioural insights into the advertising of financial products. We all know financial services products can be complicated, and advertising can often help simplify the message to help consumers make choices. This research looks at what is actually happening.  
 
Conduct: Earlier this year, our focus was on feedback to various PRA and FCA consultations on the Senior Managers and Certification Regime (SMCR), including proposals to extend this to Non-Executive Directors and the proposed creation of a new Significant Management Function.
 
Of interest were 4 feedback papers on its Supervisory Quality Checks which outlined how successfully firms have approached the new regime. These can still be viewed online.
 
Advice Knowledge & Competence: There have also been several consultations on further alignment with MiFID II. Much of this is fairly technical in detail but one key aspect touched on adopting ESMA guideslines which introduce a new minimum experience requirement for those giving retail financial advice, as well as extending the period within which an adviser must achieve an appropriate qualification. We await the relevant policy statement but it is expected these proposals will go through unamended with a view to becoming effective from 3rd January 2018 in line with MiFID II. 
 
Starting Up: Of some interest is a guide released by the PRA's New Bank Start-Up Unit explaining its approach to licensing new banks. You can view the guide here.
 
 

FCA Business Plan cover
The FCA has published its
2017/18 Business Plan.

FCA Mission Cover

The FCA has published its Mission. It outlines the framework for the strategic decisions it makes, and the reasoning and tools used.

FAMR Progress Report 2017

FAMR Updates