FCA Updates & Developments

The FCA has released an article outlining the need for MiFID investment firms to use a new form to submit information to the FCA when appointing Non-SMF Directors to or withdrawing them from the management body.

Firms will have to email the completed form to the FCA until Q1 2020, after which firms will be able to submit the form via Connect.

The FCA has extended the Senior Managers and Certification Regime (SM&CR) to around 47,000 firms as of 9th December 2019. The SM&CR encourages greater individual accountability by setting a new standard of personal conduct.

By 9th December 2020, firms should ensure that:

  • All relevant staff are trained on the conduct rules
  • All staff in certified roles are fit and proper to perform the role and are issued with a certificate
  • Data is submitted to the FCA for the directory of key people working in financial services

For expert advice and support in relation to SM&CR, please contact us.

 

The FCA has updated its website on the SM&CR for solo regulated firms to include new sections on ongoing requirements for firms and other considerations which include:

  • Delegation senior manager responsibility
  • CEOs and Chairs
  • Governing bodies and Senior Management Functions
  • Compliance Oversight and MLRO functions
  • The Register
  • Individuals outside the scope of certification

For advice and support in relation to SM&CR, please contact us.

The FCA has published on its website an article on the new money laundering regulation issued by the government which came into force on 10 January 2020. The page highlights specific new areas that firms will need to comply with such as:

  • High risk factors for enhanced due diligence
  • e-money thresholds
  • customer due diligence
  • reporting discrepancies
  • duty to respond to requests for information on accounts and safe-deposit boxes
  • crypto asset activities

For advice and support in relation to money laundering regulations, please contact us.

 

PRA Updates & Developments

The PRA has published a policy statement 26/19 providing feedback to a previous consultation paper 14/19 on PRA110 reporting frequency threshold and also on:

  • amending the reporting part of the PRA Rulebook
  • update to the supervisory statement 24/15

The policy statement is applicable to PRA authorised banks, building societies and PRA designated UK investment firms.

The implementation date of the policy is 1 May 2020.

The PRA has concluded that the Society of Lloyd’s requires enhanced monitoring and scrutiny as a result of the firm’s self-identification and disclosure of its internal whistleblowing systems and controls being ineffective for a period of time.

The firm has voluntarily agreed to a number of additional requirements relating to whistleblowing, including a requirement that the whistleblowers’ champion will attest to the soundness of its systems and controls on an annual basis.

EU Regulatory Updates

The European Securities and Markets Authority (ESMA) has updated its Q&As in the following area:

Financial Crime

The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 have been laid before Parliament amending the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

The regulations came into force on 10 January 2020 except for those concerning anonymous prepaid cards and the bank account portal, which come into force on 10th July 2020 and 10th September 2020, respectively.

For advice and support in relation to money laundering regulations, please contact us.

Enforcement Action

The FCA has fined Professional Personal Claims Limited for misleading consumers through its websites and printed materials. This is the first claims management companies case closed by the FCA since its transfer of regulatory responsibility on 1 April 2019.

PPC failed to present accurate, fully formed, detailed and specific complaints to banks. Its websites mislead consumers into believing they were submitting claims directly to their banks rather than engaging PPC on their behalf in return of payment of a success fee.

The firm was originally fined £70,000 for its failings by the Claims Management Regulator (CMR) but sought appeal in December 2018. Whilst the appeal was pending, the FCA took over regulation of the sector. The PPC subsequently withdrew its appeal on reviewing the evidence put forward by the FCA and was therefore fined £70,000.

The first-tier tribunal has upheld a fine of £91,000 on Hall and Hanley Limited by the CMR. It was found that the firm had breached rules requiring claims management companies to take all reasonable steps to ensure that any referrals, leads or data purchased from third parties had been obtained in accordance with the relevant laws. Relevant breaches included marketing text messages being sent without consumer consent.

In addition, the regulator found 8 client files in which the consumers’ signatures were copied without authorisation. The Tribunal upheld the CMR’s decision in its entirety and concluded the firm to have acted negligently in failing to provide proper training and supervision to its employees and failed to act with the required degree of competence.

Share this