 Helping firms make good applications
The FCA’s role is to create public value by preventing or reducing harm. We do this by supporting those who meet our standards, and by keeping those who don't out of the markets. To help firms understand our standards and, as a result, make good applications for regulatory transactions, we have improved the information on our website and online system, Connect. This includes information about what makes a good application, how to avoid delays and common mistakes to look out for.
We want to make good quality decisions in an efficient way, that works for both us and firms. The improved information should help firms submit better quality applications, and lessen the time it takes for them to receive our decision.
We have updated the information for these application types:
We will be publishing further updates across other application types soon.
Other helpful information and updates include:
Changes to mortgage responsible lending rules
On 28 October, we published a Policy Statement setting out changes we are making to our responsible lending rules and guidance. The changes are based on the proposals in our Consultation Paper. This set out our concerns that some consumers cannot switch to a more affordable mortgage despite being up to date with their mortgage payments – including ‘mortgage prisoners’.
Our conclusion is that consumers in this position, or who may be in the future, are suffering harm, as they are paying higher than necessary mortgage payments.
So, we have amended our rules to help remove barriers to consumers switching to a more affordable mortgage and to reduce the time and costs of switching for all relevant consumers.
The new rules allow lenders to use a different and more proportionate affordability assessment for customers who meet certain criteria. These criteria include being up-to-date with payments under their existing mortgage and not looking to move house, or borrow more (except to finance certain fees).
Customers of inactive lenders and firms not authorised for mortgage lending will also have to be contacted and told that it has become simpler for them to switch to another lender.
We want customers to benefit from these changes as soon as possible so the new rules came into force on 28 October 2019. We have been working closely with firms through our Implementation Group to help them get ready.
The future of regulation
On 21 October, Executive Director Christopher Woolard gave a speech on the FCA’s wide-ranging review of how it regulates at an event organised jointly by the Corporation of the City of London and Cicero.
We are looking at our regulatory model to consider whether it is still the right one, and is ready to respond to the changes we see coming. Much has changed in and around the sectors we regulate over the last few years, with more change to come. So, we need to have an open discussion about what outcomes we want from financial services to determine what type of regulation will best deliver for the public.
We are clear that we need to do things differently, moving away from narrow compliance with rules to a focus on delivering the outcomes we want for the users of financial services. Key steps towards this goal include settling on agreed outcomes, making better use of our regulatory toolkit, working better with other agencies, reviewing our requirements on firms and better utilising technology.
It’s vital that our approach has the confidence and consent of our stakeholders and the wider public. Over the coming months we will be engaging in a public conversation, issuing an open invitation for thoughts and ideas and setting out our own, and publishing detailed papers on related topics like our Principles and the future dynamics of financial markets.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Banks & Building Societies submit your certified persons data for the new directory
Providing public information on certified people working in financial services is part of the Senior Managers and Certification regime (SM&CR). This directory of certified persons will become an important new component of the Financial Services Register.
The deadline for banks, building societies, credit unions and insurance companies to submit their data is 9 March 2020.
For more information about the data submission process which uses the Connect system see our website.
A new look FS Register with a new user interface with this directory information will launch next spring once the deadline for data submission has passed.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Live & Local 2019/20 events
Our series of monthly Q&A roundtable discussions for mortgage intermediaries and lenders across the UK continues. Our next events are in Birmingham, London, Manchester and Newport.
There is no set agenda for these sessions; attendees at each session decide the topics for discussion. We will be joined by the Financial Ombudsman Service and an industry expert at each session.
These informal monthly ‘Ask the regulator’ events will run until March 2020. Visit our Live & Local webpage for further details and to register.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Insurance companies submit your certified persons data for the new directory
Providing public information on certified people working in financial services is part of the Senior Managers and Certification regime (SM&CR). This directory of certified persons will become an important new component of the Financial Services Register.
The deadline for banks, building societies, credit unions and insurance companies to submit their data is 9 March 2020.
For more information about the data submission process which uses the Connect system see our website.
A new look FS Register with a new user interface with this directory information will launch next spring once the deadline for data submission has passed.
Finalised guidance for insurance product manufacturers and distributors
In the latest stage of our general insurance distribution chain work we have published finalised guidance for insurance product manufacturers and distributors. It clarifies our expectations for the design and distribution of insurance products. We are also reminding firms that they need to act in their customer’s best interests.
Insurance product manufacturers and distributors should read this guidance and make changes, if necessary.
We have also published a summary of the consultation feedback.
Earlier this year we published the key findings from our distribution chain thematic work and wrote to CEOs outlining our expectations.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Insurance companies submit your certified persons data for the new directory
Providing public information on certified people working in financial services is part of the Senior Managers and Certification regime (SM&CR). This directory of certified persons will become an important new component of the Financial Services Register.
The deadline for banks, building societies, credit unions and insurance companies to submit their data is 9 March 2020.
For more information about the data submission process which uses the Connect system see our website.
A new look FS Register with a new user interface with this directory information will launch next spring once the deadline for data submission has passed.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Credit Unions submit your certified persons data for the new directory
Providing public information on certified people working in financial services is part of the Senior Managers and Certification regime (SM&CR). This directory of certified persons will become an important new component of the Financial Services Register.
The deadline for banks, building societies, credit unions and insurance companies to submit their data is 9 March 2020.
For more information about the data submission process which uses the Connect system see our website.
A new look FS Register with a new user interface with this directory information will launch next spring once the deadline for data submission has passed.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Regulatory reporting for E-money firms
During December we will be adding all authorised E-money firms to our online reporting portal, Gabriel. This will make it easier for these firms to provide us with most of the periodic regulatory reports which we will schedule as and when they are due.
We will be sending Gabriel joining instructions with a list of the returns affected to each firm at the beginning of December to enable them to submit returns from January 2020.
Please ensure your contact details including email address are up to date on Connect now.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
ACPR response to EIOPA Brexit Recommendations for the Insurance Sector
The European Insurance and Occupational Pensions Authority (EIOPA) published member state responses to its hard Brexit recommendations for the insurance sector.
The French Autorité de Contrôle Prudentiel et de Résolution (ACPR) response indicated that it does not intend to comply with EIOPA’s Recommendation 6, involving insurance policies originally sold in the UK by UK insurers to policyholders now resident/established in France. ACPR encouraged firms to seek passports before exit to benefit from the French run-off regime.
Together with the Prudential Regulation Authority (PRA), we encourage affected firms to seek legal advice and consider getting passports.
Is your firm prepared for Brexit?
The UK and the EU have agreed to extend the date for the UK’s departure from the EU to 31 January 2020. Unless a deal is approved or a further extension is agreed the UK will leave the EU without an implementation period on 31 January 2020. We expect all firms to continue to plan for all scenarios, including a no-deal Brexit at the end of January 2020.
You should consider the impact of Brexit on your business. You should have plans in place to address any risks for your firm and any impact it could have on your customers.
Check our website for more information, which includes information on specific financial service sectors.
Temporary Permissions Regime for inbound passporting EEA firms and funds
Firms - In light of the extension, the notification window for solo-regulated firms (and whose passports do not include PRA-regulated activities) will now close at the end of 30 January 2020. Firms that have already submitted a notification do not need to do anything else.
Funds - The window for fund managers to notify us which of their stock of passported funds they wish to continue to market in the UK temporarily will now also close at the end of 30 January 2020. Firms must make any changes to existing notification by 15 January 2020.
Register for Connect
Register for Connect today.
You will need to use our online platform - Connect - to submit your firm’s details - also known as a mandatory annual update. This will be a requirement from January 2020, so we suggest you register now in good time.
If you need help to register and update your firm’s details, visit our website, watch our video guide, or call us on 0300 500 0597.
From January 2020, you will be required to update and confirm the accuracy of your firm details annually (even if there is no change), in line with your Accounting Reference Date (ARD). This must be done using Connect.
Keeping pace with technological change
Nick Cook, Director of Innovation, recently delivered a speech at the Chief Data Officer Exchange Financial Services conference in London. Nick discussed how financial regulators must adapt to keep pace with technology-led change in the markets they regulate. Nick also outlined some areas where we may need to enhance our current Innovation services to broaden their relevance and appeal, including ways to better support RegTech solutions by creating a ‘digital sandbox’.
Reporting requirements for CMCs
Claims Management Companies (CMCs) are reminded of reporting requirements which apply to all firms, including those with temporary permissions. Firms must send us their returns electronically within 30 business days of the end of the relevant reporting period.
Firms that do not submit their return on time can be charged a £250 administration fee. Further information about reporting dates, what needs to be submitted and how to submit returns are on our website.
Complaints data
We published our six-monthly firm complaints data covering the first half of 2019. The data showed an increase in complaints from 3.91m in the second half (H2) of 2018 to 4.29m for the first half (H1) of 2019. The increase in complaints was mainly due to a 34% increase in the volume of PPI complaints, from 1.58m to 2.12m. PPI complaints made up 49% of all complaints received during this period, continuing to be the most complained about product. If you have any feedback or suggestions for future data publications please send an email to fcadataandanalysis@fca.org.uk
Product Sales Data
We have published our Product Sales Data (PSD) statistics. Every year we publish the aggregated PSD received from firms operating in the mortgages, retail investments, and protection sectors. This publication covers sales made during the period from 1 January 2014 up to 30 June 2019. To complement the UK geographic area breakdowns for the mortgage PSD that we published for the first time last year, we have published some interactive maps of some of the key geographic breakdowns. If you have any feedback or suggestions for future data publications please send an email to fcadataandanalysis@fca.org.uk
Proposed introduction of administration charge for fee-payers requiring paper invoices
Consultation Paper 19-30 issued 13 November, consults (Chapter 5) on introducing £50 charge for fee-payers who want us to issue paper invoices instead of using the online invoicing portal, from April 2020. The deadline for comments is 13 January 2020.
Currently, 92% of firms use the portal. As fewer fee-payers require paper invoicing, the costs per firm of printing/posting documents becomes more expensive. It is unfair for other fee-payers to continue to bear these additional costs; hence the proposal. Firms that do not want to use the portal can have a pdf of their invoice attached to email notifications.
Firms' obligations around 'cold-shouldering'
Following a ruling by the Panel on Takeovers and Mergers on ‘cold-shouldering’, firms are reminded that they should not deal with David Cunningham King, the Chairman of Rangers International Football Club PLC, on any transaction subject to the Takeover Code for a period of 4 years from the date of the ruling (2 October 2019).
The relevant obligations for FCA-Regulated entities are set out under MAR 4.3 (Support of the Takeover Panel’s functions). Please see our website for our full statement.
Regulation of Cryptoasset Activities
In July 2019, the Government announced that the FCA would be supervisor of businesses carrying on cryptoasset activities. We are working on the implementation of the regime, which will come into force on 10 January 2020. We published our consultation on recovering the costs for regulation of these businesses in October 2019. The deadline for comments on registration fees has closed, however we are still accepting comments on periodic fees. Businesses carrying on cryptoasset activity will need to be compliant with the The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) from 10 January 2020. We have setup a dedicated cryptoassets webpage and will be providing more information on our approach and expectations in due course.
Keeping pace with technological change
Nick Cook, Director of Innovation, recently delivered a speech at the Chief Data Officer Exchange Financial Services conference in London. Nick discussed how financial regulators must adapt to keep pace with technology-led change in the markets they regulate. Nick also outlined some areas where we may need to enhance our current Innovation services to broaden their relevance and appeal, including ways to better support RegTech solutions by creating a ‘digital sandbox’.
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