 Ban on the marketing of speculative mini-bonds to retail investors
This month we announced a temporary ban on the mass-marketing of speculative mini-bonds to retail consumers. We don’t often use the powers allowing us to make temporary rules before carrying out a full consultation. But we’re very concerned about the risk of consumer harm in this area. The rules cover mini-bonds where money raised by an issuer is lent on to third parties, invested in other companies, or used to buy or develop property, rather than companies funding their own business activities.
Given current low interest rates, the idea of 8%, 10% or even 12% return can seem very tempting to investors. However, these products are very high risk, and consumers can lose a good chunk of their investment.
Issuing these products is not a regulated activity. From 1 January 2020, speculative mini-bonds should only be marketed to retail investors who are considered high-net-worth or ‘sophisticated’. Marketing material will also have to include specific risk warnings and clearly explain charges. During 2020, we’ll consult on permanent rules.
Alongside this, we’ve also published guidance for firms that approve financial promotions for communication by unauthorised persons. This clearly outlines our expectations on the level of due diligence firms should be applying.
Given our current focus in this area, we request that if you approve the financial promotions of unauthorised persons, have done so in the past 12 months, or intend to do so, you inform us by emailing Section21Approval@fca.org.uk.
Building operational resilience: impact tolerances for important business services
On 5 December, we jointly published a shared policy summary and co-ordinated consultation papers with the Bank of England (‘the Bank’) and the PRA on new requirements to strengthen operational resilience in financial services.
The proposals suggest firms and financial market infrastructures (FMIs) would be expected to:
- identify their important business services that could cause harm to consumers or market integrity, threaten the viability of firms and cause instability in the financial system if they were disrupted
- set impact tolerances for each important business service, which would be the maximum tolerable level of disruption firms and FMIs would tolerate
- identify and document the people, processes, technology, facilities and information that support their important business services
- test their ability to remain within their impact tolerances through a range of severe but plausible disruption scenarios
Disruptive events can have a major impact on consumers and businesses. So, firms and FMIs need to know where the risks to their service delivery are and make sure that they are prepared for any service disruption. If disruption occurs, firms are expected to communicate clearly with customers, including advice about alternative means of accessing the affected service.
We propose to apply the proposals in the consultation paper to those firms most likely to have the highest impact on consumers or market integrity if their services are disrupted. The consultation period for all papers closes on 3 April 2020. Due to our different legal frameworks, the FCA and PRA issued separate consultations, so dual-regulated firms may wish to send separate responses to the regulators.
Cryptoassests regime
From 10 January 2020, we will be registering and supervising businesses that carry on cryptoasset activities to ensure they have the required systems and controls to prevent money laundering and terrorist financing. We recently consulted on the fees we will charge cryptoasset businesses. We expect to publish detailed feedback on the consultation responses in our January Handbook Notice.
Businesses will have to comply with The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) from 10 January 2020. There is a dedicated cryptoassets webpage on our website. We will use this webpage to share our approach and expectations with the industry.
We will be supervising businesses from 10 January 2020 and can take enforcement action regardless of whether a business has registered. We encourage firms to apply early.
Existing cryptoasset businesses may continue their business, in compliance with the MLRs, but must either register by 10 January 2021 or stop all cryptoasset activity.
For applications we receive before 30 June 2020, we will work with the applicant to ensure we have all information needed to meet the 10 January 2021 deadline.
New cryptoasset businesses that intend to carry on a cryptoasset activity after 10 January 2020, must be registered with us before they can carry on the activity.
We will be holding a Skype event on 16 December 2019 where you will be able to ask us questions about the regime. You can find out more and how to register here.
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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
Solo-regulated firms can now submit data for certified persons
The data collection for solo-regulated firms to provide details of their certified persons is now open. All solo-regulated firms must submit their data by 9 December 2020 using Connect. From that date, it will appear in the Financial Services Register in a directory of certified persons.
Dual-regulated firms (Banks, building societies, credit unions and insurance companies) have already begun submitting data and have until 9 March 2020.
Please see our website for instructions and guidance on how to submit your certified persons data.
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 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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
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
This month we will be adding all authorised E-money firms to our online reporting portal, Gabriel. This will make it easier for these firms to send us 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 this month so that firms can submit returns from January 2020.
Please ensure your contact details, including email address, are up to date on Connect now.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
Brexit update
Check our website for more information, which includes information on specific financial service sectors.
Quarterly Consultation Paper - Brexit Chapter
We published a Quarterly Consultation Paper on 6 December containing Brexit-related Handbook and BTS changes.
The consultation closes on 6 January 2020. Please send comments via the online response form.
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.
New FCA data collection platform - Table discussions with firms and other Gabriel users
Last month we concluded our first series of interactive events in London, Manchester and Edinburgh, where firms and other users told us about their experience of Gabriel. Following the survey, we launched in July, we met with those who said they want to be involved further. We talked about how the improvements to the new platform would address the key themes from the survey. We shared our proposal for moving over 120,000 users and data from over 52,000 firms to the new platform and got their answers to some key questions which will help us shape the platform as we go forward. Find out more in this video.
MIFID investment firms will need to use a new form to notify FCA of management body changes for Non-SMF Directors
From 9 December 2019, MIFID investment firms and optional exempt firms need to use a new form to submit information to us when appointing Non-SMF Directors to, or removing them from, their management body.
You can now preview the form, available to download from the Handbook from 9 December 2019.
If a firm’s management body changes, they will need to download the form, complete it and email it to us via NonSMFNotification@fca.org.uk. This is a temporary process. From Q1 2020, you will be able to submit the form via Connect, our online platform.
Read more on our website.
FCA Webinar: Using assessment as a tool to understand culture
On Friday 24 February, we are hosting a live panel discussion on Assessment of Culture. This is the fourth in our series on Transforming Culture. Our expert panellists will examine how firms can use assessment as a tool to understand culture and share practical tips. After the discussion, there will also be a live Q&A where registered viewers can ask the panellists questions. Register for your place.
For more information please visit our website.
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