LIBOR
On 5 March, we announced the end dates for all submissions for LIBOR settings panel bank. These are:
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Immediately after 31 December 2021, in the case of all sterling, euro, Swiss franc and Japanese yen settings, and the 1 week and 2 month US dollar settings.
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Immediately after 30 June 2023, in the case of the remaining US dollar LIBOR settings.
After which representative rates will no longer be available.
ISDA has subsequently confirmed the ‘spread adjustments’ to be used in IBOR fallbacks will be fixed as of 5 March 2021, providing clarity on the future terms of the derivative contracts which incorporate these fallbacks.
Market-led working groups and official sector bodies, including the Financial Stability Board, have set out clear timelines to help market participants in advance of LIBOR ceasing. Our announcements confirm the importance of those preparations for all LIBOR users.
We have recognised that some existing LIBOR contracts are particularly difficult to amend, often known as ‘tough legacy’. We are taking steps to help reduce disruption in these cases and will consult in Q2 2021 on using proposed new powers the government is legislating to grant us, to require continued publication on a ‘synthetic’ basis for some sterling LIBOR settings and, for 1 additional year, some Japanese yen LIBOR settings. We will also continue to consider the case for using these powers for some US-dollar LIBOR settings. Any ‘synthetic’ LIBOR will not be representative for the purposes of the BMR and is not for use in new contracts.
New fees portal
As part of our wider data strategy, we are launching a new online invoicing portal on 12 April 2021 for firms to access their invoices and arrange payment of their fees. This system will replace our existing portal, which will no longer be available after 31 March 2021. Following the Easter period, the new portal will be launched on 12 April 2021. We encourage you to visit our website for more information on how this change impacts you and how you can prepare.
2021/2022 fees and levies
Firms that intend to cancel their permission and do not want to be liable for next year’s annual fee (1 April 2021 to 31 March 2022) need to apply to cancel online, through Connect by 31 March 2021. If they do not, they will be liable for the full annual fee.
Guidance for firms on the fair treatment of vulnerable customers
We have published final guidance clarifying expectations of firms on the fair treatment of vulnerable customers. This will improve the way firms treat vulnerable consumers so that they are consistently able to achieve outcomes that are as good as everybody else. Firms should understand what harms their customers are exposed to, and ensure that vulnerable customers receive the same fair treatment and outcomes. This needs to happen through the whole customer journey from product design through to customer engagement and communications.
Consultation on FCA approach to regulation of pre-paid funeral plans
We will regulate the sale and administration of pre-paid funeral plans from July 2022. Our regulation will lead to higher standards in the market and improve consumer protection.
We have published a consultation paper which sets out the draft rules which firms will need to follow. We are seeking your feedback on the consultation; this is your opportunity to have an influence and share your views.
All firms in this sector need to consider now what the regulation will mean for you, and what action you need to take.
Respond to our consultation by 13 April 2021.
Transforming data collection – an update on progress and plans for 2021
In 2020, the Bank of England conducted a consultation as part of a review of data collection. The review’s aim was to shape the evolution of reporting over the next 5-10 years.
The review broadly identified 3 key reforms:
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defining and adopting common data standards
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modernising reporting instructions
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integrating reporting
The Bank and FCA intend to set up a multi-year joint programme, and a core team to help deliver these reforms that will include staff from firms and third-party providers.
Sign-up for updates on our new campaign tackling investment harm
Much of the consumer investments market meets consumers’ needs. But we are worried some investors are being tempted - often through online adverts or high-pressure sales tactics - into buying higher-risk products that are very unlikely to be suitable for them.
Next week, we will publish our research into self-directed investors’ behaviours, attitudes and financial resilience. The research will underpin our work in the consumer investment market and will help shape a new campaign to address the harm caused from consumers investing in high-risk, high-return, illiquid investments that may not be suitable for their needs.
Your support can make the difference. Sign up to receive updates and information on the new campaign.
No adjustment to Financial Ombudsman Service award limit
When we increased the Financial Ombudsman Service’s award limit in April 2019 we said that each year, from 1 April 2020, we would adjust the award limits for complaints referred to the service on or after 1 April 2019 to ensure they keep pace with inflation. Following the publication of the CPI figures for January 2021 there will be no adjustments made this year to the award limits set out in DISP 3.7.4R.
FCA provides update on support for consumers impacted by coronavirus
On 5 March we published updated draft guidance for firms, to ensure that mortgage customers whose homes may be repossessed from 1 April are treated fairly and appropriately, particularly where there are risks of harm to customers who are vulnerable as a result of coronavirus.
We also reminded consumer credit and mortgage consumers that the deadline for applications for new payment deferrals is 31 March. However, tailored support will continue to be available after this date, reflecting their individual needs and circumstances. We will publish the findings of our initial supervisory work on support for consumers by the end of March.
Approach to reporting transition from LIBOR in derivative contracts under the UK European Market Infrastructure Regulation (UK EMIR)
In March we clarified our expectations regarding reporting requirements under UK EMIR in the context of LIBOR transition, including for fallbacks that take effect as a result of the International Swaps and Derivatives Association’s 2020 IBOR Fallbacks documents.
We also clarified our expectations under the UK Securities Financing Transactions Regulation.
FCA confirms the increase in thresholds for contactless payments
We have made regulatory changes to enable the industry to increase the single and cumulative contactless payment limits in the UK. This work is part of our business plan priority on safe and secure payments. We encourage the industry to use the changes to support consumers and merchants during the recovery of the coronavirus pandemic, while ensuring that payments remain safe and secure.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
New Government measures offering eligible borrowers a ‘breathing space’ come into force in May 2021. People in problem debt may be able to access, through a debt advisor, legal protections from creditor action for a defined period.
Whilst we are not making any changes to our mortgages rules, lenders and administrators may be interested in our Policy Statement which addresses queries raised.
Mortgage lenders and administrators affected by the Regulations should assess the need for any changes to their systems and processes and implement them as soon as possible ahead of the Regulations coming into force.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
Fraud within the insurance sector
We are aware of similar frauds conducted within the insurance sector, whereby cybercriminals have gained access to email accounts of certain parties (including (re)insureds and (re)insurers) and were then able to make requests to amend recipients‘ bank details, resulting in transfers of significant sums to the fraudsters’ accounts.
We encourage market participants to be mindful of such scams especially when receiving requests to amend payment details. Firms should have sufficient controls in place, including agreed processes to verify and effect changes to third party bank details, as well as robust cybersecurity measures to detect and prevent email spoofing and cyber-squatting.
Supreme Court judgment in FCA’s business interruption (BI) insurance test case
Our expectation of General Insurance Intermediaries (refer also to our Dear CEO letter and to our Final guidance published 3 March 2021).
Insurance brokers and other insurance intermediaries have a key role in ensuring policyholders’ valid claims, including any interim payments, are progressed quickly.
If your firm is part of the process of handling the settlement of these claims, then you should have sufficient resource available to work closely with customers and insurers to expedite the adjustment of claims. For example, you should help customers to prepare all salient information and documentation, and to provide these to insurers in a timely fashion. The firm should also work with all relevant parties to facilitate a rapid transmission of funds from insurers to customers.
Retail Prices Index changes and DB pension transfer redress
In the November 2020, the Government announced changes to the way that the Retail Prices Index (RPI) inflation measure is calculated from February 2030.
This change will affect consumers who transfer out of DB pensions that are uprated annually in line with the CPI. We will therefore update the CPI adjustment in the guidance to ensure that these consumers continue to receive appropriate redress. To find out more read our Statement.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
New Government measures offering eligible borrowers a ‘breathing space’ come into force in May 2021. People in problem debt may be able to access, through a debt advisor, legal protections from creditor action for a defined period.
Our recent Policy Statement makes additions to guidance in the Consumer Credit sourcebook to clarify how our rules interact with the Regulations. It explains that we are not making any changes to our mortgages rules or CONC 8.
Firms affected by the Regulations should make any necessary changes to their systems and processes ready for the Regulations coming into force.
Women’s Economic Empowerment TechSprint Conference - 22 – 25 March
The Covid-19 pandemic has brought into sharp focus the need for innovation and technology to help increase access, inclusion and resilience for millions of consumers. Digital Identity and Open Finance are at the forefront of this, opening up financial services to those previously locked out or disenfranchised.
To support the Global Women’s Economic Empowerment TechSprint, we are hosting a four-day virtual conference bringing together leading figures in technology, finance and regulation, including keynote speeches from Baroness Hale and Jelena McWilliams (Chairperson of Federal Deposit Insurance Corporation). The final day will showcase the solutions from the TechSprint participants.
To view the full agenda and to register please visit the event website.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
FCA confirms the increase in thresholds for contactless payments
We have made regulatory changes to enable the industry to increase the single and cumulative contactless payment limits in the UK. This work is part of our business plan priority on safe and secure payments. We encourage the industry to use the changes to support consumers and merchants during the recovery of the coronavirus pandemic, while ensuring that payments remain safe and secure.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
Countdown to submit your Directory Persons data for Solo-Regulated firms for Financial Services Register
Submitting in good time and ahead of the deadline will ensure there is enough time to ask questions and make sure your data is correct. Failure to submit required data in time would be a breach of regulatory reporting requirements and could lead to enforcement or supervisory action.
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