 Access to cash
As part of our ongoing work on Access to Cash, we’re collecting regular data to map and monitor the coverage of cash access across the UK. In July, we published an updated assessment of the UK’s access to cash infrastructure with the Payment Systems Regulator (PSR), taking into account the impact of coronavirus (Covid-19). Alongside our analysis we also published new consumer research.
Our findings show that most people have reasonable access to cash through a combination of bank, building society, or Post Office branches and ATMs, with 95.4% of the UK population within 2km of a free cash access point and 99.7% within 5km. Despite this, there are some consumers that may not have sufficient access, and our Financial Lives Survey shows around 5 million adults say they still rely on cash.
Where access is removed, we know it can affect the most vulnerable in society and we expect individual firms to play their part in protecting the ability of customers to access cash and banking services in a way that meets their needs. That’s why we’ve published guidance that sets out how banks should consider their customers’ needs and whether alternative services need to be put in place when closing branches.
Our research and analysis will inform our ongoing work to ensure consumers and SMEs can access the cash they need. We will continue to engage with firms closing their branches, to ensure that they treat their customers fairly, as well as with industry and the Government as legislation develops
Annual Public Meeting
At our annual public meeting on 28 September 2021, we will discuss our 2020/21 Annual Report and Accounts. There will be an opportunity for questions to our Chair, Chief Executive and executive directors. We will look at how we have delivered against our strategic objective to make markets work well, and our 3 operational objectives of securing an appropriate degree of protection for consumers, protecting and enhancing the integrity of the UK financial system, and promoting effective competition in the interests of consumers. Register to attend the virtual meeting.
Investment Firm Prudential Regime (IFPR) new publications
The IFPR is our new prudential regime for MiFID investment firms. We have published our third IFPR CP, CP21/26, and second PS, PS21/9.
As well as our response to feedback received to CP21/7, PS21/9 contains the near-final rules for the areas consulted on in both CP20/24 and CP21/7, so firms should familiarise themselves with the content.
CP21/26 covers remaining aspects of the IFPR including disclosure, applications & notifications, technical standards, and depositaries. Please send your comments to us by 17 September 2021.
All our IFPR publications and further information about the regime can be found on our website.
Letter to Remuneration Committee Chair
In August 2021, we wrote to the Remuneration Committee Chairs of Level 1 firms (Dual-regulated banks, building societies and PRA designated investment firms with total assets exceeding £50bn). The letter set out our approach to remuneration for 2021/22 for this group of firms. It also highlighted some other key areas for them to consider on accountability, non-financial measures, diversity and our international work which may be relevant for a broader range of firms to consider.
Listen to the latest episode of the Inside FCA Podcast
In this Inside FCA Podcast interview, FCA Chief Executive Nikhil Rathi tells Ozge Ibrahim about the ideas behind the priorities set out in our 2021/22 Business Plan — from key partnerships the organisation hopes to strengthen and make, to using data and technology in a different way for greater impact. To find out about more about our transformation agenda, listen to the interview.
Check your details are right
You told us you are confused about the processes we ask you to follow to ensure the details we hold about you are correct. So we have just updated the 'Firm details' page on our website that sets out the steps firms must follow for (1) firm details and (2) directory persons. We now explain more clearly exactly what you need to do. It is vitally important to make sure you update, or attest to the accuracy of your details in the right way and in the right timeframe to be compliant.
FCA proposing changes to streamline decision-making
We recently published a consultation paper proposing to move some decisions from our Regulatory Decisions Committee (RDC) to our Authorisations, Supervision and Enforcement Divisions, including:
- intervening to impose a requirement on a firm, or to vary its permissions
- making a final decision in relation to a firm’s application for authorisation
- making a final decision to cancel a firm’s permissions
- the decision to start civil or criminal proceedings
The RDC will continue to make decisions in relation to contested enforcement cases. We want to hear your views on the proposed changes - the consultation closes on 17 September 2021.
FCA consults on improving transparency for investors
We’re consulting on proposals to improve transparency for investors on the diversity of listed company boards and their executive management teams.
We also want to improve considerations of broader diversity aspects within diversity policies and related disclosures by companies. Please send us your responses by 20 October 2021.
Regulatory reporting in the context of LIBOR transition
We published a statement on our website to clarify our expectations for investment firms and trading venues submitting UK MiFIR transaction reports and instrument reference data for LIBOR transition.
We also published an update to further clarify reporting requirements under EMIR in the context of LIBOR transition.
FCA and the Bank of England encourage market participants in a switch to Risk Free Rates (RFRs) in the LIBOR cross-currency swaps market
A key milestone recommended by the RFRWG is to cease initiation of new cross-currency derivatives with a LIBOR-linked sterling leg expiring after 2021, during Q2/Q3 2021, other than for risk management of existing positions.
The FCA and Bank of England support and encourage liquidity providers in the LIBOR cross-currency swaps market to adopt new quoting conventions for interdealer trading based on RFRs instead of LIBOR from 21 September this year. After this date, firms should expect to be quoted prices by dealers on a more regular basis in RFR cross-currency swaps in expectation of meeting that milestone.
FCA and PSR update on future of access to cash
These publications give a broad overview of the evidence on the UK’s access to cash and will inform our ongoing work to ensure consumers and SMEs can access the cash they need. We will also continue to engage closely with industry and the Government as it develops legislation on cash access.
Strong customer authentication (SCA) and mobile-based authentication
We expect all firms to develop SCA solutions that work for all customers as per Para 20.21 of our published guidance. Firms must also consider their obligations under the Equality Act 2010.
Firms should provide appropriate means of authentication to meet the needs of those in vulnerable circumstances, including customers that are unable to use a mobile phone. We expect digital-only firms to develop contingency arrangements for customers, should their circumstances change.
Firms not offering appropriate means of authentication should do so as soon as possible, to avoid the risk of regulatory action.
FCA sustainable finance innovation programme
FCA Innovation are launching a programme of work to support firms and regulators in overcoming sustainable finance and climate challenges, as well as developing and launching new products and solutions to market.
Applications for the Green FinTech Challenge and Digital Sandbox will open on 6 September. These services are designed to help firms develop and launch innovative new sustainable finance products and solutions. We are also hosting a ‘TechSprint’, from 18-21 October, bringing together the regulator and industry to explore better use of technology on Environmental, Social and Governance (ESG) data and disclosures.
The retail intermediary market in 2020
In July, we published the latest retail intermediary market publication. The publication focuses on analysis of the sector based on the data firms have submitted to us via the Retail Mediation Activities Return (RMAR). Around 12,000 firms send this data to us annually.
Our findings show that revenue earned by retail investment and mortgage intermediary firms fell by 1% and 4.4% respectively in 2020 compared to 2019. Revenue earned by non-investment insurance firms increased by 1.2% 2020. For the first time, we also published a Tableau dashboard to accompany the publication.
Mortgage Prisoner Terms of Reference
In July, we published a Terms of Reference on the steps we will take in our mortgage prisoners review.
In April, the Treasury announced in Parliament that they would work with us to develop further detail, using our data, on the characteristics of mortgage prisoners. We will also review the effects of our interventions designed to remove regulatory barriers to switching for mortgage prisoners.
The terms of reference set out our programme of work. We will report to Treasury on the outcome of this review, and it will be laid before Parliament by the end of November 2021.
The retail intermediary market in 2020
In July, we published the latest retail intermediary market publication. The publication focuses on analysis of the sector based on the data firms have submitted to us via the Retail Mediation Activities Return (RMAR). Around 12,000 firms send this data to us annually.
Our findings show that revenue earned by retail investment and mortgage intermediary firms fell by 1% and 4.4% respectively in 2020 compared to 2019. Revenue earned by non-investment insurance firms increased by 1.2% 2020. For the first time, we also published a Tableau dashboard to accompany the publication.
Insurance and coronavirus (Covid-19): Travel insurance
We expect firms to consider their regulatory requirements in light of the changed travel market. This includes requirements for communication (including marketing), sale standards, demands and needs, product governance and relevant coronavirus guidance we have issued. Our expectation is that firms must ensure they continue to treat customers fairly during the whole product cycle.
Pricing Practices – additional Policy Statement
We have published an additional Policy Statement including a number of technical changes to our remedies to pricing practices. These changes do not change the overall aims or expected outcomes of our remedies. They include clarification on the application of our rules to intermediaries that offer incentives or cash discounts on gross prices, a clearer definition of what constitutes a ‘renewal’ and clarifying the transitional provisions around auto-renewal disclosure.
We are also clarifying reporting requirements for intermediaries engaging in commission-rebating in home and motor insurance.
The retail intermediary market in 2020
In July, we published the latest retail intermediary market publication. The publication focuses on analysis of the sector based on the data firms have submitted to us via the Retail Mediation Activities Return (RMAR). Around 12,000 firms send us this data annually.
Our findings show that revenue earned by retail investment and mortgage intermediary firms fell by 1% and 4.4% respectively in 2020 compared to 2019. Revenue earned by non-investment insurance firms increased by 1.2% 2020. For the first time, we also published a Tableau dashboard to accompany the publication.
Employers’ Liability Register Compliance Return
We would like to remind firms that, this year, they will be required to submit their director’s certificate and auditor’s reports (Employers’ Liability Register Compliance Return) following a waiver we granted last year due to Covid-19. As per our rules and guidance, firms are to submit this return via an online form between 1 August and 31 August each year. Firms submitting their return after this date will be charged a £250 late administration fee. Full details on how to access the online form are on our website.
FCA sustainable finance innovation programme
FCA Innovation are launching a programme of work to support firms and regulators in overcoming sustainable finance and climate challenges, as well as developing and launching new products and solutions to market.
Applications for the Green FinTech Challenge and Digital Sandbox will open on 6 September. These services are designed to help firms develop and launch innovative new sustainable finance products and solutions. We are also hosting a ‘TechSprint’, from 18-21 October, bringing together the regulator and industry to explore better use of technology on Environmental, Social and Governance (ESG) data and disclosures.
FCA consults on post-Brexit divergence for PRIIPS regulation
On 20 July we published a consultation paper proposing to make targeted amendments to the UK PRIIPs Regulation following changes made by the Treasury to the onshored legislation. The consultation sets out proposals to address the most pressing concerns about the effectiveness of the Regulation which have been identified through our own Call for Input and ongoing supervision of the regime. Our changes aim to reduce potential harm to consumers as a result of inaccurate or misleading information in the PRIIPs Key Information Document. We also propose rules to clarify the scope of PRIIPs regarding corporate bonds to increase the liquidity and choice of bonds to consumers on the secondary market.
FCA sustainable finance innovation programme
FCA Innovation are launching a programme of work support to firms and regulators in overcoming sustainable finance and climate challenges, as well as developing and launching new products and solutions to market.
Applications for the Green FinTech Challenge and Digital Sandbox will open on 6 September. These services are designed to help firms develop and launch innovative new sustainable finance products and solutions. We are also hosting a ‘TechSprint’, from 18-21 October, bringing together the regulator and industry to explore better use of technology on Environmental, Social and Governance (ESG) data and disclosures.
Guiding principles on the design, delivery and disclosure of ESG and sustainable investment funds
We have written to the chairs of authorised fund managers setting out our expectations on the design, delivery and disclosure of environmental, social and governance (ESG) and sustainable investment funds.
We receive a high volume of applications for authorisation of funds with a sustainable focus. However, many of these applications are poor quality and fall below our expectations. We also expect clear and accurate ongoing disclosures to consumers where funds make ESG-related claims. We have therefore developed a set of guiding principles, informed by broad stakeholder liaison and consumer research, to help firms apply our existing rules.
FCA consults on post-Brexit divergence for PRIIPS regulation
On 20 July we published a consultation paper proposing to make targeted amendments to the UK PRIIPs Regulation following changes made by the Treasury to the onshored legislation. The consultation sets out proposals to address the most pressing concerns with the effectiveness of the Regulation which have been identified through our own Call for Input and ongoing supervision of the regime. Our changes aim to reduce potential harm to consumers as a result of inaccurate or misleading information in the PRIIPs Key Information Document. We also propose rules to clarify the scope of PRIIPs regarding corporate bonds to increase the liquidity and choice of bonds to consumers on the secondary market.
FCA takes action against debt packager firms
We have also published correspondence between Sheldon Mills and Dean Beale, CEO of the Insolvency Service, setting out how the organisations are working together in this area.
As per our Business Plan, we are considering policy changes to address the significant potential for harm from the debt packager business model. If we conclude that changes are needed, we will consult later this year.
Credit Information Market Study
We have resumed our work on the Credit Information Market Study. We intend to engage with industry and consumer groups and complete our analysis during Q3 2021, before publishing an interim report in Q1 2022. The study will take account of the Woolard Review recommendations to the FCA.
We have restarted the study with the same scope we set out in the original Terms of Reference and our work will reflect market and regulatory developments relevant to credit information over the last 18 months.
FCA sustainable finance innovation programme
FCA Innovation are launching a programme of work to support firms and regulators in overcoming sustainable finance and climate challenges, as well as developing and launching new products and solutions to market.
Applications for the Green FinTech Challenge and Digital Sandbox will open on 6 September. These services are designed to help firms develop and launch innovative new sustainable finance products and solutions. We are also hosting a ‘TechSprint’, from 18-21 October, bringing together the regulator and industry to explore better use of technology on Environmental, Social and Governance (ESG) data and disclosures.
Strong customer authentication (SCA) and mobile-based authentication
We expect all firms to develop SCA solutions that work for all customers as per Para 20.21 of our published guidance. Firms must also consider their obligations under the Equality Act 2010.
Firms should provide appropriate means of authentication to meet the needs of those in vulnerable circumstances, including customers that are unable to use a mobile phone. We expect digital-only firms to develop contingency arrangements for customers, should their circumstances change.
Firms not offering appropriate means of authentication should do so as soon as possible, to avoid the risk of regulatory action.
FCA sustainable finance innovation programme
FCA Innovation are launching a programme of work to support firms and regulators in overcoming sustainable finance and climate challenges, as well as developing and launching new products and solutions to market.
Applications for the Green FinTech Challenge and Digital Sandbox will open on 6 September. These services are designed to help firms develop and launch innovative new sustainable finance products and solutions. We are also hosting a ‘TechSprint’, from 18-21 October, bringing together the regulator and industry to explore better use of technology on Environmental, Social and Governance (ESG) data and disclosures.
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