Strengthening the Authorisations Gateway
We published an update on our operating service metrics (and summary of the progress we have made since the end of the 2021/22 financial year) for authorisation timelines.
Our Authorisations Division is the first point of contact for firms and individuals wanting to carry out regulated activities or be registered by us. We operate a robust gateway to protect consumers and the integrity of markets but also recognise the importance of an efficient process to applicant firms and the competitiveness of the wider UK economy. That is why we publish and monitor our operating service metrics, ensuring transparency and accountability.
Consumer Duty information and webinars
We are hosting sector-based webinars to help firms understand our expectations and prepare for implementation. There’s still time to register for our Banking and payments and Retail lending webinars on 1 November, and you can watch the insurance and consumer investments, pensions and asset management webinars on demand.
We’ve also created an information for firms page to help firms implement the Duty. This explains more on key areas that we’ve been receiving firm queries on and currently includes October implementation plans, Consumer Duty Board Champions, and definition of closed products. You can register for Consumer Duty updates here.
Creation of a baseline financial resilience regulatory return
- increase the quality and consistency of financial resilience data received from our solo-regulated firms
- reduce the administrative and financial burden that an ad hoc survey places on firms
We still require firms to complete the financial resilience survey when requested to do so by us until the new return comes into force (which is likely to be H2 2023).
Principals & Appointed Representatives
New rules for Appointed Representatives (AR)’s begin on 8 December 2022. As part of the improved reporting requirements, we will be sending principal firms a Section 165 request requiring information about their ARs. Firms should receive this between 8 and 10 December 2022.
New AR notification forms also commence on 8 December.
The S165 request will go to the Principal User on Connect. Therefore, firms should ensure this data is up to date.
Firms will have until 28 February 2023 to respond.
Temporary permissions regime – deadline for applications for authorisation/registration
EEA-based firms in the temporary permissions regime (TPR) that intend to seek full authorisation/registration in the UK must submit their applications before the end of 31 December 2022.
This applies whether we have given them a ‘landing slot’ or not.
As we move into 2023, the TPR should only include firms with long-term UK plans that have applied for full authorisation/registration. Any firms that have not applied will be expected to voluntarily leave TPR promptly, otherwise we may take enforcement action to remove them.
Updated guidance on bank branch and ATM closures
We have updated our guidance for banks considering branch or ATM closures.
The guidance has been extended to ensure banks consider the impact of partial closures on customers’ everyday banking needs.
To prevent customers from being impacted by a gap in service, firms should now make sure that where alternatives are identified, they are in place and accessible before a branch or an ATM is closed or converted.
Consumer Investment Strategy - 1 year update
We are continuing to use all the tools at our disposal to ensure consumers can invest with confidence and avoid being scammed.
It will take time to see the full impact of all our interventions, particularly given the worsening economic environment.
However, we are maintaining our focus on acting assertively and innovatively to tackle harm. We’ll continue to review the consumer investments strategy and bolster this work where growing harm to consumers is identified.
Review of business interruption insurance claims handling
We welcomed insurers quickly paying out interim payments, reallocating resources and proactively communicating with policyholders to help them with claims following the test case judgment.
However, we have also raised concerns over how firms handled claims from vulnerable customers, record-keeping of policy wordings, and identifying where customers experienced unnecessary delays.
We expect senior managers to ensure customers are at the centre of the claims process and encourage firms to review their procedures to make sure they mitigate the risk of customer harm.
ScamSmart Pensions
New research has found that a quarter (25%) of consumers would consider withdrawing money from their pension earlier than planned to cover the cost of living. This is supported by retirement income market data which showed that the number of pension plans accessed for the first time in 2021/22 increased by 18% to 705,666 compared to 2020/21 (596,080).
The research comes as we launched our latest ScamSmart campaign aimed at giving consumers the knowledge and tools to avoid pension scams.
Respond to our discussion on Big Tech in financial services
Big Tech firms have the potential to disrupt financial services markets and improve quality and price for consumers, but there are risks if firms can exploit market power. As the influence of Big Tech and digitalisation grows, we want to make sure these benefits are realised while ensuring good consumer and market outcomes.
Our discussion paper explores the potential benefits and harms in existing UK retail financial markets: payments, deposits, consumer credit and insurance.
FCA fines Gatehouse Bank
We fined Gatehouse Bank Plc £1.5m for significant weakness in its financial crime systems and controls. We found that between June 2014 and July 2017 Gatehouse failed to conduct sufficient checks on its customers based in countries with a higher risk of money laundering and terrorist financing. Gatehouse also failed to undertake the correct checks when some of the customers were classed as Politically Exposed Persons (PEPs). Gatehouse has subsequently taken significant steps to improve its financial crime systems and controls.
FCA publishes Barclays Decision Notices
We published Decisions Notices outlining that we have decided to fine Barclays a total of £50 million in relation to its failure to disclose certain arrangements agreed with Qatari entities as part of its capital raisings announced in 2008. We found that Barclays’ conduct in one of the capital raisings was reckless and lacked integrity. Barclays have referred their Decision Notices to the Upper Tribunal. Any findings in the Notices are therefore provisional and reflect the FCA’s belief as to what occurred and how it considers the firms’ behaviour should be characterised.
FCA fines Sigma Broking Limited
We fined Sigma Broking Limited £530,000, and also fined and banned the broker’s former directors for transaction reporting failures. Between 2014 and 2016, Sigma failed to report 56,000 CFD (Contract For Difference) transactions to the FCA. It also failed to identify 97 suspicious transactions.
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