Launch of new Form A
The new Form A, used for Senior Management Function and Controlled Function applications, will be launched shortly.
During the transition period you can choose to continue submitting Form A applications using the old form, but this will be decommissioned once the new form rollout is complete.
Bank account access and closures
We have published the findings of our initial data exercise on bank account access and closures.
The information supplied suggests that no firm closed an account between July 2022 and June 2023 primarily because of a customer’s political views. The Payment Accounts Regulations ban banks or building societies discriminating on this basis. The most common reasons providers gave for closing, suspending or declining an account was because it was inactive/dormant or because there were concerns about financial crime.
We will be doing further work with firms to verify the data and to better understand the reasons behind, for example, the closure of accounts due to reputational risk.
Future Regulatory Framework - The Insurance Distribution Directive
We want feedback on our proposals for transferring part of the regulatory requirements on insurance firms from current legislation into our rules.
We are bringing retained EU law into the Handbook to maintain the existing regulatory requirements.
The Treasury have announced their plan to repeal Insurance Distribution Directive (IDD) delegated acts. They intend the requirements of the regulations be included in our Handbook. So, we are consulting on changes to various sourcebooks intended to replace the provisions of the retained EU law being repealed.
Cryptoasset Travel Rule
We set out our expectations for cryptoasset businesses complying with a change in money laundering regulations legislated by the Government in July 2022. From 1 September 2023, UK cryptoasset businesses are required to collect, verify and share information about cryptoasset transfers, known as the ‘Travel Rule’.
The Travel Rule aligns practices for cryptoasset businesses sending and receiving transactions with those common in other areas of financial services.
Among our expectations are for cryptoasset businesses to take all reasonable steps and exercise all due diligence when complying with the Travel Rule. This includes fully complying with the Travel Rule when sending or receiving a transaction to a UK cryptoasset firm and remaining responsible for achieving compliance, even when using third-party suppliers.
Marketing of cryptoasset products
Eligible cryptoasset firms must apply for the extension that would give them until 8 January 2024 to introduce features requiring greater technical development, like the 24-hour cooling-off period.
Cryptoasset firms must still be ready to comply with all other requirements of the rules by the October deadline.
September Quarterly Consultation Paper (QCP) rule clarification on Professional Indemnity Insurance (PII)
For clarity, the intention of the rules has not changed and MCD Principal Firms must hold PII which includes cover for the activities of their current and former ARs, as set out in our Prudential sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediaries (MIPRU).
For general information about Principal firms’ PII obligations, please see our website.
otor and home insurance pricing rules
Direct Line Group has agreed a voluntary requirement having charged some existing home and motor customers more for their renewal than they would have done if they were a new customer.
Direct Line Group will carry out a review to identify all instances where a customer has been overcharged and provide appropriate redress. Affected customers will be contacted directly.
Lifetime mortgages key findings
In a review of later life mortgage firms, we have worked with the largest firms to improve their advice processes and prompted the removal or amendment of almost 400 misleading promotions.
The review looked at firms responsible for around half of all lifetime mortgage sales. It found in many cases advice did not meet the standards expected. For example, a lack of evidence that sufficient consideration of a consumer’s individual circumstances had been given and advice that lacked discussion of suitable alternatives.
We expect all firms to assure themselves they comply with existing rules and guidance and higher standards under the consumer duty.
FCA bans and fines individuals for pension transfer advice failings
We recently issued a press release announcing the FCA had decided to fine two individuals £1.3 million for their role in operating a flawed pension advice process. We expect firms to properly consider their clients financial circumstances and objectives.
Consumer Credit Product Sales Data (PSD) returns
We recently published our Consumer Credit (PSD) Returns Consultation Paper CP23/21, where we outline our proposals for collecting agreement level data on the Sales and Performance of consumer credit agreements.
We worked closely with firms and trade bodies, and encourage those affected to go through our proposals and give feedback to enable us to collect good quality data that supports our objectives in the consumer credit market while ensuring any burden on firms is proportionate to the benefits.
The consultation closes on 15 November 2023.
British Steel pension redress scheme – user guide for reporting requirements
We have developed a user guide to assist firms in complying with the reporting requirements.
It outlines the steps involved, from uploading templates and submission sheets through to validation of errors messages, copying datastrings and when to provide these to the FCA.
Changes to reporting requirements for dual regulated firms
We have written to all dual regulated firms (firms supervised by the FCA and the PRA) to inform them that they will need to attest to their firm details within 60 business days of their Accounting Reference Date (ARD), from 1 December 2023.
For more information, visit our website.
Appointed Representatives (AR) reporting requirements reminder
Using data is key to our strategy to reduce and prevent harm from principal firms and ARs. From 1 December 2023, all principal firms will need to send us regular data about their ARs.
Principals must report data for all ARs they had during the relevant reporting period, including for any AR relationships that ended during that time.
When to report will depend on your account referencing date (ARD). Read more about what AR data principal firms must report to us and when.
InvestSmart
To coincide with the launch of Hollywood film, ‘Dumb Money’, we are working to help consumers understand the impact that hype can have on investment decisions and encourage them to carry out careful research if tempted by an opportunity they find online.
The film chronicles the GameStop saga of early 2021, where inexperienced investors were tempted into the purchase of a high-risk investment.
The advert is part of the FCA’s ongoing InvestSmart campaign which encourages consumers to make better-informed investing decisions that suit their financial circumstances and attitude to risk.
Defined Benefit Advice Assessment Tool (DBAAT) explainer videos
We have updated the Defined Benefit Advice Assessment Tool (DBAAT) explainer videos to help firms understand how to use the DBAAT and interpret the results from a file review by us. You can also email us if you have any questions about how to use it.
The DBAAT was updated in June 2023 to incorporate rule changes that came into force since 1 October 2020 and our non-Handbook guidance in FG21/3. The latest version includes a section on assessing abridged advice and contingent charging. The information collection, suitability and disclosures sections have been fully updated to reflect the changes made in PS20/6.
As part of the authorisation application process, we are inviting mortgage intermediaries, via an email from their case officer, to apply for limitations on their permissions. These limitations will stop a firm broking second charge mortgages and lifetime mortgages where these products are not included in their submitted business plan.
A firm having limitations does not mean we have concerns regarding the firm’s business practices. We will still have assessed the firm as meeting our threshold conditions to broker first charge mortgages. These limitations will provide accurate information about the firm’s services to consumers on the Financial Services Register.
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