In July 2023, the Financial Conduct Authority (FCA) made changes to its handbook [1] to embed guidance on good outcomes for customers experiencing financial difficulties. This sits in ICOBS 2.7 and, whilst claims handling is not specifically mentioned, it is relevant to how you support your customers at the point of claim.
In continuation of our previous FS regulatory affairs newsletter, this edition highlights the key regulatory updates from the second quarter of 2023.
On February 27th, the Financial Conduct Authority (FCA) published a report highlighting key observations on the implementation of the Investment Firms Prudential Regime (IFPR) and its relation to the Internal Capital Adequacy and Risk Assessment (ICARA) process. This article outlines the four major themes in the FCA’s report and provides insights into how firms can improve their next ICARA...
The Bank of England (the Bank) shared its latest thinking on climate-related risks and regulatory capital frameworks in a report released on March 13, 2023. The report elaborates on six key findings and identifies areas for future research and discussion. However, the Bank does not introduce any policy changes in response to the report. Instead, it suggests further analysis is needed before...
Following on from our previous edition of the FS regulatory affairs newsletter, this edition covers regulatory developments in the first quarter of 2023.
In January 2023, HM Treasury published its consultation paper setting out proposals for the introduction of an Insurance Resolution Regime (IRR) for the UK insurance sector.
On 5 April 2023, the Financial Conduct Authority (FCA) published the 2023/24 Business Plan which sets out how the regulator will deliver the second year of its three-year strategy. We highlight the key areas of focus from the Business Plan below.
The Climate Financial Risk Forum (CFRF) has shared a non-regulatory practitioner’s guide for banks and building societies on how to use scenario analysis to assess the financial impact of climate change and inform their strategy and business decisions.
Following on from our Q3 2022 edition of the FS regulatory affairs newsletter, this edition covers regulatory developments in the fourth quarter of 2022.
The 2008 Global Financial Crisis revealed that major banks were in fact ‘too big to fail’. They had grown so large and complex that they needed state support given the unfathomable economic consequences of their collapse. As a result, financial regulators have introduced robust prudential measures to try to prevent such a crisis from happening again. A critical element of these post-crisis...
The Bank of England formally engaged with the international financial community to discuss the role of regulatory capital in the management of climate risks.
Following on from our Q2 edition of the FS regulatory affairs newsletter, this edition covers regulatory developments in the third quarter of 2022.
On 29 September 2022, the FCA acknowledged the continued challenges faced by consumers and businesses alike from the rising cost of living. The latest Dear CEO letter acknowledged the recent Government measures but noted the continuing financial challenges faced, including higher costs (such as energy costs) and staffing issues.
The Network for Greening the Financial System (NGFS) published an amended, third set of climate scenarios on 6 September 2022. The key updates include incorporation of countries’ commitments to reach net-zero emissions, increased sectoral granularity and improved representation of physical risk, including acute risks.
Following on from our Q1 2022 edition of the FS regulatory affairs newsletter, this edition covers regulatory developments in the second quarter of 2022.
The FCA reminds lenders of expectations to support consumers in light of the rising cost of living
The Prudential Regulation Authority (PRA) has distributed a Dear CEO letter to all international banks and deposit takers active in the UK. This letter is to ensure there is a continuous focus guided by the PRA’s supervision and highlight the PRA’s planned work for next year; and should be read in conjunction with the feedback from individual PSM letters.
On Friday 8 April 2022, the FCA released its 2022/23 Business Plan in line with its usual timings. The scene is set with Covid-19 continuing to provide uncertainty, rising costs (due to inflation, interest rates and geopolitical uncertainty) and the risk of serious financial problems for many people.
Following on from our inaugural publication of the FS regulatory affairs newsletter in December last year, this second edition covers regulatory developments in the last three months.
For many years, the PRA has been applying a proportional approach to both regulating and supervising smaller banks, but there is a marked difference as supervision has been more pronounced.
On 13 January 2022, the Payment Services Regulator (PSR) published its first formal strategy. The implementation of this five-year strategy will materially impact Payment Service Providers (PSPs) through increased focus on accessibility, protection, and competition.
The end of 2021 saw the PRA deliver on its warning in the September 2021 ‘Dear CEO’ letter, that they would take a tough stance on banks and building societies that fail to meet expectations around reliable regulatory reporting.
All firms regulated by the PRA are required to identify Material Risk Takers, regardless of their size and must have adequate procedures and policies, including the risk assessments, allowing a proportionate identification of MRTs.
On 1 January 2022, the PRA’s Policy Statement PS22/21 'Implementation of Basel Standards' took effect.
On 7 December the FCA released CP21/36 - the highly anticipated second consultation which provides more detail on the FCA’s proposals for new standards of consumer protection and care in retail financial markets in the form of a ‘Consumer Duty’.
Following the Consultation Paper released on 3 December 2021 (CP 21/34), the FCA confirmed new rules on the Appointed Representatives regime.
This inaugural edition covers the developments in the regulatory space over the past 12 months and highlights some of the main developments and areas of focus for the year ahead.
As the PRA transitions from a rule-taker to a rule-maker, small and medium-sized banks operating in the UK can expect to benefit from a more streamlined regulatory regime that could be easier to interpret, implement and maintain. At the same time, they can also expect the PRA to be progressively more involved in scrutinising their plans for an orderly wind-down. In this article, we explore...
Pre-paid funeral plans can be large financial purchases that affect vulnerable customers and can be difficult for customers to understand.
In our summer edition of Mazars’ regulatory radar, we cover the key regulatory developments from Q2 2021.
On 16 July the FCA released its business plan for 2021/22 and what has been published is a more ‘innovative, assertive and adaptive’ approach than we’ve seen previously.
The UK is getting ready to co-host the private finance agenda of the COP26 and key goals include improving quantity and quality of climate-related financial disclosures. Following that approach, the FCA is working on establishing pathways to mandatory disclosure and promoting alignment of disclosure around the Taskforce on Climate-related Financial Disclosures (TCFD) framework.
The FCA has called UK retail banks to action over continued weaknesses observed in anti-money laundering frameworks. Is it time to modernise your approach?
The FCA’s Consumer Duty sets a higher standard of care that firms should provide to consumers in retail financial markets. The rules came into force on 31 July 2023 for new and existing products and services. The next key milestone is 31 July 2024 for closed products. The Duty is expected to have far-reaching implications across financial services, with the FCA set to supervise against it. For...
In our spring edition of Mazars’ regulatory radar, we cover the key regulatory developments from Q1 2021.
The FCAs second consultation paper(CP21/7) on proposed rules to introduce the Investment Firm Prudential Regime (IFPR) was released on 19 April 2021.
Welcome to Mazars’ Regulatory Outlook for 2021. In this publication, we aim to provide a snapshot of some of the key regulatory developments for the banking sector and provide some thoughts from our Mazars experts on what banks should think about as they prepare for another busy year on the Compliance and Risk fronts.
In December 2020, the FCA detailed some of their proposals for the Investment Firm Prudential Regime (IFPR), which will come into effect in January 2022.
With the current Covid-19 pandemic and its widespread effects, banks must rely more than ever on data driven insights to monitor their changing risk profile, support quick decision making and respond to impacts on their customers and operating models.
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