i-law

Compliance Monitor

US$ settings given LIBOR leeway over fears of market risk

Users of one, three and six-month US dollar LIBOR settings have been warned by the FCA that publication of these settings will continue only "for a short period after 30 June 2023" - probably ceasing on 30 September 2024.
Online Published Date:  04 April 2023
Appeared in issue:  Vol 35 No 7 - 03 April 2023

New topics could trigger section 166 reviews

At a conference for skilled person panels in November, the Financial Conduct Authority gave presentations on the Consumer Duty, ESG, as well as diversity and inclusion - indicating some areas that will receive regulatory scrutiny going forward. Neasa MacErlean examines the use of section 166 reviews in recent years and stresses that the compliance officer has a key role to play.
Online Published Date:  05 April 2023
Appeared in issue:  Vol 35 No 7 - 03 April 2023

Stumbling towards the Consumer Duty

A flurry of Dear CEO letters to sectors within the financial services industry have set out the Financial Conduct Authority's concerns in the lead-up to commencement of the Consumer Duty on 31 July. But Adam Samuel fears that lack of effective enforcement could leave the virtuous running up their consulting and staff bills while others carry on as ever.
Online Published Date:  05 April 2023
Appeared in issue:  Vol 35 No 7 - 03 April 2023

The AI regulation challenge

Use of artificial intelligence is transforming many operations within financial services. Yet, while AI delivers game-changing benefits, its potential harms are the subject of increasing regulation. Minesh Tanna outlines the onerous regime proposed by the European Union and warns that compliance with AI laws is not straightforward.
Online Published Date:  05 April 2023
Appeared in issue:  Vol 35 No 7 - 03 April 2023

How financial institutions should prepare for crypto regulation

While regulation is unlikely to take effect before 2024/2025, financial institutions must consider their strategy for engaging in the crypto market and ensure that they have appropriate controls for anti-money laundering and sanctions compliance, writes Bernadine Reese.
Online Published Date:  05 April 2023
Appeared in issue:  Vol 35 No 7 - 03 April 2023

Digital Operational Resilience: requirements expand for EU financial services firms

'DORA' establishes extensive and broader requirements for the management of ICT risk and third-party ICT risk by in-scope financial services firms in the European Union. It also establishes, for the first time, a regime for the direct oversight of certain 'critical' ICT providers in the EU financial services sector. Charlotte Hill and Clare Reynolds explore what the new requirements mean for in-scope firms and how they can start preparing ahead of DORA's application in January 2025.
Online Published Date:  05 April 2023
Appeared in issue:  Vol 35 No 7 - 03 April 2023

MPs lambast fraud reimbursement proposals

"Victims of APP fraud have been waiting more than long enough." A cross-party committee of parliamentarians has berated proposals for the Payment Systems Regulator to hand over the APP fraud reimbursement scheme to industry body Pay.UK, claiming this would cause further unacceptable delays, conflicts of interest and issues with enforcing the scheme. Denis O'Connor reports.
Online Published Date:  05 April 2023
Appeared in issue:  Vol 35 No 7 - 03 April 2023

Fintech and crypto in the Cayman Islands: an offshore alternative

The Cayman Islands Government has introduced a bespoke legislative regime to attract cryptoasset and other fintech businesses to its shores, writes Ian Mason.
Online Published Date:  05 April 2023
Appeared in issue:  Vol 35 No 7 - 03 April 2023

PRA takes first 'Large Exposure Limits' action against Gupta Family Group bank

Wyelands Bank plc has become the first firm to have action taken against it by the PRA for breaching the "large exposure limits" of the European Union Capital Requirements Regulation - with sums equal to more than 25 per cent of its capital on loan to group companies and connected parties.
Online Published Date:  06 April 2023
Appeared in issue:  Vol 35 No 7 - 03 April 2023

Ex-TSB CIO fined £82k for SMCR failings during platform disruption

The former chief information officer of TSB has been penalised based upon 15 per cent of his gross compensation during the 2018 transfer of 5.2 million customers onto a new IT platform.
Online Published Date:  17 April 2023
Appeared in issue:  Vol 35 No 8 - 17 April 2023

Lenders given leeway on strategies for helping repeat overdraft users

The FCA looks set to allow firms to continue to develop their own strategies to deal with borrowers who repeatedly go into overdraft.
Online Published Date:  20 April 2023
Appeared in issue:  Vol 35 No 8 - 17 April 2023

FCA moves towards Woodford redress proposal with fund administrators

Investors who were in the Woodford Equity Income Fund when it was suspended in 2019 are being urged by the FCA to agree a settlement arrangement that will pay out about 77-79 per cent of the estimated losses.
Online Published Date:  20 April 2023
Appeared in issue:  Vol 35 No 8 - 17 April 2023

Crackdown on commission for leasehold building insurance

The FCA is pushing ahead witha set of measuresto protect leaseholders in blocks of flats when they pay for building insurance.
Online Published Date:  24 April 2023
Appeared in issue:  Vol 35 No 8 - 17 April 2023

Expectations raised on response of firms during extreme events

The FCA has set out itsexpectations for firms in times of market volatility, based on the crisis in the gilt market following the mini-budget in September 2022.
Online Published Date:  26 April 2023
Appeared in issue:  Vol 35 No 8 - 17 April 2023

Warning over mismanagement of 'asset protection' of trust schemes

Consumers have been cautioned by the FCA about firms that offer 'asset protection' trust schemes and then mismanage them.
Online Published Date:  26 April 2023
Appeared in issue:  Vol 35 No 8 - 17 April 2023

Banks told to cut Post Office cash deposit maximum to £10k a year

Banks are being ordered to slash the amount they will accept through cash deposits in Post Offices to £10,000 a year for personal customers.
Online Published Date:  26 April 2023
Appeared in issue:  Vol 35 No 8 - 17 April 2023

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