February Monthly Regulatory Highlights

By Kyte Ekstrom | AML, communications, Compliance, Digital, E Money, Financial Industries, FinTech, News, payments | 0 Comments

FCA Consultation Paper Proposing Changes to SCA-RTS and guidance for Payment Services and Electronic Money

The FCA has published consultation paper CP21/3 on the proposed changes to RTS (Regulatory Technical Standards) on SCA (Strong Customer Authentication) explores changes to the FCA’s guidance on payment services and electronic money. The FCA are taking this opportunity to amend their guidance on prudential risk management and safeguarding in their Approach Document (AD), and making general updates to the FCA’s Perimeter Guidance Manual (PERG).

The FCA explains that the amendments aim to address barriers to the future success and adoption of open banking as it grows in the UK, as well as supporting competition and innovation in the payments and e-money sector. The amendments will also reflect the UK’s withdrawal from the EU.

For further details CLICK HERE

UK Company Directors to Face Fines and Bans Under Audit Reform Proposal

After the accounting scandals at Carillion PLC and Patisserie Valerie in 2018 and 2019, individual company directors are set to face potential fines and bans for major failures under proposals to overhaul corporate governance and audit oversight.

Accounting errors which previously may have incurred a slap on the wrist for company board members will be subject to individual directors facing fines or temporary bans if found in breach of their duties to uphold corporate reporting and audit standards.

Ministers are due to accept the principal recommendations made by three independent reviews and proposals to overhaul corporate governance are due to be published as early as next week.

FCA Report – Practices to Reduce Consumer Harm Caused by Failed Technology Changes

The FCA has published a report which outlines practices firms should consider to reduce consumer harm caused by failed technology changes. The report also highlights steps firms can take to protect consumers from harm and disruption in the market

FCA Report – Reduce Consumer Harm

Multi-Firm Review

FCA Publishes Finalised Approach to International Financial Service Firms

The FCA has published a document concerning its approach to to international financial service firms. The document discusses the FCA’s general approach to international firms providing or seeking to provide financial services that require authorisation in the UK.

This approach document is relevant for international firms that require authorisation in the UK, including those that have applied or intend to apply in the future, and those that are already authorised in the UK.

FCA – Approach to International Firms Publication

MoUs with European Authorities in the areas of Securities, Investment Services, Asset Management, Insurance, Pensions, and Banking

From the 1 January 2021, several Memoranda of Understanding (MoUs) came into effect between the FCA and European authorities, covering cooperation and exchange of information.

Outlined below are the MoU’s as first published on the FCA website on the 4th January 2021 and subsequently updated on the 10th February 2021

  1. Multilateral Memorandum of Understanding concerning consultation, cooperation and the exchange of information between each of the EEA competent authorities and the UK Financial Conduct Authority (click here to read the full publication)
  2. Memorandum of Understanding concerning consultation, cooperation and the exchange of information between ESMA and the UK Financial Conduct Authority (click here to read the full publication)
  3. MMoU between each EEA authority and the Bank of England (including in its capacity as Prudential Regulation Authority) and the FCA (click her to read the full publication)
  4. An MoU with the European Insurance and Occupational Pensions Authority (EIOPA) covering information exchange and mutual assistance between the UK authorities and EIOPA in the field of insurance regulation and supervision (click here to read the full publication)
  5. A MoU with the European Banking Authority (EBA) covering information exchange and mutual assistance between the UK authorities and the EBA in the field of banking (click here to read the full publication)

UK Finance and PwC Publish Future Ready Payments 2030 Report

UK Finance, in conjunction with the PwC, have published a report covering the opportunities and challenges for the UK payments industry over the next ten years.

This report is the culmination of the thoughts, ideas and requirements of payments professionals across the UK industry and sets out the Payments Futures vision for 2030, seeking to deliver further customer benefits, support innovation and enhance competition.

Twenty four recommendations have been set out in the report outlining what the payments industry seeks to achieve in order to deliver positive outcomes for consumers and businesses. Recommendations include; access to cash; regulatory leadership; digital inclusion; improved mechanisms for sharing information both within and beyond the financial services sector; Industry and government collaboration; possible use cases for a Central Bank Digital Currency; UK infrastructure optimisation; Industry SCA development; Improved Standards Governance.

The report is aimed to help guide the payments sector to deliver this vision and continue to collaborate across the industry in order to progress.

UK Finance – future ready payments 2030

PwC – a dynamic, purposeful and united agenda for the UK

GOV UK Publishes Policy Paper – The Kalifa Review of UK FinTech

A worthwhile read for anyone interested in the UK fintech sector. Great to see some previous clients making contributions. The report’s recommendations include:

  • Making fintech an integral part of trade policy and a ‘core asset’ for Global Britain
  • £1bn Fintech Growth Fund
  • Reskilling 90% of the UK workforce by 2030
  • Introduction of an accreditation regime for unregulated service providers whose support is essential for fintechs // will this include compliance consultancies?
  • New UK regime for the regulation of cryptoassets
  • Launch of an international ‘Fintech Credential Portfolio’
  • Creation of a Centre for Finance, Innovation, and Technology
  • A centralised electronic register for ESG data

With recent reports of over 1,000 EU firms seeking authorisation in the UK, I’m optimistic about the continued growth and leadership of UK fintech.

The Kalifa Review of UK FinTech

Need Help with your Compliance?

We are the only compliance consultancy in the UK to specialise exclusively in fintech, meaning we understand your business and your needs. Our dynamic team all hold industry qualifications and are up to date with the latest compliance regulations regarding all spheres of technology based, and alternative finance companies.

Our award-winning services include:

Comply-Audit

A deep dive look into your businesses activities and processes to determine the level of compliance required in order to fulfil regulatory requirements. Think of this service as a ‘health check’, which can range from checking on one element of your business or a full-firm-wide review.

Comply-Lite

Our cost-effective retainer service for firms with low compliance requirements.

Comply-Retainer

This popular service is the comprehensive way to ensure your firm remains compliant.  Providing you with periodic risk-based compliance reports focused on specific areas of the business, as well as any other ongoing advice or compliance assistance required.

Comply Ad hoc

Perfect for situations when you need assistance with one-off issues which require efficient and effective resolution. Comply – Ad hoc incorporates assistance with any regulatory/compliance issues including the following:

  • Variation of permission applications
  • Change in control applications
  • Review of policies and procedures for compliance with relevant regulations
  • Independent, external compliance audits
  • Compliance training
  • Compliance gap analysis
  • Adding or removing Approved Persons from the FCA register
  • Assistance with GABRIEL reporting
  • AML/KYC issues
  • Ongoing capital calculations
  • “Passporting” applications

Bespoke Training

Providing you with training services specific to your business and activities. With financial regulation constantly evolving, it is imperative that your firm keeps up-to-date with its requirements, including maintaining the competency of staff. Some of the training services we currently provide to businesses include:

  • Introduction to compliance
  • AML
  • Market Abuse
  • Data Protection
  • Anti bribery and corruption
  • Financial promotions

To find out more about Fintech Compliance, our services, and how we can help you stay compliant> Get In Touch

Tags: , ,