The House of Commons Treasury Committee has published a letter from the PRA Chief Executive, Sam Woods, on the conditions for assessing a proposed change in control of a regulated firm.
Currently, under the change in control framework set out in Part 12 of FSMA, the appropriate regulator may object to an application for a change in control if there are reasonable grounds for doing so on the basis of the six assessment criteria set out in section 186.
The PRA raises the possibility of reverting to the original approach. The letter notes, ‘(to) allow the regulator to object unless it is satisfied it is appropriate for an acquisition to take place in the light of the relevant criteria. Doing so would strengthen the hand of the regulator where the position is unclear and be conducive in practice to an even more robust approach to the review of acquisitions.
The CLLS (City of London Law Society) Regulatory committee has published their response to the FCA’s discussion paper (DP21/1) on strengthening financial promotion rules for high-risk investments and firms approving financial promotions.
Concerns, aims, and points raised in the response include the following:
The CLLS stress that making the financial promotion regime more onerous for regulated firms will not address the risk of abuse of the financial promotion perimeter. In fact, imposing limits on the retail investment market could drive more individuals to the unregulated sector. Further concerns were raised that certain measures proposed in DP21/1 could deflect from investors taking responsibility for their own decisions and might add to compliance costs.
The House of Commission Work and Pensions Committee has published a letter sent by the FCA Chief Executive, Nikhil Rathi. The letter focuses on financial promotions online and calls for reforms to the legislative framework relating to exemptions from the financial promotions regime and the Online Safety Bill.
The letter details the following:
Mr Rathi calls for the Online Safety Bill to be revised to cover paid-for advertising, as well as user-generated content. It is suggested that online platforms, such as search engines and social media platforms, should be required to identify and remove fraudulent content.
With the ever evolving ways to communicate financial services and promotions to consumers, the FCA have published a new website to help businesses understand the financial promotions rules that apply to particular products and services. The website includes two short videos, with accompanying transcripts, highlighting the need for promotions to be clear, fair and not misleading, irrespective of the media used.
The mock scenarios include various social media adverts for car finance and claims management companies.
VIDEO ONE – covers the common mistakes we see for a car finance hire purchase promotion, these include:
VIDEO TWO – includes the common mistakes we see for a claims management promotion, these include:
For further reference, see the links below which relate directly to the following product areas:
We can assist your team quickly and efficiently with your business’s financial promotion approval process.