UK: Weekly Financial Services Regulatory Update (Week To 31.05.13)


This weekly update from Clyde & Co's Financial Services Regulatory Team summarises new developments as reported by the FCA, the PRA, the UKLA, the Upper Tribunal, the Financial Ombudsman Service and the London Stock Exchange over the past week, with links to the full documents where these are available.

We hope that you will find this update useful. If you have any queries about any of the information in this update or financial services regulatory matters generally, please contact one of the individuals listed in the 'Contacts' section of this publication.

If you have any comments on the content or format of the update or if you no longer wish to receive it, or have a colleague who would like to receive it, please email

Consultation papers:

No new developments this week.

Discussion papers:

No new developments this week.

Policy statements:

30 May: PRA Policy Statement PS3/13: Financial Conglomerates Directive Technical Review. The PRA has published a policy statement (PS3/13) setting out the final rules implementing the Financial Conglomerates Directive Technical Review (2011/89/EC) (FICOD 1) which amends the previous Directives that apply to financial conglomerates. In CP12/40 the FSA consulted on proposals for implementing FICOD 1, and adjustments following consideration of the responses received are set out in this statement. FICOD 1 introduced technical amendments aimed at correcting unintended consequences and improving inefficiencies of the original directive. The FICOD 1 changes relate to:

  • The application of conglomerate supervision
  • The conglomerate capital calculation methodology
  • Inclusion of asset management companies and alternative investment fund managers within the conglomerate identification process
  • Conglomerate identification threshold triggers
  • Requirements for conglomerate stress testing

A copy of the instrument, which comes into force on 10 June 2013, is set out in the Appendix. Documents/publications/policy/2013/ ficodps3-13.pdf

Press releases:

No new developments this week.


No new developments this week.

Bulletins and newsletters:

No new developments this week.

Final notices:

31 May: Final Notice: David John Nickless. The FCA has published a Final Notice cancelling David Nickless' permission to carry out regulated activities. In making this decision, the FCA concluded that Mr Nickless failed to satisfy the threshold conditions and was not a fit and proper person because he had failed to pay regulatory fees and levies owed to the Authority totalling £1,307. Furthermore, Mr Nickless had not been open and co-operative in all his dealings with the Authority, in that he failed to respond to the Authority's repeated requests for him to pay the overdue balance. david-john-nickless.pdf

Application refusals:

No new developments this week.

Approved person refusals:

No new developments this week.

Research publications:

No new developments this week.

Consumer research:

No new developments this week.

Other FCA and PRA publications:

31 May: FCA revised note on the UK notification process for market makers and authorised primary dealers. The FCA has published a revised note on the UK notification process for market makers and authorised primary dealers relating to the exemption applicable to the entities under Article 17 of the Short Selling Regulation. The note sets out the process for making notifications to the FCA, taking into account the Guidelines issued by the European Securities and Markets Authority on the exemption which enters into force on 2 June 2013. The exemptions apply only to the transactions carried out in performance of market-making activities and as authorised primary dealers; they do not apply to the entire scope of activities the notifying person carries out.

31 May: Notice of Undertaking: Equitable Life Assurance Society. The FCA has published a notice of undertaking given by Equitable Life Assurance Society (Equitable Life), following the FCA's assessment that a disclaimer used in Equitable Life's payment instruction form (PI Form) is likely to be unfair. The FCA believed the PI Form to be unfair because it may have the effect of absolving Equitable Life from all liability under a customer's original contract, which may deter a customer from making a valid claim against the firm. In this undertaking, Equitable Life has agreed to change the PI form so that it makes it clear that:

  • Equitable Life's obligation to make payments only ends after it has fully paid the customer what they are due under the policy
  • Signing the PI Form does not remove a customer's right to bring a claim about any other act or omission by Equitable Life

Anyone who has already signed a PI Form (or a form with similar disclaimer wording) will be treated as though the new wording applies to them.

31 May: Notice of Undertaking: Clerical Medical Investment Group. The FCA has published an undertaking given by Clerical Medical Investment Group Ltd (Clerical Medical), following the FCA's assessment that a disclaimer used in Clerical Medical's form of authority and discharge (FAD) is likely to be unfair. The FCA thought that the FAD disclaimer was unfair because it seemed to absolve Clerical Medical from all liability under the customer's original contract, which might have deterred a customer from making a claim against the firm if they thought that Clerical Medical had done something wrong such as inappropriately investing their funds before they were transferred or surrendered. In this undertaking, Clerical Medical has agreed to change the FAD and remove the relevant wording. Clerical Medical will also make clear that paying the transfer of surrender value only ends the contract. Anyone who had previously signed a FAD (or a form with a similar disclaimer) will be treated as though the new wording applies to them. clerical-medical-investment-group.pdf

31 May: Statement on FSA Consultation Paper CP12/25 'Enhancing the effectiveness of the Listing Regime'. The FCA has published a follow-up statement regarding last October's consultation (FSA CP12/25) on proposed changes to enhance the effectiveness of the Listing Regime, which closed on 2 January 2013. Although the original intention was to publish feedback this spring, due to the large number of responses and continuing discussions with stakeholders, the FCA does not expect to publish feedback on this consultation until later in the summer.

30 May: Mortgage Market Review (MMR) Roadshow Webcast. The FCA has developed a webcast of the material presented at its Mortgage Market Review roadshows earlier this year. The webcast covers all areas of the reforms, including:

  • The responsible lending rules which impact predominantly on lenders
  • The distribution and disclosure requirements which have an impact on both lenders and intermediaries
  • The niche markets
  • The prudential reforms for non-deposit taking lenders
  • Some further information of what the FCA expects from all firms
  • The MMR implementation timetable

UKLA publications:

No new developments this week.

Upper Tribunal (Tax and Chancery Chamber) (formerly Financial Services and Markets Tribunal (FSMT)):

No new developments this week.

Financial Ombudsman Service (FOS):

29 May: FOS annual review 2012/13. The FOS has published its annual review for 2012/13, containing facts, figures and information about the FOS' workload and complaints trends, including the following information:

  • The FOS received over 2 million enquiries and complaints from consumers, including a record 508,881 new cases, up 92% on the previous year
  • 74% of new cases were about the sale of payment protection insurance (PPI), with the number of PPI complaints rising 140% to 378,699
  • Investment-related complaints increased by 33%, while banking disputes and complaints about insurance other than PPI roles by 20%
  • 223,229 cases were resolved, resulting in compensation for consumers in 49% of complaints
  • 58% of all disputes were resolved within 6 months ar13/index.html

London Stock Exchange (LSE):

No new developments this week.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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