The FS Express is a monthly publication designed to bring you all the latest news and updates in a nutshell on Financial Services Enforcement.

Update

The OPBAS has started its work

  • The FCA has announced that under regulations which came into force on 18 January 2018, the Office for Professional Body Anti Money Laundering Supervision (OPBAS) has begun its work. It is hosted within the FCA, and has the responsibility of overseeing the standards of anti-money laundering supervision by the professional body supervisors.
  • The FCA has published a specialist sourcebook for professional body supervisors, which sets out expectations in relation to anti-money laundering supervision.

The FCA and ICO publishes an update on the EU GDPR

  • The EU General Data Protection Regulation (GDPR) will apply in the UK from 25 May 2018. The GDPR does not impose requirements which are incompatible with the FCA Handbook. Compliance with GDPR is now a board level responsibility, and firms must be prepared to demonstrate measures taken to comply.
  • There are ongoing discussions to ensure specific details of the GDPR can be consistently implemented within the current wider regulations. The FCA and ICO recently hosted a GDPR round-table with firms and industry bodies to listen to industry concerns.
  • While the ICO will regulate compliance with the GDPR, it is also high on the FCA's agenda under its rules, e.g. obligations under SYSC meaning that firms must establish, maintain and improve appropriate technology and cyber resilience systems and controls.

The FCA and US CFTC sign Arrangement to collaborate on FinTech innovation

  • The FCA and the US Commodity Futures Trading Commission have signed an arrangement that commits the regulators to collaborating and supporting innovative firms through each other's FinTech initiatives - LabCFTC and FCA Innovate. This is the first agreement of this kind with a US regulator and aims to assist firms both in the UK and US who want to scale and expand internationally.
  • The arrangement focuses on information-sharing regarding FinTech market trends and developments, and both regulators' efforts to facilitate responsible FinTech innovation and ensure international collaboration on emerging regulatory best practices.

TPR and FCA working together on a pensions regulatory strategy

  • The FCA and The Pensions Regulator (TPR) are working together on a pensions regulatory strategy to tackle key risks facing the pensions sector in the next 5-10 years.
  • The focus for the FCA on regulating the sector has been to ensure that regulation provides the appropriate level of consumer protection and competition within this landscape, through establishment of Independent Governance Committees or ongoing work such as the Retirement Outcomes Review.
  • The TPR's focus is on protecting workplace pension savers through a drive to improve standards of governance in schemes, ensuring fair treatment of schemes, and enrolment of workers entitled to automatic enrolment, by their employers.

The EC has proposed a delay to the application date of the IDD

  • The European Commission has proposed a delay to the application date of the Insurance Distribution Direction (IDD) to 1 October 2018. HM Treasury has announced that the government will delay transposing the IDD into UK law until the outcome of the proposal has been confirmed. The outcome is expected to be after 23 February 2018.
  • Firms will then be required to comply with the final rules from the date ultimately agreed at European level as the application date of the directive, currently at 1 October 2018.

The FCA and PRA appoint new Chair of the FSCS

  • The FCA and PRA have appointed Marshall Bailey as Chair of the Financial Services Compensation Scheme Ltd (FSCS). The appointment was made by the FCA Board and the Prudential Regulation Committee with the approval of HM Treasury.
  • Marshall Bailey succeeds Lawrence Churchill who is stepping down after two successful terms as Chair. HE has worked in financial services for over two decades and held senior positions in several firms. He is currently a non-executive Director at Chubb European Group and CIBC World Markets in the UK. The appointment is effective from 1 April 2018.

Please click here to continue reading our February 2018 edition of The FS Express

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