Regulation Watch aims to provide members with updates on the activity of the sector's regulators, highlighting areas of specific interest.
Recommended - highlights speeches, videos and audio relating to hot topics
Recent News - a digest of some of the most relevant publications and updates released by the main regulatory bodies
Establishing trust in sustainable investment products The FCA's Director of Sustainable Finance, Sacha Sadan, reflects on the impact made from the package measures introduced in 2023 aimed at improving transparency of sustainable investment products, and most importantly enhancing trust in this market.
Consumer Duty: the art of the possible in a year The FCA's Executive Director of Consumers and Competition, Sheldon Mills in February 2024 outlines some of the progress made through the implementation of the Consumer Duty. In it he highlights the recently published small firms survey and a good and bad practice guide to help firms on their Consumer Duty journey (see item below in recent news).
Diversity and Inclusion: The Parker Review Committee has published the 2023 results of its latest voluntary census on the ethnic diversity of the boards of FTSE 350 companies and 50 of the UK’s largest private companies, carried out jointly with the Department for Business and Trade, and sponsored by EY. It finds that FTSE 250 companies are making progress towards the December 2024 deadline of appointing at least one ethnic minority director, with 79% of responding companies meeting the target in 2023.
Older speech listings and some research referenced by regulators can be found in this archive.
Financial promotions on social media: The FCA has set out how adverts for financial services and products across social media channels must be fair, clear and not misleading. The guidance, which covers the promotion of financial services through memes, reels and gaming streams and published by the FCA, outlines the need for balance and appropriate risk warnings to help ensure people can make well informed financial decisions.
Climate-related disclosures: The US Securities and Exchange Commission (SEC) adopted new climate-related risk disclosure rules on March 6, 2024. Thes rules are intended to enhance and standardise climate-related disclosures by public companies and in public offerings, bringing the US closer to other jurisdictions in this regards and supporting improvement in data comparibility and evaluation of company climate risks and opportunities. However, whilst tehre is broad interest in interoperability with other fraemworks, there are no equivalency provisions in the new rules.
In Europe, the European Commission has outlined key steps to manage climate risks, aiming to protect people and ensure prosperity. Published in response to the European Climate Risk Assessment and spanning various sectors, key steps include: improved governance; empowering risk owners with better tools; advocating for better spatial planning and integrating climate risks into the maintenance of critical infrastructure; ensuring financial climate resilience for which public and private finance mobilization is crucial.
Consumer Duty: (Feb 2024) The FCA has published its findings on good and poor practice following a review of firms’ implementation plans and their fair value frameworks. There is much to learn from reading through these observations - one is a concern that in some firms the Duty is primarily driven by risk and compliance team, and not discussed at Board level. A strong reminder therefore that firms that there is an understanding at all levels of the good customer outcomes sought by the Duty. This should be relfected in their strategies, leadership, and people policies. Our CPD programme can support.
Mortgages: The Financial Conduct Authority (FCA) continues to work with lenders in the UK's mortgage sector to consider the interest-only mortgage market. Numbers of borrowers on interest only and part-and-part mortgages have reduced and more quickly than anticipated. This suggested better than expected repayment strategies in place or borrowers being able to move onto a repayment mortgage. However, challenges remain and the group will consider early engagement strategies, as well as a review of the current FCA guidance, at future meetings.