Horizon Scanning

The table below provides a list of all interesting publications that may have an impact on regulated businesses. We hope that this table proves to be a useful resource to business and compliance teams subject to FCA and PRA supervision.

RefTitleDescriptionCategoryFirm TypeRegulatorPublication DateResponse DateSourceDocumentRegNut ViewComments
CP20/2Management Expense Levy LimitsThis CP sets out the proposal for setting the fee that the FCA/PRA will charge the firms for 2020/21. Consultation PaperClosedAll PRA/FCA firmsFCA15-Jan-202017-Feb-2020Link to the webpageLink to the documentLink to RegNut's View20-Feb-2020
CP20/1Single Easy Access Rate for cash savingsThis CP seeks views on establishing a consistent, industry-wide, interest rate for Easy Access cash savings accounts. The proposal allows for a higher introductory rate (for customer acquisition purposes) in the first 12 months before reverting to the industry-wide rate.Consultation PaperOpenBanksFCA09-Jan-202009-Apr-2020Link to the webpageLink to the documentLink to RegNut's View20-Feb-2020
CP19/32Building operational resilienceThis CPs (FCA and PRA) seek views on regulatory expectations of operational standards from firms providing important financial products and services to customers. At first blush, this may come across as business disruption focused, however, some of the proposals in the CP go beyond the business continuity aspect of operations as the regulator takes an outcome-focused approach.Consultation Paper6 weeks leftAll PRA/FCA firmsFCA, PRAMajor05-Dec-201903-Apr-2020Link to the webpageLink to the documentLink to RegNut's View08-Mar-2020
  • This is the link to the PRA's CP published at the same time.  The FCA and PRA also published a joint summary
  • This CP was preceded by a Discussion Paper (DP) published in July 2018
CP19/31Extending Senior Managers Regime to Benchmark AdministratorsThis CP seeks views on rolling out the SM&CR to firms carrying out benchmark activities and Appointed Representatives (ARs). The rules being consulted on are expected to come into force for firms on 7 December 2020. Consultation Paper1 week leftBenchmark Admins, ARs + PrincipalsFCA29-Nov-201928-Feb-2020Link to the webpageLink to the documentLink to RegNut's View20-Feb-2020
CP19/30Regulatory fees and levies proposalsThis CP sets out the proposed policy changes to the way FCA fees will be calculated and raised from 2020/21. This is an annual cycle of consultation on fees.Consultation PaperClosedAll FCA firmsFCA13-Nov-201913-Jan-2020Link to the webpageLink to the documentLink to RegNut's View20-Feb-2020
Dear DirectorKey risks for credit brokers to considerThis firm letter is Credit Brokers, firms which introduce customers to lenders or other brokers to provide finance. The letter encourages Credit Brokers to improve their oversight of staff / Appointed Reps, better understand their regulatory requirements and warns about poor sales practices. Firm Letter-----Credit BrokersFCA13-Feb-2020N/ALink to the webpageLink to the documentLink to RegNut's View20-Feb-2020
Dear CEOPlatforms portfolio strategy letterThis letter is addressed to "Platform" firms, firms arranging or distributing retail investment products. The letter encourages "Platform" firms to improve their operational resilience and oversight of external suppliers as well as manage their conflicts of interests in a robust manner.Firm Letter-----Platform FirmsFCA06-Feb-2020N/ALink to the webpageLink to the documentLink to RegNut's View20-Feb-2020
PS2/20Pillar 2 Capital: Updates to the FrameworkThis PS firms PRA views on Pillar 2 Capital framework. In particular: leverage exposure measure will be used as the single scaling base for operational and interest rate risk in the banking book (IRRBB); and the PRA buffer will consider factors in addition to a firm’s hurdle rate(s).Policy Statements-----Banks, Building Societies, Investment Firms (PRA)PRA23-Jan-2020N/ALink to the webpageLink to the documentLink to RegNut's View20-Feb-2020This PS was preceded by a Consultation Paper (CP5/19) published in March 2019.
Dear CEONon-financial misconduct in wholesale general insuranceThis letter is addressed to wholesale general insurance firms. The letter reminds firms that a firms culture is assessed based on their financial and non-financial conduct, tieing non-financial misconduct to concerns that could lead to customer harm.Firm LetterInsurersFCAMinimal06-Jan-2020n/aLink to the webpageLink to the documentLink to RegNut's View24-Feb-2020
Dear CEOPortfolio strategy for personal & commercial lines insurersThis letter is addressed to General Insurers involved with Personal & Commercial lines. The letter sets out the supervisory strategy and areas of focus for 2020 and beyond.Firm LetterInsurersFCAMinimal08-Jan-2020N/ALink to the webpageLink to the documentLink to RegNut's View24-Feb-2020
Dear SMFNext steps on Libor transitionThis letter is addressed to all banks, insurers and intermediaries. The letter articulates the FCA and PRA expectations to progress during 2020 to ensure that the sterling LIBOR ceases to exist after the end of 2021.Firm LetterBuilding Societies, Banks, Insurers, Asset Managers, Financial AdvisorsFCA, PRAMinimal16-Jan-2020N/ALink to the webpageLink to the documentLink to RegNut's View24-Feb-2020
Dear CEOAsset management supervision strategyThis letter is addressed to all asset managers. The letter sets out the drivers of harms and the FCA's supervisory strategy in 2020.Firm LetterInvestment Firms (PRA), Investment ManagersFCAMinimal20-Jan-2020N/ALink to the webpageLink to the documentLink to RegNut's View24-Feb-2020
Dear CEOAlternatives asset managers supervision strategyThis letter is addressed to alternative asset managers (e.g. hedge fund managers or private equity funds). The letter sets out the drivers of harms and the FCA's supervisory strategy in 2020.Firm LetterInvestment ManagersFCAMinimal20-Jan-2020N/ALink to the webpageLink to the documentLink to RegNut's View24-Feb-2020
Dear CEOPortfolio strategy letter for financial advisersThis letter is addressed to financial advisors. It sets out the FCA approach to tackling areas of concern with financial advice firms and summarise the actions firms are expected to take.Firm LetterFinancial AdvisorsFCAMinimal21-Jan-2020N/ALink to the webpageLink to the documentLink to RegNut's View24-Feb-2020
Dear CEOBenchmark administration supervisory strategyThis letter is addressed to benchmark administrators. It sets out the drivers of harms and the FCA's supervisory strategy in relation to these for 2020.Firm LetterBenchmark Admins, ARs + PrincipalsFCAMinimal24-Jan-2020N/ALink to the webpageLink to the documentLink to RegNut's View24-Feb-2020
CP30/19Outsourcing and third party risk managementThis CP is addressed to banks, building societies, insurers and other Financial Markets Institutions supervised by the PRA. It is part of the consultation package on operational resilience and focuses on the supervisory expectations in respect of third party outsourcing. Consultation PaperOpenInsurers, Building Societies, BanksPRAModerate05-Dec-201903-Apr-2020Link to the webpageLink to the document08-Mar-2020
#Explaining AI decisionsThis consultation applies to all regulated firms using artificial intelligence tools to make decisions affecting customers. The ICO is consulting on guidance on explaining AI (developed with the Turing Institute)Guidance ConsultationClosedAll PRA/FCA firmsICOModerate02-Dec-201924-Jan-2020Link to the webpageLink to the documentLink to RegNut's View09-Mar-2020
#AI auditing framework guidance This guidance applies to all FCA and PRA regulated firms that use AI tools. The guidance provides a solid methodology to audit AI applications and ensure they process personal data fairly.Guidance ConsultationAll PRA/FCA firmsICOModerate19-Feb-20201-April-2020Link to the webpageLink to the documentLink to RegNut's View09-Mar-2020
#Sector ViewsThis document is addressed to all FCA regulated firms. It reviews he impact of macroeconomic developments and common drivers of change emerging across financial markets. They also outline areas where there may be a negative impact on consumers or the integrity of the financial system in that sector. Discussion PaperN/AAll FCA firmsFCAModerate18-Feb-2020n/aLink to the webpageLink to the documentLink to RegNut's View08-Mar-2020A 1 page overview by the FCA
CP20/3Proposals to enhance climate-related disclosures by listed issuers and clarification of existing disclosure obligationsThis CP is addressed to listed firms. The FCA is consulting on a listing rule requiring them to state whether they comply with the recommendations of the Financial Stability Board’s Taskforce on Climate-related Financial Disclosures (TCFD) and to explain any non-compliance. Consultation PaperFCAMajor06-Mar-20205-Jun-2020Link to the webpageLink to the documentLink to RegNut's View9-Mar-2020
DP20/1Transforming culture in financial services – driving purposeful culturesThis paper is addressed to all FCA firms. Transforming culture in financial services is an FCA priority. One of the components is a clear articulation of purpose. The paper sets out how leaders in financial service might go about overcoming these barriers and embedding purpose in their organisation. Discussion PaperAll FCA firmsFCAMajor05-Mar-2020n/aLink to the webpageLink to the documentLink to RegNut's View9-Mar-2020
PS4/20 The PRA’s approach to supervising liquidity and funding risks This PS applies to banks, building societies and PRA designated investment firms. It sets out the PRA expectations in respect of liquidity and funding risk. It provides feedback to responses to Consultation Paper (CP) 27/19Policy StatementsClosedInvestment Firms (PRA), Building Societies, BanksPRAMinimal02-Mar-2020N/ALink to the webpageLink to the documentLink to RegNut's View09-Mar-2020This includes PRA Supervisory Statement 24/15 ‘The PRA’s approach to supervising liquidity and funding risks’
CP2/20Pillar 2A: Reconciling capital requirements and macroprudential buffersThis CP is addressed to banks and building societies. It consults on the PRA proposals to update the Pillar 2A capital framework to take account of the additional resilience associated with higher macroprudential buffer requirement in a standard risk environment recommended by the Financial Policy Committee.Consultation PaperBanks, Building SocietiesPRAModerate28-Feb-202030-Apr-2020Link to the webpageLink to the document
SS28/15Strengthening individual accountability in bankingThis SS applies to banks, building societies, credit unions and PRA designated investment firms. It sets out the Prudential Regulation Authority’s (PRA’s) approach to strengthening individual accountability in banking.Supervisory StatementInvestment Firms (PRA), Credit Unions, Building Societies, BanksMinimal24-Mar-2020N/ALink to the webpageLink to the documentLink to RegNut's View09-Mar-2020This SS was updated following publication of Policy Statement (PS) 3/20 ‘Responses to Occasional Consultation Paper 25/19 – Chapters 2 and 3’.
SS35/15Strengthening individual accountability in insuranceThis SS applies to insurers, Society of Lloyd's and managing agents. The statement sets expectations regarding: the SIMR; the application of conduct standards and associated notifications; and assessing fitness and propriety. Supervisory StatementInsurers, Society of Lloyd's , Lloyd's managing agentsPRAModerate24-Feb-2020N/ALink to the webpageLink to the documentLink to RegNut's View09-Mar-2020This SS has been updated following publication of Policy Statement (PS) 3/20 ‘Responses to Occasional Consultation Paper 25/19 – Chapters 2 and 3’ . 
SS6/14Implementing CRD IV: capital buffersThis SS applies to banks, building societies and PRA designated investment firms. It sets out expecatations to implement the CRD IV provisions on capital buffers in the UK.Supervisory StatementBuilding Societies, Banks, Investment Firms (PRA)PRAMajor23-Jan-2020N/ALink to the webpageLink to the documentLink to RegNut's View09-Mar-2020
#The PRA's methodologies for setting Pillar 2 capitalThis Policy Statement sets out the PRA's methodologies used to inform the setting of Pillar 2 capital for CRDIV covering Pillar 2A and 2BPolicy StatementsInvestment Firms (PRA), Building Societies, BanksPRAModerate24-Feb-2020N/ALink to the webpageLink to the documentLink to RegNut's View09-Mar-2020
#PRA Rules on Board diversityThis letter has been sent to all banks and building socities and insureres. It reminds the chairs of the expectations in respect of Board diversity.Firm LetterInsurers, Building Societies, Banks, Investment Firms (PRA)PRAModerate04-Mar-2020N/ALink to the webpageLink to the documentLink to RegNut's View09-Mar-2020

Note: if there is something missing from this table that you would like tracked by RegNut’s Horizon Scanning Scorecard – please contact team@regnut.com

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