City watchdog orders peer-to-peer lenders to step up preparations for orderly wind-downs August 26, 2021 The City watchdog has urged peer-to-peer lenders to improve their internal governance controls to prevent a wave of disorderly wind-downs in the sector. The Financial Conduct Authority published a letter today that it distributed to the boards of online lending platforms showing it has ordered peer-to-peer lenders to improve contingency plans for being ordered to [...]
FCA says it cannot supervise crypto exchange Binance effectively August 25, 2021 UK Financial Conduct Authority (FCA) has admitted that it is “not capable” of effectively supervising Binance, the world’s largest crypto exchange by trade volume in a statement published today. In a supervisory note the watchdog today reiterated its concerns over Binance’s products, which allow consumers to take supercharged bets, and added that the crypto exchange [...]
PayPal ditches late fees for buy now pay later purchases August 18, 2021 PayPal will stop charging late fees when customers miss payments on buy now, pay later (BNPL) purchases worldwide, in an effort to attract customers amid booming market competition. As of October 1, purchases from customers in the US, UK and France will no longer be subject to late fees, while the company’s BNPL services in [...]
FCA warns equity crowdfunding CEOs of consumers making ‘high-risk’ investments August 18, 2021 The Financial Conduct Authority (FCA) has written to the CEOs of equity crowdfunding platforms, to warn them that consumers are still making “inappropriate high-risk” investments despite the current marketing restrictions, as first reported in P2P Finance News. The FCA said crowdfunding firms should “promote investment opportunities appropriately so that consumers can understand the risks these [...]
Monzo savings partner pauses products amid money laundering probe August 14, 2021 OakNorth, a Monzo partner that provides savings products for the challenger bank, temporarily withdrew offers for new customers a fortnight after it emerged that the FCA had launched an investigation into the British digital bank over possible money laundering activity. Challenger bank OakNorth, which is one of the lenders that have provided £1bn worth of [...]
FCA explores new rules to block UK high street bank closures August 10, 2021 The Financial Conduct Authority is reportedly looking into new rules that would give it the power to stop banks from closing high street branches, in a bid to ensure consumers have continued access to cash. In a consultation last month, the Treasury said it was considering new legislation that would give the UK’s financial regulator [...]
Startups urge caution over buy now pay later regulation July 26, 2021 British startups have urged caution over the City watchdog’s plans to regulate the £2.7bn buy now pay later market. The Financial Conduct Authority (FCA) is set to crack down on companies such as Klarna and Clearpay after the number of BNPL transactions across the UK tripled last year. But a lobby group representing startups has [...]
Ian Hudson given four years in prison for fraudulent trading July 26, 2021 The unauthorised financial adviser was sentenced to four years imprisonment today for fraudulently carrying on regulated activities, bringing to a close charges laid by the FCA in May. Ian James Hudson was food guilty of fraudulent trading by Judge Tomlinson at Southwark Crown Court. The length of his sentence is made up of one count of [...]
FCA warns fund managers to improve their “poor-quality” ESG applications July 20, 2021 The Financial Conduct Authority (FCA) has told fund managers that their “poor-quality” ESG fund applications must improve. The UK watchdog said it has received “numerous” applications with a sustainability focus that were “poorly drafted” and fell below its expectations. “They often contain claims that do not bear scrutiny,” the FCA wrote in a letter to [...]
Upsurge in FCA voluntary resignations costs watchdog over £7m July 16, 2021 The cost of the Financial Conduct Authority’s “voluntary resignation programme” has surged to over £7m compared to just £200,000 last year. The watchdog’s figures, published in its annual report for the year to April, showed the jump, in the number of staff who took advantage of its “Mutually Agreed Resignation Scheme” (MARS) in the year [...]