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Multi-sector
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Initiative
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Next steps
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Ban on cold calling for consumer financial services and products.
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As announced in the Fraud Strategy in May 2023, the government will extend the pensions cold calling ban to cover cold calling for all consumer financial services and products. HMT will publish the outcome of the consultation that was open from 2 August to 27 September 2023 in due course.
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Post-implementation review of the Guidance for firms on the fair treatment of vulnerable customers.
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The FCA are looking to conduct the review in 2024 with the aim of publishing the final report by end of 2024.
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Complaints reporting review – the FCA is developing proposals to improve complaints reporting.
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A consultation on any proposed changes is due in 2024 and the FCA is considering options for engaging with stakeholders on improving complaints reporting under consideration including prototyping and workshops.
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Taskforce on Climate-related Financial Disclosures (TCFD) reporting requirements. The FCA carried out a review of the first TCFD aligned disclosures by premium-listed commercial companies in July 2022. The FCA will continue to monitor TCFD aligned disclosures, including those of asset managers
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2024: FCA to monitor TCFD-aligned disclosures and publish findings.
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Stewardship review and Code consultation - The FRC will review the UK policy and regulatory framework for effective stewardship, supported by DWP, FCA and TPR.
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A Discussion Paper is expected to be published in H2 2024.
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System-Wide Exploratory Scenario Exercise (SWES) will investigate the behaviours of banks and non-bank financial institutions in stress, and how these can amplify shocks in markets and potentially bring about risks to UK financial stability. The Bank is working closely with the FCA and TPR on this.
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Firms will run round 1 of the scenario phase between November 2023 and January 2024. Round 2 of the scenario phase will be run in mid-2024 with the final results publication in H2 2024.
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Guidance on biometric data and biometric technologies for organisations that use or are considering using biometric recognition systems or for the vendors of these systems.
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The first phase of this ICO guidance on biometric data was consulted on from 18 August to 20 October 2023, with final guidance due to be published in Spring 2024. The second phase of this guidance on biometric classification and data protection will include a call for evidence, also published in Spring 2024.
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Banking, credit and lending
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Initiative
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Next steps
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Cash Savings Market Review - Programme of work using a range of regulatory tools, in particular the Consumer Duty, to help achieve a competitive cash savings market and better outcomes for savers.
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A report was published in July 2023 on competition and consumer outcomes in the cash savings market. This includes a 14-point action plan with a range of actions for the FCA and firms, as well as voluntary industry commitments. A further market update will be published in Q4 2023. Supervisory work on consumer engagement plans and fair value assessments for some of the lowest paying easy access accounts is underway. During H1 2024, the FCA will complete its analysis on the contribution of cash savings to profitability following engagement with firms during H2 2023.
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Review of Debt Advice Rules (CONC 8). The FCA will review its debt advice rules to ensure they set the right framework for good quality debt advice.
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The milestones for this will be updated in due course.
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Evaluation of the persistent debt intervention- an ex post impact evaluation of the effect of the persistent debt intervention tat came into effect in September 2018 that followed the Credit Card Market Study.
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Publication planned for Q4 2024.
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Amending the Threshold Conditions - HMT will amend the Threshold Conditions, which set the standards that firms must meet, to ensure that banks are upholding their current legal duties, including ensuring that lawful freedom of speech is protected. The Government will consult on how best to deliver this.
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HMT will consult on how to amend the threshold conditions in due course.
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Payments and cryptoassets
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Initiative
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Next steps
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Ensuring continuity of critical clearing services - the Bank of England’s approach to discretionary payments by central counterparties This consultation sets out the Bank’s approach to giving directions to temporarily restrict or prohibit discretionary payments to specified shareholders or employees of recognised UK CCPs in severe circumstances. This power is conferred on the Bank by the Financial Services and Markets Act 2023 Schedule 11.
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The consultation period closed on 17 November 2023 and the Bank intends to publish the final statement of policy in 2024 Q1 with entry into effect upon publication.
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Allowing a risk based approach to payments - Reforms to the Payment Services Regulations to allow payment service providers to delay the processing of a payment when there is a reasonable suspicion that the payment is fraudulent.
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EOY-23: Expected date for HMT publication of draft legislation to enact reforms.
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Payment services contract termination rule changes - Reforms to the Payment Services Regulations to strengthen rules on provider-initiated terminations of payment service contracts.
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EOY-23: Publication of draft legislation to enact reforms.
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Insurance and reinsurance
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Initiative
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Next steps
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Authorisation and supervision of insurance branches
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Consultation Paper published on 4 October 2023. Final rules and policy expected in Q2 2024.
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Insurance Special Purpose Vehicles regime (ISPV regime).
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The PRA will continue to interact with stakeholders to assess what further changes might be required to the ISPV regime.
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Ease of exit: insurance- increasing confidence in and capabilities to support solvent exit in the insurance sector.
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BoE/PRA consultation planned for H1 2024.
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Investment management
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Initiative
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Next steps
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Fund tokenisation
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The Technology Working Group set up by FCA and HMT has recently completed phase 1 of its work and published ‘A blueprint for tokenisation’ on 24 November 2023.
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Retail investments
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Advice Guidance Boundary Review
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A joint FCA/HMT discussion paper was published on 8 December 2023 and responses which are due by 28 February 2024 will inform necessary changes going forward.
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Wholesale financial markets
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Initiative
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Next steps
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Considering the recommendations of the Investment Research Review chaired by Hogan Lovells partner Rachel Kent
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An FCA consultation is due in Q1 2024 with relevant rules around optionality of payment for investment research to be made by H1 2024.
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Intermittent Trading Venue (ITV) Sandbox
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The ITV is due to be up and running by the end of 2024.
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Smarter Regulatory Framework
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Data Reporting Services Regulations (DRSRs) – repeal and replacement of the DRSRs with one aim to encourage the emergence of a consolidated tape in the UK as consulted on in the Wholesale Markets Review.
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The Draft SI was published in July 2023 as part of the Edinburgh Reforms and the final SI was laid in November 2023.
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UK CRR TLAC transfer – transfer of TLAC provisions from UK CRR using FSMA 2023 powers and revision of BoE’s MREL Statement of Policy.
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BoE/HMT consultation in Q3 2024.
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Repeal and replacement of CRR and definition of capital.
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HMT/PRA consultation planned for H1 2024. Final rules expected for H1 2025 with an implementation date of H1 2026.
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Repeal and replace parts of the CRR capital buffer requirements to enable Strong and Simple Reforms.
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HMT/PRA consultation paper Q1 2024. Policy Statement, SI and implementation Q4 2024.
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Payment Services Directive and E-Money Directive – repeal and replace the RUL of payment services and e-money where necessary.
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Further information will be communicated in due course.
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Insurance Distribution Directive (IDD) – repeal and replace the IDD provisions not already in the FCA Handbook
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Final rules to be published imminently and expected to come into force at the time the legislation is repealed at the end of March 2024.
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Solvency II remainder – transferring the remaining firm-facing Solvency II requirements from REUL into the PRA Rulebook and other policy materials.
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HMT/PRA consultation paper due Q2 2024. Policy Statement Q3 2024. Implementation date December 2024.
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