Prudential Regulation Authority
PRA Rulebook website updates - PRA publishes Discussion Paper (DP3/21) - 29 November 2021
The PRA has published a Discussion Paper (DP3/21) outlining changes it intends to make to the PRA Rulebook website by Q4 2023. The changes are intended to improve the PRA’s flexibility to present the increased volume of policy that the PRA expects from its new rule-making responsibilities.
Of particular interest, the PRA’s intended updates include:
- the inclusion of digitised versions of Supervisory Statements and Statements of Policy in the PRA Rulebook, with ‘time-travel’ functionality;
- making the Rulebook content available in a basic machine-readable format that can be more easily accessed and used by third-party applications, facilitating its use by RegTech vendors; and
- making the ‘time-travel’ function easier to use.
The period for commenting on the PRA’s Discussion Paper closes on 28 February 2022, and feedback received will help the PRA prioritise how, and what, will be included in the Q4 2023 update.
PRA Discussion Paper: The PRA Rulebook website: Planned updates (DP3/21)
Webpage
Financial Conduct Authority
Streamlining decision making - FCA publishes Policy Statement (PS21/16) - 26 November 2021
The FCA has published a Policy Statement (PS21/16) setting out changes to the FCA’s Enforcement Guide (EG) and Decisions Procedure and Penalties Manual (DEPP) which seek to streamline the FCA’s decision-making and governance. The changes will move some decision-making from the FCA’s Regulatory Decisions Committee (RDC), a committee of the FCA Board, to senior managers in its Authorisations, Supervision and Enforcement Divisions. The FCA states that the new process will ensure decisions to prevent or stop consumer harm are taken more quickly, and affirms that it will remain transparent and accountable for all decisions.
More specifically, the FCA’s senior managers are now able to take decisions on: (i) a firm’s authorisation or an individual’s approval; (ii) action in straightforward cases to cancel a firm’s permissions and when that action is contested; (iii) starting civil and criminal proceedings; and (iv) using the FCA’s powers to vary or limit a firm’s permissions, or to impose requirements on a firm. The RDC will still make decisions regarding enforcement cases where the FCA is proposing disciplinary sanction or seeking to impose a prohibition order.
The Policy Statement follows the FCA’s Consultation Paper (CP21/25) on the matter, published in July 2021. Despite responses to CP21/25 highlighting concerns over the speed with which the proposals are to be implemented, the FCA will implement the proposals as consulted on.
The ‘Changes to Decision Making for Statutory Notice Procedure Instrument 2021 (FCA 2021/46)’, which amends EG and DEPP, comes into force with immediate effect. The FCA will carry out a six-month post-implementation review to assess the effectiveness of the reforms.
FCA Policy Statement: Issuing statutory notices - a new approach to decision makers (PS21/16)
Changes to Decision Making for Statutory Notice Procedure Instrument 2021 (FCA 2021/46)
Webpage
Press release
Primary Market Effectiveness Review - FCA publishes Policy Statement (PS21/22) - 2 December 2021
The FCA has published a Policy Statement (PS21/22) on its Primary Market Effectiveness Review in which it confirmed new Listing Rules to boost growth and innovation of the UK securities markets, following its consultation paper on the same subject published in July 2021 (CP21/21).
The FCA confirms the following changes to its Listing Rules:
- allowing a targeted form of dual class share structures within the premium listing segment;
- reducing the proportion of shares required to be in public hands when listing to 10% from the current requirement of 25%;
- increasing the minimum market capitalisation threshold for both the premium and standard listing segments for shares in ordinary commercial companies from £700,000 to £30 million; and
- minor modernisation to the Listing Rules, Disclosure Guidance and Transparency Rules (DTRs), and Prospectus Regulation Rules (PRR).
The FCA believes that these changes will reduce barriers to companies listing in the UK and encourage private companies to consider listing at an earlier stage, while still retaining high standards for investors.
The changes to the Listing Rules come into force on 3 December 2021. The package of minor changes to modernise and streamline the FCA’s markets rule books (Chapter 6) will come into force on 10 January 2022. The FCA further notes that the feedback to CP21/21 regarding the functioning of the UK listing regime will be published in H1 2022.
FCA Policy Statement: Primary Market Effectiveness Review: Feedback and final changes to the Listing Rules (PS21/22)
Listing Rules (Primary Market Effectiveness) (Dual Class Share Structure) Instrument 2021 (FCA 2021/55)
Listing Rules (Primary Market Effectiveness) Minimum Market Capitalisation) Instrument 2021 (FCA 2021/56)
Listing Rules (Primary Markets Effectiveness) Shares in Public Hands) Instrument 2021 (FCA 2021/57)
Listing Rules (Primary Markets Effectiveness) Reform and Modernisation) Instrument 2021 (FCA 2021/58)
Webpage
Press release
Financial Ombudsman Service
2021 Periodic Review - FOS publishes action plan - 2 December 2021
The Financial Ombudsman Service (FOS) has published an action plan detailing the key strategic and operational changes that the FOS is undertaking. The action plan aims to reduce the backlog of cases, which increased throughout the COVID-19 pandemic.
Following the Review, the FOS is making a number of changes to its services, including:
- a new model for a new context: the FOS will adopt a simpler, more empowered and accountable casework operating model, to improve the way complaints are handled;
- enhanced technology and digital capabilities: including developing a digital portal; and
- a renewed emphasis on communications, policy and engagement: by building on the FOS’s existing engagement and dialogue with regulators.
By April 2022, the FOS aims to have (i) published its refreshed strategy with key milestones; (ii) designed a target operating model and aims to be moving towards it; (iii) significantly exceeded its original plans to reduce the backlog; and (iv) designed its digital portal.
The action plan can be downloaded on the webpage below:
Webpage
Press release
