Financial Conduct Authority Calls on Firms to Improve Treatment of PEPs Sarah Pritchard, the FCA’s Executive Director of Markets and International, commented: “Public service naturally comes with greater scrutiny. But it must be proportionate and shouldn’t disadvantage people running for office or taking senior public roles, or their families. That requires a balancing act. Most firms try to get it right but there is more they can do. We’re following up with those firms that were getting the balance wrong to ensure they make changes. “We have heard directly from some parliamentarians about the problems they and their families have faced. We have been clear where we expect firms to make improvements, including in how they communicate with their customers”. https://lnkd.in/emR__Aj9 #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews
FF News | Fintech Finance’s Post
More Relevant Posts
-
Marketing expert for lawyers, solicitors and law firms @ TBD Marketing Ltd | Agency Owner | Marketing Strategy | PR | Digital Marketing | Business Development | LinkedIn training | Husband | Dad | #SimonSays
Rt Hon Rachel Reeves is set to remind the FCA that it needs to prove it supports growth. And you thought your annual KPIs were tough. The Chancellor is set to send the Financial Conduct Authority a formal “remit” letter, telling the watchdog it must prove it is promoting the expansion of the financial services sector, a remit put in place by the prior administration and supported by the new Government. Nikhil Rathi, the chief executive of the FCA, told reporters on Thursday that the regulator had “already done a lot” to promote growth and was “always keen to do more”. Regulator AND growth enabler? Tough gig. Are any other regulators compelled to do both? https://on.ft.com/3zCFEYw #LawFirms #Regulation #SimonSays
-
The UK’s Financial Conduct Authority (FCA) has called on financial firms to improve their treatment of politically exposed persons (PEPs), including parliamentarians, senior public servants, and their families. This follows a review highlighting the need for fair and proportionate scrutiny. The FCA’s guidance emphasizes the importance of balancing regulatory requirements with fairness, ensuring that PEPs are not subjected to excessive checks or denied services based solely on their status. Firms are encouraged to refine their definitions, review PEP statuses promptly, and enhance staff training. #Compliance #Regulation #FinancialServices #Finance #Banking #AntiMoneyLaundering https://lnkd.in/etz-RhaC
-
What's happening in payments compliance: FCA 'Name And Shame' Plans Concern UK Financial Sector 💰 Plans by the UK financial regulator to "name and shame" companies under investigation could cause reputational damage and a loss of business for companies that are later found to be innocent, people in the industry have warned 💰The Financial Conduct Authority (FCA) in February began to consult on plans to name companies under investigation, both to give clearer enforcement signals to the industry at large and to encourage whistleblowers to come forward from suspected companies 💰The plans have prompted widespread concerns, including from Jeremy Hunt, the country’s finance minister, who last week made an extraordinary public intervention to warn the FCA off the plan Read the full article by Jimmie Franklin: https://lnkd.in/g4ZCnQxz #paymentscompliance #paymentsnews
-
DGM , Head Centralized Trade Services Bank AL Habib. Senior Trade & TBML Specialist. Certified Anti-Money Laundering Professional (CDCS, CITF, CSDG, CAMLP),
The FCA has told financial firms – including banks, payment firms and lenders – to do more to ensure parliamentarians, senior public servants and their families are not treated unfairly. Under legislation adopted by Parliament, financial firms are required to do extra checks on so-called politically exposed persons (PEPs). This follows global standards set by FATF and implemented by more than 200 jurisdictions. There have been concerns about how firms in the UK are meeting these requirements and so the FCA has reviewed how firms are treating PEPs. The FCA found that most firms in its review did not subject PEPs to excessive or disproportionate checks and none would deny them an account based on their status. However all firms could improve. The regulator has told firms that they should: i)-ensure their definition of a PEP, family member or close associate is tightened to the minimum required by law and not go beyond that review the status of PEPs and their associates promptly once they leave public office ii)-communicate to PEPs effectively and in line with the Consumer Duty, explaining the reasons for their actions where possible effectively consider the actual level of risk posed by the customer, and ensure that information requests are proportionate to those risks improve the training offered to staff who deal with PEPs Some firms have already started to make improvements following the change in January 2024, which made the legal starting point that UK PEPs and their associates present a lower level of risk than foreign PEPs. In a small number of cases, the FCA is instigating an independent and more detailed review of firms’ practices. The FCA is clear, that where improvements have been identified, firms should implement those changes now and not wait for the final updated guidance to be published. The FCA will continue to monitor how firms approach PEPs through its ongoing supervisory engagement and will act if needed. If PEPs are unhappy with their experience, they can complain to the firm and then the Financial Ombudsman Service. Some firms also have dedicated points of contact for PEPs.
-
Managing Director Spain and Co-Founder I AML Analytics and ORBS I The world leaders in the testing and analysis of automated sanctions and PEP screening and transaction monitoring validation solutions.
New analysis of FCA fines data by Financial Planning Today has revealed that the total sum of financial penalties imposed by the regulator in 2024 tripled compared to 2023. https://lnkd.in/dGWjVy-U
-
Shareholder and Co-Chair, Financial Regulatory & Compliance Practice, Greenberg Traurig, LLP (Fintech/Payments and Banking)
Our summary of federal and state "fair access" law developments and considerations for the shifting regulatory environment. #bankinglaw #debanking #regulatorycompliance #esg #BSA #AML #GTLaw https://lnkd.in/eV_HbUx3
-
Consultant (Legal, Regulatory and Compliance) | | Business-Minded Legal Solutions | Commercial & Corporate Law
The Bank of England's Governor has recently endorsed the idea of publicly naming financial firms under investigation by the Financial Conduct Authority. According to Andrew Bailey, this would enhance consumer protection, transparency, and accountability within the financial sector. This proposal could potentially make financial regulation more accessible to the public, but it could also lead to reputational challenges for firms. Nonetheless, it pushes for a higher standard of compliance and integrity within the industry, aligning with the public's growing demand for financial transparency. 🤔 Discussion Point: An intriguing question arises about the outcomes of these investigations. What proportion of Financial Conduct Authority investigations into firms result in findings of actual breaches, both positive and negative? This information could provide valuable insights into the effectiveness and fairness of regulatory practices. It could also help determine whether "naming and shaming" outweighs secrecy at the expense of actual and potential harm to consumers. #FinancialRegulation #Transparency #Compliance #FCA #BoE #FinancialServices
-
In this Public Chatter blog post, Perkins Coie LLP partner David Matheson notes a re-proposal of a Dodd-Frank rulemaking that still has not been adopted by a number of banking regulators. #DoddFrank #CorpGov #CorporateGovernance #PublicChatterBlog
-
In this Public Chatter blog post, Perkins Coie LLP partner David Matheson notes a re-proposal of a Dodd-Frank rulemaking that still has not been adopted by a number of banking regulators. #DoddFrank #CorpGov #CorporateGovernance #PublicChatterBlog
