Week 32 - Insights

FCA chief dispatches ‘Dear CEO’ letters on post-Brexit cross-border arrangements

Andrew Bailey, the chief executive of the Financial Conduct Authority (FCA), has dispatched ‘Dear CEO’ letters. These letters remind firms that where as part of their post-Brexit contingency plans, they are expanding their presence in EU, the structures being put in place must enable the FCA to supervise the conduct of their UK business effectively and meet other conditions.

PRA outlines approach to enforcement

Prudential regulation rules require financial firms to hold sufficient capital and have adequate risk controls in place. Close supervision of firms ensures a comprehensive overview of their activities. The Prudential Regulation Authority (“PRA”) at the Bank of England is responsible for this prudential regulation and supervision of around 1,500 banks, building societies, credit unions, insurers and major investment firms.

The PRA’s approach to enforcement is set out in its Statutory Statements of Policy and Procedure ("Statement"). On 3 August, PRA updated its Statement to reflect the changes in Bank of England’s Policy Statement PS/EDMC2018 which establishes the Enforcement Decision Making Committee.

Industry event

Senior representatives from the banking industry will be presenting at the HANSUKE’s banking seminar in London on 12 September 2018. The seminar will cover Financial Crime, Money Laundering and Sanctions and the governance role of independent NEDs. HANSUKE is pleased to announce that Mr David Swanney will be the key-note speaker at the event.