The summary includes consultation/policy papers and speeches published by the regulators and other bodies, as well as articles that may be of interest. It is not intended to be an exhaustive list of all matters relevant to financial services.  

Please refer to the relevant organisations’ websites for a complete record of their publications and news releases.  

On 1 May the Treasury and FCA published a road map to implement the Overseas Funds Regime for EEA authorised UCITS funds (but excluding money market funds). This follows the Treasury’s finding of equivalence for the EEA, announced in January. The government and the FCA need to finalise the applicable rules (eg, whether or how the sustainability disclosure and labelling regime should apply, information requirements, fees, point of sale disclosures), but funds should be able to apply for recognition from Q3 2024. Separately, funds recognised under the Temporary Marketing Permissions Regime can continue to be marketed to UK retail customers until the end of 2026 (the current planned end date for the regime).   

On 24 May the Treasury published a joint statement by EU-UK Financial Regulatory Forum summarising its second meeting. The two parties updated on activity within their respective jurisdictions under six main areas: regulatory and market developments and financial stability outlook; banking and anti-money laundering; sustainable finance; capital markets; asset management; and digital finance and artificial intelligence. Some outcomes were: expressed support for swift implementation of ISSB standards and the need for international coordination to ensure interoperability of standards; agreement to explore ways to strengthen cooperation between their respective evolving oversight regimes for critical third-party service providers; continued engagement on CDDCs; and agreement to work together in international fora to further understand stability risks.   

On 8 May the Committee published a report into SME Finance. The Committee summarised that SMEs face a difficult business environment that might deter innovation and growth. Concerns are reduced confidence in accessing finance, increased de-banking, ineffective dispute resolution schemes, potentially unfair banking practices (eg, requiring collateral for disproportionately small loans). The Committee suggested the government needs to find a way to support the SMEs that use the Business Banking Resolution Service, as the service is ineffective, and these SMEs are not eligible for the FOS; that the FCA provide clearer guidance to banks on acceptable reasons for bank account closures; that the government must assess annually the effectiveness of the British Business Bank to provide SME financing; and that the FCA should tighten the rules around the misuse of personal guarantees and amend the remit of the FOS to enable it to deal with business complaints.           

On 15 May 2024 the PRA published a letter setting out its assessment of the recovery planning capabilities of around 70 small banks and building societies. The PRA notes that many firms understand the basics of recovery planning, but that there are significant areas where improvement is needed.  So, scenario testing should incorporate scenarios of sufficient severity to bring a firm close to a point of non-viability; and firms need to calculate more effectively their recovery capacity (the financial benefits they can credibly realise under stress). The appendix includes some effective practice examples.    

On 16 May the FCA announced various 'Finfluencers’ had been charged for promoting unauthorised trading scheme. The FCA has previously warned influencers on social media against promoting unauthorised financial products.   

On 24 May the FCA announced that several firms had been permitted to restart sales of Guaranteed Asset Protection (GAP) insurance, having amended their products to provide better value to customers. In February and March this year, the FCA asked multiple firms to pause sales of GAP insurance, due to concerns it did not provide good value to customers (eg, only 6% of premiums were paid out in claims in 2022). The FCA is still considering whether proposals by other firms to improve value for customers is sufficient for them to also restart sales.