CUBE RegNews:
July 17th
FCA consults on social media promotions
The Financial Conduct Authority has announced a consultation into financial promotions on social media.
The guidance notes to the consultation states that the regulator wants to “ensure that consumers can access high quality marketing information across all channels, enabling them to make informed decisions. Our financial promotion rules are designed to be technology neutral and apply across all channels that can be used to advertise.”
The consultation overlaps with the introduction of the FCA’s new Consumer Duty at the end of July and the press release notes also that the FCA expects “firms to consider this guidance alongside their obligations under the Duty to help them deliver good outcomes for retail customers.”
The consultation ends on 11th September.
New prudential standard to come into force in Australia
The Australian Prudential Regulation Authority (APRA) has finalized a new prudential standard aimed at ensuring banks, insurers and superannuation trustees can better manage operational risks and respond to business disruptions.
Prudential Standard CPS 230 Operational Risk Management (CPS 230) provides a foundation for APRA-regulated entities to:
- strengthen operational risk management through new requirements to address identified weaknesses in existing controls;
- improve business continuity planning to ensure they are positioned to respond to severe disruptions; and
- enhance third-party risk management by ensuring risks from material service providers are appropriately managed.
The new standard will commence from 1 July 2025.
Prison sentence for two money launderers
The Financial Conduct Authority has confirmed that two brothers have been sentenced to prison sentences following their roles in running a peer-to-peer investment firm, Collateral, which falsely claimed it was FCA registered and which was then used as the vehicle to defraud investors of around £750,000. Both brothers were charged with money laundering contrary to section 327 of the Proceeds of Crime Act 2002.
ECB reports on progress on digital euro
The European Central Bank (ECB) has issued its fourth report on the investigation phase of a digital euro currency.
The latest report also sets outs key principles of a compensation model for the distribution of a digital euro and gives an update on other ongoing areas of work. In addition, it looks at the results of the prototyping exercise and the market research on technical solutions for a digital euro.
The Governing Council will review the outcome of the investigation phase in autumn 2023 and will decide whether to instigate a subsequent project phase in which the appropriate technical solutions and business arrangements could be developed and tested. The ECB will consider any appropriate adjustments in the development of a digital euro that may arise as a result of the legislative deliberations. A possible decision by the Governing Council to issue a digital euro would be taken only after the legislative act is adopted.
CUBE RegNews:
A selected summary of key developments for regulated financial institutions
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