CUBE RegNews: 8th January

A selected summary of key developments for regulated financial institutions

Greg Kilminster

Greg Kilminster

Head of Product - Content

FCA reports low success rate for crypto asset services applications 

The Financial Conduct Authority (FCA) has updated its data on applications for crypto asset services that fall under the money laundering regulations. The data shows the applications that the FCA has processed as of 1 January 2024.  


According to the updated data, the FCA determined 55 applications in the last 12 months, of which seven (13%) were rejected. The rejection was either due to the absence of necessary components needed for assessment or the poor quality of key components that made the submission invalid. 


Notably, only 4 applications (7%) were successful, while 44 applications (80%) were either withdrawn or refused. 


Click here to read the full RegInsight on CUBE’s RegPlatform

AFCA updates monetary limits and compensation caps for complaints

The Australian Financial Complaints Authority (AFCA) has recently updated its monetary limits and compensation caps for complaints, as required every three years. The new limits came into effect on 1 January 2024, and apply to all complaints received by AFCA from that date onwards. The update covers the maximum value of a claim for compensation AFCA can consider, as well as the maximum amount it can award a consumer or small business for complaints about banking and finance, general insurance, life insurance, investments, and advice. However, it’s worth noting that these limits do not apply in the superannuation jurisdiction. 


Under the new limits, AFCA can now consider disputes where the amount being claimed by a consumer is up to AUD1,263,000, compared to the previous limit of AUD1,085,000. Similarly, the limit for credit facilities has also increased to AUD6,317,000 from AUD5,425,000 for small businesses and primary producers. 


Click here to read the full RegInsight on CUBE’s RegPlatform

HKMA issues reminder to firms for annual self-assessment of compliance with Code of Banking Practice  

The Hong Kong Monetary Authority (HKMA) has issued a Dear CEO letter reminding firms to conduct their annual self-assessment of compliance with the Code of Banking Practice for the period from 11 December 2022 to 30 June 2023. The assessment is due for electronic submission by 28 March 2024.  


In the letter, the HKMA states that: 


  • The assessment period for 2023 only covers the first six months of the year, as the 2021 Code has been further improved with effect from 7 December 2023.  
  • The Code mandates compliance by certain subsidiaries and affiliated companies of Authorized Institutions (AIs), which should likewise be covered by this self-assessment.  
  • AIs are required to commission their internal audit department, compliance department, or other equivalent unit to conduct the self-assessment, and the AI’s chief executive must co-sign the report.  
  • A full account should be provided in instances where non-compliance is identified. 


Click here to read the full RegInsight on CUBE’s RegPlatform