Financial Services Blog
Commentary on the latest in regulation
SIPPs: FCA announces new capital framework
SIPP Operators will be forced to hold an extra £18m in reserve capital under new rules outlined by the FCA last month. The proposals follow the FSA's (as it was then) consultation back in November 2012 on a new regulatory capital framework intended to ensure that if a SIPP Operator went bust there w...
Slapdash SIPPs told to sharpen up by FCA
SIPP Operators have repeatedly been in the headlines since the FCA completed its second thematic review in 2012. At that time, SIPPS had blossomed from a fairly bespoke offering to select investors into a more mainstream product selected by – or, rather, recommended to - an increasing number of reta...
Bank backs another winner in interest rate swaps saga – but is it luck or judgement?
Despite their costly on-going review work and redress exercises, banks that sold interest rate swaps are still facing parallel court claims. So far they seem to have picked winners by settling stronger claims with better prospects of success. Mark Bailey & MTR v Barclays Bank, a recent decisio...
A long way off for long stops?
Earlier in the summer we noted that the FCA had agreed to consider the introduction of a 15-year long-stop for complaints against financial advisers – and there was an indication that the FCA may have been softening its stance.
However, despite sterling campaigning efforts by, for example, Tenet, i...
Credit where credit's due
The controversy surrounding payday loans looks set to continue as the FOS has issued a warning to consumers about payday loan middlemen. As the FCA's massive consumer credit regime takes shape and thousands of newly regulated firms deal with the additional bureaucracy and regulatory burden, FOS has ...
FOS respondents still at risk of further action despite Clark v In Focus ruling
When Lady Justice Arden handed down her judgment in the Court of Appeal case of Clarkv In Focus, she held that a complainant cannot accept an Ombudsman's award at the statutory maximum (currently £150,000) and sue in court for the balance of their redress if it exceeds that limit. We hoped in vain t...
HMRC closing the gap on tax avoidance
Anyone who has invested in, promoted, or advised on any form of tax mitigation scheme may be feeling slightly nervous following the latest announcement from HMRC concerning the on-going saga of tax avoidance. And understandably so.
On 15 July, HMRC published a list of 1,200 investment schemes which...
CoCos go pop!
In the wake of the banking crisis, the Financial Services Act 2012 gave the FCA a range of new and enhanced powers with which to pursue its regulatory objectives. Today, it has used – for the first time – one if its shiny new tools; the FCA has issued a Temporary Product Intervention Rule (TPIR).
Has the FOS decided Lehman's collapse was not foreseeable; or is that too remote a hope?
Nearly six years have elapsed since we first saw the iconic photographs of Lehman Brothers' employees filing out of the former bank's worldwide headquarters, carrying their belongings in cardboard boxes. However, the downfall of Lehman is not yet a distant memory for many financial advisers, as the ...
Enhancing Supervision: How will the FCA's new regulatory model work in the real world?
Readers may recall the FSA's 'close supervision' of firms, which could arise after an ARROW visit if significant failings were identified. The FCA has now re-branded 'close supervision' and, in substance, 'Enhanced Supervision' will mean much the same, albeit couched in the new judgement-based, inte...
About this blog
Regulation - of the financial services sector in particular - is constantly changing. At RPC, we watch the horizon of the regulated landscape with genuine interest on behalf of clients and others. There are consultants who (at considerable cost) provide more news and content but in this blog we share our thoughts on key developments as they occur and, drawing on our breadth of experience in regulation, we comment on legal and regulatory issues that might not occur to every financial services specialist.