Financial Services Blog
Commentary on the latest in regulation
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...
Tax 'tsunami': will litigation wave crash over tax advisers and IFAs as Revenue uses new powers?
New powers which will be introduced via the Finance Act 2014 are leading to investors in tax schemes crystallising their tax losses much sooner than anticipated.
Yesterday, news broke that celebrity investors in the £1.2 billion Liberty tax avoidance scheme faced significant losses as HMRC issues a...
Pre-packs – improving a bad reputation?
Pre-packs involve the pre-determined sale of a business before it enters administration, allowing a sale within days of an administrator's appointment. Examples of pre-packs include Dreams, JJB Sports and stockbroker Seymour Pierce. Pre-packs are a useful tool for the insolvency profession allowing ...
FOS in the D&Ock
FOS is back in Court defending its latest jurisdictional land grab. Permission has been granted by the Administrative Court for Judicial Review of FOS' jurisdiction to consider a complaint relating to D&O insurance on the basis a director takes the policy in a personal capacity as a consumer an...
FOS: for free or not for free?
Should consumers pay a fee to bring a complaint to FOS? FOS handled 2.3m initial enquiries and complaints from consumers in 2013/2014. Around one in five of those initial consumer enquiries turned into a formal dispute, so FOS reviewed over half a million new cases last year - a record number. Reduc...
Are long stops still a long shot?
The long-running debate surrounding long stop time bars rumbles on, with articles appearing in the financial press this week which raise some interesting new points. It has, for example, been widely reported that the FCA has apparently 'approved' the inclusion of a 15-year long stop in an IFA's ter...
Swap horror – not 'knowledge' for civil limitation
A recent High Court decision (Kays Hotels Ltd v Barclays Bank Plc) has ruled that a firm cannot rely merely on the terms of an interest rate hedging product going against the customer to trigger "knowledge" under section 14A of the Limitation Act 1980 and thus time-bar a civil claim.
In 2005, Kays ...
Ignorance of the lawyer is no excuse
Unsurprisingly, the Court of Appeal has found that inadequate legal representation, like ignorance of the law, is no excuse. It allowed an appeal brought by the FCA against the decision of the Southwark Crown Court to stay the indictments against defendants accused of fraud because of the lack of su...
Battle for better regulation continues with parliamentary inquiry
In an apparent continuation of the Government's push to make regulators and regulation more cost-effective and business-centric, the Regulatory Reform Committee, a House of Commons select committee controlled by the Government, has announced an inquiry into the Government's Better Regulation framewo...
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.