Financial services - regulatory and risk
Those who live in glass houses... UK's anti-bribery controls to be subject to UN peer review
Timing is everything. Just as the Bribery Act 2010 beds in, it has been announced that the UK will be subject to peer review under the UN Convention against Corruption.
Read moreUnravelling trust transactions – the party’s still on in Jersey
I previously reported on the English Court of Appeal’s decision in the combined appeals of Futter v Futter and Pitt v Holt which clarified (or so we thought) the approach to setting aside transactions for mistake under English law.
Read moreFOS believes respondent firms should be seen but not heard
Tucked at the end of Ombudsman News edition 95 in a little Q&A section about recent queries to its technical advice desk is a bold statement about the FOS' reluctance to hold oral hearings.
Read moreCMCs - why not cut out the middle man?
A joint note from the MoJ, FSA, FOS and FSCS issued last week sets out the role that CMCs play in financial services complaints and highlighted the potential drawbacks of engaging a third party in the complaints procedure.
Read moreRDR: To delay or not to delay, that is the question
The Treasury Select Committee recommended in its recent report that the implementation of RDR be delayed for one year (until January 2014).
Read moreEIS and VCT promotions: suitability not guaranteed
The FSA's explicit warning about Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) financial promotions will do little to help financial advisers defend complaints about such investments if FOS makes a habit of disregarding their 'preferential tax status'.
Read moreNews Corp/BSkyB – a blow to an independent competition regime
In my letter to the editor in today's Financial Times, I reported on the dangers of mixing politics with regulation.
Read moreInsurance intermediaries must take care with CASS
The FSA's avowed intention to zero in on insurance intermediaries' client money systems and controls should set alarm bells ringing.
Read moreFSA wealth management review deadline only a month away
By 9 August, wealth managers must respond to the FSA's Dear CEO letter to confirm they are currently meeting the FSA's suitability requirements for client portfolios and mitigating the risk of future non-compliance.
Read moreAccountability without liability
Last week the FSA laid the foundations of the FCA with the publication of "The Financial Conduct Authority - Approach to Regulation".
Read moreFOS does not breach human rights
The FOS' compliance with fundamental principles of justice was thrown into the spotlight by last week's ECHR decision in the cause célèbre case of Heather Moor & Edgecomb Limited (HME) v UK (FOS).
Read moreIs it time to regulate MPs like other professionals?
I am delighted to announce that Sam Bishop, who joins RPC as a trainee in September, won ARDL's 2011 Marion Simmons QC Memorial Essay Prize.
Read morePromotion of competition at the centre of new FCA's remit
Last week the FSA published - "to inform public debate and facilitate stakeholder engagement" - the initial thinking behind how the new FCA, which is expected to be established by end-2012, will approach delivery of its objectives.
Read moreEight things you need to know about the Bribery Act
As we have already posted, the Bribery Act comes in force today.
Read moreBribery Act goes live today - but it's never too late
The birth of the Bribery Act 2010 today represents a new chapter in corporate criminal liability, but the requirements to have anti-bribery systems and controls in place should not surprise any FSA regulated firm.
Read moreThe world (of complaints handling and redress) according to FOS
Yesterday Natalie Ceeney, Chief Ombudsman, set out her vision for how the financial services complaints and redress system can be improved. Her speech came at an interesting time as the performance and powers of FOS are under scrutiny as never before.
Read moreMortgage fraud against lenders: FSA's report on how lenders manage the risk
The FSA recently published a report on how lenders manage the risk posed by mortgage fraud.
Read moreCorporates facing criminal penalties need certainty when self-reporting
On Monday of this week I reported in the Financial Times the increasing reliance by the OFT on whistleblowers who come to the OFT through its leniency programme to reveal details of anti-competitive arrangements in exchange for immunity from civil fines and criminal penalties.
Read moreIndustry seeks to put FOS in its place - and FOS fights back
In recent weeks the performance and powers of the FOS have been under intense scrutiny with its own Annual Review, the BBA's judicial review of the PPI complaints rules and FSA announcements about award limits and rule changes.
Read moreAudit – a global market requires global thinking
The OFT has finally dared to lift the lid on the UK's audit market to peer inside what is likely to be a Pandora's box of complex issues.
Read moreFSA secures first conviction for boiler room fraud
The FSA recently secured its first criminal conviction for boiler room fraud. At Southwark Crown Court, David Mason pleaded guilty to:
Read moreLaw Society anti-bribery guide useful for non-lawyers
The Law Society has recently published a guidance note on the Bribery Act 2010 and how its member firms should comply with the Act.
Read moreTreasury plans reduction in burden of the Money Laundering Regulations by decriminalisation
HM Treasury has recently proposed amendments to the Money Laundering Regulations to encourage a risk based approach to anti money laundering compliance and thereby reduce the regulatory burden on SMEs.
Read moreLloyd's Managing Agents faced with four separate anti-bribery reporting obligations
The recent Lloyd's Market Bulletin on the Bribery Act is an excellent guide for Managing Agents, but it suggests that in the event of an incident of bribery (or even suspected bribery) the Managing Agents may need to make as many as four separate reports about their suspicions:
Read moreFinancial Services Bill – FOS naming and shaming could harm blameless businesses
The FOS, under proposed new legislation set out in yesterday’s draft Financial Services Bill, would be required to publish reports on its determinations into consumer complaints, naming and potentially shaming businesses involved.
Read moreNational Crime Agency: an FBI for the UK?
The recent speculation that the SFO would be wound up (as discussed in my earlier blog) has somewhat over-shadowed the plans for a National Crime Agency (NCA).
Read moreTiming is everything... but not in the fight against bribery and corruption!
With the implementation of the Bribery Act only two weeks away, absolutely the last thing that should have been of concern was the break up of the lead anti-corruption investigator and prosecutor, the Serious Fraud Office (SFO).
Read moreResolving PPI complaints – pay them all, defend in Court or request a FOS hearing?
Barclays announced yesterday that it will reimburse all customers who complained about the sale of their PPI before 20 April in full (plus 8% interest) without any further investigation of the individual claims.
Read moreCost of 'root cause' rule changes unknown
The FSA's confirmation that the PPI complaints handling guidance relating to root cause analysis will be applied to all complaints handling from 1 September has clarified what the FSA expects of firms.
Read moreRichard Burger appointed Partner at RPC
As Head of RPC's Regulatory Group, I am delighted to announce the appointment of Richard Burger as Partner.
Read moreFOS maximum award limit to rise to £150k
A month later than planned, the FSA announced on 27 May that the proposals set out in CP 10/21 would be implemented.
Read moreDecline in FSA performance against service standards – as expected
At a time when financial services firms are not only under more scrutiny from the FSA but also require their regulator to be as effective and efficient as possible, the FSA's level of performance has declined.
Read moreBank of Scotland fined for root cause failings
Far sooner than I expected, on Wednesday the FSA sent a strong message to the complaints handlers in every regulated firm that the rules on root cause analysis mean what they say.
Read moreFinal responses by 1 June for complaints for over £100k
There is likely to be a small but not insignificant flurry of final responses sent before 1 June regarding high value complaints as firms try to avoid the likely increase in the FOS award limit from £100k to £150k which will apply from January 2012.
Read moreDirector of SFO talks tough on corrupt foreign companies
Richard Alderman, Director of the SFO, says he will use the Bribery Act to tackle corrupt foreign companies as the SFO's top priority.
Read moreFSA suitability seminar: 'capacity for loss' is key
Yesterday's FSA Retail Conduct Risk Seminar on assessing suitability went under the title 'Establishing the risk a customer is willing and able to take and making a suitable investment selection'.
Read moreOFT confirms a lack of competition amongst UK auditors
The OFT announced on Tuesday its provisional conclusion that features of the audit market were not working well, stating its intention to consult further on whether the matter should be referred to the Competition Commission for an in-depth investigation.
Read moreA prudent approach to regulation
The Bank of England and the FSA have today published a paper explaining the approach the new Prudential Regulation Authority will take to the regulation of deposit takers – banks, building societies, credit unions and investment firms.
Read moreFOS complains about 'entrenched', 'legalistic' positions
In celebrating the achievement of dealing with a million frontline enquiries, Chief Ombudsman, Natalie Ceeney notes in today's annual review for 2010/11 that there are encouraging signs of improvements in (non-PPI) complaints handling.
Read moreCASS crusade gets personal: CF10 fined and banned
The FSA's commitment to personal enforcement action as part of its senior management responsibility drive was confirmed today by the publication of the Final Notice against David McGrath, formerly of ActivTrades.
Read moreEU warning to financial services industry to keep its house in order
EU Competition Commissioner Joaquin Almunia today warned that ex ante regulation of the financial services industry is no substitute for competition compliance.
Read moreBBA abandons PPI judicial review
The BBA statement - that the banks will not appeal the judicial review decision in BBA v FSA & FOS - refers to "matters of important principle which we will be taking forward in other ways with the authorities".
Read moreMeteor launches judicial review of FOS ruling
I read with interest yesterday's industry press reports that Meteor Asset Management is to launch a judicial review of an adverse FOS award relating to Lehmans structured products - but I wonder if it will get off the ground.
Read moreLloyds Banking Group sets aside £3.2bn for PPI as rules bite
Shocking estimates of the likely increased costs to the industry of PPI mis-selling arising from changes to the PPI complaints handling and root cause rules look set to be surpassed.
Read moreFSA report into RBS - whose report is it anyway?
The continuing excitement about the FSA's report into the (near) collapse of RBS may be a storm in a teacup but it raises an interesting issue about the rights to similar reports and publicity.
Read moreFOS to award 'distress and inconvenience' compensation for unsuccessful complaints
Today's Ombudsman News leads with a plea to resolve PPI complaints following the High Court's ruling in BBA v FSA & FOS and includes a note about awarding compensation for 'distress and inconvenience' even where the underlying complaint is not upheld.
Read moreCAT sheathes its claws after final construction appeals
The Competition Appeal Tribunal (CAT) has now handed down its judgment in respect of the final three cases in appeals brought by 25 construction companies against fines levied by the OFT.
Read moreUCIS - unregulated and misunderstood
The FSA's thematic work on UCIS has reached the enforcement stage, demonstrating the FSA's focus on those that misunderstood the promotion rules.
Read moreBribery Act systems and controls - start with a risk assessment
Companies have until 1 July 2011 to put in place anti-bribery systems and controls. There is some confusion though over what this entails.
Read moreFSA fines increase again - more 'crime'? Or just more 'punishment'?
The latest twelve-month figure for the total of FSA fines has risen again.
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