Financial Services - Regulatory & Risk
Director 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.
Read moreLloyds Banking Group – opportunist knocked?
The Independent Commission on Banking, chaired by Sir John Vickers, published its long awaited report yesterday.
Read moreNo 'Red Tape Challenge' for financial services
The Government launched last week its Red Tape Challenge with no mention of financial services regulation.
Read moreOFT Annual Plan – Focus on economic growth
The OFT's Annual Plan for 2011/2012, published on 31 March 2011, set out its priorities for the coming year and in the context of budget reductions of 25% over four years.
Read moreRPC's Financial Services Update - April 2011
Our Financial Services Update (April 2011 edition) is now available. It includes:
Read moreLegal regulation catching up - and fast
Yesterday saw the first publication of the SRA's "Handbook". The adoption of FSA terminology and approach continues.
Read moreWho's watching the London Insurance Market?
As anticipated back in February, the FSA's restructure in anticipation of the new split between the PRA and the FCA came into operation yesterday.
Read moreMoney Advice Service - costs lots of money but provides no specific advice
The FSA today launched its rebranded Moneymadeclear and Consumer Financial Education Body as the Money Advice Service which will cost the industry £43.7m this year.
Read moreFSA warns firms about outsourcing of transaction monitoring
FSA regulated firms must comply with their transaction reporting obligations and ensure adequate procedures are in place to check the accuracy of their reports to the FSA.
Read moreComplaints data is meaningless out of context
Statisticians will say that today's publication by the FSA of its half-yearly complaints data on firms provides a useful insight into firms' behaviours.
Read moreBribery Act guidance finally published
After several refusals, the Bribery Act guidance has finally made it over the fence. The revised guidance should not come as a great surprise to UK plc; least of all to the FSA regulated sector which has been geared up to tackle the risks of bribery and corruption since at least 2009 and the FSA's thematic reviews in this area.
Read moreCMCs exposed to FOS and FSA attack under MoUs with CMR
The Memorandum of Understanding (MoU) published last week between the FOS and the Claims Management Regulator (CMR) may help respondent firms to deal effectively with perceived misconduct by CMCs.
Read moreLack of controlled IT function - glitch delays FSA implementation of Approved Person rules
The FSA announced last week it was delaying the implementation of its new rules on Controlled Functions because it had been unable to complete the necessary changes to its Online Notifications and Applications (ONA) system to process the new Controlled Function applications and notifications.
Read moreFSA lays down law for CASS audits
The FSA has turned its concerns about auditors' client assets reports into action with new rules and a clear policy statement. Client assets will remain a regulatory priority.
Read moreBudget 2011: Focus on tax relief and avoidance / evasion
As anticipated, this week's budget has targeted high net worth (HNW) individuals through its clampdown on tax relief and avoidance schemes.
Read moreCAT mauls OFT's fining policy
The OFT suffered a significant setback when the Competition Appeal Tribunal (CAT) recently handed down its judgment on appeals by construction companies against fines levied by the OFT, undermining its 'minimum deterrence threshold'.
Read moreWhat is suitability?
Many mis-selling claims turn on whether or not the investment recommended was suitable.
Read moreBIS Consultation on 'A Competition Regime for Growth' – evolution or revolution?
BIS has published for consultation detailed proposals on the reform of the competition regime in the UK.
Read moreUnravelling trust transactions: advisers in the firing line
Advisers can no longer expect trustees to mitigate unexpected losses by unravelling transactions under the Re Hastings Bass principle, leaving those advisers exposed to negligence claims.
Read moreAnother victim of the FSA's CASS crusade
The FSA today issued a Final Notice against ActivTrades Plc, a foreign exchange broker, that has been fined £85,754 for CASS breaches committed even after the high profile run of CASS cases in June last year.
Read moreGamekeeping, poaching and revolving doors
Following on from Steven Francis' comments on the need for the FSA to appreciate the benefits of a revolving-door policy to its recruitment and retention of quality regulators,...
Read moreTSC grills FSA on RDR
Before the 9 March Treasury Select Committee (TSC) hearing on the RDR, Conservative MP Mark Garnier had promised to give FSA chief executive Hector Sants and chairman Adair Turner "hell".
Read moreDamning criticism of the FSA - by the Chief Executive of the FSA
In his recent speech on the new regulatory framework, the FSA's Chief Executive, Hector Sants, provided a damning critique of the FSA's past approach to consumer protection, effectively conceding the failure of the FSA's headline TCF initiative.
Read moreFinality. Finally? Don't hold your breath…
Giving evidence to the Treasury Select Committee yesterday, FSA chief executive, Hector Sants conceded that the regulator is willing - if the Committee recommends - to re-examine whether a 15 year long-stop time bar should apply to financial services complaints.
Read moreGamekeepers and poachers should be friends
We noted in August 2010 that staff were leaving the FSA in record numbers after the general election, including all three managing directors.
Read moreFuzzy-matching and the sanctions regimes
Given the ongoing political unrest in the Middle East and the speed at which individuals, entities and entire regimes can be added to HM Treasury and OFAC's consolidated sanctions lists (most recently, Libya and Tunisia), ...
Read moreKaupthing arrests: will advisers be liable regardless?
The dramatic news today about dawn raids and nine arrests made by the SFO in London and Reykjavik at the culmination of a year-long investigation into Kaupthing's collapse will, regardless of the outcome of the criminal enquiries, have little bearing on any liabilities faced by advisers for complaints from clients who lost money in the collapse of the Icelandic bank.
Read moreGoing, going, gone concern
The Chief Executive of the FSA in a recent speech has talked about how the new FCA will approach prudential regulation of those firms for which it is responsible. This includes all insurance brokers.
Read moreThe FSA's last risks warning
The new FCA's focus will be 'conduct risk', "that is, the risk that firm behaviour will result in poor outcomes for customers."
Read moreOFT promises faster enforcement kick off
The OFT has published final Guidance setting out its process and procedures when undertaking Competition Act investigations.
Read moreEqual treatment means just that – ECJ confirms invalidity of derogation from Gender Directive
In a landmark judgment published today, the ECJ ruled that insurers cannot charge different premiums to women and men based on gender. As anticipated by us and the UK insurance market, the ECJ has agreed with the Advocate General's recommendations in the Test-Achats case.
Read moreGender Directive: will Sheilas' Wheels stop rolling?
The insurance industry anxiously awaits the European Court of Justice (ECJ) judgment in the Test-Achats case expected today.
Read morePublication of enforcement action: only after Warning Notice but still a bad idea
On Thursday morning last week, I caused a stir with my reaction to the leaked news (in an FT interview) about the new FCA's planned approach to publication of enforcement cases.
Read moreA slightly happier ending for non-deliberate market abuser
I wrote on 2 February about David Massey and his partial success before the Tribunal.
Read moreSection 404 and the single firm
When the FSA decided against turning the endowments and PPI mis-selling problems into formal s.404 reviews (akin to the Pensions Review), it was assumed s.404 would remain in the regulatory tool-box; an idle threat that the FSA would struggle to put into action.
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