Financial Services - Regulatory & Risk
TSC 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.
Read moreLloyds Bank's £500m problem is the first 'single firm consumer redress scheme'
Lloyds Bank announced today that it has agreed an estimated £500m 'customer review and contact programme' relating to potentially confusing information about the Halifax standard variable mortgage rate between 2004 and 2007.
Read moreFSA does its little bit to help the Middle East
Political instability in any country can result in sudden cash or asset movements out of the jurisdiction.
Read moreFSA avoids April Fool!
The FSA has announced that it will begin the process of reorganisation to create a new prudential business unit and consumer and markets business unit on 4 April.
Read moreMeteor hit by arbitrary FOS decision
The industry press has reported that Meteor Asset Management had a complaint upheld by FOS about advice on Lehmans structured products because they apparently failed to disclose the downgrade in credit rating (to below Standard & Poor’s A+ grade) and, consequently, the advice was unsuitable thereafter.
Read moreA victory for financial services firms who play by the rules
In the recent case of Michael Duthie Wilson, PS Trustees Ltd v MF Global UK Limited, GNI Limited (In Members' Voluntary Liquidation) [2011] EWHC 138 (QB) it was held that financial investment brokers had complied with the COB rules when the Claimants as 'intermediate customers' and were not liable for trading losses suffered by them.
Read moreExtended warranty cover plans in breach of s.19 FSMA
The FSA's recent action in Re Digital Satellite Warranty Cover Ltd to wind up companies with 'public interest' petitions for carrying on insurance business without FSA authorisation, in breach of the general prohibition in s.19 FSMA, demonstrates its willingness to take robust action to tackle those who attack the perimeter by engaging in regulated activities without authorisation.
Read moreAn innocent crime? FSA's fine for market abuse halved by Upper Tribunal
The Upper Tribunal has ruled that the FSA was too harsh when fining a former banker for market abuse.
Read moreThe FSA sets new standards of professionalism
The FSA's Policy Statement on professionalism (part of the RDR) was published on 20 January 2011.
Read moreLegal Ombudsman swamped by complaints against claims management companies (CMCs)
The Legal Ombudsman, which launched in October 2010 under rules similar to the FOS' DISP regime, recently reported to a professional negligence conference that some 20,000 enquiries were received in its first few months.
Read moreNick Clegg champions FoI at FOS
In a speech today, Nick Clegg championed freedom of information (FoI) at the FOS:
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