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Financial Services - Regulatory & Risk

Blog

No duty of care owed when conducting a redress procedure

Published on 04 August 2017. By Rachael Healey, Legal Director

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The Court of Appeal has found that banks did not owe a duty of care when conducting a past business review (PBR) of previous sales of interest rate hedging products. Although the decision is in the context of the review procedure agreed between the FCA and banks, the decision is likely to apply to all PBRs, except formal 'consumer redress schemes' under s404 FSMA.

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Publication

New corporate criminal offence

03 August 2017

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Failure to prevent the facilitation of tax evasion

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Blog

CMA approves new payment systems operator

Published on 25 July 2017. By Charles Buckworth, Senior Associate

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On 12 July 2017, the Competition and Markets Authority (CMA) approved the consolidation of the operators of Cheque and Credit Clearing Company, Faster Payments and Bacs into a new payment systems operator (NPSO). This consolidation was one of the key recommendations in the PSO Delivery Group's (PSODG) Report of 4 May 2017.

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Blog

High Court sheds light on compulsory jurisdiction of Financial Ombudsman Service

Published on 19 July 2017. By Matthew Evans, Senior Associate

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The High Court has provided some clarification of the scope of the compulsory jurisdiction of the Financial Ombudsman Service (FOS). The decision has left the scope of that jurisdiction open to discussion, and appears to suggest that the courts will take a more mechanical approach to reviewing regulatory decisions.

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Blog

MiFID II Policy Statement: still not had a chance to read it?

Published on 14 July 2017. By Rachael Ellis, Associate

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Rachael Ellis summarises some of the FCA's key new conduct requirements arising from MiFID II now that it has published its final rules.

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Blog

FCA releases its final rules for implementation of MiFID II

05 July 2017

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The FCA has released its final policy statement (PS17/14) detailing aspects of its implementation of MiFID II, including final rules and its response to the six preceding MiFID II consultation papers dating back to 2015.

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Blog

Retail CFD firms face potential EU market-wide restrictions and further criticism from the FCA

Published on 03 July 2017. By Lucy Kerr, Senior Associate

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The European Securities and Markets (ESMA) has announced it is considering imposing restrictions on contracts for difference (CFD) trading that would mean seismic changes for the industry, whilst the FCA has announced its serious concerns about the CFD industry's continued failure to meet expectations regarding the treatment of retail clients.

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Blog

FCA proposes remedies following asset management sector market study

28 June 2017

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The FCA today published the final findings of its asset management market study and it has announced the remedies that will be implemented to address the concerns previously identified.

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Blog

Cowboys beware; the AML Sheriff is on her way

Published on 26 June 2017. By Rachael Ellis, Associate

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With under a year until the first Financial Action Task Force ("FATF") visit to the UK in a decade, the FCA is consulting on proposed changes to its Handbook as the new money laundering regulations ("MLR 2017") come into force today.

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Blog

Will robo-advice mean checkmate for human financial advisers?

Published on 09 June 2017. By George Smith, Senior Associate

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With continuing advances in artificial intelligence and the rise in 'robo-advisers', is financial advice following in the footsteps of chess, where computers have long since outstripped humans in ability? Are human financial advisers nearing checkmate or is the endgame still unclear?

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Blog

FCA review of suitability finds big is best

31 May 2017

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Bigger, restricted firms scored better in the FCA's suitability review and so supervisory focus will be on smaller firms as the FCA plans a follow up review in 2019.

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Blog

FCA examines blockchain technology in financial services in its new discussion paper

12 May 2017

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FCA discussion paper on distributed ledger technology and blockchain technology

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Publication

Private Fund Limited Partnership

Published on 10 May 2017. By Anthony Shatz, Partner

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Welcome addition of a new investment funds vehicle

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Blog

The Proceeds of Crime Act 2002: harsh but fair?

Published on 05 May 2017. By Davina Given, Partner

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A recent case highlights the dilemma of businesses whose assets are frozen as suspected proceeds of crime.

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Blog

Warning: Enhanced Penalties for Financial Sanctions

05 May 2017

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Penalties for breaching financial sanctions have increased this week (since 2 May 2017) as HM Treasury brings The European Union Financial Sanctions (Enhanced Penalties) Regulation 2017 (the Regulation) into force.

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Blog

In-specie pension contributions - what's the fuss all about?

Published on 08 March 2017. By Rachael Healey, Legal Director

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SIPP and SSAS providers and members continue to be left in limbo over potential tax charges arising from in-specie contributions. HMRC has suspended tax relief on contributions whilst it investigates the position, leaving providers and members without tax relief and the risk of tax assessments back to 2009.

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Publication

Has the FCA made settling more appealing?

02 March 2017

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Changes to the Regulatory Enforcement Process

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Blog

Robo-Advice: not so black and white?

Published on 15 February 2017. By Matthew Watson, Associate

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The Chairman of the FCA, John Griffith-Jones has provided an insight into the Regulator's concerns that the advent of technological developments has blurred the distinction between when customers are receiving advice or guidance.

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Blog

The importance of retainer letters

Published on 15 February 2017. By Rachael Healey, Legal Director

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Court strikes out claim that an adviser owed a duty to point out a claim against a former adviser

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Blog

The long arm of the law: chasing the proceeds of (alleged) crime

Published on 13 February 2017. By Davina Given, Partner

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The English Court has recently upheld a freezing order over the sale proceeds from shares alleged to be a Canadian company's bribes to a Chadian diplomat's wife in the US.

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Publication

Investment funds, January 2017

Published on 19 January 2017. By Anthony Shatz, Partner

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Senior Manager’s Regime and its applicability to all regulated firms - The FCA is consulting on extending the Senior Managers and Certification Regime (SM&CR) to all regulated financial services firms in 2018, which will include many managers of investment funds.

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Blog

Peer review: FCA signals tighter regulation for P2P lending platforms

Published on 03 January 2017. By Matthew Wood, Associate

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The FCA has indicated its intention to apply more stringent regulation to the UK's booming peer-to-peer lending sector, amid concerns that increasingly sophisticated lending platforms are outgrowing the current regulatory regime.

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Blog

ECON scrutinises EBA's approach to RTS under PSD2

19 December 2016

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The EBA Chair has recently appeared before ECON to explain the EBA's approach to the development of RTS on strong customer authentication and secure communications under PSD2, and to answer concerns raised by the committee and others about these RTS.

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Blog

Who is going to pay? FCA launches consultation on the funding of the FSCS

Published on 16 December 2016. By Lucy Joyce, Senior Associate

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The FCA's consultation follows on from FAMR and focuses on how the FSCS should be funded going forward.

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Blog

FCA identifies concerns with PI cover for general insurance intermediaries

07 December 2016

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The FCA has announced the results of a review into general insurance intermediaries' professional indemnity insurance. The FCA found sufficient breadth in the market, but also identified some significant concerns about the cover firms had purchased.

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Blog

FCA consults about delaying disclosure of inside information

01 December 2016

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The FCA has issued a consultation on amendments it proposes to make to the Disclosure and Transparency Rules section of the FCA Handbook. The FCA proposes to make these amendments to make the FCA Handbook consistent with ESMA's guidelines on delay in the disclosure of inside information.

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Publication

FCA market study findings

Published on 30 November 2016. By Anthony Shatz, Partner

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One year on from the FCA’s launch of its market study in November 2015 on the asset management sector, the regulator’s interim findings suggest there is more to be done to achieve effective competition. It has also proposed some interim remedies, on which it seeks feedback by 20 February 2017.

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Blog

Third Party Rights and the SMR and SIMR: the regulators' Achilles' heel?

Published on 26 October 2016. By Louisa Innes-Wilkin, Associate

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The FCA has recently gone to the Supreme Court in an attempt to overturn a significant ruling in relation to third party rights. This could have profound effects on the enforcement of SMR and SIMR.

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Blog

Scrapping of secondary annuity markets – a backpedalling on Pension Reforms?

Published on 20 October 2016. By Matthew Watson, Associate

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In a further nail in the coffin of the Cameron-Osborne legacy the government announced this week that it would be scrapping one of George Osborne's flagship proposed reforms to the pensions market – a proposed secondary market for annuities.

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Blog

NEDs to be subject to FCA's Code of Conduct

05 October 2016

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The FCA has announced plans to extend the application of the Code of Conduct Sourcebook to standard NEDs in banks and insurers. These changes will apply to all NEDs in regulated financial services from 2018

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Blog

Brexit - A brief update on investment funds

Published on 22 September 2016. By Anthony Shatz, Partner

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RPC facilitates conversations between a number of private equity fund sponsors and the BVCA

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Blog

FAMR keeps on giving

Published on 13 September 2016. By Esme Watson, Associate

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The launch of a public consultation on the pension advice allowance at the end of August is another product of the Financial Advice Market Review (FAMR).

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Blog

It doesn't rain it pours… New capital adequacy rules for SIPP firms introduced from 1 September

Published on 06 September 2016. By Rachael Healey, Legal Director

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SIPPs are never far from the headlines at the moment. The most recent issue for SIPP firms to deal with are the new capital adequacy requirements. The effect of the new rules is to place an increased capital burden on SIPP firms holding so-called "non-standard assets".

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Blog

As the FOS sees a spike in fraud complaints, we take a look back at a year of FOS complaints

Published on 02 September 2016. By Cristina Faro, Associate

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The FOS has recently ordered a financial adviser to pay out after falling foul of an email fraud that caused the adviser to authorise the transfer of its client's money to the fraudsters' account.

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Blog

Don’t blag it!

02 September 2016

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Yesterday the FCA fined and prohibited a sole trader for failure to act with integrity and repeatedly misleading the regulator.

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Blog

Introducers & Inappropriate Influence

Published on 08 August 2016. By Matthew Watson, Associate

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Last week must have been a busy one for those working at the FCA.

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Blog

Pension redress methodology – more changes afoot?

Published on 03 August 2016. By Matthew Watson, Associate

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Unsuitable DB pension transfer to personal pension? Advisers have woken up this morning to the Financial Conduct Authority's announcement that next year may see an update to the methodology used to calculate redress due in such situations.

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Video

MAR: enhancing investor protection, market integrity and harmonising the market abuse regime across the EU

Published on 02 August 2016. By Karen Hendy, Head of Corporate

Karen Hendy, Corporate Partner, explains the benefits and implications of the all new Market Abuse Regulation and highlights the grey areas to be aware of.

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Blog

Sanctions: brainteasers with serious consequences

Published on 02 August 2016. By Davina Given, Partner

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Failure to comply with financial sanctions carries serious penalties, most notably in the US, where banks have collectively paid billions of dollars in fines.

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Blog

Pensions freedoms where are we now?

Published on 22 July 2016. By Rachael Healey, Legal Director

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On 14 July 2016 the Financial Conduct Authority published three releases relating to pension freedoms. The releases provide an insight into the FCA's areas of concern following the introduction of the pension freedoms in April 2015.

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Blog

Pension freedom advice complaints: Delays and insistent clients cause of concern for the FOS

Published on 01 July 2016. By Matthew Watson, Associate

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Following reassuring news about low pension-related complaint numbers, the Financial Ombudsman's latest newsletter has revealed further details of the types of complaints they have received since the sweeping changes to the pension freedom rules in April of last year.

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Blog

FCA focuses on suitability

Published on 13 May 2016. By Esme Watson, Associate

Have you received a request from the FCA for your suitability reports recently?

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Blog

Advising on accessing pension pots, is there gold at the end of the rainbow?

Published on 13 May 2016. By David Allinson, Senior Associate

As readers of this blog will know, sweeping changes were made to the UK pensions industry in April 2015 which allowed retirees to access the full value of their pension fund without the need to purchase an annuity.

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Blog

The subtleties of suitability

Published on 26 April 2016. By Drew Naylor, Senior Associate

IFAs can expect guidance from the FCA about how to produce shorter client suitability reports following last month's publication of the Financial Advice Market Review (FAMR), the FCA has confirmed.

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Blog

Pension Ombudsman, SIPPs and the uncertainty

Published on 21 April 2016. By Rachael Healey, Legal Director

SIPP trustees and administrators don't have to consider suitability, the Pension Ombudsman has found in a recent complaint.

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Blog

PRA refreshes Corporate Governance approach in Supervisory Statement

12 April 2016

There remain, in our view, a few issues which the PRA has not directly addressed, perhaps intentionally to allow firms the flexibility to interpret the regulator's requirements in accordance with their business model.

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Blog

Supreme Court takes stock of law on vicarious liability

29 March 2016

The Supreme Court has recently taken a very wide view of vicarious liability (where third parties can hold employers civilly liable for the actions of their employees), as I reported today in full on our Commercial Disputes blog.

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Blog

FCA to allow FOS and FSCS claims over P2P advice

Published on 24 March 2016. By Katherine Roberts, Senior Associate

Consumers who receive advice on peer-to-peer lending should have recourse to FOS and the FSCS, the FCA confirmed this week.

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Blog

Mind the gap: FAMR report is light on de-regulation

Published on 14 March 2016. By Esme Watson, Associate

Following its launch in August 2015, the Financial Advice Market Review (FAMR) has this morning published its final report.

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