Financial Services - Regulatory & Risk

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.

Sanctions: brainteasers with serious consequences

Published on 02 August 2016. By Davina Given, Partner

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

Pensions freedoms where are we now?

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

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.

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

Published on 01 July 2016. By Matthew Watson, Associate

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.

Defined Benefit scheme enquiry announced following BHS pensions disaster

Published on 09 June 2016. By Katherine Roberts, Senior Associate

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?

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.

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.

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.

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.

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.

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.

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.

UT confirms interim permission lapses on FCA decision to refuse authorisation

11 March 2016

Firms still waiting for their regulatory approval of a full consumer credit licence should not be particularly surprised at the recent decision of the Upper Tribunal:

Block Notifications and Robo-advice

Published on 11 March 2016. By Matthew Watson, Associate

The recent case of Ocean Finance & Mortgages Ltd v Oval Insurance Broking Ltd provides useful guidance on the often contentious issue of making block notifications to PI insurers.

CMC fees: money for nothing?

03 March 2016

Do regulated Claims Management Companies charge too much in fees for consumers making financial services claims? The Ministry of Justice wants your views.

FCA may not be value for money, says NAO

01 March 2016

The National Audit Office has reported its findings on the roles and effectiveness of the FCA, FOS and the FSCS in the management of mis-selling cases.

A liability perspective: what would Brexit mean for financial advisers?

Published on 26 February 2016. By Simon Laird, Global Head of Insurance

You cannot pick up a paper or check the news without seeing some reference to Brexit and the case for either staying in or leaving the Euro zone.

Adviser due diligence thematic review report short and not to the point

19 February 2016

There's an irony in a report on due diligence being, in effect, just 2 pages long. The FCA's thematic review report today tells us more by what it doesn't say. What might DD stand for?

Hill marches up and down again - MiFID II delayed

Published on 16 February 2016. By Drew Naylor, Senior Associate

Last week, it was confirmed that MiFID II will be delayed for another year.

The FCA and Upper Tribunal

15 February 2016

The FCA's 'further decision notice' on Mr Tariq Carrimjee (senior partner and CEO of Somerset Asset Management) revealed that, the regulator has taken on board the Tribunal's view that banning Mr Carrimjee from all regulated activity would be 'irrational and disproportionate', and it has instead decided to prohibit him from performing compliance oversight (CF10) and money laundering reporting functions (CF11).

Standstills, FOS and time limits

Published on 08 February 2016. By Rachael Healey, Legal Director

FOS applies its own time limits when considering complaints.

Grandfathering grumbles - PRA and FCA highlight failings in S(I)MR

03 February 2016

In the past few days both the PRA and FCA have reminded banks and insurers of the 8 February deadline for the submission of grandfathering notifications for individuals to perform roles under the Senior Managers Regime and the Senior Insurance Managers Regime.

FCA – feeling the political heat?

Published on 02 February 2016. By Matthew Watson, Associate

The FCA escaped a vote of "no confidence" during last night's debate in the House of Commons, despite facing a barrage of scathing remarks from MPs.

FCA announces consultation on role of GCs in regulated firms

29 January 2016

We are so accustomed to dissembling by politicians and others in public life that it is heartening to see individuals or institutions that are prepared to acknowledge responsibility for their mistakes.

FCA announces rejection of change of control application

26 January 2016

It is rare for the FCA's objection to a change of control notification to ever become public.

The politics of regulation

26 January 2016

Today's news about Andrew Bailey's appointment as CEO of the FCA is a significant and, no doubt, highly political appointment.

PRA fines and bans former CEO and MD of Co-op Bank

22 January 2016

In its recent action against former senior figures at the Co-op Bank the PRA has highlighted the impact of the Senior Managers Regime on such enforcement cases, even though this was a case brought under the (now discredited) approved persons regime.

FX trader fails in third-party rights challenge to FCA

18 January 2016

The Upper Tribunal has rejected the well-publicised complaint by Christopher Ashton that the FCA identified him in two decision notices without giving him the opportunity to make representations - because the Tribunal concluded that he was not identified at all.

'Dear CEO letter' to debt management firms clarifies FCA's expectations on transfer of customers or their information

29 December 2015

Following ongoing consolidation in the debt management market, Jonathan Davidson, FCA Director of Supervision (Retail and Authorisations), has published a 'Dear CEO letter' which sets out the FCA's expectations of debt management firms when customers or customer information are being transferred.

Getting ahead of the curve: EBA consults on 'robo-advisers'

17 December 2015

Technology will transform the financial advice world, and this transformation has already begun.

Show me the money: new capital requirements for PIFs

16 December 2015

Last week the FCA released its Policy Statement PS15/28: Capital resources requirements for personal investment firms (PIFs) updating rules that set the amount of capital to be held by directly authorised PIFs which date back to 1994.

Litigation privilege: A tangled web unwoven

Published on 15 December 2015. By Davina Given, Partner

Deception undermines the "dominant purpose" necessary for a claim to litigation privilege in the most recent instalment in the ongoing saga of Property Alliance Group Ltd v Royal Bank of Scotland Plc.

IFAs quizzed by FCA over insistent clients

Published on 14 December 2015. By James Wickes, Partner

The FCA has asked IFAs to explain how they deal with situations where clients wish to act against advice on pension transfers.

PRA fines bank for outsourcing failures

10 December 2015

Last week, the PRA announced that it had imposed a fine of over £1.2 million on R. Raphael & Sons plc.

FCA frustrated by continuing shortcomings in wealth management sector but must accept subtleties of suitability

09 December 2015

The FCA's thematic review report published today expresses concern about some wealth management firms who are still not getting suitability right despite five years of regulatory 'communications'.

Delegation of regulated activities – warning from the FCA

Published on 03 December 2015. By Rachael Healey, Legal Director

Adviser firms delegating regulated activities to unregulated third parties have been removed from the FCA's Christmas card list following a notice issued this week.

FCA has increasing appetite to use alternative enforcement penalties

03 December 2015

In a recent appearance before the Treasury Select Committee the FCA has hinted that it may make further use of its restriction and suspension powers as an alternative as well as an addition to the power to impose financial penalties.

Small businesses; large losses?

Published on 01 December 2015. By Robert Morris, Partner

On Friday the FCA published a wide ranging discussion paper in which it seeks comments on proposed changes to the way in which it, and the FOS, deals with SME businesses.

POPLA likely to be more popular after Supreme Court rejects parking ticket appeal

16 November 2015

The Supreme Court decision in ParkingEye v Beavis has attracted much attention, not least because it was all about a £85 parking fine.

Skilled persons focus on CASS and Conduct in small firms

12 November 2015

The FCA has published statistics on the skilled persons reports commissioned in Q2 2015/16.

Privileged Information

Published on 12 November 2015. By Davina Given, Partner

As every lawyer knows, legal professional privilege is a tricky area and can be hotly contested.

ICO upholds FCA decision not to disclose list of countries posing a high money laundering risk

11 November 2015

The Information Commissioner's Office (ICO) has recently published a decision notice in which the ICO has upheld the FCA's decision to refuse to disclose certain information under the Freedom of Information Act 2000 (FOIA) relating to countries which the FCA deems to present a high money laundering risk.

Built on sand?

10 November 2015

At the Treasury's request, the FCA has published plans for a 'regulatory sandbox' in which businesses can play with new, innovative products, services and business models without "all the normal regulatory consequences".

Spooky new powers for the FCA

Published on 06 November 2015. By Drew Naylor, Senior Associate

We all thought that Halloween was last week, right? Wrong!

FCA restates commitment to consumer protection with fine against sale and rent back provider

05 November 2015

In the latest of its enforcement actions in the mortgage market, the FCA announced last week the fining of Quick Purchase Limited for breach of Principle 6.

Back to the Future: FAMR could result in automated distribution, not robo-advice

04 November 2015

'Back to the Future day' prompted myriad summaries of where technology has got us and where we're headed.

Third party rights relating to Final Notices trump litigation deadlines at the Upper Tribunal

03 November 2015

In its recent decision the Upper Tribunal allowed for a late filing of a reference on third party rights in relation to FCA final notices.

FCA and PRA up the ante on regulatory references

Published on 02 November 2015. By Emma Griffiths, Senior Associate

The FCA and PRA have announced a consultation in respect of their proposals to introduce a mandatory form of employment reference (known as a "regulatory reference").

The Pensions Freedoms and FOS – trends in complaints and enquiries

Published on 29 October 2015. By Rachael Healey, Legal Director

FOS has published a response to the Treasury's consultation paper looking at early exit penalties, the transfer process and communications with consumers in relation to financial advice on pensions.