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Financial Services - Regulatory & Risk

Blog

Financial Reporting has received its fair share of column inches in recent weeks

Published on 18 December 2014. By Tom Lloyd, Senior Associate

Headlines have, for obvious reasons, been grabbed by issues with Tesco's financial reporting. Indeed, the fallout from the scandal is still being felt -

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Blog

How far will the FCA stretch FIT?

Published on 16 December 2014. By Richard Burger, Partner

Yesterday's Burrows final notice is a further sign that the FCA will look at the personal conduct of Approved Persons outside of their roles in financial services in order to assess their fitness and propriety.

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Blog

SFO makes first use of Bribery Act in prosecution for fraudulent UCIS

Published on 11 December 2014. By George Smith, Senior Associate

Earlier this week three individuals were sentenced at Southwark Crown Court following the first prosecution by the SFO under the Bribery Act 2010.

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An uneasy contrast for the FCA – balancing commercial drive with cultural reform

03 December 2014

Yesterday's speech delivered by Martin Wheatley has reinforced the FCA's increasingly more collaborative approach to its engagement with financial services firms.

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Blog

Conduct Risk Briefing offers wealth managers insights into regulator's thinking

Published on 02 December 2014.

'Source of wealth' is key.

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FCA report on complaints handling more optimistic than many feared

24 November 2014

The FCA has finally published its report on its review of consumer complaint handling at 15 major retail financial services firms.

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Blog

Financial Services: Minimising Risk in a Dawn of Opportunity

Published on 12 November 2014. By Simon Laird, Global Head of Insurance

Over the last few years, firms have been asking themselves how they will make money in the post RDR world.

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Blog

FCA keeps SIPP investments under close scrutiny

Published on 06 November 2014. By George Smith, Senior Associate

We blogged previously on the tougher attitude that the FCA is taking concerning the obligations of SIPP operators, and the increased focus on the suitability of underlying SIPP investments.

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Blog

In the garden but without pay

Published on 04 November 2014.

Sunrise Brokers LLP v Rodgers is the salutary tale of an equity derivatives broker who gambled in his decision to leave his employer for a competitor.

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Blog

Crestfallen claimants: High Court upholds bank disclaimers in claim for negligent advice

31 October 2014

In the latest in a line of court rulings upholding disclaimers, the High Court, in the recent case of Crestsign v NatWest & RBS, held that, as a result of careful disclaimer wording, the banks did not owe a common law duty of care to their customer not to provide negligent advice.

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Blog

Project Innovate: an incubator for growth?

Published on 29 October 2014. By Tom Lloyd, Senior Associate

The FCA launched its new Innovation Hub yesterday, with the aim of fostering support to businesses looking to benefit consumers in the financial services sector.

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Blog

Arguing until Blue(fin) in the face: Court tells FOS that beneficiaries under a D&O policy are not consumers

24 October 2014

The Financial Ombudsman Service has suffered a major defeat in the Administrative Court which will come as a relief to D&O insurers and brokers.

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Blog

Cultural Revolution: FCA offers re-education in the provinces

17 October 2014

In a speech at Mansion House last night, Martin Wheatley announced a masters degree in regulation in conjunction with Henley Business School which, he said, will "set the global standard".

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Blog

FCA approves 'independent' use of internal specialist advisers

Published on 17 October 2014. By Sarah Dowding, Senior Associate

Ever since RDR 'independence' rules were introduced nearly two years ago, financial advisers have sought clarification on referring clients to internal specialists within their firm for expert advice.

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Blog

Changes to the UK Corporate Governance Code – real change?

Published on 17 October 2014. By Tom Lloyd, Senior Associate

The UK Corporate Governance Code (the Code) sets out principles of good governance for premium listed companies in the areas of board composition and development, remuneration, shareholder relations, accountability and audit.

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Blog

FOS is not unfair; it just doesn't apply the law

Published on 16 October 2014.

The new CEO of FOS, Caroline Wayman, gave evidence to the Treasury Select Committee yesterday, including (reportedly) in response to a poll that revealed 58% of advisers considered FOS unfair in its decisions on financial advice.

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Blog

Market Misconduct Tribunal gives Tiger Asia the "cold shoulder"

Published on 10 October 2014. By Jonathan Cary, Partner

Hong Kong's Market Misconduct Tribunal (the MMT) has banned Tiger Asia Management LLC (a hedge fund based in New York) and one of its principal officers from dealing in Hong Kong securities for four (of a maximum five) years.

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Blog

Is no news always good news? Drop in complaints may hint at conclusions from over-due FCA complaints review

26 September 2014

The FCA's latest publication of complaints data has revealed a decrease of 5% in the overall number of complaints.

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SIPPs: FCA announces new capital framework

18 September 2014

SIPP Operators will be forced to hold an extra £18m in reserve capital under new rules outlined by the FCA last month.

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Slapdash SIPPs told to sharpen up by FCA

15 September 2014

SIPP Operators have repeatedly been in the headlines since the FCA completed its second thematic review in 2012.

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Blog

Bank backs another winner in interest rate swaps saga – but is it luck or judgement?

11 September 2014

Despite their costly on-going review work and redress exercises, banks that sold interest rate swaps are still facing parallel court claims.

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Blog

Credit where credit's due

Published on 29 August 2014. By Tom Lloyd, Senior Associate

The controversy surrounding payday loans looks set to continue as the FOS has issued a warning to consumers about payday loan middlemen.

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Blog

FOS respondents still at risk of further action despite Clark v In Focus ruling

28 August 2014

When Lady Justice Arden handed down her judgment in the Court of Appeal case of Clark v In Focus ...

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Blog

HMRC closing the gap on tax avoidance

07 August 2014

Anyone who has invested in, promoted, or advised on any form of tax mitigation scheme may be feeling slightly nervous following the latest announcement from HMRC concerning the on-going saga of tax avoidance. And understandably so.

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Blog

CoCos go pop!

Published on 05 August 2014. By Drew Naylor, Senior Associate

In the wake of the banking crisis, the Financial Services Act 2012 gave the FCA a range of new and enhanced powers with which to pursue its regulatory objectives.

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Blog

Has the FOS decided Lehman's collapse was not foreseeable; or is that too remote a hope?

Published on 15 July 2014. By Lucy Joyce, Senior Associate

Nearly six years have elapsed since we first saw the iconic photographs of Lehman Brothers' employees filing out of the former bank's worldwide headquarters, carrying their belongings in cardboard boxes.

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Blog

Enhancing Supervision: How will the FCA's new regulatory model work in the real world?

Published on 10 July 2014. By Drew Naylor, Senior Associate

Readers may recall the FSA's 'close supervision' of firms, which could arise after an ARROW visit if significant failings were identified.

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Tax 'tsunami': will litigation wave crash over tax advisers and IFAs as Revenue uses new powers?

10 July 2014

New powers which will be introduced via the Finance Act 2014 are leading to investors in tax schemes crystallising their tax losses much sooner than anticipated.

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Blog

Pre-packs – improving a bad reputation?

Published on 03 July 2014. By Rachael Healey, Legal Director

Pre-packs involve the pre-determined sale of a business before it enters administration, allowing a sale within days of an administrator's appointment.

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Blog

FOS in the D&Ock

Published on 02 July 2014.

FOS is back in Court defending its latest jurisdictional land grab.

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FOS: for free or not for free?

27 June 2014

Should consumers pay a fee to bring a complaint to FOS? FOS handled 2.3m initial enquiries and complaints from consumers in 2013/2014.

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Blog

Are long stops still a long shot

Published on 25 June 2014. By Amy Winterbourne , Associate

The long-running debate surrounding long stop time bars rumbles on, with articles appearing in the financial press this week which raise some interesting new points.

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Blog

Swap horror – not 'knowledge' for civil limitation

Published on 18 June 2014. By David Allinson, Senior Associate

A recent High Court decision (Kays Hotels Ltd v Barclays Bank Plc) has ruled that a firm cannot rely merely on the terms of an interest rate hedging product going against the customer to trigger "knowledge" under section 14A of the Limitation Act 1980 and thus time-bar a civil claim.

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Blog

Ignorance of the lawyer is no excuse

28 May 2014

Unsurprisingly, the Court of Appeal has found that inadequate legal representation, like ignorance of the law, is no excuse.

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Blog

Battle for better regulation continues with parliamentary inquiry

27 May 2014

In an apparent continuation of the Government's push to make regulators and regulation more cost-effective and business-centric, the Regulatory Reform Committee, a House of Commons select committee controlled by the Government, has announced an inquiry into the Government's Better Regulation framework.

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Blog

Osborne keeps up the pressure on the FCA and PRA with enforcement review

20 May 2014

A month after bringing the Regulator's Code into force as statutory guidance, George Osborne has announced that the Treasury will undertake a major review of enforcement decision-making at the FCA and the PRA.

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Blog

Offshore Ombudsman Part II: busman's holiday continues in Jersey

07 May 2014

The creation of a joint Office of the Financial Services Ombudsman ("OFSO") for Guernsey and Jersey took a step closer on 1 April 2014 as the States of Jersey approved the Financial Services Ombudsman (Jersey) Law 201.

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Government tries to tame the regulators

30 April 2014

The new Regulators' Code, first published by the aptly named Better Regulation Delivery Office in July 2013, came into statutory force on April 6.

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FCA takes on the competition with appointment of former CEO of Competition Commission

25 April 2014

The FCA has dispelled any doubts about how seriously it intends to take its new competition objective by announcing the appointment of David Saunders...

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Blog

Consumer credit cards: FCA questions whether we are getting a fair deal

16 April 2014

Martin Wheatley, Chief Executive of the FCA, speaking last week at the Credit Today Credit Summit, announced that the FCA would be launching a full-scale competition review into the UK's £150bn credit card market before the end of 2014.

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Blog

Deal or No Deal: FOS recommends taking legal advice following Clark v In Focus

13 March 2014

Reacting to the decision in Clark v In Focus, FOS has updated its technical notes to help guide complainants who might have previously sought to top up their award in Court.

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The Cost of Redress: Citizens Advice Bureau reveals £5 billion cost of CMCs

05 March 2014

Last week we reported Lady Justice Arden's fears about the "development of a claims industry… that increases the cost of obtaining financial advice".

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Blog

Top tips for corporates on conducting internal investigations

Published on 04 March 2014. By Richard Burger, Partner

The ability to conduct and manage an internal investigation...

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Blog

Definitive Guideline published for sentencing corporates

28 February 2014

To coincide with Deferred Prosecution Agreements (DPAs) going live earlier this week, the Sentencing Council recently published a Definitive Guideline on the appropriate penalties for corporates convicted of fraud, bribery and money laundering.

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Blog

No need to plead and no need for CMCs

27 February 2014

Those celebrating the common sense decision of the Court of Appeal in Clark v In Focus will have an additional reason to smile when they read comments in the leading judgment of Lady Justice Arden on the purpose of FOS and the role of CMCs.

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Blog

Deferred Prosecution Agreements (DPAs) go live today

24 February 2014

The Director of the Serious Fraud Office, David Green, regards DPA s as "a welcome addition to the prosecutor's tool kit" but nevertheless has confirmed that "Prosecution remains the preferred option for corporate criminality".

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Battle lines drawn as High Court supports FCA collective investment scheme finding

21 February 2014

Further judicial guidance has been provided on unauthorised collective investment schemes ("CISs").

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Blog

FOS in focus

Published on 14 February 2014.

The Court of Appeal confirmed this morning that a FOS complainant with an award at the statutory maximum of £150k cannot sue for the balance of their losses in Court.

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Blog

Competition and Markets Authority announces its 'Vision, values and strategy'

12 February 2014

The Competition and Markets Authority ("CMA") is the new combined successor body to the Office of Fair Trading and the Competition Commission, created by the Enterprise and Regulatory Reform Act 2013.

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Offshore Ombudsman: Financial Ombudsman Service for Jersey and Guernsey on its way

12 February 2014

With the first glimmers of spring breaking through the clouds, the Ombudsman, like many of us, is packing his bowler and planning a trip off-shore.

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