FIN.

Category - Enforcement & Litigation

FOS commissions independent review

The FOS Board has commissioned an independent review of its service, aimed at ensuring it can continue to meet its customers’ needs.  The first part of the review will look at the current operational effectiveness...

FCA bans fraudster

FCA has banned Matthew Creed from performing any regulated activity.  Mr Creed had been an approved person at a firm from 2005 – 2019, and was also the director of an unauthorised company from 2002- 2013. In 2012...

FCA bans crypto exchange Binance

Binance Markets Limited is not permitted to carry on any regulated activity in the UK without the prior written consent of the FCA. The FCA has also issued a warning about Binance.com, advising consumers to be wary of...

FCA fines CMC for cold calling

The FCA has fined claims management company, Crosfill & Archer Claims Limited, £110,000 for unsolicited telemarketing calls to people who had registered not to receive this type of sales call. In such cases, the...

FCA speaks on tough regulation and the future

Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...

PRA consults on financial holding companies

PRA has issued a further consultation on applying existing prudential consolidation requirements to financial holding companies and mixed financial holding companies approved or designated under FSMA. The proposals:...

LSB updates on CRM code review

LSB has published its follow up review of the CRM Code in respect of firms’ approach to reimbursing customers. Provision R2(1)(c) of the Code allows firms to decline reimbursement in specific cases. LSB looked at...

FCA intervenes on high risk CFDs

FCA has stopped ICC Intercertus, a Cypriot firm operating under the TPR, from conducting any regulated or marketing activities in the UK. The firm’s wider group traded as “EverFX” and used the...

FCA responds to Amigo Scheme rejection

The High Court has refused to sanction Amigo’s proposed Scheme of Arrangement. The FCA, having previously objected to the Scheme, has now responded to the ruling. The FCA considers the decision is an important...

FCA publishes H2 2020 complaints data

FCA’s most recent complaints data report shows: a significant drop in complaints over the H1 2020 figure; a large decrease in insurance and pure protection complaints – with the largest being in PPI...

FCA speaks on compliance and culture

Mark Steward, FCA’s Executive Director of Enforcement and Market Oversight, has delivered  a speech at NYU Law School entitled “Compliance, Culture and Evolving Regulatory Expectations“. In it, he...

Nausicaa Delfas to join FOS

FOS has announced that Nausciaa Delfas will take up the post of Interim Chief Executive and Chief Ombudsman from mid-May. Meanwhile, Stephanie Cohen will take up the permanent role of FCA COO in June.

FCA stops Cypriot firm offering CFDs in UK

FCA has stopped a Cypriot firm that was operating in the UK under the TPR from conducting any regulated activities in the UK and to close all its trading positions and return money to customers. It found the firm, which...

FCA fines and bans unapproved adviser

FCA has banned a financial adviser and fined him £68,300.  Simon Varley was a director and held the (then) CF10 function at Dickinsons Financial Management Limited.  He was also a CF30 customer adviser until 2013, when...

Lender’s duties limited in asset disposal

In a helpful decision for Banks and lenders, the Court of Appeal decision in Morley (trading as Morley Estates) v Royal Bank of Scotland plc [2021] EWCA Civ 338 confirmed the limited extent of the duties a lender owes...

ASA rules on more debt advice service ads

On 7 April, ASA published 2 more rulings on the advertising of debt advice services, this time by Flexible Digital Solutions Ltd (FDS) and TFLI Ltd t/a Wise Old Mary (TFLI). As with their previous rulings, both resulted...

FS Bill continues in Lords

The Financial Services Bill is scheduled to continue its Report stage in the House of Lords next week, with some further amendments being tabled.

FCA publishes fin prom data

FCA has published data showing the number of financial promotions that have been amended or withdrawn in the first quarter of 2021. The figures do not include any actions FCA took as a result of unapproved promotions...

FCA concerned on Amigo scheme of arrangement

FCA has taken the relatively unusual step of publishing a letter of concerns it lodged in relation to Amigo Loans’ application to implement a Scheme of Arrangement. FCA does not support the scheme for a number of...

FCA responds to Treasury Committee on LCF

Andrew Bailey has responded to the Treasury Committee on aspects of its supervision in respect of the LCF investigation. Key elements of the response looked at: the need for the report to separate accountability with...

FCA fines and bans trader for market abuse

FCA has fined and banned a former market making trader for market abuse. Adrian Horn, formerly of Stifel Nicolaus Europe Limited executed trades with himself in a series of 129 wash trades in a particular security over...

Treasury and FCA discuss perimeter report

Treasury and FCA have met to discuss the September 2020 report on the regulatory perimeter. Discussions focused on: high risk investments and the potential need to review the current exemptions that allow marketing to...

CMA publishes PPI breach letter

CMA has written to Cardif Pinnacle about two breaches of the PPI order. The breaches mean that nearly 5,000 customers have been receiving inaccurate Annual Reviews since 2012, an 4 customers received annual reviews that...

FCA recovers £3.4m for scam victims

FCA has obtained approval from the High Court to return over £3.4m which it has recovered from various accounts relating to two schemes that were unauthorised CIS and deposit-taking schemes, purporting to involve the...

Business Banking Resolution Service goes live

The BBRS, which 7 banking groups have so far signed up to, will work to resolve complaints from larger SMEs. The scheme involves: the contemporary scheme for businesses with turnover of up to £10m per year and a balance...

FCA updates on BI issues

FCA has updated its information page on business interruption insurance, and has created new pages containing a policy checker tool and FAQs for policyholders.

Regulators consult on FSCS levy

PRA and FCA are consulting on proposals for the FSCS Management Expenses Levy Limit for 2021/22. The consultation is supported by the FSCS’s proposed Plan and Budget for 2021/22. The proposed limit for 2021/22 is...

Supreme Court backs FCA on BI judgment

The Supreme Court has released its judgment on the business interruption insurance test case. Commenting, on the judgment, FCA noted that the Court has substantially allowed FCA’s appeal on behalf of policyholders...

FOS consults on 2021/2 plan and budget

FOS is consulting on its plan and budget for next year. Key elements of the plan set out: its expectation to receive 160,000 complaints and resolve 210,000 whether the individual case fee will be £650 or £750 that the...

FCA updates on complaints data

FCA has published its latest firm-specific and aggregate complaints data from firms for H1 2020.  It specifically notes: the lowest levels of recorded complaints since H2 2016 – firms received 2.96m; the largest...

FOS loses judicial review hearing

The Court has found against FOS in a judicial review hearing brought by a forex firm. TF Global Markets (UK) Ltd has suspended a number of accounts, including those of three individuals who subsequently complained to...

FSCS Outlook November 2020

FSCS has published its half year edition of Outlook, which gives an overview of the levy position. FSCS acknowledges that 2020 has been a challenging year for the financial services sector. It has adapted well to the...

What next in BI appeal?

The hearing of the business interruption insurance test case appeal in the Supreme Court is now over. FCA has published the draft transcripts up to day 3, and the judges are aware of the importance of an early judgment...

Ombudsman News looks at trends and stats

The latest edition of Ombudsman News looks at its recently published complaints data (previously featured in  detail in FIN), which saw a rise in complaints from people who borrowed money and then felt the debt was...

MFN strikes again

The CMA has published an infringement decision against Compare The Market for imposing wide most favoured nation clauses on home insurance providers using its price comparison platform.  The fine, in the sum of £17.9...

FCA updates on Supreme Court BI appeal

FCA has updated its website to reflect the running order for the Supreme Court hearing in its test case on business interruption insurance. The hearing started on 16 November and is expected to close on Thursday. The...

FCA updates on BI insurance test case

The FCA has updated its webpage on business interruption insurance with details of the BI test case Supreme Court appeal. The Supreme Court will live-stream the appeal on: Monday 16 November: 11am-4pm; and Tuesday 17 –...

FOS publishes Q2 information

FOS has published complaints figures for July – September 2020 (Q2 2020). It: received 69,000 complaints in total received over 5,900 Covid-related complaints referred over 9,000 complaints to an Ombudsman upheld...

FCA confirms BI appeal date

FCA has confirmed the Supreme Court’s permission to appeal in the test case on business interruption insurance. The appeal will be heard from 16 November, probably for 4 days. RSA has confirmed it will not be...

FOS focuses on SMEs

The latest edition of Ombusdman News focuses on the impact of Covid-19 on SMEs and how FOS can help small businesses.  It summarises which businesses it can help and gives examples of how it has helped without actually...

SFO publishes DPA guidance

The SFO has published a chapter from its handbook that gives guidance on how it approaches DPAs and engages with companies when it is considering a DPA. The guidance, which is internal guidance for SFO staff and...

FCA publishes BI High Court declarations

FCA has published the High Court declarations made in the test case, which are the culmination of the test case judgment. The declarations set out how and to what extent the policies in the representative sample used in...

FCA fines for short selling disclosure breach

FCA has issued its first fine for breach of the Short Selling Regulation. It fined Asia Research and Capital Management Limited, an asset management firm based in Hong Kong, nearly £875,000 for failing to notify FCA and...

SFO looks to future challenges

Lisa Osofsky has spoken on future challenges in economic crime.  She focused on: the success of the National Economic Crime Centre in its first 2 years of existence; the refreshed Economic Crime Plan; better engagement...

FCA skilled persons reports update

In July – September 2020, FCA commissioned 14 skilled persons reports – of which half were on the retail side and half the wholesale side.  3 related to retail banking and payments and 2 to retail lending...

CMA letter re PPI Order breaches

The CMA has written to Cardiff Pinnacle about two breaches of the PPI Order: breach 1: 77 customers did not receive their Annual Reviews on time; and breach 2: 167 customers did not receive accurate information in their...

FCA reports on regulatory perimeter

FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...