FIN.

Category - Enforcement & Litigation

FCA prosecutes for document destruction

FCA has brought its first prosecution for a destruction of documents offence under FSMA.  It has prosecuted Konstantin Vishnyak, who it was investigating for suspected insider dealing, for destroying documents which he...

Tabernula defendant imprisoned

As a result of a conviction for money laundering following the “operation Tabernula” investigations, Richard Baldwin has been sentenced to 5 years and 8 months imprisonment.  This follows convictions of...

SFO publishes “co-operation” guidance

The SFO has published guidance for corporates aimed at helping them to understand what it means by “co-operation” when it is considering its charging decisions.  The SFO says it is assistance that goes above...

Tribunal refuses suspension application

Sussex Independent Financial Advisers Limited had applied to the Tribunal for a suspension of the FCA’s decision to vary its permission to remove all its permitted activities on the basis that the firm did not...

FCA consults on vulnerable customer guidance

FCA has published a guidance consultation on what it considers the Principles require of firms in terms of fair treatment of vulnerable customers. It thinks firms have made big improvements generally, but now wants to...

SFO confirms DPA with metals tech firm

The SFO has announced that in 2016 it entered into a DPA with Sarclad Ltd, a technology provider for the metals industry. The DPA related to charges of corruption and failure to prevent bribery between June 2004 and...

HMRC updates MLR appeals guidance

HMRC has updated its website with guidance on how to appeal against an HMRC decision, and how it sets penalties. The guidance explains what HMRC may levy penalties for, and what its remedies are. It also explains that...

Court backs bank on account closure

A payment institution has failed in its action against RBS, after the bank closed the institution’s accounts with it and ended the banking relationship. The payment institution (P) was an FX and payment services...

FCA publishes annual report

FCA’s Annual Report and Accounts for 2018/19 lists its highlights from the past year, and appends several reports from specific business focuses.  FCA notes that alongside deciding over 4,000 applications for...

FOS consults on funding

FOS is consulting on its future funding model.  It says it is looking forward to a time when it is not dominated by PPI, and is looking at how it should: rebalance the proportion of income it gets from its levy as...

FCA publishes first perimeter report

FCA has published the first of what will be an annual report on its regulatory perimeter. Among other things, the report is designed to explain what challenges the perimeter is presenting and whether there might be a...

FCA extends temporary permissions deadline

FCA has confirmed the deadline for EEA firms to notify it of their intention to use the temporary permissions regime is now 30 October. FCA has updated its website with details of how the TPR applies, and its policy for...

FCA publishes unfair term undertaking

FCA has published an undertaking from Capital Financial Management Limited. It considered two term in the company’s debt management contract gave the firm sole discretion on what it could charge customers who...

Fund umbrella providers come under fire

FCA has published the results of its review into how firms in the investment management sector that have Appointed Representatives comply with their regulatory obligations as principals.  There are over 1000 ARs in the...

EC fines banks for FX cartel

The European Commission has fined 5 banks for taking part in 2 cartels involving 11 currencies in the spot fx markets. It has imposed fines totalling over €800m on Barclays, RBS, Citigroup and JP Morgan for the so...

FOS Annual Review 2018/2019

The Financial Ombudsman Service (FOS) has published its Annual Review 2018/2019. The Annual Review highlights that FOS has: received more than 388,000 complaints over the past 12 months, which is up 14% on 2017/2018...

ICO fines for spam PPI claim texts

The ICO has fined a claims management company £120,000 for sending spam texts.  It found Hall and Hanley Ltd, using a third party, had sent over 3.5m direct marketing texts about PPI claims without having valid consents...

FCA fines for market abuse control failings

FCA has fined Linear Investments Limited £409,300 for the firm’s breach of Principle 3 by failing to take reasonable care to organise and control its affairs responsibly and effectively.  In particular, FCA found...

FCA publishes PFOF findings

FCA has published an update to its Market Watch item on payment for order flow.  It has now carried out a review of 15 firms, to check how they monitor  compliance with FCA requirements around conflicts, inducements and...

FCA fines SCB £100m for AML failings

FCA has imposed its second largest ever fine for AML controls failings. It has fined Standard Chartered Bank £102.2m for failings in its wholesale bank correspondent banking business and its branches in the UAE.  It...

FCA gives investigations update

Mark Steward has spoken on partly contested cases, the pipeline and AML investigations. Key points included: the partly contested case process has, since 2017, allowed those subject to FCA disciplinary action to choose...

CMA issues Directions to 5 banks

The CMA has issued directions to 5 banks (Bank of Ireland, Santander, LBG, HSBC and Danske) who have not delivered all aspects of their App-to-App functionality. The directions explain what the banks are to do...

FCA makes binary option banning rules

FCA has published its final position and Handbook Rules on permanent product intervention measures that will ban sale, marketing and distribution of binary options to retail consumers.  ESMA has extended its temporary...

London Capital investigation to start

Treasury has announced an independent investigation into what happened at London Capital & Finance. Treasury and FCA both feel there is public interest in a statutory investigation, and so Treasury is using its...

FCA regulation of CMCs starts

1 April saw the start of FCA regulation of claims management companies. Over 900 companies have registered with FCA for temporary permission, without which they cannot operate until fully authorised. FCA will have the...

WBD boosts expertise with white collar partner

Womble Bond Dickinson is delighted to have expanded its offering in the financial services and insurance sectors with the hire of white collar crime partner, Audrey Koh. Audrey has substantial experience of advising...

BoE and FCA update on Brexit approach

BoE and FCA have updated their respective websites with coordinated information on their approach to a hard Brexit. BoE has published a series of materials setting out its updated plans to its supervisory approach to a...

FCA takes first competition action

In its first decision under its competition powers, FCA has found that 3 asset management firms have breached competition law by sharing of strategic information, the effect of which was that the firms knew each others...

EBA investigates regulators over Danske Bank

EBA has opened a formal investigation into possible breaches by the Estonian and Danish financial services regulators of EU law in connection with the links of Danske Bank and, in particular, its Estonian branch, with...

ESMA creates Brexit page

ESMA has created a new web-page on Brexit, setting out how it is preparing for it.  Its latest agreement is a MoU with BoE for recognition of CCPs and the Central Securities Depository.  It aims to recognise all UK CCPs...

FCA fines fund manager

FCA has fined Paul Stephany, formerly a fund manager at Newton Investment Management Limited. It imposed the £32,200 fine after it found Mr Stephany twice submitted orders as part of a book build for shares that were to...

FCA feeds back on RND and Plevin issues

FCA has published a detailed policy statement to back up the new rules on regular premium PPI complaints and recurring non-disclosure of commission. FCA stresses that one of the main purposes of its consultation and now...

Tribunal rules on Burns costs

The Upper Tribunal has ruled on whether any part of costs claimed by Alistair Burns (on his unsuccessful application) should be awarded. The Tribunal has discretion over the award of costs, but can only make the award...

FCA makes new rules

FCA’s latest Handbook Update lists rules made in December and January.  The key changes: amend the rules on PCAs and Overdrafts from 18 December 2019: these changes amend BCOBS and CONC to tackle low levels of...

FCA confirms Keydata individual fines

FCA has published its final notices banning Stewart Ford and Mark Owen from performing any function in relation to any regulated activity and fining them £76 million and £3,240,787 respectively. Mr Ford held the CF1, 3...

Treasury Committee publishes SME reports

In October, the Treasury Committee reported on SME finance, making several recommendations including setting out its views on the availability of FOS and the Tribunal for SME disputes, and the suggestion that commercial...

Government updates Blocking Order regulations

The Extraterritorial US Legislation (Sanctions against Cuba, Iran and Libya) Protection of Trading Interests)(Amendment) Order 2018 will take effect on 1 February 2019. It updates a 1996 order to reflect updates to the...

FCA updates on diversity

In a speech by Christopher Woolard, FCA has called on firms to increase their efforts to integrate diversity and inclusion principles in their business frameworks.  While things are moving in the right direction, Mr...

FOS consults on plans for 2019/20

The FOS has published a consultation on its plans and budget for 2019/2020. It notes that from April 2019, its jurisdiction will be expanded by the addition of two significant areas of work: complaints made by SME...

FCA bans Angela Burns

FCA has finally issued its final notice banning Angela Burns from acting as a NED and has fined her £20,000. Ms Burns acted as NED for two mutual societies and was chair of their investment committees. She provided...

Tribunal rules on Prodhan

The Upper Tribunal has ruled on an application by Mohammad Prodhan, former CEO of Sonali Bank (UK).  Mr Prodhan contended that FCA was time-barred from taking action against him. He also applied for a direction for his...

Companies House to do sanctions checks

Companies House has announced it now carries on additional checks on certain applicants for registration, to guard against designated persons using economic resources such as companies in an attempt to get round...

FCA plans permanent CFD intervention measures

FCA is consulting on permanent rules to restrict the marketing, distribution and sale of CFDs and CFD-like options to retail consumers.  The proposals are similar to the ESMA temporary measures, but FCA wants also to...

CMA Consults on Annual Plan 2019/2020

The Competition and Markets Authority (CMA) is consulting on its proposed Annual Plan, which sets out its plans and priorities for 2019 to 2020. Subject to the outcome of the Brexit negotiations, the CMA plans to give...

FCA decides to fine former Sonali CEO

FCA has published a decision notice setting out its proposal to find Mohammad Prodhan, the former CEO of Sonali Bank (UK) Ltd £76,400 in relation to the bank’s AML systems and controls. Mr Prodhan was responsible...

Standard Bank DPA comes to an end

SFO announced that the first DPA, agreed with what is now ICBC Standard Bank plc for breach of s7 Bribery Act, has come to an end after the bank successfully complied with its terms. The DPA lasted for 3 years. Its...

FCA makes new rules on RND and PPI complaints

At its latest Board meeting, FCA has made changes to DISP and its guidance, effective from 8 November,  to confirm that firms must not reject relevant regular premium PPI complaints without considering whether recurring...