FIN.

Category - Enforcement & Litigation

BI consequentials hearing set for 2 October

FCA says the Court has confirmed the consequentials hearing following judgment in the BI insurance test case will take place on 2 October, probably in the morning. FCA will live stream the hearing, at which the parties...

FCA and PSR publish annual reports

FCA has published its annual report and accounts for 2019/20. The report notes FCa’s key achievements for the year.  Apart from the obvious measures to address the problems caused by Covid-19, it highlights:...

FCA censures individual for market abuse

FCA has publicly censured the former CEO of Worldspreads and banned him from any roles linked to regulated activity, as as result of market abuse.  It originally fined Conor Foley around £650,000 but imposed a public...

FCA updates on complaints data return dates

FCA has notified firms it will allow them to apply a 2 month deadline to the complaints data summary due on 31 August, so that the data for complaints covering reporting periods ending between 1 January and 30 June 2020...

FOS focuses on Covid-19 complaints

The latest edition of Ombudsman News focuses on complaints arising from Covid-19 and its impact on consumers and SMEs. FOS notes that some of the issues are new, but others are common issues made worse by the pandemic...

London and Capital report delayed

Dame Elizabeth Gloster has explained to FCA that she will need until late November to complete and report on her investigation into FCA’s regulation of London and Capital Finance. FCA is happy to work with her...

HMRC publishes list of MLR miscreants

HMRC has published its list of businesses who, over the past tax year, have not complied with their obligations under the MLRs. Over the period, there were 15 “major” penalties, including a fine of nearly...

FMLC responds on departure from EU case law

FMLC has offered its views to the Ministry of Justice on whether courts and tribunals other than the Supreme Court and High Court of Judiciary should have the ability to depart from retained EU lase law after the end of...

CMA revokes HSBC directions

The CMA has on 6 August revoked the Directions given to HSBC under the Retail Banking Market Investigation, as the Implementation Trustee confirmed HSBC’s compliance with the Order on App-to-App Redirection...

FCA updates on BI test case

The test case FCA brought to get court clarity on the application of certain clauses in a number of business interruption insurance policies is now complete. FCA has now published the draft transcripts for days 1-7 of...

FCA consults on consumer refund guidance

FCA has published a guidance consultation on how firms should be helping customers with rights and routes to refunds.  The guidance builds on FCA’s previous statements on consumers’ rights when their trips...

FCA publishes Day 2 BI test case transcript

FCA has published the draft transcript from Day 2 of the Business Interruption Test Case hearing.  Counsel developed the arguments from the details discussed on the first day, with reference to specific policies, and to...

BoE publishes enforcement update

BoE has published the 2019/20 report of its Enforcement Decision Making Committee. The committee was set up in 2018 to decide contested enforcement cases and covers all regulatory areas where BoE has enforcement powers...

Day 1 BI test case transcript published

FCA has published the draft transcript of Day 1 of the business interruption insurance test case.  Much of the first day focused on how the pandemic developed, the actions of UK government and the effects on business...

FCA updates BI papers ahead of trial

FCA has updated its list of documents relating to the business interruption insurance test case in preparation for the trial starting on 20 July. The documents now published are: the agreed list of issues and common...

FCA updates on BI test case

FCA has published its and the Intervenors’ skeleton arguments for the trial, which will commence on 20 July.  Over the weekend, it published: its skeleton argument: this runs to over 300 pages and explains, among...

FCA serves BI insurance Reply

FCA has published its Reply and defence to Counterclaims to the Defences of the insurers in its Business Interruption Insurance test case, as well as its amended Particulars of Claim, the judgment from the first Case...

Commission confirms MLD4 enforcement actions

The European Commission has confirmed further actions against Member States for failure correctly to transpose MLD4. It has sent letters of formal notice to Luxembourg, Slovakia and Slovenia, reasoned opinions to...

Court of Appeal upholds Cynergy judgement

The Court of Appeal has upheld the judgment that a borrower was justified in its refusal to make payments under a loan where the ultimate beneficial owner of the lender was an OFAC SDN. Cynergy Bank (a UK bank) had...

FCA imposes requirements on Wirecard

FCA has imposed a number of requirements on Wirecard, an authorised EMI which is also subject to the PSRs. As a result of ongoing investigations and actions in Germany involving Wirecard’s parent company, FCA...

FCA publishes defences in BI test case

FCA’s latest update on its business interruption insurance test case: published the sealed Court Order from the Case Management Conference on 16 June; published the Defences of the defendants to the test case...

FCA fines Commerzbank for AML failings

FCA has fined Commerzbank AG London Branch nearly £38m for AML systems and controls failings spanning a 5 year period to September 2017.  The bank benefited from a 30% discount for early settlement. Many of the...

FCA updates market abuse pages

FCA has updated the guidance on its website on reporting suspected market abuse. The guidance includes FCA’s expectations in respect of how firms should make market observations in situations where they will not...

FCA updates on BI insurance test case

FCA has published a new set of documents relating to the test case it is bringing to get clarity on the coverage of business interruption insurance during the Covid-19 crisis. It has on 10 June (today) announced that it...

FCA publishes Covid-19 guidance for SMEs

FCA has added to its suite of guidance on Covid-19 issues with a pages setting out help available to SMEs. The guidance explains what BBLS and CBILS do, and explains the guidance FCA has given to banks and insurers on...

FOS publishes Ombudsman News

The latest edition of Ombudsman News covers: annual complaints data figures (which FIN already reported) views of FOS on complaints trends FOS’ future strategy how FOS has dealt with its first year of CMC...

FCA publishes quarterly CP

FCA is returning to some regular business and has published a short quarterly consultation, proposing changes to: clarify FSCS’s power to declare in default firms and successors subject to the proposed new...

FCA sets out new DB measures

FCA has published a package of measures to address weaknesses across the defined benefit transfer market. The key changes will: ban contingent charging in almost all circumstances. This will remove the conflict that an...

EVENT: Retail Banking Mixer Webinar

Our next r=Retail Banking Mixer will be held by webinar on 18th June at 10am.  We are delighted to be joined by Rosemary Ford and Amber Andrade from Deloitte this time. The webinar continues the focus on COVID-19.  Our...

FOS publishes 2019/20 data

FOS has published details of the complaints it received and dealt with in 2019/2020.  It received around 270,000 complaints and dealt with nearly 300,000, with the Ombudsman making nearly 30,000 decisions.  As ever, the...

FCA updates on LCF report delay

Dame Elizabeth Gloster wrote to FCA on 15 May to note that she would be unable to complete her investigation into FCA’s regulation of London Capital & Finance by 10th July as required. The reason for this is...

FCA takes passports from Cypriot firms

FCA has used its power to remove passporting rights from overseas firms for the first time.  It has removed the passports of four Cypriot firms that appear to have used unauthorised celebrity endorsements as part of...

Full details on BI case progress

We have now written a detailed article on the progress in FCA’s Business Interruption insurance test case, including summaries of FCA’s draft guidance, and its selection of polices, wordings and assumed...

FCA updates on BI test case

FCA has updated on its progress towards its test court case on business interruption insurance policies.  It has now reviewed around 500 policies from 40 insurers, and has identified 17 policy wordings that capture most...

CMA gets £47m refunds on overdraft charges

CMA has announced that over the past 2 years it has secured more than £47m of refunds for customers in respect of overdrafts where banks failed properly to warn them about unarranged overdraft charges. It has now taken...

Market Watch Covid special

FCA’s latest edition of Market Watch looks at market conduct and discipline in the context of coronavirus. It stresses particularly the importance of complying with the standards of MAR. Given the likely need for...

Regulator Covid-19 update 22 May

After a relatively quiet week, on 22 May: FCA announced further support for customers struggling to pay mortgages due to Covid-19. It is consulting on what options firms will need to provide to customers reaching the...

FSCS announces 2020/21 levy

FSCS has announced its levy for 2020/2021 at £649m. This is £14m more than forecast in the plan and budget, mainly to reflect estimated compensation costs for LCF opf £44m which will be borne by the Life Distribution...

CMA updates on anti-competitive FS practices

The CMA has updated on progress in its investigations on anti-competitive arrangements in the financial services sector. The initial investigation, which started with information gathering in November 2018, and have...

FCA updates on Covid-19 and complaints

FCA has updated its webpage on  how firms should be handling consumers’ complaints during Covid-19. The page explains that FCA has asked firms to prioritise making payments where consumers have accepted offers or...

Regulator Covid-19 update 7 May

On 7 May: PRA announced details of its plans to support firms and enable them and the PRA to focus on the highest priority work: The Climate Biennial Exploratory Scenario is postponed until at least mid-2021; full...

FCA updates on CBILS and BBLS expectations

On 4 May: FCA updated its statement about the CBILS and BBLS confirming that its position that lenders who comply with CBILS do not also have to comply with  the creditworthiness rules in CONC 5.2A.4-34 where the...

Regulator Covid-19 update 1 May

On 1 May, FCA: announced proposals for a Court declaration on business interruption claims proposed guidance for insurers on assessing whether products still offer value and appropriate action to take where they do not...

FCA publishes skilled person data

FCA has publicised the number of skilled persons reports commissioned in January to March 2020. It commissioned 24 in total, of which 9 related to retail banking and 6 to retail lending.  6 of the reports were on...

FCA publishes complaints figures for H2 2019

The FCA has today published the complaints figures for regulated firms for the second half of 2019. The data showed an increase in complaints from 4.29m in the first half of 2019 to 6.02m in the second half of 2019. In...

FOS updates on Covid-19 activities

The latest edition of Ombudsman News focuses on: how it is working to help complainants during the Covid-19 crisis, including on how it has changed its helpline hours – for which it apologises but asks that it...

Regulator Covid-19 update 3 April

On 3 April: PRA and FCA updated dual-regulated firms on how their should deal with furloughing and compliance with the SMCR; EBA published guidelines on the criteria for public and private moratoria applied before 30...

Regulators publish 2020/2021 MELL

PRA has published a feedback statement and final rules on the FSCS Management Expenses Levy Limit (MELL) for 2020/2021. In CP 1/20, the PRA and FCA consulted on a proposed MELL of £83.2 million for 2020/21, which...

FCA updates mortgage firm Covid-19 guidance

FCA had provided additional guidance to mortgage firms on payment holidays relating to Covid-19. We reported in this post on the original guidance. FCA has previously required firms to offer payment holidays if they...

FSCS comments on LCF judicial review

As a judicial review action starts in respect of eligibility of London Capital & Finance investors for FSCS payment, FSCS commented that this is a large case, and that it had carried out extensive factual...

FOS looks at insurance coverage

FOS’s latest Ombudsman News looks at: coronavirus: so far, FOS has not seen many complaints on the impact of the virus, but expects it will see more complaints particularly in relation to travel insurance, medical...

Legal Privilege in Investigations

In Sports Direct International plc v Financial Reporting Council [2020] EWCA Civ 177, the Court of Appeal (CoA) has allowed an appeal, overturning a lower court’s decision that certain emails had to be disclosed...

FCA bans motor finance ads

FCA has banned a range of adverts for motor finance issued by Rix Motor Company Limited.  The ads, variously: did not include representative examples of the costs of credit, or included them in a way that made them...

Court dismisses UWO appeal

The Court of Appeal has dismissed an appeal against the first UWO imposed under the powers the CFA gave to the NCA. The UWO had been imposed in relation to the Azeri wife of an Azeri banker. A property had been...

SFO publishes Airbus DPA

On Friday, Dame Victoria Sharp, President of the Queen’s Bench Division, approved a Deferred Prosecution Agreement between the Serious Fraud Office and Airbus SE. Under the terms of the DPA, Airbus SE agreed to...

TPR fines FCA Pension Plan

The Pensions Regulator has fined the FCA Pension Plan £2,000 for a non-compliant chair’s statement, the maximum penalty which it can levy for this type of breach. The chair’s statement requires trustees of...

Regulators consult on FSCS levy

PRA and FCA are consulting on the FSCS Management Expenses Levy Limit for 2020/2021. The proposed limit is £78.2m management expenses budget (a nearly 5% increase on the current year) and a £5m contingency reserve...