Harshil PatelPSR has taken action against NatWest, RBS, Ulster Bank and Coutts for failing to comply with the Interchange Fee Regulation. The banks incorrectly treated a number of cards as being ‘commercial’ when they should have...
Category - Enforcement & Litigation
Lucy Hadrill
Rawa HussainFCA bans 5 directors for causing losses to pension customers
The FCA has banned five directors of financial advice firms from working in financial services, after they caused significant losses to pension customers. The bans, and fines of over £1m, follow findings by the Upper...
FOS publishes complaints data from H2 2021
Between 1 July and 31 December 2021, FOS received a total of c.73,200 complaints of which 37% were upheld.
FOS has also published its latest half-yearly data on the number of complaints received about CMCs.
Court finds mortgage loan not “by way of business”
The High Court has handed down its judgment in the case of Arthistory Ltd and Mr and Mrs Campbell. The Campbells own a property and had granted an option to Arthistory (the Claimant) to acquire it. The Claimant sought...
Emma RadmoreFCA to remove credit broker permissions
FCA has published its first supervisory notice against Semantic Business Services Ltd, a secondary credit broker. It plans to remove the firm’s permissions because: the firm has links with a number of other firms...
PSR updates on competition in pre-paid cards sector
The PSR has publishes the non-confidential version of its decision following its investigation into two cartels in the pre-paid cards market. In January it confirmed its fines totalling around £33m on Mastercard...
FCA publishes BSPS compensation scheme proposals
FCA has published its proposals for a compensation scheme to compensate former members of the British Steel Pension Scheme who received unsuitable advice to transfer out. FCA says that almost half the advice it reviewed...
Ombudsman News looks at storm damage
The latest edition of Ombudsman News from FOS covers not only its plan and budget for 2022/23 (which FIN has covered separately) but also guidance for consumers about storm damage complaints. The guidance contains...
CMA issues SME banking directions to HSBC
CMA has issued directions to HSBC under the SME banking undertakings 2002. The directions stem from breaches notified over the past 18 months in respect of 221 loans impacting 204 customers since 2002. They primarily...
FCA fines asset manager and former investment director
FCA has fined GAM International Management Limited £9m, and its former Investment Director and Business Unit Head Timothy Haywood £230,000 following failure to conduct business with due care and attention, and failure...
FOS outlines strategic plans for 2022/23
FOS has published its plans and budget for 2022/23. In the coming year, FOS: expects to receive 177,000 complaints and resolve 220,500 complaints; will continue to ensure it is equipped to respond to complexity and...
Pension adviser refused judicial review of FOS decision
A pensions transfer and opt out adviser, Portal Financial Services LLP, had given advice to several clients introduced by a third party advisory firm which was the AR (Cherish) of another firm whose permissions did not...
FCA updates on operational and cyber resilience following Russian invasion
The FCA has published some pointers that firms should consider regarding operational and cyber resilience following Russia’s invasion of Ukraine. Firms are advised to consider the following: the firm’s ability...
ASA cracks down on misleading crypto ads
ASA has issued an Enforcement Notice to over 50 firms which advertise cryptocurrencies, instructing them to review their ads and to ensure they understand and are complying with the rules so that consumers are treated...
NAO reports on BSPS
The National Audit Office has published its report on its investigation into the British Steel Pension Scheme. When BSPS was restructured in 2017 44,000 of its members had the opportunity to transfer out of the scheme...
Lloyd’s responds to market misconduct
Lloyd’s has issued a notice of censure to Atrium, a managing agent in the Lloyd’s market. The firm admitted three charges of misconduct, and Lloyd’s Enforcement Board levied its largest ever fine of...
FCA responds on LCF Complaints
FCA has set out its response to the Complaints Commissioner’s report on its handling of the failure of LCF in respect of assessing complaints against it. It says it is sorry for the mistakes it made. It has...
CAT determines the ‘domicile date’
CAT has published its Judgment giving further guidance on the ‘domicile date’, which is the date specified in a CPO. The domicile date operates to determine the persons who fall within the class definition...
Jonny WilliamsESMA publishes peer review on cross-border supervision
ESMA has published its peer review on cross-border supervision of investment firms, and. It found many shortcomings, and says that “home” regulators need to make significant improvements to their approach...
High Court rules on application of CCA ‘business purpose’ exemption to multi-borrower loans
In Campbell v Tyrrell & Ors [2022] EWHC 423 (Ch), the high court considered the application of the ‘business purpose’ exemption in s.16B(1) of the Consumer Credit Act 1974 (the “CCA“) to a...
Duncan ScottFormer Redcentric CFO sentenced to five and a half years imprisonment
Following the guilty verdict back in February of the two former finance chiefs at a London-listed IT firm found to be misleading investors after they falsified the company’s accounts, Tim Coleman has now been sentenced...
FCA publishes Consumer investments data review
The FCA has published its third Consumer investments data review. The review provides an overview of FCA’s work to protect consumers from investment harm between April and September 2021. This follows FCA’s...
Emma BondFCA discontinues action against individual for failure to comply with statutory Notice
The FCA has issued a notice of discontinuance in relation to the prosecution of Craig Whyte. Mr Whyte had previously been charged with an offence of failing to comply with the a statutory Notice issued under Section 49...
BBRS publishes Post-Implementation Review
The Business Banking Resolution Service (BBRS) has published the first part of its Post-Implementation Review (PIR). The aim of this review was to assess how well the BBRS has delivered the recommendations contained in...
FCA makes new rules
The FCA’s latest Handbook Notice confirms changes to: apply the rules set out in the Funeral Planning Conduct of Business (FPCOB) sourcebook to funeral plan providers selling their own plans directly to customers...
FCA fines Barclays over collapsed payment firm oversight
FCA has fined Barclays £783,800 for oversight failings in its relationship with Premier FX, a payments firm which is in liquidation. Barclays was Premier’s sole UK banker. FCA found that Barclays failed to make...
Ombudsman News features data, diversity and storm damage
The latest edition of Ombudsman News features items on the latest complaints data and the FOS diversity, inclusion and wellbeing reports featured in other posts, and also notes that FOS often sees complaints from...
Employment tribunal orders reinstatement of dismissed trader
An employment tribunal has determined an application for reinstatement in Bradley Jones v JP Morgan Securities plc in favour of the applicant. Mr Jones was a financial analyst and cash equities trader employed by JPM...
FOS publishes latest quarterly complaints data
The Financial Ombudsman Service (FOS) has published its latest quarterly data on complaints in relation to financial products. This data covers the period October to December 2021, and is available in full as a...
FCA responds to APPG letter before claim
The FCA has responded to a letter before claim under the pre-action protocol for judicial review from the All Party Parliamentary Group on Fair Business Banking (APPG). APPG’s letter before claim refers to the...
OFSI updates penalties table
OFSI has updated its table of penalties imposed for breach of financial sanctions restrictions and requirements to include a fine imposed over a year ago, but just publicised, The payment services provider in question...
Final report: London Capital & Finance
The Complaints Commissioner has published its final report on the FCA’s oversight of London Capital & Finance plc (LCF). The report splits the complaints about FCA’s regulation of LCF into three...
Two former finance chiefs found guilty of misleading investors
Two former finance chiefs at a London-listed IT firm have been found guilty of misleading investors after they falsified the company’s accounts. Timothy Coleman, the former chief financial officer of Redcentric, used...
FCA gets BNPL firms to change contract terms
FCA has secured voluntary agreement from Clearpay, Klarna, Laybuy and Openpay to make changes to terms in their contracts. Although FCA does not yet regulate the contracts, it used its powers under the Consumer Rights...
CMA writes to Barclays and Tesco Bank on Retail Banking Order breaches
The CMA has written letters to Barclays and Tesco Bank regarding their breaches of the Retail Banking Market Investigation Order 2017. Barclays’ breach relates to its failure to update a Service Quality Indicator...
FCA publishes 2021 fin proms data
FCA has published its analysis of its data from 2021 relating to action it took against authorised firms breaching financial promotion rules. Key conclusions included: an increase in amendment and withdrawal of...
CMA writes to Monzo on RBO breach
The CMA has written to Monzo about its breach of the Retail Banking Market Investigation Order 2017. Monzo breached the Order when it failed to disclose its Monthly Maximum Charge in its Fee Information document between...
CMA writes to Tesco Bank acknowledging action taken to end breach
The CMA has written to Tesco Bank acknowledging the steps it has taken to end the breach of the Private Motor Insurance Market Investigation Order 2015 (the Order). Article 3 of the Order requires that any additional...
FOS looks at current initiatives
The latest edition of Ombudsman News reminds firms there is still time to respond to its consultation on its plan and budget, and at its wider work, including the wider implications framework and how it is working on...
FCA proposes guidance for firms seeking to limit their liabilities
The FCA has identified an increase in firms developing proposals, such as Schemes of Arrangements, to deal with significant liabilities to consumers. This is particularly so in relation to redress liabilities. In...
Quincecare Duty – Supreme Court Appeal
The Court of Appeal decision in Stanford International Bank Ltd (in liquidation) v HSBC plc [2021] EWCA Civ 535 comes before the Supreme Court this week as SIB appeal the decision to strike out the loss claim it...
Scott NodderFCA to impose requirements on non-compliant API
FCA has published its first supervisory notice of its intent to require an API authorised to provide money remittance services to cease doing so without prior written approval. It wants Probitas to cease all business...
Prepaid cards market hit by huge fines for cartel conduct
PSR has fined five companies – Mastercard, Allpay, Advanced Payment Solutions, Prepaid Financial Services and Sulion – a total of £33 million after finding them to be in breach of Chapter 1 of the...
FOS responds on action plan
The Treasury Committee has published a response from FOS, received in December, answering various questions the Committee had posed about FOS’ action plan. The letter addresses several issues, including: the...
FCA and PRA consult on FSCS management expenses levy limit
The FCA and PRA are jointly consulting on the management expenses levy limit for the Financial Services Compensation Scheme (FSCS). This limit represents the total management expenses that the FSCS can levy on financial...
FCA takes criminal proceedings against directors of unauthorised firm
FCA has commenced criminal proceedings against brothers who were directors of Collateral (UK) Limited, and who: dishonestly represented to investors that the firm was authorised as a P2P lender, knowing it was not;...
Check out our new and improved regulatory timeline
In conjunction with the FIN. blog, we have launched our new and improved horizon scanning tool over on the Womble Bond Dickinson website. Our timeline highlights key regulatory deadlines, legislation and insights...
ASA upholds complaints about promotion of unregulated cryptoassets
The Advertising Standards Authority (ASA) has upheld two separate complaints relating to the promotion of unregulated cryptoassets. The first related to a Facebook post and website for Arsenal Football Club PLC. ASA...
FCA prosecutes individual for failure to comply with Statutory Notice
In the first prosecution of its kind, the FCA has brought an action against a Mr Craig Whyte for failure to comply with a Statutory Notice issued under section 49 Regulation of Investigatory Powers Act 2000. Mr Whyte...
FCA fines BlueCrest Capital for conflicts of interest failings
The FCA has published a Decision Notice against BlueCrest Capital Management (UK) LLP (BlueCrest), setting out its decision to impose a £40,806,700 fine on the hedge fund. The FCA considers that BlueCrest failed to...
EIOPA reports on IDD sanctions
EIOPA has published its second annual report on administrative sanctions and other measures imposed by national competent authorities during 2020 under the Insurance Distribution Directive (IDD). The authorities...
PRA fines Metro Bank following regulatory reporting failure
The PRA has fined Metro Bank plc a total of £5,376,000 following the Bank’s failure to act with due skill, care and diligence in relation to the regulatory reporting of its capital position, as well as for...
FCA writes dear CEO letter to BSPS advisers
The FCA has published a dear CEO letter addressed to firms who advised British Steel Pension Scheme (BSPS) members between 1 March 2017 and 31 March 2018. The letter identifies the high levels of unsuitable pension...
HMRC reports on MLR non-compliance
HMRC has published its regular report on business that have failed to comply with the MLRs. Among the failings and fines are: a fine on BNY Mellon Corporate Trustee Services Limited for failing to apply for registration...
PRA fines Standard Chartered for governance and transparency failings
PRA has fined Standard Chartered Bank £46.55m for: failings in its regulatory reporting governance and controls: PRA had imposed a temporary additional liquidity expectation on the bank in late 2017. Over a 14 month...
FCA fines for conflicts and gift & entertainment breaches
FCA has fined GAM International Management Limited £9.1m and Timothy Hayward £230,037 for issues relating to conflicts of interest and gifts and hospitality. Both the firm and Mr Haywood agreed all issues and qualified...
Ombudsman News looks at BI “at the premises” complaints
The latest edition of Ombudsman News from FOS looks not only at its plan and consultation (which FIN has covered separately) but also at complaints it has looked at relating to “at the premises” cover in...
FOS consults on strategic plans and budget for 2022/23
The Financial Ombudsman Service (FOS) has published its annual consultation on its proposed plans and budget for the upcoming financial year (2022/23). The consultation includes information relating to: The volume of...
FCA writes to Treasury Committee following Swift Review
The FCA recently published an independent “lessons learned” review (the Swift Review). The FCA has now written a letter to the Treasury Committee, noting that it accepts almost all of the Reviewer’s...
FCA publishes review of supervisory intervention on IRHPs
The FCA has published an independent “lessons learned” review (the Swift Review), which it commissioned John Swift QC to produce, into the supervisory intervention on interest rate hedging products. The...
Court finds no breach of COBS Rules by spread betting firm
The High Court has ruled on an application for, amongst other things, damages for alleged breaches of the COBS 2.1 (Client’s Best Interests) and COBS 11.2.1 (Best Execution). The Claimant had opened an Account...
NatWest fined £264.8m for AML failings
The long awaited sentencing following the conviction of NatWest on three offences of failing to comply with the MLRs resulted in the announcement of a fine on the bank of £264,772,619.95. The bank admitted to breaching...
FCA and PRA publish dear CEO letter to global equity finance businesses
The PRA and FCA have jointly published a Dear CEO letter regarding the supervisory exercise which they undertook following the default of Archegos Capital Management. The default resulted in over $10 billion of reported...
FCA publishes update on Independent Review implementation
The FCA has published a report providing an update on the implementation of recommendations from two Independent Reviews, these being: the Independent Investigation into the Financial Conduct Authority’s...
ECJ delivers ruling on interpretation of PSD2
In Vodafone Kabel Deutschland GmbH v Bundesverband der Verbraucherzentralen und Verbraucherverbände – Verbraucherzentrale Bundesverband e.V., the Oberlandesgericht München (Higher Regional Court – Munich) made a request...
Treasury Committee asks for information on FOS action plan
The Treasury Committee has written to FOS, asking for further information on how it intends to get on top of its current case backlog, and how it proposes to address its funding issues. Mel Stride welcomed the...
ICO fines over pensions cold-calling
ICO has fined EB Associates Group (EBAG) £140,000 for instigating two IARs to make over 100,000 unsolicited direct marketing calls to consumers about occupational or personal pension schemes where the customers had not...
FOS publishes plan for change
FOS has published an action plan to deliver a better service to customers. The plan aims, among other things: to bring more effective and efficient resolution of cases – part of this involves teams which are...
EU fines banks for FX spot cartel
The European Commission has fined UBS, Barclays, RBS, HSBC and Credit Suisse a total of €344m for their participation in a foreign exchange spot cartel. The first 4 banks settled (with UBS receiving full immunity for...
FCA publishes consumer warning on firm
FCA has published a consumer warning on Grosvenor Associates Limited. It says it has removed the firm’s permissions, so it is no longer authorised to carry out any regulated activities and investments with it may...
FCA publishes Frensham Wealth Limited supervisory notice
The FCA has published a supervisory notice addressed to Frensham Wealth Limited. The notice removes all regulatory activities from the firm’s Part 4A permissions with immediate effect. This follows the FCA’s...
FCA confirms changes to decision-making process
FCA has confirmed the changes to its decision-making process that will allow more decisions to be taken by senior managers rather than by the RDC. Senior managers will be able to make decisions under “executive...
FOS sees rise in “authorised” scam complaints
FOS has seen a 30% increase in complaints about “authorised” scams in the second quarter of the financial year compared to the same period last year. half of the nearly 4,500 complaints were about...
ESMA reports on MAR sanctions
ESMA has published a report on the sanctions imposed by various member states under MAR during 2020. Over the year, €17.5m in fines were imposed for over 500 breaches. The number of administrative actions was...
CMA letter to Danske Bank on breach of SME Banking Undertakings
The CMA has written to Danske Bank regarding the Bank’s second breach of the SME Banking Undertakings 2002. Relationship Managers at Danske Bank required up to 205 SMEs to open a business current account (BCA) to...
FOS publishes Ombudsman News
The latest edition of Ombudsman News focuses on the recently published annual report and the feedback statement on outcomes reporting already covered in FIN.
FCA refuses SMF29 application
FCA has published its final notice refusing the application of an individual to perform the SMF 29 function for Servicesport Finance Limited. The individual in question was a solicitor who had failed to disclose SRA...
Treasury and FCA publish LCF compensation rules
Treasury and FCA have published the Scheme rules and consequent FCA rules on compensation arrangements for bondholders with outstanding investment in LCF which has not already been compensated by the FSCS. The scheme...
PSR publishes card-acquiring services report
The PSR has published its final market review into the supply of card-acquiring services. The report concludes that the supply of card-acquiring services does not work well for SME merchants and large merchants with...
Cynthia MaFCA publishes cum/ex financial crime warning notice
FCA has published an anonymised warning notice it has issued to a firm in relation to financial crime failings in some of its cum/ex trading. The notice relates to activities during 2015, and FCA found that, for...
Complaints Commissioner publishes final report
The Financial Regulators Complaints Commissioner has published its final report on FCA00865. The relevant complaint against the FCA (and FOS) constituted five separate elements, including the FCA’s delay in...
FOS publishes feedback on outcome reporting consultation
FOS has published the feedback to its consultation which set out the proposed temporary amendments to the way the FOS reports business-specific complaints data. As a result of the feedback the FOS has confirmed it will...
PRA and FCA “no comment” on Staley investigation
PRA and FCA have published a joint statement in relation to the Jes Staley investigation. The regulators do not comment on ongoing investigations and so will do no more than confirm the firm’s announcement...
CMA writes to NewDay on PPI Order breaches
The CMA has written to NewDay Ltd about 5 breaches of the PPI Market Investigation Order 2011. The breaches, which have affected c.27,000 customers, relate to: NewDay’s failure to issue Annual Review statements to...
ESMA makes statement on investment recommendations on social media
ESMA has made a statement on investment recommendations on social media. Following a rise in these types of promotion, and concerns that retail investors do not understand the risks involved in following these...
More of FS Act comes into force
The third Commencement Order under the Financial Services Act 2021 brings into force the provisions on dealing with maximum sentences for insider dealing and financial services offences (section 31 of the Act). This...
FCA fines adviser for pension transfer advice failings
The FCA has published a final notice banning Omar Hussein, former director at pension switching firm Consumer Wealth Ltd, from working in financial services. Mr Hussein has also been fined £116,000 for providing...
FOS blogs on distress and inconvenience payments
FOS has published a blog of its thoughts on how it assesses awards for distress and inconvenience. Its guidance has not fundamentally changed, but has been refreshed after firms said more clarity would help them. FOS...
CMA to take no action against Lloyds for Retail Banking Order breach
CMA has confirmed it will not be taking any further action against Lloyds Bank following the bank’s failure to display required information in relation to SME loans on one page of its website, which potentially...
FOS consults on reporting complaints outcomes
FOS is consulting on a range of initiatives to help reduce customer waiting times, including a temporary proposed change to how firm-specific complaints data is published. FOS is proposing that, for a limited period...
Treasury answers questions on BNPL and pension transfer advice
Published answer to written questions include: in answer to a question on when the BNPL legislation will be put forward, Lord Agnew said there would be a consultation document “soon”; in answer to a question...
CMA writes to Santander following breach of Retail Banking Order
The CMA has written a letter to Santander following the bank’s failure to publish Northern Ireland Service Quality Indicators for Overall Service Quality for Business Current Accounts, as required by the Retail...
Court finds FSCS entitled to reject claim
The High Court has ruled on an application for judicial review of a decision by FSCS to refuse to compensate investors after an investment firm failed. The investors had bought wind bonds, initially before the firm in...
ECJ delivers judgment on EBA Guidelines
The ECJ has ruled that the EBA acted within its powers when it adopted guidelines on product governance and oversight arrangements for retail banking products in 2015. The guidelines set out requirements for...
Government and FCA respond on LCF Report
The Treasury Committee has published responses from the Treasury and the FCA to its report on the FCA’s regulation of London Capital & Finance plc (LCF). Highlights from the government’s response...
CMA writes to LBG on PPI Order breach
The CMA has written to Lloyds Banking Group about its non-compliance with the Payment Protection Insurance (PPI) Market Investigation Order 2011. LBG breached the PPI Order by failing to include the monthly PPI benefit...
FCA consults on new cancellation and variation power
The Financial Services Act 2021 has given the FCA an additional power, allowing it to more quickly and efficiently: vary or cancel the statutory permissions to conduct FCA-regulated activities of many FCA-authorised...
FCA confirms pensions transfer redress guidance review
FCA has confirmed its plans to start a periodic review of its FG17/9 on how firms should calculate redress for unsuitable DB pension transfer advice. It will start the review by the end of 2021, in line with its...
FCA publishes supervisory notice against Dolfin Financial
FCA has published a supervisory notice sent to Dolfin Financial (UK) Limited in March. The requirements in the notice have now largely been cancelled as Dolfin entered special administration. FCA has also redacted parts...
FCA publishes requirements on SIPP operator
FCA has published the second supervisory notice it made in relation to DAC Pensions Limited, a small SIPP operator. The firm had accepted significant business from two EU-based introducers, operating in the UK under...
CAT grants Mastercard collective proceedings order
The Competition Appeal Tribunal has granted the Merricks application for a collective proceedings order in relation to claims for millions of UK consumers against Mastercard following the European Commission’s...
FCA writes to investment-based crowdfunders on supervision
FCA has published its Dear CEO letter on its portfolio strategy for investment-based crowdfunders. It notes that if any firm that has received the letter is not currently active in the market it should apply to remove...
FCA fines adviser for pension transfer advice failings
The FCA has published a Decision Notice against Geoffrey Edward Armin of Retirement and Pension Planning Services Limited (in liquidation). The FCA has decided to fine Mr Armin £1,284,523 and ban him from performing any...
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