FIN.

Category - Enforcement & Litigation

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...

FCA reviews whistleblowing arrangements

FCA has published its review of how firms implement FCA whistleblowing rules. Its review covered a range of wholesale and retail banks. It found several areas of both good and poor practice to comment on, and now urges...

FCA publishes new Market Watch

The latest edition of Market Watch focuses on “flying prices” and “printing trades” – where firms communicate to clients that they have bids or offers that are not actually supported by an...

FCA writes to CEOs on SIPP due diligence

FCA has written a “Dear CEO” letter on the duties of SIPP operators in respect of due diligence. The letter refers to the judgement in the Berkeley Burke case and several other pending civil claims, and asks...

Court rules on inspection of SARs

The High Court has delivered a judgment in David Lonsdale v National Westminster Bank PLC.  The bank had made several SARs in relation to Mr Lonsdale and companies he was involved with and, as a result, had frozen all...

PIFMA concerned about FOS limit increase

PIFMA is concerned that the proposed extension of the upper limits of compensation FOS can order firms to pay out, from £150, 000 to £350,000 could put some small firms out of the market as they will be unable to get...

Treasury updates Brexit SIs

Treasury has published some new draft statutory instruments to be made under the EU (Withdrawal) Act, or announced plans to make them, and also updated existing drafts. New or updated documents include Regulations on :...

Skilled person not for judicial review

The Court of Appeal has handed down its judgement in R (Holmcroft Properties Ltd) v KPMG LLP. The case had raised the issue of whether KPMG, as a “skilled person” appointed to carry out an independent review...

FCA speaks on intervention testing

Christopher Woolard has spoken on how FCA recognises the value of testing interventions so that regulation works most effectively.  He highlighted how what may seem well intentioned and well designed interventions may...

FCA consults on applying SM&CR to CMCs

The FCA has opened a consultation that sets out how it will apply the Senior Managers and Certification Regime (SM&CR) to Claims Management Companies (CMCs), following taking over regulation of them from 1 April...

FCA bans former Deutsche trader

FCA has confirmed its ban on Christian Bittar, formerly interest rate derivative trader at Deutsche Bank. It found Mr Bittar requested  EURIBOR submitters to make high or low submissions, both internally and externally...

ASA rules on RAPR prominence in TV ad

The ASA has published a ruling which upheld a complaint that the representative APR (RAPR) in an advertisement for Sunny Loans was insufficiently prominent.  The advert’s ‘incentives’ that triggered...

PRA Regulatory Update – August 2018

The August edition of the PRA’s Regulatory Digest includes: news about a New Insurer Start-up Unit.  This is a joint initiative with the FCA.  The dedicated page on the Bank of England’s website includes a...

FCA bans individual

FCA has confirmed its ban on Arif Hussein following a decision of the Upper Tribunal published in June.  Mr Hussein was a derivatives trader with UBS, who engaged in internal chats with a UBS trader-submitter knowing...

ESMA renews binary option ban

ESMA has confirmed the ban on binary options will remain in place for a further three months. The current ban, which prohibits marketing, distribution or sale of binary options to retail clients, expires on 2 October...

FOS focuses on fraud and scams

FOS’ latest Ombudsman News focuses on frauds and scams. It comments on the loopholes in new technologies that fraudsters use, and the challenges of addressing a complaint where both customer and bank are adamant...

FCA complaints handling review findings

The FCA has published its findings of the review of how Non-deposit Taking Mortgage Lenders (NDTMLs) and Mortgage Third-Party Administrators (MTPAs) handle complaints. In particular the review looked at how NDTMLs and...

Tribunal backs decision to ban

The Upper Tribunal has upheld FCA’s decision to ban Alistair Burns, Director and CF1 of TailorMade Independent Limited, firm that advised on pension transfers and opt-outs, from any significant influence or senior...

FCA bans individuals for misleading consumers

FCA has banned the 4 former directors of a now-dissolved credit broker, Secure My Money Limited. It found the firm misled customers into thinking they had been approved for short term loans and as a result took fees of...

FCA responds on complaints

The Complaints Commissioner has published its annual report on complaints against FCA and FCA has responded. FCA notes that the Commissioner upheld FCA’s decision in 90% of the cases reviewed and generally feels...

FCA publishes annual enforcement report

FCA has published its annual report on enforcement actions. In 2017/18 it issued 269 final notices (of which only 21 were against individuals), secured 303 regulatory/civil outcomes (mainly involving refusal...

Treasury consults on pension cold calling ban

Treasury is consulting on a proposed ban on cold calling in relation to pensions. The consultation is a technical consultation on the wording of the legislation necessary to implement the ban, as the policy decision has...

FCA publishes Annual Report

FCA has published its Annual Report and Accounts for 2017/18. The report includes details of: FCA’s work preparing for Brexit; key regulatory changes such as MiFID 2 and PSD 2; work on SMCR extension; thematic...

FCA thinks about price discrimination

FCA has published a paper looking at how it should approach fairness in price discrimination in financial services. It notes that price discrimination is not in itself unfair as practices such as student discounts are...

FCA makes new rules

FCA has made new rules. The changes affect several parts of the Handbook, including: miscellaneous minor and clarificatory changes, including a change to the application chapter of SYSC to clarify that certain rules in...

FCA fines Canara Bank for AML failings

FCA has fined Canara Bank £896,100 for failings in its AML systems, and has restricted it from accepting deposits from new customers for 147 days. FCA found that, for a period of over 3 years, the banks failed to...

FCA publishes quarterly consultation

FCA’s latest quarterly consultation proposes the usual minor miscellaneous changes to its Handbook, including; changes to the appointed representatives appointment firm: the changes are spurred on by IDD changes...

Carillion inquiry criticises regulator

Carillion’s rise and spectacular fall was a story of “recklessness, hubris and greed”. Last week, the Work and Pensions Committee and the Business, Energy and Industrial Strategy Committee published the final...

SRA fines law firm MLRO for breach of MLRs

The Solicitors’ Regulation Authority has fined Anthony Gale, partner at Maurice Smiths solicitors who was also its compliance officer and MLRO, £10,000 for various conduct failings in relation to a number of...

FCA and PRA publish business plans

The FCA and the PRA have both published their business plans for 2018/2019. The FCA’s business plan shines a spotlight on consumer protection, including in relation to pension products and high-cost credit, as an...

FCA clarifies cryptocurrency regulatory status

FCA has clarified its views on the regulation of cryptocurrency derivatives. It has previously explained that cryptocurrencies are, of themselves, not regulated although they may be part of other regulated products or...

FCA updates on Capital Alternatives

FCA has reported that the defendants in its case against Capital Alternatives have been ordered to pay compensation and that it has obtained new undertakings from or injunctions against some of the defendants to protect...

FCA cross over insurance renewals

FCA has warned firms it is prepared to take action against those who have failed to implement rules that have now been in force for a year designed to clearly show customers who are due to renew their general insurance...

FCA outlines approach to authorisation

Sarah Rapson has spoken of FCA’s approach to authorising firms. She focused on FCA’s use of authorisation as a way to prevent harm, and its focus on using it proportionately. As a result, the information it...

FCA looks back on past 5 years

John Griffith-Jones has reflected on FCA’s first 5 years of operation, since it took over from the FSA.  He outlined: highlights – specifying FCA’s engagement with pension exit charges, general...

FCA focuses on closet trackers

FCA has updated on its work reviewing potential closet tracker funds and closet constrained funds – funds that look like and charge fees in the same way as active funds do, but are managed like passive funds...

Treasury Committee asks FOS for answers

The Treasury Committee has written to Caroline Wayman, Chief Executive of FOS, following an episode of “Dispatches” that suggested FOS was staffing cases with individuals with inadequate training or...

Treasury Committee welcomes Co-op review

Nicky Morgan has welcomed the “long overdue” review into the Co-op Bank. She had written to Andrew Bailey in February to ask why the review, announced by George Osborne in November 2013, had not yet started...

FCA updates on consumer credit landscape

Andrew Bailey has spoken to the FLA on the current consumer credit landscape. He noted the constant fall in the real cost of debt which has supported the rise in household borrowing, and the growth in consumer credit...

FCA writes to CEOs on prudential returns

FCA has published a “Dear CEO” letter setting out its comments on the quality of prudential returns. It is concerned that a significant number of firms are submitting returns that contain inaccurate or...

Tribunal rules on third party rights

The Tribunal has handed down its decision in One Insurance Ltd’s case against FCA. The company had complained that FCA had identified it in its notices to One Call Insurance Services and John Radford, and that the...

Treasury Committee publishes RBS report

The Treasury Committee has published the final, unredacted skilled persons’ report into the RBS treatment of SME customers in its Global Restructuring Group. It had given FCA until 16 February to publish this, but...

FCA updates on service standards

FCA’s new-look update on its service standards shows that it met most of its targets for various regulatory tasks, including authorisations, passport notifications, dealing with queries and customer satisfaction...

FCA AND PRA APPOINT NEW CHAIR OF THE FSCS

The FCA and PRA have today announced the appointed of Marshall Bailey as the new Chair of the Financial Services Compensation Scheme Limited (FSCS) with effect from 1 April 2018. Marshall Bailey succeeds Lawrence...

Further SFO charges in Barclays case

The Serious Fraud Office (SFO) has charged Barclays Bank Plc (Barclays) with unlawful financial assistance contrary to s151(1) and (3) of the Companies Act 1985. This relates to the financial assistance Barclays gave to...

Illegal money lender imprisoned

An illegal money lender has been sentenced to imprisonment of 3.5 years for offences under FSMA and the CCA. In addition to bringing the successful prosecution against Dharam Gopee, FCA also successfully obtained a...