FIN.

Category - Enforcement & Litigation

FCA publishes Q1 fin proms data

The Financial Promotions data from Q1 2023 shows that 2235 promotions were amended or withdrawn as a result of FCA intervention. Nearly half of these were identified by FCA’s own proactive monitoring and almost...

BoE consults on approach to enforcement

BoE has published a consultation paper on its approach to enforcement. In particular, it proposes making a number of amendments to existing documents, creating a consolidated set of statements of policy entitled...

FCA announces Woodford redress plans

FCA has announced that Link Fund Solutions has agreed a redress payment to investors in the LF Woodford Equity Income Fund of up to approximately £235m. The Link Administration Group will make a material contribution to...

FOS updates on wider implications framework

FOS has updated its website on how it works with other organisations to assess issues that can have a wider impact across the financial services industry.  The members are FOS, FCA, FSCS, The Pensions Regulator and MaPS...

Court considers time limits for PPI referrals

In the case of the Official Receiver and Shop Direct Finance Company Limited the Court of Appeal considered the time limit for referring complaints to FOS in respect of missold PPI, in particular where a person to whom...

FCA places restrictions on senior manager

FCA has imposed several conditions on Lisa Campbell as senior manager of Campbell & Associates Independent Financial Advice Limited. Mrs Campbell had failed to comply with restrictions FCA imposed on the firm in...

FOS publishes H2 2022 complaints data

FOS has published data on complaints received between July and December 2022.  It saw a slight increase in complaints over the first half of the year, and received nearly 80,000 new complaints. It upheld 34% of...

BBRS SME Liaison Panel closes

Antony Townsend has resigned as Chair of the BBRS SME Liaison Panel, saying it has been very difficult for him to make progress and he has been disappointed at some of the BBRS responses to the Panel’s concerns...

FOS updates award limits

FCA has confirmed new limits for FOS awards, effective from 1 April.  These are: £415,000 for complaints referred to FOS on or after 1 April 2023 about acts or omissions by firms on or after 1 April 2019; £190,000 for...

OFSI updates penalties guidance

OFSI has updated its guidance on assessing sanctions breaches to include how it assesses penalties where there has been an incorrect assessment of ownership and control of an entity. The additions to the guidance...

FCA calls for input on SME access to FOS

The FCA has launched a call for input to ascertain whether the thresholds for SMEs to be able to refer complaints to the FOS remain appropriate. The FCA’s policy objective is to provide access to the Ombudsman...

FCA takes further action on crypto ATMs

FCA has undertaken an exercise with the Metropolitan Police which has resulted in the discovery of several illegally operating crypto ATMs in East London. FCA is now working with the National Economic Crime Centre to...

SME liaison panel gives BBRS views

Antony Townsend, Chair of the SME liaison panel, has responded to the BBRS Post Implementation Review. The panel is pleased the report recognised the issues the scheme faced. However, the panel is concerned that the...

FCA publishes anonymous warning notices

FCA has published a “warning notice statement” which discloses that it gave two individuals warning notices in September 2022 of its intention to fine them in respect of conduct between 1 October 2015 and 31...

Regulators update Regulatory Initiatives Grid

The Financial Services Regulatory Initiatives Forum has published the sixth edition of the Regulatory Initiatives Grid. The edition was due last November, but has been held back to allow the regulators to consider how...

Court requires FOS to review decision

The High Court has taken the relatively rare step of ordering FOS to review a decision. The complainant, Mr Moniak, had been a customer of Barclays. Following an inheritance in 2010, a total of £500,000 was paid into...

FCA updates on Link action

FCA is in discussions with the Link Group and Link Fund Solutions over whether its proposed enforcement action against LFS can be resolved by agreement – specifically, that consumers affected by the suspension of...

Latest FOS data shows rise in complaints

FOS has published its complaints data from Q3, 2022/23, which shows a rise of 6,000 in new complaints, with the most significant rise relating to running account credit but current accounts are still the most complained...

PSR consults on reporting of APP scams

PSR has issued a consultation on guidance to help PSPs to provide the right data when reporting APP scams to the regulator.  The first collection is coming soon, with firms’ submissions due in May, with the first...

HSBC breaches retail banking order

The Competition and Markets Authority (“CMA“) has written to HSBK UK Bank Plc concerning its breaches of Part 2 of the Retail Banking Market Investigation Order 2017 (the “Order“). Part 2 of the...

FCA places restrictions on 2 advisory firms

FCA has imposed restrictions on Nexus Independent Financial Advisers Limited and Nexus Investment Managers  Limited that prevent the firms from carrying out any regulated activities and restrict access to their assets. ...

FSM Bill Grand Committee stage starts

The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January.  There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February.  195...

FCA warns consumers on pre-paid probate plans

FCA has issued a consumer warning on pre-paid probate plans. It has seen increased marketing of these plans, which are not regulated products. Many of them are marketed by pre-paid funeral plan firms that FCA did not...

FCA updates on how to complain

FCA has updated its information page on how to complain about the regulators.  The new information notes that complainants need not wait for one complaint to be concluded before starting another but stresses that the...

Complaints Commissioner publishes protocols

The Complaints Commissioner has published the protocols for its relationship with the BoE and FCA. The protocols set out the contact areas within the institutions, the procedure on first receipt of a complaint, and...

FCA follows restrictions on high-cost lender

FCA has published a First Supervisory Notice in respect of Micro-E C.I.C, trading as Kariba.  The firm, a high costs lender, appears to have misused money from loans and does not seem to have sufficient assets to cover...

Lords publishes FSMB amendments for Committee

The House of Lords has published a set of amendments to the FSMB for discussion in the Grand Committee, which is now scheduled to sit on 25 and 30 January and 1 February. The amendments include several amendments that...

FSMB completes second reading in Lords

The FSMB had its second reading in the Lords on 10 January.  Baroness Penn, leading for the Government, summarised the importance of the Bill and its overarching aims, which she described as: implementing the outcomes...

FCA imposes restrictions on investment firm

FCA has published a first supervisory notice to Pello Capital Limited imposing various requirements on it with immediate effect (from the date of its publication on 15 November), as a result of concerns about the...

FOS consults on plans and budget

FOS is consulting on its plan and budget for 2023/24. As part of the consultation, it asks: what volumes and trends it should be expecting in the areas of banking and credit, insurance, investments and pensions and...

FCA fines adviser for unsuitable BSPS advice

FCA has fined Pembrokeshire Mortgage Centre Limited £2,354,331 for giving unsuitable advice to consumers to transfer out of the BSPS and other DB pension schemes. FCA found the firm, which is in liquidation, had advised...

FSM Bill report stage on 7 December

The FSM Bill is to have its report stage and third reading in Parliament on 7 December, after receiving the Bill with amendments from the Public Bills Committee. It is possible for Parliament to make amendments at...

PSR fines for interchange fee breach

The PSR has fined Barclays £8.4m for failing to provide retailers with full information about the costs of its card services. The Interchange Fee Regulation requires banks to provide retailers with transaction...

FCA fines JBI for breaches of Principle

FCA has fined Julius Baer International £18,022,500 for breaches of Principles 1, 3 and 11 at various times between 2007 and 2014. It has also decided to ban 3 individuals – all of whom have taken their case to...

BBRS report highlights complaints themes

BBRS has published its Case Insights report which highlights themes and issues arising from customer complaint data to end-July. The BBRS service was launched in February 2021, and by the end of July 2022, it had...

FCA bans individual

The FCA has banned Carlo Palombo from performing any regulated activity. Mr Palombo was convicted of conspiracy to defraud in respect of fixing EURIBOR whilst an employee of Barclays and was sentenced to 4 years’...

FOS feeds back on future funding

FOS has published feedback following its discussion paper on its future funding. Following comments, it will not take forward some of the options on which it sought views, such as charging professional representatives...

FCA reacts to FTX failure

FCA has noted that UK customers of FTX may be alarmed following its provisional liquidation in the Bahamas and filing for bankruptcy in the US. It had previously warned customers that FTX is not regulated in the UK and...

FCA bans director

FCA has banned Ashkan Zahedian, former sole director of an authorised consumer credit firm, following his conviction for serious, violent offences that took place while he was an approved person. FCA said the offences...

CMA writes to Barclays on PPI breaches

The CMA has written a public letter to Barclays because the bank failed to send reminders to up to 1,306 customers about their payment protection insurance (PPI) policies. This meant a breach of Article 4 of the Payment...

Highlights of FSMB debates from 25 October

The 3rd and 4th sittings of the Public Bill Committee debate on the FSM Bill took place on 25 October.  After the evidence sessions from witnesses on 19 October, the line-by-line scrutiny of the Bill has now started...

Further FSMB revisions released

Parliament has published the latest raft of proposed amendments to the FSM Bill. These include: a change to the very first sub-clause, replacing the revocation of the EU and EU-derived legislation in the schedule so...

FCA publishes H1 complaints data

FCA has published the complaints data for H1 2022, which shows: a 1% increase in complaints from the previous period (1.88m complaints) the biggest increase was in the decumulation and pensions group (15%) with a 5%...

PRA fines MS Amlin for governance failings

PRA has fined MS Amlin Underwriting Limited nearly £10m for failings in its governance, controls and risk management. The failings lasted for over 5 years and related to the governance and oversight of underwriting...

FSMB Committee stage scheduled for 19 October

An update to the Parliament website shows the Committee stage for the Financial Services and Markets Bill will start on 19 October.  After the line by line debate is complete, the Bill will be republished for report...

FCA updates Whistleblowing data

FCA has published data on whistleblowing reports received between April and June 2022. It received 243 new reports containing 474 allegations, mainly through its online reporting form, but a sizeable number by email or...

Ombudsman News and new FOS UCIS pages

The latest edition of Ombudsman News highlights the recent complaints data we’ve previously reported on, and gives guidance on complaints relating to UCIS. FOS is seeing increasing complaints about advice to...

FOS publishes H1 complaints data

FOS has published its regular half-yearly update on complaints data relating to individual businesses. 212 businesses feature, with an average uphold rate of 37% (the same as the previous period). FOS has also reported...

FCA imposes conditions on CiC

On 12 September, FCA announced that it has imposed conditions on a proposed change in control. Dye & Durham is looking to take over the Link Group, which involves the acquisition of 7 FCA-authorised firms. One of...

FCA responds to Premier FX complaints

FCA has upheld or partially upheld 5 out of the 31 complaints it received from people who lost money when money remitter Premier FX collapsed. The issues relate to events which happened some time ago, and in relation to...

FCA consults on transfer advice redress

FCA is consulting on updates to how it calculates redress for unsuitable DB pension transfer advice. The consultation: confirms that FCA has carried out a review that shows that the current methodology is appropriate...