i-law

Compliance Monitor

Amigo avoids £73m fine despite exposing 25% of guarantors to loan debts

The guarantor lender Amigo has evaded a £73 million FCA fine even though a quarter of the loans it made had to be repaid by guarantors after the borrowers defaulted.
Online Published Date:  23 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

Pension transfer firms ignore FCA warnings on British Steel compensation procedures

At least 15 pension transfer firms are putting themselves at risk of being disciplined by the FCA for "serious malpractice".
Online Published Date:  24 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

Ban on referral fees will end current business model for debt packaging firms

Debt packaging firms that introduce clients to insolvency practitioners and other 'debt solution providers' could be banned from receiving referral fees within a few months, under slightly revised FCA proposals.
Online Published Date:  24 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

FCA consults on fund manager priorities for post-Brexit rule reform

The FCA is considering upgrading the rules for portfolio managers so that they are subject to the same requirements as fund managers on investment due diligence and managing liquidity.
Online Published Date:  28 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

FCA and West Yorkshire Police target illegal crypto ATM operations

The FCA is investigating "several sites" in the city of Leeds on the suspicion that they have been "hosting illegally operated crypto ATMs".
Online Published Date:  28 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

UK could provide stable legal base for issuing digital bonds and equities

The United Kingdom could set "a global standard in internationally mobile digital markets" and become a leading jurisdiction in blockchain and DLT transactions, according to lawyers on the UK Jurisdiction Taskforce.
Online Published Date:  28 February 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

FCA pursues Facebook and other platforms over illegal promotions

Instagram, Facebook, YouTube, TikTok and "all" the other major social media companies have received requests from the FCA to take down financial promotions that include harmful content, according to the regulator.
Online Published Date:  01 March 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

Taking stock, pressing forward

As Covid-19 fears abate, the brutal conflict in Ukraine grinds into its second year and reverberates around the globe through disruption to supply chains as well as a cost-of-living squeeze. Amid these challenges, compliance professionals in the United Kingdom are facing multiple significant programmes of financial regulatory reform, write Mark Simpson and Kimberley Everitt.
Online Published Date:  07 March 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

In for a penny - in for a digital pound?

On 7 February 2023, the joint Bank of England-HM Treasury CBDC Taskforce published a consultation paper on a potential retail UK central bank digital currency (CBDC). This 'digital pound' would be a new form of sterling, similar to a digital banknote, issued by the Bank of England for everyday use by households and businesses. Charlotte Hill and Mila Pencheva consider the case for a CBDC, the proposed model and key milestones.
Online Published Date:  07 March 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

Managing ESG risk for financial institutions

With Environmental, Social and Governance concerns now at the forefront of public and industry agendas, firms that slip up find themselves exposed to potential reputational, stakeholder, litigation and regulatory fallout. Arwen Handley overviews the main areas of risk for financial institutions and preventative steps for managing them.
Online Published Date:  07 March 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

SIPP providers must compensate customers mis-sold by unregulated introducers, rules High Court

A recent decision in the second Options pensions case may conclude the court arguments about obligations of SIPP providers when dealing with non-mainstream investments and unregulated introducers. Adam Samuel analyses the judgment.
Online Published Date:  07 March 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

What's ahead for consumer finance?

Once again, 2023 promises to be a year of regulatory change. With a mixture of reforms already agreed and yet to be implemented, consultations underway and the promise of more to come, all regulated firms in the UK will be viewing the coming months with some trepidation. Emma Radmore and Duncan Scott discuss what may be in store for consumer finance firms.
Online Published Date:  07 March 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

Chief Risk Officer wins whistleblowing case against London bank

A recent Employment Tribunal decision delivers a warning to financial institutions that internal communications about their regulatory obligations may constitute a protected whistleblowing disclosure. A subsequent 'detriment' to the employee could fall foul of the Public Interest Disclosure Act, reports Denis O'Connor.
Online Published Date:  07 March 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

Are we on the cusp of a 'Big Bang 2.0' for financial trading and markets?

A swathe of reforms in the pipeline to enhance the United Kingdom's financial regulatory framework, while boosting competitiveness and growth, are touted as a "once in a generation opportunity" - but are they as radical as Margaret Thatcher's deregulatory programme of 1986? Neil Robson and Nathaniel Lalone examine the Financial Services and Markets Bill along with the Edinburgh Reforms.
Online Published Date:  07 March 2023
Appeared in issue:  Vol 35 No 6 - 01 March 2023

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