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FCA sets out 14-point plan after banks accused of "measly" savings rates
The FCA is using the Consumer Duty to put pressure on firms to pass on interest rate increases to their savings account customers.
Online Published Date:
01 August 2023
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Vol 36 No 1 - 07 July 2023
Fund managers must review value assessments, as FCA identifies "outliers"
By Neasa MacErlean
Online Published Date:
11 August 2023
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Vol 36 No 1 - 07 July 2023
Settlements and sabre rattling
Threats of tough action from Canary Wharf, if financial services firms and individuals fail to meet their regulatory responsibilities, are nothing new. But in the Financial Conduct Authority's determination to bring senior managers to book for lapses, the director of enforcement and financial crime Tracey McDermott has revealed a change in approach to resolving cases.
Online Published Date:
15 August 2023
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Vol 26 No 03 - 07 November 2013
Full of sound and fury - but what does the PCBS report signify?
The Parliamentary Commission on Banking Standards' report 'Changing banking for good', was meant to trigger a major review by the Government and the financial services supervisors of how the industry is regulated. Yet Adam Samuel isn't convinced that where there's a way there's a will.
Online Published Date:
15 August 2023
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Vol 26 No 03 - 07 November 2013
The watchdog's double whammy
You're staring down two loaded barrels, as the Financial Conduct Authority wields section 166 reports and attestations in combination, to hold firms and senior managers to account. Esther Martin spoke to Rob Moulton about the supervisory arsenal, political pressure and how 'caveat emptor' was felled in the fray.
Online Published Date:
15 August 2023
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Vol 26 No 03 - 07 November 2013
Sanctions issues for Lloyd's of London coverholders
Lloyd's managing agents that delegate to coverholders must adroitly balance a proportional risk-based approach toward their sanctions liability alongside commercial considerations. Richard Burger and Ben Nicholson report.
Online Published Date:
15 August 2023
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Vol 26 No 03 - 07 November 2013
The CASS cash cow
Enforcement actions over breaches of client asset rules are a "steady little earner" for the regulator, comments Noline Matemera. She examines why firms keep failing to learn their lessons in this high-priority area.
Online Published Date:
15 August 2023
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Vol 26 No 03 - 07 November 2013
Swift given short shrift by tribunal
The Upper Tribunal has dealt decisively with a case of layering that amounted to egregious market abuse: Swift Trade v Financial Services Authority. Nicholas Queree reports.
Online Published Date:
15 August 2023
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Vol 25 No 6 - 12 February 2013
Helping Peter Piper pick a peck of payment protection products
With claims over toxic payment protection insurance still pouring into banks and the ombudsman, the Financial Services Authority and the Office of Fair Trading have responded to concerns about similar emerging products by releasing joint industry guidance. Charlotte Hill and William Maycock provide a synopsis for compliance officers of the expectations outlined by the FSA.
Online Published Date:
16 August 2023
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Vol 25 No 6 - 12 February 2013
Shoot first, ask questions later
The incoming regulator's 'early intervention' policy has been expressed in some rather trigger-happy terms. Julian Sampson, for one, is asking questions ahead of the Financial Conduct Authority's gunfire.
Online Published Date:
16 August 2023
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Vol 25 No 6 - 12 February 2013
Don't be an April fool: prepare for FSMA at legal cut-over
On 1 April the Financial Services Authority's 12-year reign as City regulator will be swept away by the assumption of two new bodies to supervisory power. Emma Radmore analyses key changes to familiar provisions in the Financial Services and Markets Act 2000 that regulated firms need to know about, and the legislation that will implement them.
Online Published Date:
16 August 2023
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Vol 25 No 6 - 12 February 2013
Regulatory rhyme
Horace Fletcher is enduring a very unpleasant sales review with the FSA and comments ruefully:
Online Published Date:
16 August 2023
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Vol 25 No 6 - 12 February 2013
Hedges with thorns: the interest rate swaps review
The regulator has ordered banks to review their sales of interest rate hedging products to small businesses, many of whom were stung by these schemes' noxious conditions during the financial crisis. Adam Samuel reports on yet another mis-selling scandal.
Online Published Date:
16 August 2023
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Vol 25 No 6 - 12 February 2013
Standard Bank misses PEP screening yardstick, penalised £7.6m
The UK subsidiary of Standard Bank Group, South Africa's largest banking corporation, has been fined £7,640,000 by the Financial Conduct Authority for breaching the Money Laundering Regulations. By Timon Molloy
Online Published Date:
18 August 2023
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Vol 26 No 05 - 05 February 2014
JPMorgan pays $2.5 billion for Bank Secrecy Act violations
America's largest financial institution has paid dearly for banking Bernie Madoff, whose $20bn Ponzi investment scheme collapsed in 2008. Under a deferred prosecution and other agreements announced 7 January 2014, JPMorgan will pay $2.5bn to US authorities to settle charges that it breached the Bank Secrecy Act (BSA) in its dealings with Madoff Securities. By Timon Molloy
Online Published Date:
18 August 2023
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Vol 26 No 05 - 05 February 2014
Having your cake and eating it: FOS award is no bar to issuing proceedings
The High Court has held that individuals can claim damages from financial services providers in excess of the amount of a Financial Ombudsman Service (FOS) determination. Katharine Harle examines the judgment and its significant implications for firms and consumers.
Online Published Date:
18 August 2023
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Vol 25 No 5 - 19 December 2012
High Court rules RBS did not mis-sell interest rate swaps
The Royal Bank of Scotland did not breach its common law duties of care when it sold an interest rate swap to a pair of experienced businessmen, the High Court has ruled in [2012] EWHC 3661 (QB).John Green and Paul Rowley, who were partners in..
Online Published Date:
18 August 2023
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Vol 25 No 5 - 19 December 2012
UBS pays $1.5bn for LIBOR manipulation
UBS will pay US$1.5bn in fines to US, UK and Swiss regulators for manipulation of the benchmark LIBOR and EURIBOR interest rates over the five years from January 2005 to December 2010.
Online Published Date:
18 August 2023
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Vol 25 No 5 - 19 December 2012
Tribunal finds shades of grey in Black and White Ltd's sales failings
Appeals to the Upper Tribunal against an FSA enforcement action have resulted in lower fines for the chairman and chief executive of Black and White Group Ltd, and one of their bans (the CEO's) being overturned.The firm came under FSA fire for..
Online Published Date:
18 August 2023
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Vol 25 No 5 - 19 December 2012
Fines and bans for mishandling mortgage customers
A mortgage lender to customers with poor credit histories has been fined £1.225m, and the CEO and compliance director have been penalised £70,000 and £13,500 respectively, for their handling of mortgage sales and arrears. Over 2,000 customers will..
Online Published Date:
18 August 2023
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Vol 25 No 5 - 19 December 2012
FSA pegs benchmark regulation
With the government having backed the Wheatley Review recommendations on reforming Libor, the FSA is consulting on how benchmarks will be supervised. At first the only regulated benchmark in the UK will be Libor, but a framework will be in place..
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Consultation on temporary product intervention rules
The FSA is consulting on when and how the Financial Conduct Authority may make temporary product intervention rules. It explains some of the situations in which it may decide to do this and gives examples.Though it is not expected that these powers..
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Lifeline for with-profits mutuals
The FSA has responded in consultation paper 12/38 to the concerns of the mutual with-profits sector, which faces a decline in new with-profits business and potential firm closures. Some of the regulatory rules and guidance are too prescriptive for..
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Sales incentive clamp-down broadens to performance management
Final guidance for firms on how to avoid operating sales incentive schemes that drive mis-selling has been released by the FSA and is largely unchanged from the draft version. Some of the wording has been clarified and more examples have been..
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Co-op Bank fined for PPI complaint stalling
The FSA has fined the Co-operative Bank £113,300 for halting payment protection insurance (PPI) complaints that should have progressed while banks brought judicial review proceedings from October 2010 against redress requirements relating to this..
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
CEO's high-pressure sales case sent to tribunal
Gracechurch Investments, its CEO and compliance officer have come under FSA fire for their pressurising sales tactics and misrepresentation of the performance of risky small company stocks to customers. However, so far the regulator is unable to..
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21 August 2023
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Vol 25 No 5 - 19 December 2012
Prudential Regulation Authority loads its weapons
A consultation is in progress on the Prudential Regulation Authority's approach to disciplinary and enforcement action when it becomes operational in April. The PRA will have a variety of tools it can employ, such as refusing or varying a firm's..
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Industry protest sparks further consultation on FSCS
The industry was alarmed by FSA plans outlined in CP12/16, to set up a pool within the Financial Services Compensation Scheme funded by intermediaries and investment providers that would be triggered if one or more of those classes reached their..
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
HFT does not increase execution costs
An FSA paper investigating whether high-frequency trading boosts the execution costs of institutional investors could find no evidence that it does. It shows that HFT activity increases following improvements in exchange speed but there was no..
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Financial Services Act 2012 and new handbook preparations
The Financial Services Act 2012 received Royal Assent on 19 December and is planned to commence on 1 April. Also, CP12/37 was released as part of a series of papers proposing changes to create the new rulebooks and policies for the Financial Conduct..
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Financial Conglomerates Directive amendments implementation
In a joint consultation with HM Treasury, the FSA has set out how the UK will implement amendments to the Financial Conglomerates Directive. The directive applies supplementary prudential supervision to mixed financial groups that carry out both..
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Will protection be the new pet project?
With the Retail Distribution Review in place, protection business will comprise a greater part of firms' propositions and will receive further regulatory scrutiny, predicts Roderic Rennison. He considers the evidence for a likely protection review and actions firms should be thinking about now.
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Fund managers face up to the AIFMD
It's decision time for non-UCITS Collective Investment Schemes, report Roxy Nadershahi and Andrew Lowin, as practical details of the controversial Alternative Investment Fund Managers Directive begin to emerge.
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Market abuse enforcement: should you be afraid?
In 2009, Hector Sants infamously stated that, "People should be very frightened of the FSA." Four years on, he considers this objective to have been achieved, at least in relation to market abuse. Giving evidence to a parliamentary committee last month, he said, "when you look at what the FSA did over the past five years, when it set out to deal with market abuse, it did it well" [1].2012 saw the conclusion of some of the most important cases to be taken by the FSA since it reinvigorated its market abuse enforcement strategy; Chris Stott examines the emerging lessons.
Online Published Date:
21 August 2023
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Vol 25 No 5 - 19 December 2012
Regulatory worry beads of 2013
Charlotte Hill and Noline Matemera take a somewhat superstitious, yet very practical, look at thirteen key regulatory developments to keep abreast of in 2013.
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21 August 2023
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Vol 25 No 5 - 19 December 2012
The 'Farago'
The NatWest bank chief's error wasa lapse of judgement quite unlike that of the former Barclays CEO who pursued a whistleblower, yet did not resign for this. Adam Samuelunpicks the legal and regulatory issues raised by the Nigel Farage bank account furore.
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31 August 2023
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Vol 36 No 1 - 07 July 2023
The shackles re-applied: Quincecare duty back under lock and key
In the aftermath of the Court of Appeal's decision in Philipp v Barclays last year, we published an article entitled 'Quincecare unchained?'. In a much-awaited appeal, the UK Supreme Court has unanimously re-applied the manacles to the duty, writes Paul Brehony.
Online Published Date:
31 August 2023
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Vol 36 No 1 - 07 July 2023
Promotions regulation: a new frontier for cryptoassets
The Financial Conduct Authority is on a mission to tackle misleading advertisements for high-risk investments, with cryptoassets - a frequent offender - about to fall within its purview. But will the regulator have the resources to enforce the new restrictions? It has found imposing compliance on the contracts-for-difference market almost impossible, notes Adam Samuel.
Online Published Date:
31 August 2023
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Vol 36 No 1 - 07 July 2023
EU digital transformation in train
The European Commission has announced a significant upgrade to payments rules along with a new financial data access framework. Charlotte Hill and Daniel Hirschfield review the package of reforms as well as what it means for consumers, the payments industry and the financial sector more generally.
Online Published Date:
31 August 2023
Appeared in issue:
Vol 36 No 1 - 07 July 2023