i-law.com - Newsletter (Compliance Monitor)

Extra-compliance

Paul Basson of Integrity Interactive argues that financial services companies need to change their attitude towards ethics and compliance before an expensive error forces their hand.

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

In the concluding part of his major article on outsourcing, John Virgo , barrister looks at the legal risk to the firm of claims that originate in the behaviour of its service provider outside the scope of the contract, and at the circumstances when the outsource provider might owe a direct duty to the firm’s customers.

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Hitting the target - ARROW II

The FSA has recently replaced “The Firm Risk Assessment Framework” from February 2003 with its ‘ARROW II’ model. Mazhar Manzoor of FSA Compliance Consultants Ltd takes a practical look at what has changed and some of the drivers behind the new approach.

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Streamlining: financial promotions under NEWCOB

November saw the first serious delivery of the FSA’s new principles-based approach to regulation in the form of 850 pages of consultation and proposed new conduct of business and complaint rules. One of the most awaited was the proposed new rules on financial promotions. In previous issues, Adam Samuel has railed against the difficulties firms face in complying with the existing provisions, the way that pointless rules distract attention from the core principles and erratic enforcement. So, we asked him to give his views on the proposed new material.

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Brave New World - COB in the post-MiFID era

FSA has finally published all its promised Markets in Financial Instruments Directive (MiFID) implementation proposals. In this article, Emma Radmore of Denton Wilde Sapte looks at the new structure for the Conduct of Business Sourcebook.

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Industry guidance to receive FSA seal of approval

A more principles-based approach to regulation would include formal recognition of industry guidance under proposals outlined in DP06/5. The FSA identifies three possible approaches to guidance issued by trade association and professional bodies:..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Final rules on home reversion plans and home purchase plans issued

There was broad acceptance by respondents of FSA proposals under CP06/8 for regulation of home reversion (HR) plans and Islamic law-compliance home purchase plans (HPPs), which will take effect on 6 April next year. Amendments, for HRs, include a..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

ICM Group banned for client money diversion

ICM Group Ltd, which performs credit and employment checks on prospective tenants for landlords and letting agencies, has lost its permission to conduct regulated activities for mishandling client money in connection with its insurance business. The..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Regulator sets retail distribution review agenda

The regulator will look at five themes in its retail distribution review, Clive Briault, Managing Director of Retail Markets at the FSA told a conference in November. It will examine the sustainability of the sector, the impact of incentives,..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Loans.co.uk £455,000"/>

Loans.co.uk £455,000">Poor PPI suitability checks cost Loans.co.uk £455,000

Loans.co.uk Limited (LCUK), whose primary business is loan broking, has been fined £455,000 for failure to carry out adequate suitability checks and keep proper records of sales of payment protection insurance during the period 14 January to 22..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Transparency Directive rules almost set

The FSA confirms in PS06/11 that it will copy out the Transparency Directive requirements on annual and half-yearly financial reporting and interim management statements by issuers. The regulator says it will provide informal ‘negative’..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Best execution propositions MiFID-compliant says FSA General Counsel

In legal advice on the scope of the best execution duty under the Markets in Financial Instruments Directive, the General Counsel’s Division of the FSA says that it does not believe that an investment firm is required to only ever quote the..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

FSA and Treasury examine insurance group supervision under Solvency II

Recognising the diversification benefits that can arise between insurance subsidiaries within a group, in November FSA and Treasury published a joint discussion paper on how insurance conglomerates should be managed under Solvency II, the EU project..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

33% see senior management obstacle to TCF

A third of the approximately 400 delegates to the FSA’s recent Treating Customers Fairly conference said that senior management buy-in was the biggest barrier to implementing TCF in their firm. Another 23% believed that the main problem lay..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Private equity risk under FSA spotlight

There is clear unease at the FSA over recent expansion of the private equity market. In its DP06/6, the regulator notes that UK-based private equity fund managers raised £11.2 billion of capital, against £10.4 billion of initial public..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006

Time to reflect

This is the fifth year that Compliance Monitor and Joslin Rowe Recruitment Consultants have carried out a survey of compliance industry opinion. Since we began more than 400 professionals have responded to questions on industry trends, the work of..

Online Published Date: 01 December 2006

Appeared in issue: Vol 19 No 4 - 01 December 2006