i-law

Compliance Monitor

Solvency II update

Now that the implementation deadline for the directive has been resolved and the Prudential Regulation Authority has outlined its expectations, insurers have careful planning and substantial work yet to undertake, writes Charles..
Online Published Date:  10 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..
Online Published Date:  10 February 2014

Lloyds fined £28m ‘for the journey’ of twisted sales incentives

Lloyds Banking Group – which includes Lloyds TSB, Bank of Scotland and its subsidiary Halifax – has been dealt the largest ever retail conduct penalty (£28,038,844) by the Financial Conduct Authority for serious sales incentive..
Online Published Date:  10 February 2014

“Disgraceful” pension advisers banned

Three men have been banned from financial services and another from holding key positions in the industry after a Pensions Regulator investigation identified misconduct. Michael Conway, Andrew Powell, Martin Gwynn and Daniel Conway were connected..
Online Published Date:  10 February 2014

As easy as ABC?

Making out an ‘adequate procedures’ defence under the Bribery Act 2010 might be no simple matter, says Lindsay Middleton. In addition, the Financial Conduct Authority maintains stringent expectations of the due diligence required before..
Online Published Date:  10 February 2014

PEP screening deficiencies cost Standard Bank £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. The regulator found that between 15..
Online Published Date:  10 February 2014

Swift Trade loses appeal against its ‘layering’ tribunal defeat

On 19 December 2013, the Court of Appeal dismissed Swift Trade Inc’s petition against findings by both the Upper Tribunal and the regulator that its ‘layering’ strategy constituted market abuse. The company and its former..
Online Published Date:  10 February 2014

Regulator spells out £1.8m fine for JLT Specialty’s ABC standards

JLT Specialty Ltd, an insurance broking and risk management provider, has been penalised more than £1.8 million by the Financial Conduct Authority for not sufficiently guarding against bribery and corruption when making payments to third..
Online Published Date:  10 February 2014

Fines fuel job growth

Last year the compliance job market was driven by the Financial Conduct Authority’s enthusiasm for enforcement action, while in 2014 regulatory scrutiny on smaller firms will mean they require more specialist expertise than in the past,..
Online Published Date:  10 February 2014

Client money complexities

Proposals from the Financial Conduct Authority in relation to client money rules for investment businesses raise a raft of tricky issues, reports Charlotte Hill. On 12 July 2013, the Financial Conduct Authority published its much-anticipated..
Online Published Date:  10 February 2014

Yes, lying to the regulator makes you not ‘fit and proper’

The regulator has salvaged some consolation from its disastrous – and on the face of it bizarre – defeat at the Upper Tribunal in its market abuse case against Mizuho International trader David Hobbs. In a second look at the matter, the..
Online Published Date:  10 February 2014

The new senior persons regime

In the wake of the LIBOR-rigging scandal, public and political pressure to make individuals accountable for failures in the banking industry have resulted in a sweeping re-write of the regulatory regime for senior persons. Harvey Dyson reports on..
Online Published Date:  10 February 2014

Christopher Willford’s final penalty shrunk to £30,000

The regulator’s embattled enforcement proceedings against the former finance director of Bradford & Bingley have at last produced a final notice – however, the wrangle has resulted in reduction of the original £150,000 fine in..
Online Published Date:  10 February 2014

Porta Verde penalised for sloppy oversight of representatives

A heavily reduced fine of £25,000 was dealt by the Financial Conduct Authority to Porta Verde Financial Services because two of its appointed representatives mis-sold insurance for satellite TV equipment, plumbing and drainage repairs. The..
Online Published Date:  10 February 2014

Socialism and the City

The financial services industry has very little grasp of its history and so repeats its mistakes, argues Adam Samuel. He delivers his long-threatened Marxist appraisal of the sector and regulation. A brief personal note is in order. The author is..
Online Published Date:  10 February 2014

Redress rehearsal

Forewarned is forearmed. A steady succession of high-profile financial services redress schemes and the regulator’s avowals that it will act robustly within its powers on behalf of consumers, should make firms sit up and take notice, writes..
Online Published Date:  10 February 2014

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