i-law

Compliance Monitor

Carrots, closets and MiFID II: increasing scrutiny of conflicts of interest

Conflicts of interest are an increasingly important topic of review, comment and enforcement action for the Financial Conduct Authority. Laurence Lieberman and Caroline Harbord examine conflicts in the context of inducements as well as closet index..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

Tax havens: evil under the sun?

Offshore financial centres have both their supporters as well as passionate detractors. Adam Samuel gives an outsider’s view on tax issues raised by the Panama Papers. Both general and technical press is appropriately agog with excitement at..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

Getting product governance and due diligence right

Recent thematic reviews by the Financial Conduct Authority are further reminders that robust product governance should encompass the whole of the manufacture and delivery chain, writes Simon Collins. Product governance is a key aspect of..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

One third of financial services businesses are not prepared for Brexit

Weeks away from the United Kingdom’s referendum on EU membership, a survey of financial services businesses has found that only 31% had a tangible plan for dealing with risks arising from a Brexit outcome and 42% had not conducted board..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

Pension early-exit charges capped at 1%

The Financial Conduct Authority is consulting to cap early-exit charges for consumers who choose to access pension freedoms, at 1% of the value of a member’s pot. This will apply to existing contract-based personal pensions, including..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

Keydata ‘death bonds’ compliance officer banned

Peter Johnson, the former compliance officer of the failed firm Keydata Investment Services, has been banned and censured by the Financial Conduct Authority. He would have been fined £200,000 had he not produced evidence of serious financial..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

Financial adviser cops £36,285 fine and two-year ban for insider trading

A financial adviser who worked at Towry has been fined £36,285 and banned for at least two years because he dealt shares on the basis of inside information. After two years Mark Taylor can apply for the prohibition to be lifted and the..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

CT Capital fined £2.4m for serious PPI complaint-handling failures

A penalty of £2,360,900 has been levied by the Financial Conduct Authority for “serious failings” in CT Capital Ltd’s historic Payment Protection Insurance complaint handling arrangements: the firm neglected to put processes..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

FCA strategy for nine-year Tabernula investigation under fire

Lawyers are questioning whether the Financial Conduct Authority used its resources wisely in the Tabernula case, described by one law firm as “Britain’s largest inquiry into illegal dealing in the City spanning nine years and costing..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

Decoding de-risking

Are banks exiting customers en bloc and, if so, why? The Financial Conduct Authority delves beyond anecdote in a thorough study, published on 24 May. [1] Banks, it finds, are dealing with fallout from the financial crisis by “realign[ing]..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

How can a whistleblower protect himself from the FCA?

Correspondence to and from the chair of the Treasury Select Committee has highlighted concerns about the Financial Conduct Authority’s use of information provided to it under an assumption of confidentiality. Chris Finney reports. On 18..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

Global systems for global business: lessons from the Standard Bank DPA

The Standard Bank case illustrates the perils of incohesive compliance controls, where two or more transaction teams within a group coordinate over complex cross-border financial deals. By Alex Parker. As this publication has previously..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

GDPR poised to transform information processing

The General Data Protection Regulation – recently agreed upon after years of debate – will significantly affect the operations of financial services businesses in the European Union and entail careful implementation planning, report John..
Online Published Date:  07 June 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

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