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Cryptocurrency trading is "gambling" and should be regulated as such, say MPs
The Treasury Committee has delivered a bombshell report that likens consumer speculation in cryptocurrencies to gambling and "strongly recommend[s] that the Government regulates retail trading and investment activity in unbacked cryptoassets as gambling rather than as a financial service". By Esther Martin
Online Published Date:
05 June 2023
Appeared in issue:
Vol 35 No 9 - 09 May 2023
Unchallenged 'expert' opinions led to £17m cum-ex trading fine for ED&F Man Capital Markets
ED&F Man Capital Markets - a global financial brokerage firm that was acquired by Marex in the second half of last year - has been fined £17.2 million by the FCA for participating in a notorious tax fraud strategy.
Online Published Date:
05 June 2023
Appeared in issue:
Vol 35 No 9 - 09 May 2023
Breaking groupthink in board and committee meetings
Effective decision-making in board and committee meetings is crucial for the healthy function of financial services firms. But decision-making can be skewed by groupthink, which occurs when board and committee members put agreement, harmony and conformity above critical evaluation of ideas and opinions. This can lead to irrational or dysfunctional decisions and negatively impact compliance, risk management, organisational performance, as well as corporate culture. Mario Menz discusses what organisations can do to improve risk management by breaking groupthink in board and committee meetings.
Online Published Date:
07 June 2023
Appeared in issue:
Vol 35 No 9 - 09 May 2023
Heightened scrutiny ahead for fintechs from AML regulators
The distinctive features of fintech firms can make them vulnerable to exploitation by money launderers. Jonah Anderson and Claire Wynne-Jones consider steps for a fintech to investigate AML concerns raised by a regulator or the media, along with how to minimise risk exposure.
Online Published Date:
07 June 2023
Appeared in issue:
Vol 35 No 9 - 09 May 2023
FOS goes to court and it does not all go well
A recent quartet of cases involving the Financial Ombudsman Service have highlighted instances of the scheme failing to perform its inquisitorial function properly, as well as tensions between its complaint assessment function and the legal system. There are lessons for FOS to absorb in relation to staff training and case-handling, opines Adam Samuel.
Online Published Date:
07 June 2023
Appeared in issue:
Vol 35 No 9 - 09 May 2023
UK maps out expanded strategy for green finance
On 30 March 2023, the United Kingdom Government published its updated Green Finance Strategy, titled 'Mobilising Green Investment'. The Strategy was one of the measures announced in the Edinburgh Reforms of December 2022 as part of the UK's ambition to be a world leader in sustainable finance. Charlotte Hill and Daniel Hirschfield highlight the key elements.
Online Published Date:
07 June 2023
Appeared in issue:
Vol 35 No 9 - 09 May 2023
Chief information officer fined £81,620 for IT migration meltdown
In a relatively rare example of enforcement action against an individual under the Senior Managers and Certification Regime, a disastrous TSB IT migration project has led to a hefty penalty for the executive in charge. Denis O'Connor draws lessons on the level of oversight needed for outsourcing arrangements.
Online Published Date:
07 June 2023
Appeared in issue:
Vol 35 No 9 - 09 May 2023
How can a board oversee a healthy culture of diversity?
The Financial Conduct Authority has articulated that as part of its ESG strategy it will be publishing final rules on diversity and inclusion on company boards and executive committees. David Duffy outlines principles of a diversity strategy.
Online Published Date:
07 June 2023
Appeared in issue:
Vol 35 No 9 - 09 May 2023
FCA imposes warning labels on crypto's "very poor-quality" promotions
Promotors of crypto products will be required to give stark warnings equivalent to the 'Smoking kills' statements on cigarettes. A suggested wording from the FCA begins: "Don't invest unless you're prepared to lose all the money you invest."
Online Published Date:
08 June 2023
Appeared in issue:
Vol 35 No 10 - 08 June 2023
Referral fees ban confirms shake-up of the debt packager sector
The FCA predicts "significant change" in the debt packager market following the confirmation ofrulesthat prohibit their receipt of referral fees from debt solution providers.
Online Published Date:
09 June 2023
Appeared in issue:
Vol 35 No 10 - 08 June 2023
Director banned as FSCS upholds 88% of claims against pension transfer firm
A director and 50 per cent shareholder in a firm of advisers has been prohibited from advising on pension transfers and opt-outs as well as from being a senior manager again, after 96 per cent of pension customers were advised to leave defined benefit pension schemes.
Online Published Date:
28 June 2023
Appeared in issue:
Vol 35 No 10 - 08 June 2023
FCA investigation pulled apart by tribunal, as three bans overturned
Three bankers who worked for Julius Baer when corrupt payments were unwittingly made by the firm to persons connected with the Yukos Group, have had their provisional bans thrown out by the Upper Tribunal. [1]
Online Published Date:
28 June 2023
Appeared in issue:
Vol 35 No 10 - 08 June 2023
IFA to pay £106k to FSCS after 97% of clients advised to make pension transfers
An adviser is to forfeit £106,100 directly to the Financial Services Compensation Scheme, rather than as a fine to the FCA, after exposing many of his customers to unsuitable advice and demonstrating "a serious lack of competence and capability".
Online Published Date:
29 June 2023
Appeared in issue:
Vol 35 No 10 - 08 June 2023
Global sustainability standards to be adopted for UK-listed companies
Rules for UK-listed companies onclimate-related disclosure rulesare to be updated to conform with the firsttwo global statementsfrom the International Sustainability Standards Board (ISSB).
Online Published Date:
29 June 2023
Appeared in issue:
Vol 35 No 10 - 08 June 2023
Immediate solution agreed on mortgage switches - but credit rating deal lags
The FCA has introduced enabling provisions that allow mortgage lenders to offer all borrowers a switch to interest-only payments for sixmonths without an affordability check.
Online Published Date:
30 June 2023
Appeared in issue:
Vol 35 No 10 - 08 June 2023