i-law

Compliance Monitor

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..
Online Published Date:  01 March 2013

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:  01 March 2013

Firm fined for leaving share-dealing policy on shelf

Harbinder Panesar’s embezzlement of £180,000 from two motor insurers along with his reckless operation of one of the firms, were so egregious that the FSA won’t reduce his penalty of £212,237 on grounds of financial hardship...
Online Published Date:  04 March 2013

Arch Cru: pathology of a major compliance disaster

Independent financial advisers who sold the ill-fated Arch Cru funds are bearing the brunt of a catastrophe that a number of players contributed to. Adam Samuel dissects the cancerous parts.
Online Published Date:  04 March 2013

Lloyds Banking Group fined £4.3m for PPI redress delays

This year will see the enactment of the long-awaited Alternative Investment Fund Managers Directive, which will have far-reaching consequences for any Collective Investment Scheme (CIS) or Collective Investment Undertaking that is not a UCITS scheme..
Online Published Date:  04 March 2013

RBS stung $610m for Libor “stunning breach of trust”

Market misconduct is more likely than ever to lead to imprisonmentIndividuals have more cause to be frightened of the FSA as a criminal prosecutor in 2013 than in 2009. Since then, the regulator has successfully prosecuted 21 individuals for insider..
Online Published Date:  04 March 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:  04 March 2013

Smile, you’re talking to an FSA mystery shopper

A man walks into a bar – sorry, bank – and says: “I’ve got £35,000 to invest for growth for a term of at least five years.”Something similar to this happened 231 times in six major retail banking firms between..
Online Published Date:  04 March 2013

LPP is for lawyers only, for now

The Supreme Court has deemed that non-lawyers who give legal advice – such as accountants and potentially compliance experts – do not have these communications covered by Legal Professional Privilege. Steven Francis and Robbie Constance examine the ramifications for financial services firms and the compliance industry.
Online Published Date:  04 March 2013

Regulatory rhyme

Horace Fletcher is enduring a very unpleasant review of sales with the FSA and comments ruefully:
Online Published Date:  04 March 2013

New code of conduct to boost internal audit role

An FSA paper investigating whether high-frequency trading increases 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:  04 March 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:  04 March 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:  04 March 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:  04 March 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:  04 March 2013

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