i-law

Compliance Monitor

Banks to be barred from locking in corporate clients

Clauses that restrict the right of corporates to choose new banks or brokers are likely to be banned from contracts relating to the capital markets as a result of research by the Financial Conduct Authority. The FCA believes that FTSE 250 and..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

PRA fines QIB (UK) £1.4m for flouting capital adequacy rules

The UK subsidiary of Qatar Islamic Bank has been fined £1,384,950 by the Prudential Regulation Authority because it did not identify its regulatory obligations and therefore comply with rules on the assessment, maintenance and reporting of..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Former UBS derivatives trader refers LIBOR misconduct penalty to tribunal

The Financial Conduct Authority has published a decision notice regarding its intention to ban Arif Hussein, previously a UBS derivatives trader, from regulated financial services. The decision is contested by Hussein, who has referred the dispute..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

FCA triumphs in Supreme Court over “fields of gold” scam

The Financial Conduct Authority has won a resounding victory in the Supreme Court with all five judges agreeing that it was right to regard land banking arrangements run by Asset Land as a collective investment scheme (CIS). The case centred..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

PSD2 paves path of FinTech future

Step aside ‘OldTech’. Nimble FinTech start-ups have seized the initiative from retail banks with innovative payment services that place more power in the hands of consumers. The second Payment Services Directive installs these..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Research casts doubt on advantages of High Frequency Trading

High Frequency Traders (HTFs) are not obtaining systematic advantages in milliseconds over other traders, according to research undertaken by two economists at the Financial Conduct Authority. Fears that HTFs operating at very high speeds are..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Are the Panama Papers protected by Legal Professional Privilege?

The reporting of leaked (or hacked) data has sparked the Financial Conduct Authority to write to a slew of financial institutions, demanding details of any links to Panamanian law firm Mossack Fonseca. “We will require updates on any..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Europe at the crossroads

After decades of closer integration and a host of major regulatory initiatives emanating from Brussels, the United Kingdom could be headed for a political split from the Continent and Ireland. Mark Spiers examines the implications of..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

New era of regulatory reporting dawns

As the reporting burden expands substantially in scope under MiFID II, affected financial institutions must embrace a proactive, comprehensive and integrated response, urges Nirvana Farhadi. With the fast-paced evolution of regulations in..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Regulators’ Complaints Scheme poised for review

The Financial Conduct Authority, Prudential Regulation Authority and Bank of England are to review the Complaints Scheme that decides complaints made against them later this year. The scheme, which started on 1 April 2013, was set up under Part..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Internal candidate Sam Woods replaces Bailey at PRA

Sam Woods, the executive director of insurance at the Prudential Regulation Authority, will take over on 1 July from Andrew Bailey as chief executive as well as deputy governor for prudential regulation at the Bank of England. Bailey’s..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Market abuse deterrence boosted, in enforcement revamp

The issue of deterrence will play a greater role when the Financial Conduct Authority decides whether or not to open an investigation into non-criminal market abuse, according to new proposals. The FCA and the Prudential Regulation Authority..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Annuity income sales receive regulatory protections

Annuity-holders who decide to sell their right to future income must in future be given a series of specific warnings about the risks involved by any firm they contact to make the sale. This is one of the proposals contained in consultation paper..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Ex RBS LIBOR submitter censured and banned

Paul White, a former money market trader and LIBOR submitter at Royal Bank of Scotland, has been banned from financial services functions and censured by the Financial Conduct Authority. Had he not proven serious financial hardship, the regulator..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Pensions and financial crime spearhead FCA priorities

Pensions top the list of seven priority themes for the Financial Conduct Authority this year, in its 2016/17 Business Plan. This is followed by financial crime and anti-money laundering, wholesale financial markets, advice, innovation and..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Panama Papers and the blind eye of corporate connivance

Out of nowhere, a media cyclone engulfed the quiet tropical isthmus of Panama last month, as 11.5 million confidential documents fluttered turbulently into public awareness and were seized upon by other journalists as well as authorities around the..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Inducements review spurs warning over ‘golf days’

Questions over the way some firms are providing golf days, dinners and other forms of entertainment have been raised by a Financial Conduct Authority review. In a short report, ‘Inducements and conflicts of interest thematic review: key..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Evidence of favouritism revealed in IPO allocations by banks

Investors in IPOs (initial public offerings) are more likely to be given favourable allocations if they attend meetings with the issuers or make price-sensitive bids, according to an occasional paper published by the Financial Conduct..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Not all asset managers invest in line with stated strategy

A thematic review of how asset managers are meeting investors’ expectations found that most funds are investing in line with their stated strategy, but there were instances of unclear product descriptions and weak oversight. The Financial..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Allegations of misconduct under the Senior Managers Regime

How does the new Senior Managers and Certification Regime intersect with employment law in cases of alleged misconduct? James Townsend and Katharine Everett discuss managing regulated staff in ‘relevant firms’ within the financial..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Debt management firm director sentenced for ‘abuse of position’

David Hall, a director of three debt management firms, has been sentenced to 15 months in prison, suspended for two years, and 200 hours of community service. Cardiff Crown Court found him guilty on 8 April for fraud by abuse of position after an..
Online Published Date:  06 May 2016
Appeared in issue:  Vol 28 No 9 - 01 June 2016

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