i-law

Compliance Monitor

Panama Papers turn spotlight on customer due diligence

A cache of 11.5 million documents leaked from Panama law firm Mossack Fonseca has revealed 140 politically exposed persons (PEPs), including 12 serving or past heads of state, with connections to offshore companies.
Online Published Date:  13 November 2017
Appeared in issue:  Vol 28 No 8 - 06 May 2016

Tom Hayes battles against ban and conviction

The Upper Tribunal has stayed a decision by the Financial Conduct Authority to ban Tom Hayes, who was convicted of acting fraudulently to manipulate Yen LIBOR, while the Criminal Cases Review Commission decides whether his case should be reheard..
Online Published Date:  13 November 2017

New regulations tighten financial sanctions’ grip

An increasingly aggressive approach to pursuing breaches of sanctions violations has seen the reporting requirement extended to independent legal professionals. In some circumstances legal services related to restructuring of finance or even preparing the documents required to raise capital on the markets could amount to a violation, reports Anna Rothwell.
Online Published Date:  13 November 2017

Marshalling data, for optimum customer, compliance and commercial outcomes

In times of rapid and complex regulatory change, holistic and effective management information processes will help financial services firms fulfil and demonstrate their compliance, as well as inform their commercial decision-making, says Phil Deeks.
Online Published Date:  13 November 2017

Firms on the hook for failure to prevent tax evasion

After an incensed hacker circulated 2.6 terabytes of data – 11.5 million confidential documents – from Panamanian law firm Mossack Fonseca last year, the United Kingdom hurried forward its proposed criminal offence for corporations who fail to stop their staff from facilitating tax evasion. With the legislation now in force, prosecutors no longer have to prove that a ‘controlling mind’ from the organisation was complicit in the breach. David Rundle and Chloe Salter outline the new crime, key aspects of HM Revenue & Custom’s guiding principles, as well as central issues that financial services businesses should consider.
Online Published Date:  13 November 2017

Rio Tinto fined £27m by FCA, as SEC lays fraud charges

The mining giant Rio Tinto plc has breached the Disclosure Rules by failing to declare a large financial impairment in time, and been penalised £27,385,400 by the Financial Conduct Authority. Meantime, the Securities and Exchange Commission..
Online Published Date:  13 November 2017

Guide to conducting internal investigations: disclosure and regulatory liaison

The six-part ‘Guide to conducting internal investigations’ outlines best practices and guidance for those conducting or overseeing investigations in both the United Kingdom and the United States. In this fifth of six instalments, Charles Hastie and Jake McQuitty discuss some of the considerations associated with reporting potential issues of concern and interacting with the regulators.
Online Published Date:  13 November 2017

The impact of MiFID II upon complaints-handling

One strand of the multitudinous new rules effected by MiFID II when it commences in January, is to introduce “a new breed of complaint”. Noline Matemera and Jack Hargreaves examine this change and its practical ramifications.
Online Published Date:  13 November 2017

The quiet evolution of FCA enforcement

After a scolding from Andrew Green QC in his report regarding the regulator’s handling of the HBOS failure, as well as an HM Treasury review, enforcement by the Financial Conduct Authority has undergone significant evolution over the past two to three years. Guy Wilkes examines recent changes, including the FCA’s focus on individuals, along with alterations to internal process and the settlement procedure.
Online Published Date:  13 November 2017

BrightHouse agrees £14.8m redress scheme for unaffordable loans

A rent-to-own provider, BrightHouse, has committed to pay more than £14.8 million to 249,000 customers as a result of lending agreements that may have been unaffordable, as well as unrefunded payments.In late 2014 the Financial Conduct..
Online Published Date:  13 November 2017

Couple banned for integrity failings; wife fined for misleading the regulator

John and Collette Chiesa, who founded Westwood Independent Financial Planners, have been banned from financial services due to lack of integrity – and Mrs Chiesa has been fined £50,000.Their personal investment advice firm became..
Online Published Date:  13 November 2017

Merrill Lynch receives third transaction reporting fine: this time £34.5m

For the third time, Merrill Lynch has been fined by the regulator for transaction reporting failures: this time £34,524,000 for not reporting 68.5 million exchange traded derivative transactions between 12 February 2014 and 6 February 2016.This..
Online Published Date:  13 November 2017

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