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Where to report?
For some investment firms, the transaction reporting requirements under the Markets in Financial Instruments Directive (MiFID) are a revamp of those existing under the Investment Services Directive (ISD). The UK and Germany, for example, have already established transaction reporting rules but other member states, notably in Scandinavia, have not. There is also variation in the regulators’ approach to enforcing the rules. Published actions against major banks in the recent past signal that the Financial Services Authority (FSA) is certainly serious about the need to comply.
Helen Benjamin
and
Aaron Caplan
of PricewaterhouseCoopers LLP, consider the impact of MiFID on transaction reporting, focusing on the implications for branches.
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
TCF – weighed in the balance
The FSA continues to pour out material on Treating Customers Fairly. Papers in July on Culture and Management Information were tough enough to read to deaden the spirits of the most hardened regulatory junkie, writes
Adam Samuel
and he is one of the more enthusiastic followers of TCF. We turned to him for a look at how the FSA and the whole initiative are going.
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Paper chase – MiFID client classification
The countdown to MiFID launch has begun: from 1 November overhauled conduct of business regulations will apply on the basis of changed client definitions.
Mazhar Manzoor
of FSA Compliance Consultants Ltd looks at how firms should respond now to the revised classification if new and existing business is not to be compromised.
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
The theme is enforcement
On 1 August, the FSA issued a press release stating that two firms have been fined and one censured for failings relating to mortgage advice. The enforcement action followed thematic work between June and October last year into the quality of the advice process in mortgage brokers. The three firms were among 78 that had been visited as part of the project. A further 99 firms were mystery shopped and 75 completed questionnaires.
Arun Srivastava
and
Oliver Kerridge
of Baker & McKenzie LLP review the grounds for the enforcement action and then set out practical considerations for firms that find themselves part of a thematic review.
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Open questions
For details of Infoline events, visit www.infoline.org.uk
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Prospectus and Listing Rules amended
Supplementary prospectuses will need to be published as “as soon as practicable” in order to ensure that the information available before the end of an offer is as complete as possible under amendments to the Prospectus Rules (PRs) set..
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01 September 2007
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Vol 20 No 1 - 01 September 2007
Regulatory return audit to be a matter of risk
Routine audit of regulatory returns is set to become contingent on risk if proposals in CP07/15 are accepted. Under a risk-based approach the FSA would retain the requirement only for insurers and credit unions. Any authorised firm could be directed..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Provider and distributor responsibilities set out in guidance
The FSA aims, in new guidance, issued under section 157
of the Financial Services and Markets Act
, on the responsibilities of providers and distributors throughout the product lifecycle, to ensure that consumers receive the same fair treatment..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Standards for automated AML
Automated transaction monitoring (TM) systems based on profiling and/or rules around customer activity are widely used by larger firms to counter money laundering. The FSA issued a statement of good practice on the topic in July. It says that..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Covered bonds regulation model published
The lack of a UK regulatory regime for covered bonds, securities backed usually by mortgages or public sector loans, is addressed in a joint consultation by HM Treasury and the FSA. The Treasury is working on legislation - The Recognised Covered..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Ticking off for PPI sales
Finance companies will no longer pre-tick the PPI option box in online application forms after coming under pressure from the FSA. “[I]t will be up to the customer to actively choose to buy PPI rather than it being sold automatically,”..
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01 September 2007
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Vol 20 No 1 - 01 September 2007
Prudential rule changes – a way to reduce misselling?
The FSA is keen to understand if the risk of misselling by personal investment firms (PIFs) and consequent consumer and levy-payer detriment can be dealt with by changes to the prudential requirements. In DP07/4 it notes that smaller PIFs (with..
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01 September 2007
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Vol 20 No 1 - 01 September 2007
Private banks score well on AML
Russian oligarchs are subject to extremely rigorous background checks before private banks will take them on as clients, the FSA found during its review of the sector's anti-money laundering controls at the turn of the year. The study notes that..
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01 September 2007
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Vol 20 No 1 - 01 September 2007
Substandard subprime sales
The FSA has commenced enforcement proceedings against five firms operating in the sub-prime mortgage market. In thematic work covering 11 lenders, which together account for 50% of the sector by volume of sales, and 34 intermediaries, the FSA..
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01 September 2007
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Vol 20 No 1 - 01 September 2007
T&C still looks to exams
Firms expecting guidance on the meaning of “expertise”, under the MiFID-inspired competent employees rule, and “a good standard of ethical behaviour” will be disappointed by the FSA's refusal to oblige in the final..
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01 September 2007
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Vol 20 No 1 - 01 September 2007
New look enforcement manual goes live
Changes to the new Enforcement Guide (EG), which applies from 28 August alongside the Decisions Procedures and Penalties Manual (DEPP), will be subject to at least 28 days consultation, and approval by a committee of the FSA board, the regulator..
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01 September 2007
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Vol 20 No 1 - 01 September 2007
Integrated regulatory reporting review to shorten returns
The Complaints Return and Retail Mediation Activity Return (RMAR), sent in every six months by the vast majority of regulated firms, are set to contract by 80% and 30% respectively under proposals in CP07/17. Complaints Return data elements will..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Best execution made clearer
FSA has confirmed the Q&A material on best execution which the Committee of European Securities Regulators (CESR) issued in May. In PS07/15 it says that reference to the Q&A will be included in COBS 11.2.1 and appends the content, which..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
FSA thinks again about handling complainants
In PS07/9 on the revised rules for dealing with complainants, the FSA has listened to feedback and decided not to pursue four rule proposals as originally envisaged in CP06/19; they are: the provision of complaints process information at point of..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Oversight of MTF shares trading under review
The FSA is keen to ensure that markets remain efficient and orderly in the wake of the Government's decision to extend, from 1 November, the relief from stamp duty for intermediaries trading as principals in shares listed on a regulated market..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Mortgage brokers fined for poor advice
Two mortgage brokers have been fined £10,500 each for sales failings discovered during the FSA's “mortgages quality of advice” project in 2006. A third firm was censured. Six out of the 78 firms reviewed were referred to..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
MiFID throws up further Handbook amendments
It was never going to be easy and MiFID implementation is proving to have a lot of knock-on effects, beyond the headline changes to the Conduct of Business Sourcebook (COBS) like pre and post-trade transparency and tests for suitability and..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
COBS finalised after EU confirms superequivalent provisions
Finishing touches have been applied to the new conduct of business sourcebook after the FSA agreed MiFID Article 4 proposals that go beyond the Directive provisions with the European Commission.
Use of the term “independent” will..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007
Commercial imperative
Even the most cynical observer of UK retail financial services might raise an eyebrow at the latest findings on the FSA's treating customers fairly (TCF) initiative. In commentary to its reference framework for supervisors when assessing a..
Online Published Date:
01 September 2007
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Vol 20 No 1 - 01 September 2007