i-law.com - Newsletter (Compliance Monitor)

The Standard Life 2019 final notice – another zeitgeist moment

The former assurance company has been extraordinarily unlucky to have caught the regulator’s eye both in 2010 and 2019 while acting similarly to the rest of the industry. The recent enforcement action involved a strategic problem – Standard Life’s systems and controls failed to protect customers from precisely the outcome that the firm was seeking from its staff: the retention and growth of pension business through the sale of its annuities, regardless of whether this was in clients’ best interests. Adam Samuel analyses lessons from the case.

Online Published Date: 04 September 2019

Appeared in issue: Vol 32 No 01 - 02 September 2019

FCA curtails “dysfunctional” overdrafts market

Reforms that dramatically reduce the cost to financially-stretched customers of using unarranged overdrafts, could create a hole in income for banks that they seek to claw back elsewhere. Caroline Stevensonreports.

Online Published Date: 04 September 2019

Appeared in issue: Vol 32 No 01 - 02 September 2019

SFO widens investigation into £236m minibond scandal

A number of arrests have now been made by the Serious Fraud Office pertaining to the London Capital & Finance collapse, while HM Treasury has ordered an independent inquiry into the regulator’s handling of the affair – yet investors are still £236 million out of pocket. Bambos Tsiattalou discusses legal aspects of the case.

Online Published Date: 04 September 2019

Appeared in issue: Vol 32 No 01 - 02 September 2019

The final report into RBS’s GRG – regulator says its hands are tied

After serious concerns about the Royal Bank of Scotland’s Global Restructuring Group were raised by aggrieved small businesses as well as an independent review, the regulator launched an investigation to see if any action could be taken against senior management or RBS. However, the Financial Conduct Authority has concluded its powers “even where the mistreatment of customers has been identified and accepted” are very limited.“No regulation exists to this day to prevent a repetition of deeply unpleasant behaviour meted out to businesses in real difficulties,” comments Adam Samuel.

Online Published Date: 04 September 2019

Appeared in issue: Vol 32 No 01 - 02 September 2019

Regulatory pressure boosts demand for compliance monitoring and surveillance experience

After a slow start to 2019, the market for hiring compliance professionals has picked up. Medium to smaller-sized institutions have mainly been responsible for this uptick in recruitment, write Caleb Hawkins and Leo Bellometti.

Online Published Date: 04 September 2019

Appeared in issue: Vol 32 No 01 - 02 September 2019

Overdrafts market, which preyed on the vulnerable, begs nagging questions

Consumer groups argue that the Financial Conduct Authority’s reforms have missed a significant opportunity to introduce price capping in the overdrafts market, which still allows for risk-based pricing. Also, given that the regulator believes the market has caused “significant customer harm”, what action will be taken by the FCA and industry bodies? asks Denis O’Connor.

Online Published Date: 04 September 2019

Appeared in issue: Vol 32 No 01 - 02 September 2019