i-law

Compliance Monitor

Regulatory creep: critical third parties in scope

On top of the operational resilience rules for financial institutions that are about to go live, the regulators have introduced a new regime for external service providers that are relied on for essential functioning of the sector. Emma Radmore and Sheilah Mackie examine what's now in place and what may be yet to come.
Online Published Date:  01 March 2025
Appeared in issue:  Vol 37 No 6 - 01 March 2025

'Threading a fine needle' between AI benefits and risks

While both financial services firms and regulators can gain considerable efficiencies from artificial intelligence, there are serious questions around accountability for the technology's decision-making, how to maintain oversight as it self-evolves, along with systemic risks. Claude Brown explores the issues.
Online Published Date:  01 March 2025
Appeared in issue:  Vol 37 No 6 - 01 March 2025

Ins and outs of ICOBS

Though it collates a crucial body of rules that affect all of our lives, this meandering and neglected tome is greatly in need of revision. Adam Samuel guides a tour through the Insurance Conduct of Business Sourcebook.
Online Published Date:  01 March 2025
Appeared in issue:  Vol 37 No 6 - 01 March 2025

Preparation is key: CASS 15 for payments and e-money firms

With recent insolvencies revealing a 65 per cent shortfall in customer funds being protected, Oliver Hawes summarises new safeguarding rules for the payments sector and suggests how management teams can prepare for the changes.
Online Published Date:  01 March 2025
Appeared in issue:  Vol 37 No 6 - 01 March 2025

Flawed oversight let trader mask losses with fake transactions

Day-to-day reporting, reconciliation and verification processes at Macquarie Bank in London had deficiencies that allowed an employee to record and amend 426 fictitious trades over a 20-month period. Denis O'Connor analyses what went wrong.
Online Published Date:  01 March 2025
Appeared in issue:  Vol 37 No 6 - 01 March 2025

Risky business: FCA combats the rise of finfluencers

There is a worrying disparity between the level of trust placed by younger adults in social media influencers and the often detrimental outcomes of their advice on financial matters. Richard Coopey discusses the problem and a clampdown from the regulator.
Online Published Date:  01 March 2025
Appeared in issue:  Vol 37 No 6 - 01 March 2025

FCA bans two ex-Credit Suisse directors in corrupt Mozambique loans case

The regulator has banned two former Credit Suisse managing directors after reviewing their guilty pleas and subsequent incriminating evidence in the United States but without waiting to hear - as originally planned - the comments of the judge upon sentencing.
Online Published Date:  04 March 2025
Appeared in issue:  Vol 37 No 7 - 01 April 2025

Vulnerable customers fall behind peers in contact with firms, finds FCA research

Customers with challenging personal circumstances are a third more likely to feel negatively after contact with the financial services sector than other members of the population, according to new research from the regulator.
Online Published Date:  07 March 2025
Appeared in issue:  Vol 37 No 7 - 01 April 2025

Starmer lashes out at "hiding behind regulators", as PSR axed

Government plans to abolish the Payment Systems Regulator and merge it in fully with the FCA are leading to speculation that budget changes could also hit the Financial Ombudsman Service.
Online Published Date:  12 March 2025
Appeared in issue:  Vol 37 No 7 - 01 April 2025

FCA scraps 'name and shame' enforcement plan and stalls on D&I

In two major volte-faces, the FCA has dropped its intention to publish names of firms under investigation and has delayed its programme on diversity and inclusion (D&I). The first proposal had already been considerably watered down after meeting with sustained industry opposition. The second was set as one of chief executive Nikhil Rathi's priorities when he joined in 2020. The Prudential Regulation Authority is also understood to be delaying its D&I plans.
Online Published Date:  12 March 2025
Appeared in issue:  Vol 37 No 7 - 01 April 2025

Zeux's failed cryptoasset business registration elucidates FCA expectations

The regulator has given a comprehensive explanation as to what it expects from cryptoasset exchange providers in a decision notice that lists numerous reasons for turning down Zeux Ltd of Berkeley Square in London.
Online Published Date:  17 March 2025
Appeared in issue:  Vol 37 No 7 - 01 April 2025

Odey appeals FCA ban and fine over his response to sexual harrassment claims

An FCA decision notice to fine Crispin Odey £1.8 million and ban him from the sector followed a sequence of events at Odey Asset Management LLP (OAM) in which he twice removed members of the executive committee, threatened personal litigation against them, told them "HR law did not matter here" and refused to co-operate with a proposed safeguarding plan (to protect female employees) that had been suggested by the compliance officer and executive committee members.
Online Published Date:  17 March 2025
Appeared in issue:  Vol 37 No 7 - 01 April 2025

LME fined £9.2m after "relatively junior" staff left to manage disorderly nickel market

One of the world's biggest commodities markets, the London Metals Exchange (LME), has become the first recognised investment exchange to be fined in an enforcement action by the FCA.
Online Published Date:  20 March 2025
Appeared in issue:  Vol 37 No 7 - 01 April 2025

Supervisory shake-up and plans to streamline rules feature in new FCA strategy

The regulator has announced a range of plans to increase efficiency, including its new five-year strategy, a commitment to launch Open Finance and a set of other streamlining proposals.
Online Published Date:  25 March 2025
Appeared in issue:  Vol 37 No 7 - 01 April 2025

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