i-law

Compliance Monitor

Tribunal upholds FSA fine for poor GTEP advice

The Upper Tribunal has backed the regulator’s £100,000 censure of Westwood Independent Financial Planners for communication and suitability failings regarding geared traded endowment policies. It found that for all the customers who..
Online Published Date:  12 December 2013

FCA launches thematic review of price comparison websites

The Financial Conduct Authority will scrutinise 14 insurance price comparison websites – 90% of the market – to determine “does cheapest equal best?” Nearly half of internet users have researched motor insurance through such..
Online Published Date:  12 December 2013

Why we might not benefit from naming beneficial owners

David Cameron’s planned central registry of companies’ beneficial ownership could have unintended consequences, including an added compliance burden, argues Alan Ward. The compliance obligations that businesses face are rarely..
Online Published Date:  12 December 2013

A Compliance Carol

“Ding dong merrily on high!”… Alas, ‘tis not a cheery chime, but one of pounding paperwork and penalties, meted out ‘twixt newborn year and yule. Horace Fletcher pleads for peace on earth and goodwill to all compliance..
Online Published Date:  12 December 2013

Doc 'n' defend for asset managers

“Documentation is the best form of defence,” reiterate Sam Bishop and Ben Nicholson. They draw lessons from the recent thematic review of anti-money laundering, bribery and corruption controls in the asset management sector. Asset..
Online Published Date:  12 December 2013

When SEC registration results in examination

Registration of investment advisers and broker-dealers from outside the United States with the Securities and Exchange Commission invokes obligations under the Investment Advisers Act and other rules, as well as the possibility of inspection...
Online Published Date:  12 December 2013

SEI Investments stung by client money penalty

Problems with its internal reconciliations have prompted SEI Investments (Europe) Ltd to be fined £900,200 by the Financial Conduct Authority for client money breaches. Between November 2007 and October 2012 SEI failed several times to ensure..
Online Published Date:  12 December 2013

EU weighs in on benchmark rigging, with cartel fines

The European Commission has used its competition law powers to penalise eight financial institutions a total of €1.71 billion for taking part in cartels relating to interest rate ­derivatives. This follows well-publicised action taken by..
Online Published Date:  12 December 2013

Regulators respond to the roar of crowdfunding

October saw initiatives in various legal systems to assess the impact and possible effects on consumers of the recent surge in crowdfunding. Emma Radmore and Juan Jose Manchado examine the Financial Conduct Authority’s proposals in particular..
Online Published Date:  12 December 2013

Who is the sophisticated investor?

Ladies and gentlemen to whom one may correctly promote complex investments are an elusive breed to label. Adam Samuel presents the sophisticated and professional clients defined by current financial services regulation. The Parliamentary..
Online Published Date:  12 December 2013

FCA tightens dealing commission rules for investment managers

As part of its wider work on conflicts of interest and charges, the Financial Conduct Authority has released proposals for how charges paid by consumers for the execution of trades and related services can be made more transparent. The regulator..
Online Published Date:  12 December 2013

FCA targets governance of SME loans

The Financial Conduct Authority has ordered a skilled person to examine allegations that the Royal Bank of Scotland is forcing viable small businesses into restructuring so that the bank’s property division can snap up assets on advantageous..
Online Published Date:  12 December 2013

Proposals shore up minority shareholder rights

A further consultation on reforms to the Listing Regime has sought to strengthen protections for minority shareholders. Following on from CP12/25 and CP12/2, the new proposals from the Financial Conduct Authority in CP13/15 include: Placing..
Online Published Date:  12 December 2013

Over 200 financial promotions withdrawn or amended in a year

During the year that ended on 30 June, 204 financial promotions were amended or withdrawn by the regulator. This is according to information acquired by consultants Bovill, who say that typical failings include using excessive investment jargon;..
Online Published Date:  12 December 2013

Asset management outsourcing needs more work, says FCA

Positive steps have been taken by asset managers in relation to resilience risk as a result of a December 2012 Dear CEO letter, the Financial Conduct Authority has said in its thematic review of outsourcing in the sector (TR13/10). (Responding to..
Online Published Date:  12 December 2013

STRs in their eyes: suspicious transaction reports rocket

In the past five years the number of suspicious transaction reports to the financial ­regulator has shot up by 250%, according to data ­obtained by law firm Pinsent Masons. There were just 339 in 2008/9, compared with 1199 in 2012/13. On a..
Online Published Date:  12 December 2013

Surprise loan cost cap from Government

Not long after the Financial Conduct Authority unveiled its proposed consumer credit regime, Chancellor George Osborne has unexpectedly announced plans to cap the cost of credit. This will entail amendments to the Banking Reform Bill, which is..
Online Published Date:  12 December 2013

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