Archives: Regulatory

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Excellent turnout for the inaugural MLROs.com Northern Conference hosted by Squire Patton Boggs’ Birmingham office.

Founded in 2005 with 140 members, MLROs.com lead the way in ensuring that that financial institutions and practitioners are educated, supported and empowered to stop financial criminals. The very first MLROs.com Northern conference took place in Birmingham on Wednesday 11th October 2017, hosted by Squire Patton Boggs’ Birmingham office. The conference saw a strong turnout … Continue Reading

FCA refers investment consultancy and fiduciary management services to the competition watchdog for investigation

On 14 September 2017, alleged “serious concerns” lead the Financial Conduct Authority (“FCA”) to reveal its final decision to exercise its jurisdiction under Part 4, Section 131 of the Enterprise Act 2002 (“the Act”). The FCA subsequently referred investment consultancy and fiduciary management services to the Competition Markets Authority (“CMA”) for a Market Investigation Reference … Continue Reading

Time is running out for firms to respond to FCA consultation on the extension of the Senior Managers and Certification Regime

By now, most FCA regulated firms will be aware that the FCA intends to extend the Senior Managers and Certification Regime (“SM&CR”) so that it applies to all FCA regulated firms from an as yet unspecified date in 2018 (most likely mid to late 2018). The FCA consultation period (in respect of Consultation Paper CP17/25 – “Individual Accountability: … Continue Reading

Upper Tribunal upholds Charles Palmer ban and fine

Background Charles Palmer (“Mr Palmer”) was the CEO and majority shareholder of Standard Financial Group Limited and a director/de facto CEO of the adviser network which comprised of Financial Limited and Investments Limited (“Firms”).   At its its hight  (in 2011) the network boasted 397 appointed representatives (“ARs“) and 516 registered individuals (“RIs“), whom between them … Continue Reading

Court of Appeal finds that banks had no duty to conduct an FCA ordered review with reasonable skill and care

Background The Court of Appeal has this week handed down judgment in three linked appeals (CGL Group and Others v Royal Bank of Scotland Plc and Others). These concerned interest rate hedging products (“Hedging Products“) that certain smaller businesses (including the Appellants) allege they were required to buy as a condition of loans made to them by three banks (in … Continue Reading

Financial Guidance and Claims Bill – tougher regulation for Claims Management Companies

Claims’ Management Companies (“CMCs”) offer legal claims and complaint management services to members of the public. Historically, CMCs work to bring large numbers of complaints against financial services companies and recent areas of focus have been PPI and interest rate hedging mis-selling complaints. Whilst some CMCs are reputable, others try to rally business through unsolicited calls/texts … Continue Reading

Regulator takes action to address risky lending practices

On 4 July 2017, the Prudential Regulation Authority (“PRA”) released a statement on consumer credit (“Statement”), following a review of consumer credit lending (“PRA Review”). The review included the examination of PRA regulated firms’ underwriting practices for credit cards, unsecured personal loans and motor finance.   As readers will be aware, there has been a good deal … Continue Reading

SFO win a reminder of the limits of privilege in internal investigations

In May the Serious Fraud Office persuaded a High Court judge to order Eurasian Natural Resources Corporation to hand over internal investigation documents it had claimed were privileged. The decision brings back into focus the vexed question of which documents produced in corporate internal investigations can be withheld in subsequent regulatory investigations and prosecutions.… Continue Reading

Long awaited certainty on cut-off for PPI claims

In a previous blog post, we discussed how the Financial Conduct Authority (“FCA“) was backing a call by the banks for the introduction of a two year cut-off for PPI claims. Deadline The FCA has now announced that the final deadline for making a new PPI complaint will be 29 August 2019.   Andrew Bailey (Chief … Continue Reading

Squire Patton Boggs appointed to FCA/PRA Skilled Person panel

“Skilled Person” reviews under section 166 of FSMA have become a major feature of the financial services regulatory landscape in recent years. FCA figures show that 51 reports were commissioned in 2016 alone, up from 47 in 2015. Under FSMA the regulators have wide powers to require financial services firms to commission skilled person reports … Continue Reading

Supreme Court to decide if London Whale notices identified Achilles Macris

In a previous blog we described how the FCA is facing a number of challenges from individuals arguing that they are identifiable from regulatory notices addressed to their employers. Individuals are granted third party rights under section 393 of the Financial Services and Markets Act 2000 (“FSMA“), which essentially provides that, if an FCA notice identifies someone … Continue Reading

Upper Tribunal refuses to stay regulatory proceedings pending a criminal trial

Background The Upper Tribunal (Tax and Chancery Chamber) hears references from decisions and supervisory notices issued by the Financial Conduct Authority (“FCA”) and other specified regulators. In this case three references were made by two former employees of Deutsche Bank (Messrs Bittar and Vogt) and a former Barclays Bank employee (Mr Moryoussef). The references related … Continue Reading

Balance of power check for the role of FCA Chief Executive

On 19 April 2016, it was announced that the UK’s Treasury select committee (“TSC“) had won an extra power – the power to hold a hearing with potential Chief Executives of the Financial Conduct Authority (“FCA“), ahead of their formal appointment.  TSC  The TSC is appointed by the House of Commons to “examine the expenditure, … Continue Reading

Government Increases the Regulation of Claims Management Companies

Claims Management Companies (“CMCs”) are businesses that offer legal claims management services to the public. Many CMCs typically process large numbers of complaints against financial services companies. PPI and interest rate hedging product complaints are of particular focus at present. In 2015, there were approximately 1,752 CMCs in the industry (down from a peak of … Continue Reading

Are banks’ internal investigations still privileged?

Financial institutions have developed a trusted template for responding to recent major regulatory controversies. Faced with a regulatory investigation, banks today will usually form an internal working group to take ownership of the issue. That working group will in turn hire a law firm to carry out an internal investigation and report back. The bank … Continue Reading
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