In August 2022, the FCA released a policy statement introducing improvements to the appointed representative (“AR“) regime. In its policy statement, the FCA provides feedback on its earlier consultation, and sets out new rules to make authorised financial firms more responsible for their ARs. In its press release, the FCA says that whilst some principal … Continue Reading
The Financial Conduct Authority’s new powers to more swiftly cancel or change firms’ regulatory permissions have now come into effect. These powers are particularly aimed at firms that have permissions they are not using. Firms can be required to prove they are carrying out the regulated activities they have permissions for, or risk losing their … Continue Reading
The Financial Conduct Authority has published proposed guidance on the use by firms of compromises to manage their liabilities. Compromises include arrangements with creditors and/or shareholders, such as Schemes of Arrangement, Part 26A Restructuring Plans, and Creditors Voluntary Arrangements (CVAs).… Continue Reading
The Financial Ombudsman Service has noted a “dramatic rise” in complaints by consumers concerning financial scams and fraud. With the hope of embuing safer financial habits and a reduction in these types of complaints, FOS reminds consumers to be careful, but also expects banks to respond fairly and effectively to customers’ complaints.… Continue Reading
Last month, the FCA launched its Defined Benefit Advice Assessment Tool (“DBAAT“) as part of its strategy to reduce harm to consumers and improve the suitability of defined benefit (“DB“) transfer advice. The tool will help firms to understand precisely how the FCA assesses the suitability of DB transfer advice.… Continue Reading
The Financial Reporting Council (FRC) has just published the outcome of new research into the approach that Audit Committee Chairs (ACCs) take to audit quality. The findings suggest inconsistency among ACCs on what constitutes audit quality, and how it should be approached, which the FRC says “lends weight to the proposals for reforms in the … Continue Reading
Following successful trials, the Department of Work and Pensions (“DWP”) announced proposals last Wednesday to introduce a “Stronger Nudge” regime, as part of a package of measures aimed at helping savers make better-informed decisions when it comes to accessing their pension savings, and to further protect them from scams.… Continue Reading
The High Court has decided that a series of reports prepared by the accountants Deloitte LLP (“Deloitte”) for Sports Direct International PLC (“Sports Direct”) (now known as Frasers Group Ltd) in relation to a proposed tax structure were not prepared for the sole or dominant purpose of litigation, and were therefore not protected from disclosure … Continue Reading
According to XPS, the pensions consultancy firm, in July and August of this year 51% of pension transfers, equating to twenty five million pounds in pension savings, were flagged as at risk of a pension scam.… Continue Reading
CPS Advisory Limited, a Swansea-based advice company, has been fined £130,000 from the Information Commissioner’s Office (ICO) for making over 100,000 calls to people without lawful authority between 11 January 2019 and 30 April 2019.… Continue Reading
Earlier this month, an Upper Tribunal Judge ordered the FCA to pay a mortgage broker’s legal costs. The Judge deemed the FCA’s decision to pull the business’ trading permissions for not having insurance amid a wide mortgage fraud probe, “unreasonable”.… Continue Reading
Earlier this week, the FCA warned that it would get tough on against insurers that it finds are acting unfairly in paying COVID-19 related insurance claims. This was in response to complaints from small business groups that insurers are deducting the costs of Government grants from insurance pay-outs.… Continue Reading
Yesterday saw the start of the FCA’s high profile test Court case against insurers on behalf of those businesses who have suffered non-damage business interruption losses caused by the COVID -19 pandemic.… Continue Reading
Last week we reported on the FCA’s recent success at trial against pensions introducers Avacade and Alexandra Associates with the High Court deciding that Avacade and Alexandra had provided unregulated pensions advisory services to consumers.… Continue Reading
The FCA has succeeded in its civil claim against two companies and three of their directors found to be providing unregulated pensions advisory services to consumers.… Continue Reading
The Pensions Policy Institute (“Institute“) has said that a lack of comprehensive data on the number and scale of pensions scams, places limitations on the industry’s ability to effectively protect savers. According to the Institute, “victims of pension scams [are] losing more than £80,000 on average.” There is growing concern from the Institute that during the COVID-19 … Continue Reading
Last week, the insurer Hiscox confirmed that it has begun to receive notifications of coronavirus related claims. Hiscox has said that it is still too early for it to determine the potential impact of the virus on its business. However, it cites events cancellations, travel and personal accident cover as the main areas of its … Continue Reading
The Financial Conduct Authority (“FCA“) has successfully applied to the Upper Tribunal to strike out an appeal made by P.F. International Limited (“P.F International“), against the FCA’s variations of the Company’s regulatory permissions, due to its breaches of lending rules.… Continue Reading
The Financial Services Compensation Scheme’s (“FSCS“) levy for management expenses will increase by nearly 5% to £78.2 million, for the period 2020/21. The FSCS will also receive an unlevied contingency reserve of £5 million.… Continue Reading
The Financial Conduct Authority (“FCA”) has issued its first fine to a claims management company since it took over the regulation of the claims management sector eight months ago.… Continue Reading
Last week, the High Court found Genworth Financial Inc. (“Genworth“), liable to pay losses to AXA in the potential sum of £265 million, in respect of compensation that AXA had paid to settle payment protection insurance (“PPI“) misselling claims against two Genworth subsidiaries that were acquired by AXA.… Continue Reading
On 1 November 2019, the Business Banking Resolution Service (“BBRS”) launched a new dispute resolution pilot in preparation for the introduction of its new service, which was originally announced in November 2018 by UK Finance, a trade body for British lenders. The service aims to provide alternative dispute resolution services for “larger” eligible small and … Continue Reading
The FCA has fined Tullet Prebon (Europe) Limited (“Tullet”) £15.4 million for a series of serious conduct failures and lapses in management control around its broker division.… Continue Reading
In a report published last week, the House of Commons’ Treasury Select Committee (“Committee“) recommended that the FCA should be given more powers to help it address the consumer harm occurring in the “grey area” that sits just outside the FCA’s perimeter of regulation. … Continue Reading
