Earlier this month, the FCA fined a former advisory firm director £23,400 for overseeing the transfer of £112m of pension retirement funds in to risky investments. The FCA is concerned about unsuitable advice around pensions’ transfers and this latest action sends another strong regulatory message to the market about the FCA’s “get tough” approach towards … Continue Reading
The retirement income market is a key area of FCA focus, particularly the suitability of both products and advice as the industry adapts to pension freedoms. In the FCA’s Sector View Report published on 18 February 2020, Pension freedoms are highlighted as one of the continuing key drivers of change in the sector with more … Continue Reading
In a welcome and robust defence of the scope of legal professional privilege (LPP), the Court of Appeal in Sports Direct International Plc v Financial Reporting Council [2020] EWCA Civ 177, reiterated last week that there are no exceptions to the protections afforded by LPP unless it is used to hide criminal actions or where … Continue Reading
The FCA has backed standards penned by independent body, the Lending Standards Board (“LSB“), that aim to ensure finance companies conduct themselves properly when they offer unregulated products. This is despite some fears in the industry that FCA backed voluntary codes may confuse consumers.… Continue Reading
The FCA is taking steps to address problems faced by borrowers who are in persistent debt due to ever increasing credit card balances. Where a credit card customer is in a situation where, for a period of 3 years or more, they have been paying more in interest, fees and charges than they are paying … Continue Reading
On 20 January 2020 the FCA published a Dear CEO Letter to Authorised Fund Managers (AFMs). The letter is directed at AFMs that predominantly directly manage mainstream investments, or advise on mainstream investments, excluding wealth managers and financial advisers. The letter outlined the FCA’s supervision priorities for those firms, and the FCA will expect firms … 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
Last week, the Court prevented two unregulated introducers and their directors (the “Defendants“) from seeing documents linked to an investigation by the FCA into pensions’ providers and financial providers that did business with the Defendants. The Defendants are currently on trial in the High Court and stand accused of having given unauthorised and misleading advice about … 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
On 6 January 2020, the FCA published a letter addressed to the CEOs of general insurance firms. This letter sets out the FCA’s expectations for firms to be proactive in tackling non-financial misconduct in the sector and envisions that the Senior Managers and Certification Regime (“SM&CR“) will provide “…an opportunity and catalyst to transform the … 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
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
A spate of final notices issued by the FCA over the last month highlights the volume of breaches by firms failing to deal with the regulator in an “open and cooperative” manner.… 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
Back in the Summer we reported on the Prudential Regulation Authority’s (“PRA”) explanation of its approach to enforcment action against those who the PRA think have broken the rules. In a further development last week the PRA updated its policy on settlement of enforcement action (“Updated Policy”), which consolidates proposals in its April 2019 consultation report (CP10/19). It aims to … Continue Reading
Debbie Gupta, FCA Director of Life Insurance and Financial Advice Supervision, spoke at a conference last week about how financial advisers might improve the suitability of their advice to clients and at the same time reduce the risk of client complaints (or at least improve the chances of successfully defending them).… Continue Reading
In a recent speech given at the Cambridge Economic Crime Symposium, the Chairman of the Financial Conduct Authority (FCA), Charles Randell, discussed the growing “epidemic” of fraud across the UK, and the need for collaboration in both the public and private sectors to fight more effectively against investment fraud.… 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
At the Financial Services Lawyers’ Association meeting last week, Miles Bake, Head of Legal at the Enforcement & Litigation Division of the Prudential Regulatory Authority (PRA) discussed the PRA’s approach to enforcement, gave an overview of recent PRA enforcement actions/investigations and explained the Enforcement Division’s (ED) future agenda.… Continue Reading
At the end of last month a senior compliance officer at UBS AG (“UBS“) and her financial securities trader associate were each sentenced to three years imprisonment for five offences of insider dealing, following successful criminal proceedings brought by the Financial Conduct Authority (“FCA“). Confiscation proceeding are also being pursued against both defendants.… Continue Reading
Raphael & Sons plc (the “Bank“) has been hit by separate fines from the Financial Conduct Authority and the Prudential Regulation Authority (together, the “Regulators“) of £775,100 and £1,112,152 respectively. An IT issue with one of the Bank’s third party card processor’s left over 3,300 customers unable to use their prepaid cards on Christmas Eve … Continue Reading
The Financial Regulators Complaints Commissioner has recommended that the Financial Conduct Authority makes an ex gratia payment of £6,500 to an individual complainant. The recommended payment represents 50% of the total loss suffered by the Complainant as a result of errors in the Financial Services Register. The Complaints Commissioner acknowledged that the FCA should not … Continue Reading
When FCA Director of Enforcement and Market Oversight Mark Steward spoke in London last month, his comments could hardly have been more timely. Hot on the heels of his remarks on dual-track (civil and criminal) AML investigations came a significant fine arising out of a firm’s AML systems and controls. It also came as the … Continue Reading
