After a relatively quiet year for fines in 2018, the Financial Conduct Authority (“FCA“) has already published two Final Notices this week confirming the first fines of 2019 that total over £79 million.… Continue Reading
Last week, the Financial Conduct Authority (“FCA”) published a letter addressed to the CEOs of all regulated firms concerning financial promotions. In particular, the FCA highlighted its concerns over financial promotions that falsely implied that all of a firm’s activities were regulated by the FCA or the Prudential Regulation Authority (“PRA”), when in fact they were … Continue Reading
The FCA’s latest update on its review of pension transfer advice does not make for happy reading. The stats As part of its ongoing review of the pensions transfer industry, the FCA reviewed advice on 154 transfers made by 18 firms (out of a total of 48,248 potential transfers advised on by these firms in … Continue Reading
Last week the FCA published a Decision Notice which imposed a fine of £76,400 on the former CEO of Sonali Bank (UK) Ltd (“SBUK“), Mohammed Ataur Rahman Prodhan (“Mr Prodhan“), for “acting without due skill, care and diligence and for being knowingly concerned in a breach by SBUK of its obligations to maintain effective anti-money laundering … Continue Reading
In light of rapid developments in the market, the substantial potential of applications of distributed ledger technology (DLT), and growing evidence of the risks associated with cryptoassets; the Chancellor of the Exchequer launched the Cryptoassets Taskforce, comprising HM Treasury (HMT), the Financial Conduct Authority (FCA) and the Bank of England (BoE), in March 2018 as … Continue Reading
The Upper Tribunal, the independent Court that hears appeals from FCA decisions, last week upheld the regulator’s decision to fine Stewart Ford, the former CEO of Keydata Investment Services Limited, a huge £76million (the largest FCA fine on an individual) and ban him from working in the financial services industry. The Tribunal decided that the FCA had been correct to ban and fine … Continue Reading
In a move designed to (in their own words) ‘ensure more complainants receive fair compensation’ and to ‘build consumer trust in the integrity of the industry’, on 16 October 2018 the FCA published a Consultation Paper in which the regulator outlines proposals for increasing the Financial Ombudsman Service money award limit from £150,000 to £350,000 for … Continue Reading
The last 18 months or so has seen a slight readjustment or nuancing of the FCA’s “credible deterrence” policy (which was all about tough, targeted and public disciplinary action with increasing fines and naming and shaming) that has been at the heart of the regulator’s enforcement strategy since 2008.… Continue Reading
The Financial Conduct Authority (“FCA”) continues to see its caseload increase to record levels despite the fact that it is dropping more investigations than ever before. Recently published statistics reveal that in the year ending March 2018 a total of 208 investigations were ended compared to 115 in the previous year and 98 in 2015/16. … Continue Reading
Hot on the heels of the Court of Appeal’s decision in SFO v ENRIC earlier this month, legal professional privilege has once been under the microscope in a recent High Court case, The Financial Reporting Council Limited v Sports Direct International Plc [2018] EWHC 2284 (Ch).… Continue Reading
Last week the Court of Appeal (The Director of the SFO v Eurasian Natural Resources Corporation Limited [2018] EWCA Civ 2006) reversed the High Court’s controversial and troubling decision from 2017 that concerned the extent to which litigation privilege could apply to documents generated in the context of internal investigations. ENRC successfully argued that legal professional … Continue Reading
The Financial Conduct Authority (FCA) published its annual Anti-Money Laundering Report on 19 July 2018, for the year ended 31 March 2018. In the report, the FCA reminded firms that due to the size and global nature of the UK financial industry, financial crime and AML remains a significant risk and is therefore one of … Continue Reading
Hot on the heels of the FCA’s recent “Dear CEO” letter, the PRA has sent its own reminder to regulated firms considering, or already holding, crypto-assets. Whilst the FCA focussed on mitigating the financial crime risks faced from use of crypto-assets, the PRA focussed on the risk of exposure to these developing assets which (in … Continue Reading
At the recent Banking Litigation and Regulation Forum, the FCA’s Director of Enforcement and Market Oversight, Mark Steward, discussed the measures implemented by the FCA to tackle the loss of confidence and trust in the financial industry following the Financial Crisis.… Continue Reading
Last week the FCA published for consultation a paper describing its approach to enforcement. It has invited feedback on the paper by 21 June 2018.… Continue Reading
In the recent case of FCA -v- Grout [2018] EWCA Civ 71, the Court of Appeal confirmed the restrictive approach to third party rights pursuant to FCA notices previously laid down by the Supreme Court in Macris -v- FCA [2017] UKSC 19. We previously reported on the Macris decision on its way to the Supreme Court and following the judgment.… Continue Reading
On 25 January 2018, the FCA fined Interactive Brokers (UK) Limited (“IBUK“) just over £1 million for “serious and systemic weaknesses” arising out of poor market abuse controls and failing to report suspicious client transactions during February 2014 to February 2015 (“Relevant Period“).… Continue Reading
The Financial Conduct Authority (“FCA”) has recently turned its attention to firms who may mis-sell contracts for difference (“CFDs”) to customers. The FCA says that it has a “serious concern” about the market. On 12 January 2018, following a 12 month review of the CFD market, the FCA issued an ominous warning in the form of a “Dear CEO” letter addressed … Continue Reading
During 2017, the FCA imposed fines for misconduct on regulated businesses and individuals totalling over £229,500, 000. Whilst 2017 did not see a return to the number or size of fines imposed by the FCA in 2014/2015 (when billions of pounds of fines were imposed following interbank rate and FX related misconduct), the year did see a tenfold increase in FCA fines from 2016 (total … Continue Reading
By Katherine Wakeham and Thomas Noble on Posted in Regulatory
Back in March 2017, the Supreme Court handed down its decision in Financial Conduct Authority v Macris [2017] UKSC 19. We have previously reported on that decision on its way to the Supreme Court and following the judgment. In brief, Section 393 of the Financial Services and Markets Act 2000 (“FSMA”) provides individuals identified in … Continue Reading
Last week the FCA announced that it had banned Mr John Chiesa and his wife Mrs Colette Chiesa from working in financial services for the “calculated way” that they deceived creditors after going into “sequestration” (the Scottish term for bankruptcy). Mrs Chiesa was also fined £50,000 for attempting to mislead the FCA during an FCA interview.… Continue Reading
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
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
