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PRA explains its approach to enforcement

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

Senior compliance officer and trader imprisoned for insider dealing following FCA investigation

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

Outsourcing Failures leave Raphaels Bank with £1.89m Fine

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

FCA found partially liable for loss caused by errors in Financial Services Register

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

Employment Appeal Tribunal provides guidance on the FCA’s ‘fit and proper person’ test

In Radia v Jeffries International Limited, UKEAT/0123/18 the Employment Appeal Tribunal (“EAT”) held that an employer, Jeffries International Limited (“Jeffries”), properly dismissesd an employee where Jeffries considered that the employee fell short of the Financial Conduct Authority’s (“FCA”) ‘fit and proper person’ requirements that are set out in the FCA Handbook.… Continue Reading

FCA gives a final warning on misleading adverts

Back in January, the Financial Conduct Authority (“FCA”) published a letter to the CEOs of regulated firms warning them against misleading financial promotions. As we noted in our previous blog, onthe subject, the letter specifically concerned firms not making clear which parts of their business are subject to FCA regulation and, importantly, which are not. It appears … Continue Reading

FCA hands out second large fine in as many weeks for transaction reporting failures

The Financial Conduct Authority has imposed a fine of £34,344,700 on Goldman Sachs International (“GSI”) for breaches of transaction reporting obligations. The fine comes just over a week after the FCA imposed a £27,599,400 fine against UBS (which we considered in an earlier blog post). Both fines result from breaches of obligations imposed by MiFID … Continue Reading

FCA insights on cyber risk

The Financial Conduct Authority (“FCA”) has just published an Industry Insights document (“Insights”) on cyber security. Whilst not containing any formal guidance or rules, the Insights highlight the risks of cyber attacks to FCA regulated firms and confirms industry best practice around the key areas relating to cyber resilience: governance, identification, protection, detection, situational awareness, response … Continue Reading

FCA puts the spotlight on debt management firms in second thematic review

In 2014 the FCA took over responsibility for regulation of consumer credit. In 2015 it conducted its first thematic review of the debt management sector, looking at commercial and not-for-profit firms that provide debt advice and administer debt management plans. The FCA’s goal was to improve outcomes for customers in what is perceived to be … Continue Reading

UBS fined £27.6m for transaction reporting failures

The Financial Conduct Authority has imposed a fine of £27,599,400 on UBS AG for breaches of transaction reporting obligations imposed by MiFID (the Markets in Financial Instruments Directive (2004/39/EC), as well as a breach of Principle 3 of the FCA’s Principles of Business, which requires regulated firms to take reasonable care to organize and control … Continue Reading

Breach of Competition Law by Asset Managers leads to FCA Fines – First Formal Decision from the FCA under its Competition Enforcement Powers

The conclusion of a three-year investigation into price collusion in an initial public offering (‘IPO’) saw the FCA issue a decision, on 21 February 2019, which finds three investment firms (the ‘Firms’) to have breached competition law with fines of £414,900 have been imposed as a result. This is the FCA’s first formal decision under … Continue Reading

FCA warns firms about misleading financial promotions for unregulated products

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

FCA reminds senior managers to take an active role in AML procedures

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

Cryptoassets Taskforce: Report Indicates Path Forward for UK’s Cryptoasset and DLT Approach

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
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