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Regulatory investigations: High Court confirms auditors should decide whether client documents are privileged

In the recent decision of A v B and another [2020] EWHC 1491, the High Court decided that where an auditor is required to provide documents to a regulator, and the auditor’s client asserts privilege over such documents, it is for the auditor to decide whether the documents are in fact privileged and therefore should not … Continue Reading

Relief for SIPP providers as Court hands down long awaited judgment in Carey Pensions case

Yesterday, the Court finally gave judgement in Russell Adams v Options SIPP UK LLP, a significant test case on the potential liability of an execution only SIPP provider to an investor whose underlying investment in the SIPP had incurred significant losses. In a 99 page judgment, His Honour Judge Dight decided that the Defendant was … Continue Reading

Update on FCA’s Court Action on Business Interruption Insurance Cover

On 1 May 2020, we reported on the Financial Conduct Authority (“FCA”) plans to take Court action seeking a declaration on an urgent basis to try and help resolve some of the ongoing uncertainties around the much-publicised issue of business interruption (“BI”) insurance coverage and how the insurance responds to COVID-19 related claims by insureds … Continue Reading

FCA to take Court action on business interruption insurance and proposes measures to help consumers and small businesses with insurance products

Earlier today, the FCA announced that it will ask the Court for a declaration on an urgent basis to try to help resolve the ongoing uncertainties around the much publicised issue of business interruption (“BI”) insurance coverage that we have written about in the past few weeks.… Continue Reading

FCA sounds warning to financial advisers on professional indemnity insurance amidst COVID-19 pandemic

The Financial Conduct Authority (“FCA”) requires all regulated firms to take out and maintain professional indemnity insurance (“PII”) to cover the financial losses that may be suffered as a result of customer claims and complaints against the firm. The FCA also mandates limits of indemnity for the PII.… Continue Reading

Inside FCA Podcast: What does Cyber Resilience and Security mean for Firms?

On 18 March, The FCA published the transcript to their recent podcast on cyber resilience and security for firms. With more and more financial services moving online, such as online banking, being cyber resilient is becoming increasingly important. With FCA sandbox initiatives for new technology and joint initiatives between the FCA and the ICO it … Continue Reading

Not a risk worth taking – FCA fines and bans pensions’ advisor

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

FCA begins contacting pensions advice firms over suitability and value concerns

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

Court of Appeal confirms that no special rules apply to regulators when it comes to documents protected by legal professional privilege

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

Dear CEO letter to asset managers warns of further FCA focus on the sector in 2020

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 regulator strikes back

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

Court refuses defendants’ document request at £86million FCA pensions’ trial

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
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