The Prudential Regulation Authority (PRA) recently a Dear CEO letter titled “Thematic Findings on the reliability of the regulatory reporting“, outlining the current inadequacy of finance firms’ regulatory reporting procedures and the importance of comprehensive processes. The letter summarizes the PRA’s findings following its investigations carried out since October 2019, and a number of s.166 skilled person reviews on the topic. The investigation focused on governance arrangements, systems and controls to produce returns, schedules of key interpretations and assessing the accuracy of firms’ reporting returns. Overall, the PRA said it was disappointed with firms’ regulatory reporting processes. Whilst the PRA recognises potential historical reasons for the gap between the quality of financial reporting and regulatory reporting, it does not consider that an excuse for inaccurate regulatory reporting. Continue Reading
FOS warns on scam complaints – are banks doing enough?
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
A shot in the dark? Claims against “persons unknown”
A recent judgment in an area which might seem far removed from financial services throws a spotlight on how financial institutions deal with the increasing problem of anonymous online abuse campaigns. Continue Reading
Greater Diversity and Inclusion on Listed Company Boards: FCA Proposals
The Financial Conduct Authority has issued a Consultation Paper, which proposes new disclosure rules with a view to improve diversity and inclusion for listed companies.
LCF mini-bond holders withdraw appeal against FSCS
The Financial Services Compensation Scheme (FSCS) confirmed on 23 August that London Capital and Finance (LCF) mini-bond holders have withdrawn their appeal against an important March 2021 High Court decision dismissing their judicial review claim. FSCS confirmed that the litigation had been concluded without any change to any of its earlier decisions on LCF claims.
FCA Business Plan 2021/22 – transformation, accountability, and regulatory priorities for the coming year
The FCA’s annual business plan is a closely watched indicator of what we can expect from the regulator in the coming year. The recently published Business Plan for 2021/22 indicates the FCA’s focus on continued transformation and greater accountability as a regulator. It also sets out key priorities for the FCA for the coming years across a mix of familiar focus areas and more nascent emerging themes.
Compulsory ADR – Coming soon to a dispute near you?
Alternative dispute resolution (or “ADR”) has long played an important role in dispute resolution. A recent report by the Civil Justice Council (the “Report”), commissioned to consider the legality and desirability of making ADR compulsory, could see ADR playing an even more prominent role in future. Continue Reading
Bank did not breach duties in loan renegotiation
In December 2006, Mr Morley, a commercial property developer, entered into a £75m, three-year loan with Royal Bank of Scotland plc to refinance his property portfolio, add new properties to it and provide him with a “bonus payment” for his personal use. The bank secured the loan over his portfolio of 21 commercial properties in the North of England valued at around £98m.
Supreme Court establishes new scope of duty test in professional negligence
The UK Supreme Court has significantly reformulated the scope of duty test that applies in cases of professional negligence. It handed down its decision in the case of Manchester Building Society v Grant Thornton UK LLP [2021] UKSC 20 on 18 June 2021. SPB acted for the successful party, Manchester Building Society.
FCA issues updated statement on insurers making deductions for Government support from COVID-19 business interruption settlements
Last month, the Financial Conduct Authority (“FCA”) published updated guidance regarding COVID-19 business interruption settlements and deductions made for Government support.
The FCA first commented on this issue in August 2020, following reports that some insurers were making deductions for Government support received by policyholders, when calculating payments for business interruption insurance claims.
The FCA’s recent statement follows its January “Dear CEO letter”, which we discussed in our previous blog post here. In this letter, the FCA re-iterated its expectations that insurers should only deduct Government support from claim payments if the appropriateness of such a deduction has been thoroughly considered and the insurers’ conclusions properly documented.
