FIN.

Category - Enforcement & Litigation

FCA bans pensions advisers

The FCA has published Decision Notices against two individuals for acting without integrity in relation to pensions business. The FCA has banned Stephen Burdett and James Goodchild from working in regulated financial...

FOS consults on CMC fees

Following the publication of Treasury’s draft legislation, FOS has announced a consultation on proposals to charge Claims Management Companies and other professional representatives up to £250 to lodge a case. The...

FCA fines for poor customer treatment

The FCA has fined 3 entities within the HSBC group £6.2m for failures in treatment of customers in financial difficulty. For a period of around 15 months, ending in October 2018, it found the bank had not properly...

BBRS publishes 2023 report

The BBRS has published its annual report for 2023. The report acknowledges that the service has dealt with far fewer complaints than originally anticipated, but is pleased with the work it has done, and the feedback...

FOS updates on car finance complaints

FOS has around 20,000 open complaints on car finance commission. It has explained on its website that: it published its first representative decisions in January 2024; also in January, the FCA announced its review of...

FCA publishes Q1 fin proms data

The FCA has published its financial promotions data for Q1 2024 on its actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity. During the period: 2,211...

FCA updates complaints data

The FCA has published updated complaints data based on returns from then nearly 300 firms reporting at least 500 complaints within 6 months or 1000 within a year. Key findings from the 2023 H2 data include: Complaints...

Debanking complaints spike

The Treasury Committee has published new data that shows a rise of 69% in complaints to the FOS about debanking since 2020/21. In the last year, there were nearly 4,000 complaints. There has also been an increase in the...

FCA updates on BSPS complaint action

The FCA has provided an update on the complaints it has been receiving about what it is doing, or not doing, in relation to the fallout from BSPS transfer advice. Although it has implemented a redress scheme and taken...

BBRS publishes quarterly data report

The BBRS has published its quarterly case resolution data as of 31 March 2024. Key highlights include: From a total of 1,037 case registrations, there were 1,006 resolved case outcomes and 31 remain open. Of the...

FCA updates on motor finance complaints

Following the announcement of its review into motor finance complaints, the FCA has published a statement on progress made to date. It says that firms have engaged with the FCA constructively but many are struggling to...

FCA publishes Link findings

The FCA has published its findings against Link Fund Solutions, explaining its conclusion that the firm failed to manager the liquidity of the Woodford Equity Income Fund from 31 July 2018 to 3 June 2019 and therefore...

FCA updates perimeter report

The FCA has updated its Perimeter Report on its website.  It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...

FOS publishes plans and budget for next phase

The FOS has published its finalised Plans and Budget for the next phase of its transformation.  It expects to receive a greater number of complaints in the coming year, and anticipates 210,000 complaints in its caseload...

FCA makes minor rule changes

The FCA has published its latest Handbook Notice. It has made changes to several parts of the rulebook, but mainly minor changes. The changes include: Removing SUP 1A which no longer reflects the FCA’s approach to...

FCA publishes Business Plan 2024/2025

The FCA’s 2024/25 Business Plan highlights the work carried out to date, and what it plans to do in the coming year, the final year of its 3 year strategy. The strategy continues a focus on delivery of the...

Court decides on investment property loans

The Court of Appeal has found in favour of an unregulated lender, confirming that agreements it entered into with individuals were investment property loans which were exempt from the RAO definition of “regulated...

FCA speech: investing in outcomes

Nikhil Rathi, Chief Executive of the FCA, has delivered a speech on the FCA’s broad approach to topics in which investors have recently been expressing significant interest. The speech highlighted the following as...

FOS limit to increase to £430,000

The FOS maximum compensation limit will increase from 1 April 2024. It will be: £430,000 for claims referred to FOS on or after 1 April 2024 about acts or omissions by firms on or after 1 April 2019; and £195,000 for...

FCA updates on Woodford

FCA has updated its website with further updates on the Woodford Equity Income Fund. It has confirmed the redress scheme became fully operational on 5 March and that payments are expected around Easter.

FCA secures fraud conviction

Guy Flintham has pleased guilty to fraud in relation to an investment scheme he operated. FCA brought the prosecution, for fraud by false representation and for carrying on regulated activities without authorisation by...

FCA intervenes in 10,000 ads in 2023

FCA has published its financial promotions data for the last quarter of 2023 and the entire past year. It has: caused over 10,000 promotions to be withdrawn or changed in 2023 (a 17% increase on the previous year);...

BoE updates enforcement approach

BoE has published its final policy and feedback to its consultation on its approach to enforcement. We covered the consultation here. The changes (including changes from the original consultation that BoE has made in...

PRA consults on FSCS MELL 2024/25

PRA is consulting on the FSCS MELL for 2024/25. Under FSMA, PRA and FCA must set a limit for the total management expenses that the FSCS can levy on financial services firms. The MELL is the maximum amount that the FSCS...

FCA takes action on motor finance complaints

FCA is unhappy that motor finance firms are rejecting high numbers of consumer complaints about commission arrangements.  After FCA banned discretionary commission arrangements in 2021, many consumers complained and...

FCA reflects on 2023

Nikhil Rathi has reflected on some of FCA’s key achievements and milestones from 2023. He highlighted: the implementation of the Consumer Duty and changes firms have already made as a result; FCA telling GAP...

New Complaints Commissioner for 2024

Rachel Kent has been appointed the new Financial Regulators Complaints Commissioner. This is the first Commissioner appointment made by Treasury, as a result of changes in FSMA 2023.  She starts a 5 year appointment on...

FOS consults on plans and budget 2024/25

FOS is consulting on its proposed plans and budget for 2024/25. Questions include: what volume and trends should FOS be expecting in banking and consumer credit, insurance, investments and pensions, SME volumes, CMC...

OFSI defends licence refusal

The High Court has supported OFSI’s decision to refuse to grant licence requests relating to a Designated Person. Mikhail Fridman had filed the first claim under s38(2) of SAMLA (and also the first challenge to...

Lenders go into administration

FCA has confirmed that Morses Club Limited, a home collected credit lender, and its subsidiary Shelby Finance Limited (Dot Dot Loans – an online HCST lender) have gone into administration. It provided information...

FCA updates on Woodford Scheme

Link Fund Solutions is to convene a meeting of all affected investors on 13 December to vote on whether to approve the proposed settlement fund in relation to the LF Equity Income Fund. FCA has confirmed it believes the...

FOS releases half-yearly complaints data

FOS has published data showing the number and outcome of the complaints it has handled about financial businesses for the period of January to June 2023. The key take-aways are: FOS received a total of 93,114...

FCA updates complaints data

FCA has published updated complaints data based on returns from firms. Snapshots from the 2023 H1 data include: a slight increase in complaints from the previous 6 months (5%); most significant increases in the...

FCA updates on skilled persons reports

FCA has published the numbers of skilled persons reports commissioned in the first two quarters of 2023: From April to June it commissioned 11 reports, of which 4 related to retail investments and 3 to wholesale...

FCA censures LCF over fin proms

FCA has censured London Capital & Finance for issuing misleading financial promotions about minibonds to retail investors. The promotions made the minibonds look a more attractive investment than they were and...

Supreme Court rules on limitation in PPI case

In the case of Smith and another (Appellants) v Royal Bank of Scotland (Respondent) [2023] UKSC 34, the Supreme Court has ruled that the claims made by claimants seeking orders under the Consumer Credit Act 1974 were...

UK Finance respond to ban on cold calling

UK Finance has responded to HM Treasury’s proposals to ban cold calling in financial services and is supportive of the proposals. The measures aim to protect consumers, particularly elderly and vulnerable...

OFSI uses disclosure power for first time

OFSI has used its disclosure enforcement power for the first time to highlight a breach of the Russia (Sanctions) EU Exit Regulations 2019. This power allows OFSI to publish notices of breaches where it has decided not...

FCA cancels unused permissions

The FCA has used its power to cancel consumer credit permissions which were not used for 2 years. Mr Roche was authorised by the FCA in January 2015 and held consumer credit permissions of: agreeing to carry on a...

FCA publishes Q2 fin proms data

FCA has published its financial promotions data for Q2 2023, which showed that 1507 promotions were amended or withdrawn as a result of FCA intervention. As with the data for Q1, the majority of cases related to retail...

FOS blogs on consumer card protections

FOS has published a blog on how businesses can help consumers who have problems with goods and services. It has noticed that consumers aren’t always aware of the protections they have when paying for goods or...

Consumer Duty takes effect

The Consumer Duty has taken effect for all on-sale products. FCA has reminded consumers of the protections it gives them.
Read our summary of what FCA is expecting from firms.

Regulators publish revised Complaints Scheme

Following a joint consultation between FCA, PRA and BoE in July 2020, the regulators have set out final changes to be made to the Complaints Scheme. The revised Complaints Scheme and policy statement was initially due...