FCA has cancelled the permission of Foreman Financial Services Limited for failure to remain fit and proper and specifically for breach of DISP rules and Principles 6 and 11. The firm had advised a customer to transfer...
Category - Enforcement & Litigation
Emma RadmoreBrightHouse to reimburse customers following FCA engagement
BrightHouse, a rent-to-own company providing household goods to customers on hire purchase agreements, has committed to pay over £14.8 million to 249,000 customers following engagement with FCA. In 2014, FCA had...
FIN. TeamFOS updates on PPI and other complaints
The latest edition of Ombudsman News highlights: FCA’s PPI complaints deadline awareness campaign, and the common questions FOS gets from people looking to complain about PPI. FOS has seen a significant increase...
FCA fines Merrill Lynch for transaction reporting failings
On 23 October 2017, the FCA published the final notice issued to Merrill Lynch International (Merrill Lynch). Merrill Lynch was fined £34,524,000 for failing to report exchange traded derivative transactions between...
FCA agrees to scrutiny of RBS report
Following the controversy of FCA’s refusal to publish the skilled persons’ report into the treatment of customers in the RBS Global Restructuring Group and its correspondence with the Treasury Committee on...
ICO fines bank for spam marketing
The ICO has fined Vanquis Bank £75,000 for sending 870,000 texts and 620,000 emails promoting its credit cards to recipients who had not consented to receive them. It had used marketing lists from other organisations...
FOS feeds back on PPI time limit changes
FOS has published feedback to its consultation on changes to the time limits for PPI complaints. It merely confirms the amendment to the Voluntary Jurisdiction in line with FCA’s changes to the Compulsory...
FCA publishes card change undertaking
FCA has published an undertaking from PPRO Financial Limited to make changes to its prepaid card terms and conditions. The Dutch AFM had referred the matter to FCA after it received complaints from customers under the...
FCA speaks on investigations and meeting MiFID 2 deadlines
Mark Steward has spoken on the increase in FCA investigations into market conduct over the past year. He said the 75% increase results from: more investigations into capital market disclosure issues the extension of...
FCA speaks on SMR extension
Jonathan Davidson has spoken on culture and conduct in the context of FCA’s proposals to extend the SMR. Key points of his speech included: that business models often create commercial incentives for behaviours...
FCA responds on leaked RBS report
FCA has responded to Nicky Morgan’s letter about the leaking of a s166 report on RBS’ treatment of customers in its global restructuring group. Andrew Bailey has reiterated that FCA does not think it is in...
CMA starts investment consultants market investigation
CMA has announced an investigation into the supply and acquisition of investment consultancy and fiduciary management services following a referral by FCA. FCA has decided to reject the undertakings in lieu offered to...
SFO speaks on DPAs
Alun Milford has spoken on SFO’s use of deferred prosecution agreements for dealing with “certain co-operative and reformed corporate offenders”. He noted that SFO has now secured 4 DPAs, of which 3...
FCA consults on miscellaneous changes
FCA’s latest Quarterly Consultation Paper covers: amendments to FEES in respect of fees when firms apply for a VOP for provision of payment initiation and account services. FCA needs to charge fees as it has...
Treasury responds on pension scams
Treasury has confirmed its plans to ban cold calling, emails and texts in respect of private pensions as part of its measures to address pension scams. It will also tighten rules to ensure that only active companies...
MoJ publishes Plevin guidance for CMCs
The Ministry of Justice has published guidance for claims management companies when they handle cases relating to Plevin. The guidance mainly explains what FCA’s expectations are and stresses that CMCs must not...
BoE NEDs review conflicts policies
The BoE’s non-executive directors have published a review of its approach to identifying and managing conflicts of interest within the BoE set up. There will be an update to the Bank’s Code of Conduct to...
ASA unhappy at Amex ad
ASA has found a TV advert for American Express breached the BCAP rules on misleading advertising, qualification and exaggeration. On the ad, a voiceover claimed that “there is a card that could give you 5%...
Tribunal upholds IFA ban
The Upper Tribunal has upheld FCA’s decision to ban a former CEO of an adviser network. FCA has banned Charles Palmer and fined him over £86,000 for failing to act with due skill, care and diligence. The network...
FCA releases details of consultations on the extension of SM&CR to all firms
The long-awaited consultations on the extension of the SM&CR have been released: CP17/25 – Individual accountability – extending the Senior Managers and Certification Regime to all FCA firms. Banks are...
FCA makes new rules
At FCA’s July Board meeting it made several new rulebook instruments. Key changes are: to make minor changes to approved persons application forms with effect from 12 September; to set the fees payable to the PSR...
ICO fines Moneysupermarket.com £80,000
ICO has fined Moneysupermarket.com Ltd £80,000 for sending 7.1 million unsolicited direct marketing emails over a period of ten days to update its customers on its Terms and Conditions. Crucially all the recipients of...
Complaints Commissioner publishes report on FCA complaints
The Complaints Commissioner has published its annual report looking at complaints against FCA. It was disappointed that it had had to repeat some previous recommendations, particularly on the time FCA takes to action...
ICO fines loan firm for nuisance texts
The Information Commissioner’s Office has fined Provident Personal Credit Ltd £80,000 for sending nearly 1 million unsolicited texts promoting personal loans. The company used third party affiliates to send the...
FCA fines compliance oversight officer
FCA has fined a compliance oversight officer for failure to exercise due skill, care and diligence while working at two firms specialising in pension transfers (one of which was transferred to the other). It fined David...
FCA publishes PBA complaints findings
FCA has published the findings of its review into how firms handle complaints about packaged bank accounts following its thematic review of October 2016. As it carried out the review, it looked particularly at recent...
FCA publishes unredacted BOS notice
FCA has published the unredacted version of its final notice against the Bank of Scotland plc originally published in March 2012. The notice related to failure to comply with Principle 3, and confirmed FCA’s...
FCA publishes annual report
FCA’s Annual Report and accounts for 2016/17 sets out its highlights from the past year, and includes specific sectoral reports for competition, enforcement, AML and diversity. FCA regards the year’s...
FCA disappointed on CFD TCF
FCA has published its review of appropriateness assessments firms make when selling CFD products. The review followed last year’s dear CEO letter which asked firms to consider whether their client take on...
FCA speaks on retail banking regulation
Andrew Bailey has spoken at BBA’s retail banking conference on FCA’s perspective on retail banking. He highlighted 3 points: the importance of understanding business models, in the light of Northern Rock...
FCA looks at competition and investment consultancy
FCA had made a provisional decision to make a market investigation reference of investment consultancy services. In February, three major providers of these services offered undertakings in lieu (UIL) for FCA to...
FCA confirms ban on choice restrictions in investment banking
FCA has published its policy statement and new rules banning firms from including within their customer documentation contractual clauses restricting competition without clear benefit to their clients. In particular...
FCA to regulate claims management companies
It was also confirmed in the background notes to the Queen’s Speech that the Financial Guidance and Claims Bill will be brought forward to progress plans previously announced for: FCA to take over the regulation...
FCA speaks on approach to investigations
Jamie Symington, Director of Investigations at FCA has spoken on its approach to investigations. He explained that historically firms have feared investigations which often resulted in an adversarial and quasi-litigious...
FCA publishes pensions lifestyle strategy review
FCA has published the findings from its review of life insurers’ pension lifestyle investment strategies. It had asked 13 insurers what their approach was to these strategies in the light of the 2015 pension...
BoE speaks on operational resilience
Charlotte Gerken has spoken of the BoE’s approach to operational resilience. She focussed on how it is developing its approach in co-operation with firms and other regulators. BoE’s aim is to improve the...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation proposes changes to: TC to update the list of appropriate qualifications; SUP to clarify how the requirement to have a client assets report applies to loan-based crowdfunding...
FCA consults on MLD4
FCA is consulting on changes to its Handbook and Guidance to ensure it is in line with MLD4 and the Fund Transfer Regulation. The draft MLRs that will replace the 2007 version give FCA greater supervisory powers over...
ESMA sets out principles for regulating migrating UK firms
ESMA has published a set of principles that the regulators in the “EU27” should follow when assessing applications from UK institutions seeking an EU authorisation post-Brexit. Key principles include: that...
ASA says fx ad breaches Code
The ASA has found a TV advertisement for online CFD trading breached the BCAP Code in respect of social responsibility. The advert showed a young adult waking up and looking at his tablet which showed a falling exchange...
Up next from FCA
FCA’s latest Policy Development Newsletter promises only a policy statement on enhancing COB rules for firms providing CFDs to retail clients following before the end of June. Many other papers are due later in...
ASA holds against Santander card ad
The ASA has ordered Santander not to show a credit card advertisement again in its current form. The TV advert, aired last November, showed various scenarios including people looking at holiday photos, choosing games...
FCA updates on duty of responsibility
FCA has published guidance in DEPP on how it will enforce the duty of responsibility. The guidance is already in force, applying from 3 May. It applies to UK banks, building societies, credit unions, PRA-designated...
PPI: the final countdown
We have written an article on the new timescale for handling PPI complaints, the FCA’s customer communications campaign and its new rules on writing to customers whose complaints have previously been rejected and...
FCA publishes first new-form complaints data
FCA has published the first set of complaints data (covering the second half of 2016) that firms have reported since last year’s rule changes that give firms 3 days to address a complaint to a consumer’s...
Government considers sanctions laws post-Brexit
The Government has published a White Paper looking at what legislative changes the UK will need to make to preserve and continue the sanctions regime after Brexit. Currently, the UK implements most sanctions-related...
ICO fines financial firm for sending unsolicited texts
The ICO has fined Monevo Limited, a finance brokerage firm, £40,000 for sending unsolicited marketing texts without proper consent. Between April 2016 and June 2016, the company sent 44,172 texts encouraging people to...
FCA publishes Mission Statement and Business Plan
FCA’s latest Mission and Business Plan contain few surprises, but indicate a lot of work in diverse areas. The Mission, which takes into account stakeholder views, seeks to explain to firms how and why FCA...
FCA looks at consumer behaviour and advertising
FCA has published an occasional paper that looks at the behaviour of consumers and the consequences it has on their reaction to financial promotions. The paper considers: how consumers will look for and find promotions...
FCA updates on conduct risk priorities
FCA has published a series of new webpages following its annual conduct meetings with the largest firms in the regulated community. It asks the largest wholesale banks the following 5 conduct questions: What proactive...
FSCS confirms £363m levy for 2017/18
FSCS has announced its levy for 2017/18. The £363m is less than forecast in the FSCS’ 2017/18 Plan and Budget in January, but more than the 2016/17 levy. The 2017/18 levy includes: no change to the £100m levy on...
FCA to investigate HBOS Reading
FCA has restarted the investigation it originally commenced in 2013, into misconduct within the Impaired Assets team of HBOS based in Reading. It had stopped the investigation while the police were investigating...
OFSI reminds on sanctions penalties
OFSI has reminded firms that it now has power to impose penalties for breaches of financial sanctions, and says it will normally publish details of cases where it imposes them. It has also published guidance on its...
FCA warns on debt permission limitations
FCA has warned full permission firms with debt adjusting or debt counselling permissions with “no debt management” limitations that they should review the limitations to check they are appropriate. It says...
ICO fines credit broker for unsolicited texts
The ICO has fined a credit broker £20,000 for sending unsolicited communications in breach of regulation 22 of the Privacy and Electronic Communications (EC Directive) Regulations 2003. Munee Hut markets its services...
FCA speaks on culture
Andrew Bailey has given a speech at the Hong Kong Monetary Authority (HKMA) Annual Conference for Independent Non-Executive Directors in Hong Kong. He spoke about the culture in financial institutions, setting out what...
Treasury consults on MLR 2017
Treasury has published its feedback to its consultation on implementing MLD4 into UK law and the draft Money Laundering Regulations 2017. We will cover the consultation in more detail in a separate article. They key...
SFO speaks on DPAs
Ben Morgan of the SFO has reflected on the use of DPAs in bribery and corruption cases. He stressed that it is not the UK’s stance merely to require corporates to give back illegal gains – there must be an...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation, quarterly consultation no.16 proposes changes to: DEPP and EG reflecting the FCA’s powers following the Bank Recovery and Resolution Order 2016: these would set out the...
FCA concerned on dealing commission use
FCA is concerned that firms are failing to meet expectations on use of dealing commission. It carried out a review of 31 investment managers, to see how they had responded to its 2014 discussion paper on the use of...
FCA concerned on best execution
FCA has warned investment managers it may take further action after finding that they have failed to meet expectations on securing best execution for their clients. FCA is concerned the majority of firms have not taken...
FCA makes final PPI complaint rules
FCA has published a policy statement on PPI complaints, setting out feedback on its consultation paper and final rules and guidance. Alongside this, FCA published an information sheet outlining the new basis for making...
Court dismisses judicial review application of FOS decision
The court has dismissed an application for judicial review by Full Circle Asset Management Ltd (FCAM), a firm of financial advisors, of a decision by FOS. FOS had upheld a complaint made by an FCAM’s client, Mrs King...
CML supports borrower guardian bill
CML has given its support to the Guardianship (Missing Persons) Bill. It says the Bill would help lenders make pragmatic arrangements with guardians of missing borrowers to act in the best interests of those borrowers...
ICO fines credit broker for unsolicited texts
The ICO has fined Digitonomy Ltd £120,000 for sending millions of marketing texts without proper consent. The company is an FCA-authorised credit broker, which generates leads for its business through affiliates sending...
The Rolls Royce DPA
We have written an article about the Rolls Royce DPA in relation to bribery and corruption issues spanning many years and many jurisdictions.
FCA invites views on website
If you, like us, have views on FCA’s recently revamped website, you have a chance to let FCA know. It has invited views, in an online survey.
PRA fines BTMU firms for failure to be open with it
PRA has fined the Bank of Tokyo-Mitsubishi UFJ Limited £17.95m and MUFJ Securities EMEA plc £8.925m. The fine relates to a failure of the firms to be open and honest with PRA in respect of a US enforcement action, in...
FCA looks at treatment of acquired clients
FCA has carried out a supervision review of how investment advisory firms treat clients they acquire from other firms. The sample in its study was small, and FCA recognises it may not be representative of the wider...
FCA updates on skilled persons reviews
FCA has published the figures showing the number of skilled persons reviews it initiated in Q3 2016. Of the 15 reviews, 5 concerned asset management and 5 concerned insurers/
FCA reports on Enforcement Review
FCA has published a policy statement to report on the main issues arising from the Enforcement Review and the Green Report. It has also published the final amendments to its Glossary, DEPP and EG. Changes to the rules...
FCA publishes Regulation Round-up
FCA’s latest “Regulation Round up” focuses on: some big issues FCA plans to address in 2017, such as the progress of the FAMR, the extension of the SMR and the closure of lending reviews; the interim...
Emma RadmoreFCA issues largest AML fine
FCA has fined Deutsche Bank £163 million, the largest fine it has imposed for AML failings. It found the bank failed to maintain an adequate AML framework from the beginning of 2012 to the end of 2015, the result of...
FCA speaks on responsibility and priorities
Mark Steward, Director of Enforcement and Market Oversight at FCA, spoke at the Practising Law Institute’s annual seminar on securities regulation in Europe. His speech was headlined as looking at the practical...
HSBC sets up debt collection redress scheme
FCA has announced that HSBC has voluntarily agreed to set up a redress scheme for customers who may have suffered detriment by paying an unreasonable debt collection charge imposed by HFC Bank Ltd (HFC) and John Lewis...
FCA publishes finalised guarantor loans guidance
FCA has published its finalised guidance on guarantor loans: default notices. It has made minor changes only from the consultation version of the guidance, which is relevant to guarantor lending firms seeking to take...
Brexit Committee calls for Parliamentary vote on Brexit deal
The first report of the committee on exiting the EU calls for the Government to publish its Brexit plan by mid-February, and says that plan should set out the Government’s position on membership of the single...
House of Commons looks at legislating for Brexit
The House of Commons Library has published a report looking at how many EU laws are directly applicable in the UK (around 5,000), and will therefore cease to apply in the UK once the European Communities Act 1972 is...
FCA updates consumer credit information sheets
FCA has now updated its information sheets consumer credit firms should use when notifying customers that they are in arrears or default. The site now contains new sheets that will be effective from 14 April. Until then...
MoJ calls for evidence on corporate economic crime
The Ministry of Justice has published a call for evidence on corporate liability for economic crime. There has been much criticism for some time of the difficulties enforcement agencies have when trying to prosecute...
AFME responds on whistleblowing
AFME (The Association for Financial Markets in Europe) has published its response to the FCA and PRA consultation papers on whistleblowing in UK branches of overseas banks. The FCA and PRA propose that UK branches of...
ICO fines RSA for DP breach
The Information Commissioner’s Office (ICO) has issued Royal & Sun Alliance Insurance PLC (RSA) with a monetary penalty notice (£150,000) because of a serious breach of the seventh principle (the requirement...
FCA’s Future Mission: key themes from feedback
FCA has published initial feedback from the consultation process into its proposed mission statement. Key themes include: a desire for a clearer rationale for FCA decisions, and what FCA chooses to do and not to do;...
Treasury Committee concerned on cybersecurity
: Andrew Tyrie has written to the National Cyber Security Centre, expressing concern that there is no single point of responsibility for cyber risk in the financial services sector. The Committee thinks there needs to...
FOS consults on plan and budget
FOS is consulting on its plan and budget for the year ahead. It expects record numbers of PPI complaints, with a steady level of complaints in the banking, insurance and investment sectors. It plans to keep the case...
FCA explains RMAR
FCA has published a summary of why it collects data for the RMAR and how it uses it. Its key purpose is to help it supervise firms in a way to minimise poor consumer outcomes in the retail investment market. The data...
PRA updates skilled persons data
PRA has published an update on skilled persons reports it has commissioned. In the last reporting period, it commissioned 4 reports, all on insurers.
Autumn Statement financial services round up
The Chancellor’s Autumn Statement contained several statements relevant to financial institutions and insurers – some announcements of initiatives already planned or even implemented, and some new promises. We...
FCA publishes consumer credit financial crime booklet
FCA has published a booklet specially aimed at consumer credit firms to help them understand FCA’s expectations of them under financial crime prevention standards. The guide sets out examples of good and poor...
ICO fines FS institution for breach of PECR
On 3 November, the ICO imposed a monetary penalty of £70,000 on Nouveau Finance Limited for marketing activities carried out on Nouveau’s behalf by a third party in contravention of the Privacy and Electronic...
FCA holds financial crime conference
FCA held its annual financial crime conference on 10 November. Among the key points noted by FCA speakers were: Andrew Bailey, in his opening address, highlighting FCA’s “Mission”, and commenting that...
FCA consults on guarantor loans guidance
FCA is consulting on proposed guidance on guarantor loans. It had previously consulted in February, but its proposals were not popular. It now addresses what it considered is, respectively, enforcing and not enforcing...
Tribunal upholds ban
The upper Tribunal has delivered its findings in relation to FCA’s decision to ban Tariq Carimjee from the CF10 and CF11 functions after it found he recklessly assisted a client to manipulate stock prices. Mr...
FCA consults on mortgage arrears calculation guidance
FCA is consulting on remedies for customers who have gone into arrears on their mortgages, and have been disadvantaged because of the way lenders have calculated their balances. Some firms have automatically included...
ECB publishes MLD4 opinion
The Council of the EU has published the Opinion of the ECB on the proposed changes to MLD4. In principle, it says it is important that the EU regulates virtual currencies from an AML/CTF point of view, but it does not...
PSR speaks on super-complaint
Hannah Nixon, Managing Director of the PSR, has spoken about its first super-complaint and what PSR is doing about it. The PSR must respond by 22 December, and is looking at the scale of the “vishing”...
FCA gets tough on AML failings
FCA has fined Sonali Bank £3,250,600 and restricted it from accepting deposits from new customers for 168 days, and also fined the bank’s former MLRO £17,900 and banned him from performing the MLRO or compliance...
FCA fines Aviva for client money failings
FCA has fined Aviva Pension Trustees UK Limited and Aviva Wrap UK Limited £8,246,800 for failings in oversight of outsourced service providers for client assets. It found that Aviva had not put appropriate controls in...
Latest Market Watch highlights
FCA’s latest “market watch” focuses on the results of a recent review of market abuse systems and controls in market making firms. Its review threw up some alarming conclusions, including considerable...
PRA and FCA feed back on accountability
PRA and FCA have published several papers on the SMR, SIMR and accountability standards. FCA’s supervisory review of the SMR highlights its views that firms have, in general, engaged well. It gives detailed...