The FCA has fined PwC £15m for failing to report suspicions of fraud that arose during its 2016 audit into London Capital & Finance. As PwC had been carrying out the audit, it had been faced with aggression from a...
Category - Enforcement & Litigation
Emma RadmoreFCA fines and bans individual for dishonest and reckless conduct
The FCA has banned Martin Sarl from working in the financial services industry for acting without honesty and integrity. The regulator has also fined Mr Sarl £5,021. The FCA’s investigation found that between...
Harry WellsFCA fines CFD firm for unfair customer treatment
The FCA has fined Forex TB Limited (FXTB), a Cypriot contract for differences (CFD) firm, £276,100 for failing to treat its customers fairly and for providing investment advice without authorisation. The FCA found that...
Asset manager to pay €250m to investors in high risk investments
The FCA has announced that H2O AM LLP is to pay €250m to investors who have been unable to access their funds for 4 years after the firm failed to carry out proper due diligence on certain introduced investments...
Unauthorised mortgage broker to pay £4m
The FCA has secured an order of £4m in the High Court against two firms under the directorship of one individual, which respectively arranged mortgages and bought properties and rented them back to the sellers. Neither...
FSR Committee restarts and reopens inquiries
The House of Lords has reappointed the Financial Services Regulation Committee which had originally been created in 2024. The reappointed Committee will now continue the inquiries that were ongoing before the election...
PSR publishes APP scams performance report
The PSR has published the APP scams performance report for 2023. Highlights from the report show: over 250,000 reports were made in 2023, with scams totalling over £340m; reimbursement rates have increased while fraud...
The challenges facing low-value data breach claims
We have written an article on the case of Farley v Paymaster, which looks at how the courts are increasingly viewing exaggerated data breach claims brought for alleged distress.
FCA to extend DCA complaint “pause” period
The FCA plans to extend the “pause” to the time firms have to respond to complaints about motor finance involving discretionary commission arrangements., to 4 December 2025. It says it has taken longer than...
Regulators update on BSPS actions
The FCA, FOS and FSCS have published a report looking at the actions taken and results from the BSPS Redress Scheme exercise, as it comes to an end. Overall: £8.7m has been paid out by firms or the FSCS (significantly...
FOS publishes ADR annual activity report
The FOS has published the annual figures for reports it received in the year to 8 July, It notes the figures don’t include complaints brought by businesses but may include some brought by charities and trustees...
FCA updates whistleblowing data
The latest whistleblowing data from the FCA, covering the quarter to end June 2024, shows: 253 new reports received (fewer than the corresponding period last year and the last quarter), with nearly half of reports made...
King’s Speech 2024 outlines pensions and banking resolution measures
Among the list of legislative proposals referred to in the King’s Speech are bills designed to strengthen pension investment and enhance the UK’s banking resolution regime. The Pension Schemes Bill aims to...
Travel insurance complaints at highest level since Covid
The FOS has announced that it received 4,466 complaints about travel insurance in the financial year 2023/24, a 19% increase on the previous year. The only time that figure has been higher in the last 10 years was when...
FCA bans individual knowingly concerned in FSMA breach
The FCA has published a final notice banning Clive Harris Mongelard from performing regulated activities. Following civil proceedings in the High Court, Mr Mongelard was found to be knowingly concerned in multiple...
FOS publishes annual complaints data for 2023/24
FOS has published the annual complaints data for the 2023/24 financial year. Most notably, complaints about the banking sector are at their highest level in at least a decade. In the last financial year, consumers...
FCA bans individuals for mistreatment of customer funds
The FCA has taken action against 3 individuals who were involved in running SVS Securities Plc, a discretionary fund manager. SVS used a complex business model intended to maximise the flow of customer funds into high...
Individual takes action against Revolut for APP fraud
Mr Larsson brought claims against Revolut, following payments it accepted that resulted from an APP fraud on Mr Larsson. Mr Larsson was a Revolut customer, but the payments in question were made by him from his account...
Court rejects application for JR review of FOS decision
The Court has dismissed an application made by Linear Investments Limited for judicial review of a FOS decision. The FOS had heard that a customer of Linear (Professor W) was an eligible complainant under its rules...
FCA updates on finfluencer trial
Following the FCA’s decision to charge 9 “finfluencers” in relation to promotions of an unauthorised FX trading scheme on social media, it has updated that three individuals have pleaded not guilty...
FCA bans individual for failing to disclose conviction
The FCA has banned Graham Lilley, formerly an authorised sole trader, from carrying on any regulated activity carried on by any person and has cancelled his permissions. It discovered that Mr Lilley had been convicted...
FOS confirms proactively settled complaints to continue
The FOS has confirmed that the trial of the “proactive settlement” system that allows firms to offer to settle complaints before a full FOS investigation has worked well, and will continue. It has, though...
SMEs reminded to register complaints before BBRS closure
The BBRS has reminded all eligible SMEs who have a banking complaint to be sure they register it before the BBRS closes to new registrations at the end of 2024. Eligible SMEs are those who are above FOS thresholds but...
Court decides fiduciary duty can be owed even where no negligence
A Court has dismissed a claimant’s claim for damages for negligent financial advice but has upheld a claim for breach of fiduciary duty in respect of commission paid to the adviser. The Claimant, Mr McHale, has...
Committee stops accepting FCA enforcement evidence
The Financial Services Regulation Committee is no longer accepting evidence on the FCA’s enforcement proposals following the prorogation of Parliament on 24 May. Its website says that any committees appointed...
Treasury Committee writes to FCA on enforcement proposals
The Treasury Sub-Committee on Financial Services Regulations has written to the FCA on its enforcement proposals prior to the dissolution of the Committee before the general election. The letter outlines the...
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...
FCA and PRA fine £60m for failures in trading systems and controls
The FCA and the PRA have imposed fines totalling over £60m on Citigroup Global Markets Limited (CGML) for failures in its trading systems and controls between April 2018 and May 2022. The FCA, which fined CGML...
Treasury legislates for CMCs to pay FOS fees
Treasury has published a draft Statutory Instrument setting the legal framework for the FOS to charge fees to authorised CMCs and to legal professionals carrying out claims management activities.
Court of Appeal dismisses JR application over SIPP challenge
The Court of Appeal has dismissed an application from Options UK Personal Pensions LLP for judicial review of a FOS decision in respect of investments made into an execution only SIPP. The FOS had held that the firm...
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...
FCA charges 8 finfluencers with making unlawful promotions
The FCA has brought charges against 7 “finfluencers” and two other individuals in relation to an unauthorised FX trading scheme. It alleges that Emmanuel Nwanze and another used Instagram to provide advice...
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...
Treasury Committee publishes enforcement proposal correspondence
The Treasury Committee has published a further set of correspondence with the FCA on the FCA proposals to publicise enforcement investigations, and the Financial Services Regulation Committee formally announced its...
A bank “retrieval duty”?
See our article on the recent CCP Graduate School Ltd v Nat West case, where the court looked at the issue of receiving banks’ liability.
FCA fines and bans individual for incorrect info on client cash
FCA has fined James Lewis, former CEO of Shard Capital Partners, £120,300 and has banned him for providing false information once to auditors and once to a client about the amounts of cash balances the firm held. The...
FS Regulation Committee seeks further enforcement proposal reassurance
The House of Lords Financial Services Regulation Committee has written to Nikhil Rathi in response to the FCA’s letter to the Committee which in turn responded to the Committee’s concerns about the...
Industry calls for intervention on FCA enforcement proposals
16 financial services trade associations, including UK Finance, the ABI, TheCityUK and PIFMA, have written to the Chancellor asking him to intervene over the FCA’s proposals to publicise enforcement investigations...
FCA responds on enforcement proposal criticism
The FCA has responded to the House of Lords’ Financial Services Regulation Committee’s letter that criticised the FCA’s proposal to name firms it was to investigate and asked for justification of its...
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...
Lords asks for FCA justification of enforcement proposals
The House of Lords Financial Services Regulation Committee has written to the FCA making several criticisms of its proposals to name firms under investigation. It is particularly critical that the paper explicitly rules...
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 gets consent to recover investor funds from Argento Wealth
The High Court has approved a consent order allowing the FCA to proceed with its application for £1.6m investor funds to be returned by Argento Wealth Limited and its sole director, in relation to 2 allegedly unlawful...
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 charges four individuals over suspected water scam
The FCA has charged four individuals with conspiracy to commit fraud by false representation. Two of the individuals have also been charged with money laundering. The FCA alleges that the individuals ran an unauthorised...
FCA extends enforcement CP response period
The FCA has extended the consultation period on its consultation on publicising enforcement investigations. The consultation was due to close on 16 April, but will now remain open until 30 April.
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 decides to fine and ban for sham trading
The FCA has published a Decision Notice setting out its decision to fine Nailesh Teraiya £5.95m and ban him, in its latest enforcement case involving “cum ex” payments. Mr Teraiya was formerly the sole...
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 fines and bans over pension transfer advice and oversight
It’s been a while since the last published notice, but FCA continues to take action against firms and individuals relating to pension transfer advice. It has fined Inspirational Financial Management (in...
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 pauses civil action to pursue criminal investigation
FCA has secured a 12-month pause in its civil case over regulatory breaches against John Dance and WealthTek LLP to allow it to focus its efforts on its investigation into possible criminal offences of fraud and money...
FOS data shows credit card complaints on the rise
The latest FOS products complaints data (covering October – December 2023) shows that complaints about credit cards reached the highest level ever recorded in a 3-month period. 55% of these complaints were about...
FCA consults on new approach to enforcement investigations
The FCA is consulting on improving pace and transparency around enforcement cases. Key proposals in relation to investigations into firms are: publicly announcing that the FCA has opened an enforcement investigation...
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...
Illegal money lender jailed for failing to pay confiscation order
FCA has issued a press release highlighting the nearly 8 year prison sentence handed down to Dharam Prakash Gopee by the City of London Magistrates’ Court for wilfully refusing to adhere to a confiscation order...
Duncan ScottFormer analyst guilty of insider dealing and fraud
Following a 12-week trial brought by the FCA, Mr Mohammed Zina has been sentenced to 22 months’ imprisonment for insider dealing and fraud. Through his analyst role at Goldman Sachs International , Mr Zina came...
FCA publishes CMC review on unregulated claims activity
FCA has carried out a multi-firm review looking at whether CMCs have been using their FCA-authorised status to legitimise unregulated services. It has found that some firms in the sample actually carried out very little...
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);...
FCA Panels respond on FOS 2024 Plans and Budget
FCA Practitioner Panel and FCA Smaller Business Practitioner Panel have responded to FOS 2024/25 Plans and Budget and the consultation on charging professional representatives. The Practitioner Panel: supports the £100...
Vida FatemiFCA fines and bans individual over LCF fin proms
FCA has fined Floris Huisamen, former director of LCF, £31,800 and banned him. Mr Huisamen had signed off financial promotions that gave a misleadingly positive impression of the minibonds LCF marketed. He had been...
Court refuses judicial review of debt packager rules
The Administrative Court refused permission for a judicial review claim of FCA’s decision to ban referral fees for debt packagers. The rules took effect last year. FCA made them to remove a strong incentive for...
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...
FCA publishes guidance on motor finance complaints
FCA has published a new page on its website giving guidance to firms on what it expects of them, if they are affected by the DCA review. The guidance covers: keeping customers informed: responding in line with existing...
FOS gives guidance on motor finance complaints
Following its consultation on its plan and budget for 2024/25 (which closes on 30 January), FOS has reiterated its expectation that complaints to it will increase in the next financial year. It has identified a number...
FCA takes criminal proceedings for unauthorised activities
FCA has started criminal proceedings against an individual who persuaded over 200 investors to invest £19m in an investment scheme. It alleges that Guy Flintham made several fraudulent claims about the scheme and...
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...
PRA fines former CEO for Conduct Rules breaches
The PRA has fined the former CEO of Wyelands Bank Plc £118,808 for breaching three Conduct Rules between March 2016 and May 2020. Mr Hunter breached Individual Conduct Rule 2 and Senior Manager Conduct Rules 1 and 2 –...
JR application on climate-risk disclosure fails
The High Court has refused an application by ClientEarth for permission to apply for judicial review of FCA’s approval of Ithaca Energy plc’s prospectus. The Court said it could not be argued that the...
Court says s138D FSMA claims outside s14A Limitation Act
The High Court has held that a claim for breach of statutory duty under s138D FSMA does not fall within the provisions of s14A Limitation Act, which would allow the limitation period to be extended in certain...
Supreme Court Justice speaks on law and AI
Lord Hodge, Deputy President of the Supreme Court gave a speech at De Montfort University, Leicester entitled ‘Law and AI: Where are we going?’ In it, he first considered the risks in the use of...
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...
Complaints Commissioner criticises FCA over Premier FX failure
The Complaints Commissioner has published its report on complaints from people affected by the 2018 collapse of Premier FX Limited. The payments firm had failed when, following the death of its sole director, it...
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 data shows vehicle-related complaints on the increase
The latest FOS product complaints data, covering July – September, shows that complaints relating to vehicle issues account for a quarter of all complaints. Complaints about vehicle finance are at a 5-year high...
FCA confirms no action against Blackmore fin prom approvers
FCA has published a copy of its letter to the Treasury Select Committee confirming that it will not be taking action against either of the two firms that approved promotions for the collapsed Blackmore Bond plc’s...
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...
Treasury publishes draft Ombudsman Scheme Regulations
HM Treasury has published a policy note and draft of the proposed statutory instrument which, if approved by Parliament, will allow the FOS to charge case fees to CMCs and other relevant professional representatives who...
FCA fines three money transfer firms for breaking competition law
The FCA has fined three money transfer firms for breaching competition law. Dollar East (International Travel & Money Transfer) Ltd, Hafiz Bros Travel & Money Transfer Limited, and LCC Trans-Sending Limited...
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...
BBRS to continue into 2024
BBRS and its participating banks have agreed the service will continue into 2024 – with no new set date for scheme closure.
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...
Was a bonus clawback provision in a contract of employment a restraint of trade?
Mr Steel worked for Omerta. Under his contract of employment, his remuneration consisted of a basic salary plus a discretionary bonus scheme. Payment of the bonus was conditional on him remaining employed for three...
Karen Plumbley-JonesFCA secures conviction of mortgage fraud broker
Larry Barreto, who had already pleaded guilty to 2 offences of arranging and advising on regulated mortgages without FCA authorisation, has been found guilty of 11 charges of fraud by false representation. For a period...
Tribunal makes limited costs order but criticises FCA and the law
The Upper Tribunal has published its judgment on the application for costs orders from Thomas Seiler and Louise Whitestone in relation to the Decision Notices issued by FCA as part of the action it took against JBI, and...
Supreme Court confirms postponement of limitation period for deliberate concealment of PPI commission payment
The Supreme Court judgment in Canada Square Operations Ltd v Potter supported the decisions of the County Court, High Court and Court of Appeal to hold that s32 Limitation Act 1980 applied to postpone the start of the...
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...
FCA portfolio letter to wealth managers and stockbrokers
FCA has published its Dear CEO letter to wealth management and stockbroker firms setting out its supervisory priorities and expectations for the sector. The letter focuses on financial crime prevention and Consumer Duty...