PRA has fined Standard Chartered Bank £46.55m for: failings in its regulatory reporting governance and controls: PRA had imposed a temporary additional liquidity expectation on the bank in late 2017. Over a 14 month...
Category - Enforcement & Litigation
Emma RadmoreFCA fines for conflicts and gift & entertainment breaches
FCA has fined GAM International Management Limited £9.1m and Timothy Hayward £230,037 for issues relating to conflicts of interest and gifts and hospitality. Both the firm and Mr Haywood agreed all issues and qualified...
Ombudsman News looks at BI “at the premises” complaints
The latest edition of Ombudsman News from FOS looks not only at its plan and consultation (which FIN has covered separately) but also at complaints it has looked at relating to “at the premises” cover in...
FOS consults on strategic plans and budget for 2022/23
The Financial Ombudsman Service (FOS) has published its annual consultation on its proposed plans and budget for the upcoming financial year (2022/23). The consultation includes information relating to: The volume of...
Emma BondFCA writes to Treasury Committee following Swift Review
The FCA recently published an independent “lessons learned” review (the Swift Review). The FCA has now written a letter to the Treasury Committee, noting that it accepts almost all of the Reviewer’s...
FCA publishes review of supervisory intervention on IRHPs
The FCA has published an independent “lessons learned” review (the Swift Review), which it commissioned John Swift QC to produce, into the supervisory intervention on interest rate hedging products. The...
Court finds no breach of COBS Rules by spread betting firm
The High Court has ruled on an application for, amongst other things, damages for alleged breaches of the COBS 2.1 (Client’s Best Interests) and COBS 11.2.1 (Best Execution). The Claimant had opened an Account...
NatWest fined £264.8m for AML failings
The long awaited sentencing following the conviction of NatWest on three offences of failing to comply with the MLRs resulted in the announcement of a fine on the bank of £264,772,619.95. The bank admitted to breaching...
FCA and PRA publish dear CEO letter to global equity finance businesses
The PRA and FCA have jointly published a Dear CEO letter regarding the supervisory exercise which they undertook following the default of Archegos Capital Management. The default resulted in over $10 billion of reported...
FCA publishes update on Independent Review implementation
The FCA has published a report providing an update on the implementation of recommendations from two Independent Reviews, these being: the Independent Investigation into the Financial Conduct Authority’s...
ECJ delivers ruling on interpretation of PSD2
In Vodafone Kabel Deutschland GmbH v Bundesverband der Verbraucherzentralen und Verbraucherverbände – Verbraucherzentrale Bundesverband e.V., the Oberlandesgericht München (Higher Regional Court – Munich) made a request...
Lucy HadrillTreasury Committee asks for information on FOS action plan
The Treasury Committee has written to FOS, asking for further information on how it intends to get on top of its current case backlog, and how it proposes to address its funding issues. Mel Stride welcomed the...
ICO fines over pensions cold-calling
ICO has fined EB Associates Group (EBAG) £140,000 for instigating two IARs to make over 100,000 unsolicited direct marketing calls to consumers about occupational or personal pension schemes where the customers had not...
FOS publishes plan for change
FOS has published an action plan to deliver a better service to customers. The plan aims, among other things: to bring more effective and efficient resolution of cases – part of this involves teams which are...
EU fines banks for FX spot cartel
The European Commission has fined UBS, Barclays, RBS, HSBC and Credit Suisse a total of €344m for their participation in a foreign exchange spot cartel. The first 4 banks settled (with UBS receiving full immunity for...
FCA publishes consumer warning on firm
FCA has published a consumer warning on Grosvenor Associates Limited. It says it has removed the firm’s permissions, so it is no longer authorised to carry out any regulated activities and investments with it may...
FCA publishes Frensham Wealth Limited supervisory notice
The FCA has published a supervisory notice addressed to Frensham Wealth Limited. The notice removes all regulatory activities from the firm’s Part 4A permissions with immediate effect. This follows the FCA’s...
FCA confirms changes to decision-making process
FCA has confirmed the changes to its decision-making process that will allow more decisions to be taken by senior managers rather than by the RDC. Senior managers will be able to make decisions under “executive...
FOS sees rise in “authorised” scam complaints
FOS has seen a 30% increase in complaints about “authorised” scams in the second quarter of the financial year compared to the same period last year. half of the nearly 4,500 complaints were about...
ESMA reports on MAR sanctions
ESMA has published a report on the sanctions imposed by various member states under MAR during 2020. Over the year, €17.5m in fines were imposed for over 500 breaches. The number of administrative actions was...
CMA letter to Danske Bank on breach of SME Banking Undertakings
The CMA has written to Danske Bank regarding the Bank’s second breach of the SME Banking Undertakings 2002. Relationship Managers at Danske Bank required up to 205 SMEs to open a business current account (BCA) to...
FOS publishes Ombudsman News
The latest edition of Ombudsman News focuses on the recently published annual report and the feedback statement on outcomes reporting already covered in FIN.
FCA refuses SMF29 application
FCA has published its final notice refusing the application of an individual to perform the SMF 29 function for Servicesport Finance Limited. The individual in question was a solicitor who had failed to disclose SRA...
Treasury and FCA publish LCF compensation rules
Treasury and FCA have published the Scheme rules and consequent FCA rules on compensation arrangements for bondholders with outstanding investment in LCF which has not already been compensated by the FSCS. The scheme...
PSR publishes card-acquiring services report
The PSR has published its final market review into the supply of card-acquiring services. The report concludes that the supply of card-acquiring services does not work well for SME merchants and large merchants with...
FIN. TeamFCA publishes cum/ex financial crime warning notice
FCA has published an anonymised warning notice it has issued to a firm in relation to financial crime failings in some of its cum/ex trading. The notice relates to activities during 2015, and FCA found that, for...
Complaints Commissioner publishes final report
The Financial Regulators Complaints Commissioner has published its final report on FCA00865. The relevant complaint against the FCA (and FOS) constituted five separate elements, including the FCA’s delay in...
FOS publishes feedback on outcome reporting consultation
FOS has published the feedback to its consultation which set out the proposed temporary amendments to the way the FOS reports business-specific complaints data. As a result of the feedback the FOS has confirmed it will...
PRA and FCA “no comment” on Staley investigation
PRA and FCA have published a joint statement in relation to the Jes Staley investigation. The regulators do not comment on ongoing investigations and so will do no more than confirm the firm’s announcement...
CMA writes to NewDay on PPI Order breaches
The CMA has written to NewDay Ltd about 5 breaches of the PPI Market Investigation Order 2011. The breaches, which have affected c.27,000 customers, relate to: NewDay’s failure to issue Annual Review statements to...
ESMA makes statement on investment recommendations on social media
ESMA has made a statement on investment recommendations on social media. Following a rise in these types of promotion, and concerns that retail investors do not understand the risks involved in following these...
More of FS Act comes into force
The third Commencement Order under the Financial Services Act 2021 brings into force the provisions on dealing with maximum sentences for insider dealing and financial services offences (section 31 of the Act). This...
FCA fines adviser for pension transfer advice failings
The FCA has published a final notice banning Omar Hussein, former director at pension switching firm Consumer Wealth Ltd, from working in financial services. Mr Hussein has also been fined £116,000 for providing...
FOS blogs on distress and inconvenience payments
FOS has published a blog of its thoughts on how it assesses awards for distress and inconvenience. Its guidance has not fundamentally changed, but has been refreshed after firms said more clarity would help them. FOS...
CMA to take no action against Lloyds for Retail Banking Order breach
CMA has confirmed it will not be taking any further action against Lloyds Bank following the bank’s failure to display required information in relation to SME loans on one page of its website, which potentially...
FOS consults on reporting complaints outcomes
FOS is consulting on a range of initiatives to help reduce customer waiting times, including a temporary proposed change to how firm-specific complaints data is published. FOS is proposing that, for a limited period...
Treasury answers questions on BNPL and pension transfer advice
Published answer to written questions include: in answer to a question on when the BNPL legislation will be put forward, Lord Agnew said there would be a consultation document “soon”; in answer to a question...
CMA writes to Santander following breach of Retail Banking Order
The CMA has written a letter to Santander following the bank’s failure to publish Northern Ireland Service Quality Indicators for Overall Service Quality for Business Current Accounts, as required by the Retail...
Court finds FSCS entitled to reject claim
The High Court has ruled on an application for judicial review of a decision by FSCS to refuse to compensate investors after an investment firm failed. The investors had bought wind bonds, initially before the firm in...
ECJ delivers judgment on EBA Guidelines
The ECJ has ruled that the EBA acted within its powers when it adopted guidelines on product governance and oversight arrangements for retail banking products in 2015. The guidelines set out requirements for...
Government and FCA respond on LCF Report
The Treasury Committee has published responses from the Treasury and the FCA to its report on the FCA’s regulation of London Capital & Finance plc (LCF). Highlights from the government’s response...
CMA writes to LBG on PPI Order breach
The CMA has written to Lloyds Banking Group about its non-compliance with the Payment Protection Insurance (PPI) Market Investigation Order 2011. LBG breached the PPI Order by failing to include the monthly PPI benefit...
FCA consults on new cancellation and variation power
The Financial Services Act 2021 has given the FCA an additional power, allowing it to more quickly and efficiently: vary or cancel the statutory permissions to conduct FCA-regulated activities of many FCA-authorised...
FCA confirms pensions transfer redress guidance review
FCA has confirmed its plans to start a periodic review of its FG17/9 on how firms should calculate redress for unsuitable DB pension transfer advice. It will start the review by the end of 2021, in line with its...
FCA publishes supervisory notice against Dolfin Financial
FCA has published a supervisory notice sent to Dolfin Financial (UK) Limited in March. The requirements in the notice have now largely been cancelled as Dolfin entered special administration. FCA has also redacted parts...
FCA publishes requirements on SIPP operator
FCA has published the second supervisory notice it made in relation to DAC Pensions Limited, a small SIPP operator. The firm had accepted significant business from two EU-based introducers, operating in the UK under...
CAT grants Mastercard collective proceedings order
The Competition Appeal Tribunal has granted the Merricks application for a collective proceedings order in relation to claims for millions of UK consumers against Mastercard following the European Commission’s...
FCA writes to investment-based crowdfunders on supervision
FCA has published its Dear CEO letter on its portfolio strategy for investment-based crowdfunders. It notes that if any firm that has received the letter is not currently active in the market it should apply to remove...
FCA fines adviser for pension transfer advice failings
The FCA has published a Decision Notice against Geoffrey Edward Armin of Retirement and Pension Planning Services Limited (in liquidation). The FCA has decided to fine Mr Armin £1,284,523 and ban him from performing any...
OFSI fines fintech for sanctions breach
OFSI has fined TransferGo Limited (an authorised payment institution) £50,000 for making funds available to a person designated under the Ukraine sanctions regime. The fine relates to 16 transactions where TransferGo...
Court sanctions Provident scheme
The Court has sanctioned the Provident Personal Credit Limited scheme, which includes a proposal to wind down the business. FCA has not supported the scheme for reasons including that consumers are being offered...
Court of Appeal supports FCA on unauthorised business action
The Court of Appeal has supported FCA in upholding findings that Alexandra Associates (UK) Limited, trading as Avacade Future Solutions, and Craig and Lee Lummis carried out unauthorised activities both in arranging and...
FCA gets illegal money lender charges removed
FCA has obtained an order from the High Court to remove over 600 charges, notices or restriction that had been registered by an illegal money lender at the Land Registry. FCA has started several legal proceedings...
FCA consults on streamlining decision making
FCA is consulting on changes to its decision making process. It plans to move some decision-making from the RDC to the authorisations, supervision and enforcement divisions, to speed up the process and give...
FCA publishes individual ban notice
FCA has published a decision notice noting its decision to ban Markos Markou, director and CEO of a mortgage broker, and to fine him £25,000. FCA considers Mr Markou not fit and proper to perform his senior management...
Individual imprisoned for fraudulent trading and FSMA breaches
Ian Hudson has been imprisoned for 4 years, for one count of fraudulent trading and two additional terms of 14 months each reflecting a breach of s19 FSMA. These will run concurrently following an earlier guilty plea...
FOS commissions independent review
The FOS Board has commissioned an independent review of its service, aimed at ensuring it can continue to meet its customers’ needs. The first part of the review will look at the current operational effectiveness...
FCA takes action against debt packager firms
The FCA has taken action following a review into the practices of debt packager firms. 5 firms have stopped providing regulated debt advice until further notice as a result of “significant concerns” over...
Hannah FrostFCA concerned on Provident scheme of arrangement
The FCA has published a second letter of concerns explaining to Provident why it does not support its proposed scheme of arrangement. The FCA’s key concern is that consumers are being offered significantly less...
FCA bans fraudster
FCA has banned Matthew Creed from performing any regulated activity. Mr Creed had been an approved person at a firm from 2005 – 2019, and was also the director of an unauthorised company from 2002- 2013. In 2012...
FCA fines LBGI £90m for misleading renewals communications
The FCA has fined LBGI (Lloyds Bank General Insurance Limited, St Andrew’s Insurance Plc, Lloyds Bank Insurance Services Limited and Halifax General Insurance Services Limited) £90,688,400 for failing to ensure that...
Appeal refused on FCA action against unauthorised firm
The application to appeal has been refused in the case of FCA v 24 Hr Trading Academy. In this case, the High Court had held that 24 Hr Trading Academy had beached the regulated activities and financial promotion...
CMA reports on banks’ compliance with bundling rules
The CMA has published the 2020 annual audit into whether 8 leading UK banks are complying with undertakings they gave not to bundle loans and accounts. During the reporting period covered by the 2020 report the CMA...
FCA bans crypto exchange Binance
Binance Markets Limited is not permitted to carry on any regulated activity in the UK without the prior written consent of the FCA. The FCA has also issued a warning about Binance.com, advising consumers to be wary of...
FCA fines CMC for cold calling
The FCA has fined claims management company, Crosfill & Archer Claims Limited, £110,000 for unsolicited telemarketing calls to people who had registered not to receive this type of sales call. In such cases, the...
Treasury Committee calls for FCA culture shift
The Treasury Committee has published a unanimously agreed report on FCA’s regulation of London Capital and Finance, in which it expresses the view that FCA cannot justify expecting firms it regulates to comply...
CMA warns banks over transaction history breaches
Banks and buildings societies are required to send customers a history of their current account banking activity (a “transaction history”) within 40 days of a customer or small business closing their current...
FCA speaks on tough regulation and the future
Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...
PRA consults on financial holding companies
PRA has issued a further consultation on applying existing prudential consolidation requirements to financial holding companies and mixed financial holding companies approved or designated under FSMA. The proposals:...
LSB updates on CRM code review
LSB has published its follow up review of the CRM Code in respect of firms’ approach to reimbursing customers. Provision R2(1)(c) of the Code allows firms to decline reimbursement in specific cases. LSB looked at...
ECJ ruling: BNP Paribas Personal Finance SA v VE
In BNP Paribas Personal Finance SA v VE, the Tribunal d’Instance de Paris made a request to the European Court of Justice for a preliminary ruling in relation to the application of Articles 3 and 4 of Council...
FCA intervenes on high risk CFDs
FCA has stopped ICC Intercertus, a Cypriot firm operating under the TPR, from conducting any regulated or marketing activities in the UK. The firm’s wider group traded as “EverFX” and used the...
FCA responds to Amigo Scheme rejection
The High Court has refused to sanction Amigo’s proposed Scheme of Arrangement. The FCA, having previously objected to the Scheme, has now responded to the ruling. The FCA considers the decision is an important...
FCA brings charges for unauthorised activities
FCA has taken criminal proceedings against Ian Hudson for carrying on his business, Richmond Associates, with the intention to defraud creditors and for carrying on the regulated activities of accepting deposits and...
ICO fines Amex for direct marketing messaging without consent
The ICO has fined American Express Services Europe Limited for sending, or instigating the sending of, over 4 million direct marketing messages over the period of a year, for which subscribers had not provided consent. ...
FCA reminds that complaints handling should be back to normal
FCA has reminded firms that its guidance on complaints handling during the pandemic expired on 1 May, and firms should now be back to normal.
FOS focuses on economic and domestic abuse complaints
FOS has launched a new webpage on complaints involving economic and domestic abuse. The webpage sets out the types of complaint FOS sees in this area including people saying: I’ve been pressured into guaranteeing...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
FCA publishes H2 2020 complaints data
FCA’s most recent complaints data report shows: a significant drop in complaints over the H1 2020 figure; a large decrease in insurance and pure protection complaints – with the largest being in PPI...
Court considers “by way of business” test
The High Court has considered the scope of the “by way of business” test for the purposes of FSMA. Mr and Mrs A were involved in property development. They took a loan from a Mr P when they were unable to...
FCA speaks on compliance and culture
Mark Steward, FCA’s Executive Director of Enforcement and Market Oversight, has delivered a speech at NYU Law School entitled “Compliance, Culture and Evolving Regulatory Expectations“. In it, he...
Duncan ScottFCA concerned about Provident scheme of arrangement
FCA has published a letter setting out its concerns over Provident SPV Ltd’s proposed scheme of arrangement. FCA attended the hearing at which Provident applied to the High Court for permission to hold meetings of...
FCA takes criminal action for unauthorised mortgage activities
FCA has started criminal proceedings against 2 individuals for unauthorised activities relating to mortgages. Larry Bareto traded as an unauthorised firm and Tassib Hussain is an accountant. Over a 3 year period Mr...
FCA censures firm and requires compensation payment
FCA has publicly censured a firm that sold extended warranty insurance and ordered it to pay customers compensation of nearly £400,000. It would have imposed a fine of nearly £1m had it not been for the extreme...
FCA publishes statement on approach to Connaught complaints
FCA has published a statement confirming the broad approach it intends to take to complaints made to it in relation The Connaught Income Fund Series 1 and connected companies. The majority of complaints received from...
Treasury Committee starts Greensill Capital inquiry
The Treasury Committee has launched an inquiry into lessons that can be learnt from the failure of Greensill Capital. The inquiry is supported by letters to various regulators, including a letter to FCA asking for...
FCA publishes statement on approach to LCF complaints
FCA has published a statement confirming the broad approach it intends to take to complaints made specifically to it in relation to London Capital & Finance (LCF). This approach will reflect what FCA considers...
Nausicaa Delfas to join FOS
FOS has announced that Nausciaa Delfas will take up the post of Interim Chief Executive and Chief Ombudsman from mid-May. Meanwhile, Stephanie Cohen will take up the permanent role of FCA COO in June.
FCA stops Cypriot firm offering CFDs in UK
FCA has stopped a Cypriot firm that was operating in the UK under the TPR from conducting any regulated activities in the UK and to close all its trading positions and return money to customers. It found the firm, which...
FCA fines and bans unapproved adviser
FCA has banned a financial adviser and fined him £68,300. Simon Varley was a director and held the (then) CF10 function at Dickinsons Financial Management Limited. He was also a CF30 customer adviser until 2013, when...
Lender’s duties limited in asset disposal
In a helpful decision for Banks and lenders, the Court of Appeal decision in Morley (trading as Morley Estates) v Royal Bank of Scotland plc [2021] EWCA Civ 338 confirmed the limited extent of the duties a lender owes...
Scott NodderASA rules on more debt advice service ads
On 7 April, ASA published 2 more rulings on the advertising of debt advice services, this time by Flexible Digital Solutions Ltd (FDS) and TFLI Ltd t/a Wise Old Mary (TFLI). As with their previous rulings, both resulted...
Emma RadmoreFS Bill continues in Lords
The Financial Services Bill is scheduled to continue its Report stage in the House of Lords next week, with some further amendments being tabled.
FCA publishes fin prom data
FCA has published data showing the number of financial promotions that have been amended or withdrawn in the first quarter of 2021. The figures do not include any actions FCA took as a result of unapproved promotions...
FCA concerned on Amigo scheme of arrangement
FCA has taken the relatively unusual step of publishing a letter of concerns it lodged in relation to Amigo Loans’ application to implement a Scheme of Arrangement. FCA does not support the scheme for a number of...
FCA takes action against non-financial misconduct
The FCA has published a decision notice in respect of Jon Frensham (formerly known as Jonathan James Hunt), an independent financial adviser and sole director at Frensham Wealth Limited. In March 2017, Mr Frensham was...
FCA responds to Treasury Committee on LCF
Andrew Bailey has responded to the Treasury Committee on aspects of its supervision in respect of the LCF investigation. Key elements of the response looked at: the need for the report to separate accountability with...
High Court finds company and individual in breach of FSMA
The High Court has delivered a summary judgement after FCA issued proceedings against 24HR Trading Academy Limited and Mohammed Maricar, who ran the firm. It found the firm breached FSMA by providing unauthorised...
IHRP review independent report provided to FCA
John Swift QC, the Independent Reviewer appointed to look at FCA’s regulatory interventions in respect of the sale of of Interest Rate Hedging Products to SMEs. has provided FCA with his draft report. It is...
Proprietary injunction and Bankers Trust Order made in fraud case involving cryptocurrency
In the unreported case of Ion Science Ltd v Persons unknown and others (21 December 2020 – Commercial Court), the Commercial Court granted a proprietary injunction, worldwide freezing order and ancillary...