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...
Category - Enforcement & Litigation
Emma RadmoreLender’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...
FIN. TeamASA 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FCA has published data showing the number of financial promotions that have been amended or withdrawn in the first quarter of 2021.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...
FCA fines and bans trader for market abuse
FCA has fined and banned a former market making trader for market abuse. Adrian Horn, formerly of Stifel Nicolaus Europe Limited executed trades with himself in a series of 129 wash trades in a particular security over...
Treasury and FCA discuss perimeter report
Treasury and FCA have met to discuss the September 2020 report on the regulatory perimeter. Discussions focused on: high risk investments and the potential need to review the current exemptions that allow marketing to...
CMA publishes PPI breach letter
CMA has written to Cardif Pinnacle about two breaches of the PPI order. The breaches mean that nearly 5,000 customers have been receiving inaccurate Annual Reviews since 2012, an 4 customers received annual reviews that...
FCA recovers £3.4m for scam victims
FCA has obtained approval from the High Court to return over £3.4m which it has recovered from various accounts relating to two schemes that were unauthorised CIS and deposit-taking schemes, purporting to involve the...
Business Banking Resolution Service goes live
The BBRS, which 7 banking groups have so far signed up to, will work to resolve complaints from larger SMEs. The scheme involves: the contemporary scheme for businesses with turnover of up to £10m per year and a balance...
The Unfair Contract Terms Directive is challenged but holds firm
In the case of Dexia Nederland BV v XXX and Z , the Court of Justice of the European Union (CJEU) gave judgment in two cases relating to the provisions of The Unfair Contract Terms Directive (93/13/EEC). The directive...
FCA starts restitution application for DB transfer advice
FCA has started proceedings towards a restitution order against two individuals. It alleges that Estate Matters Financial Limited, which is in liquidation, provided unsuitable DB pension transfer advice, which led...
FCA gets orders against illegal deposit-takers
FCA has an interim restitution order against 5 of 7 defendants accused of carrying on unauthorised deposit taking by accepting money as deposits for various ventures including crypto-assets, without authorisation.
Treasury Committee expresses concerns about FOS
The Treasury Committee has expressed concerns about FOS’ budget and effectiveness. It has noted FOS needs around £1,000 to resolve a case on average, and is funding the excess over the case fee through its...
FCA updates on BI issues
FCA has updated its information page on business interruption insurance, and has created new pages containing a policy checker tool and FAQs for policyholders.
BI insurance claims – what happens next?
Following our report on the Supreme Court’s findings in the FCA’s test case, we have now written an article on the key elements of the judgment.
Regulators consult on FSCS levy
PRA and FCA are consulting on proposals for the FSCS Management Expenses Levy Limit for 2021/22. The consultation is supported by the FSCS’s proposed Plan and Budget for 2021/22. The proposed limit for 2021/22 is...
Supreme Court backs FCA on BI judgment
The Supreme Court has released its judgment on the business interruption insurance test case. Commenting, on the judgment, FCA noted that the Court has substantially allowed FCA’s appeal on behalf of policyholders...
Market Watch on recordings and alternative working arrangements
The latest edition of FCA’s Market Watch looks at FCA’s expectations on firms on recording telephone conversations and electronic communications while alternative working arrangements are in place. FCA had...
FCA fines Charles Schwab over client asset failings
FCA has fined Charles Schwab UK Ltd nearly £9m for failing adequately to protect client assets, carrying out a regulated activity without permission and making a false statement to FCA . FCA found the firm changed its...
FCA censures firm in relation to Connaught investments
FCA has publicly censured Blue Gate Capital Limited and ordered it to pay £203,000 in restitution to investors who invested in the Connaught Income Fund, Series 1. The Fund was a UCIS, which Blue Gate took over as...
Court of Appeal upholds insider dealing convictions
FCA has announced the Court of Appeal’s decision in the case it brought against Fabiana Abdel-Malek and Walid Choucair. The individuals had been convicted of five offences each of insider dealing in 2013/14 and...
Final reports on FCA supervision of LCF and Connaught make damning reading
The Government has published its final report on the outcome of the Independent Investigation into FCA’s regulation and supervision of London Capital & Finance plc. Dame Elizabeth Gloster delivered her report...
FOS consults on 2021/2 plan and budget
FOS is consulting on its plan and budget for next year. Key elements of the plan set out: its expectation to receive 160,000 complaints and resolve 210,000 whether the individual case fee will be £650 or £750 that the...
Supreme Court dismisses Mastercard’s appeal on collective proceedings
The Supreme Court has dismissed an appeal by Mastercard against a Court of Appeal ruling that annulled the Competition Appeal Tribunal’s (CAT) refusal to grant a collective proceedings order in Mastercard...
FCA updates on complaints data
FCA has published its latest firm-specific and aggregate complaints data from firms for H1 2020. It specifically notes: the lowest levels of recorded complaints since H2 2016 – firms received 2.96m; the largest...
No BI judgment this year
FCA has confirmed the Supreme Court will not be handing down its judgment before January 2021.
FCA fines and bans individual for market abuse
FCA has fined a former portfolio manager, partner and CIO £100,00 and banned him as a result of market abuse. Corrado Abbattista worked for Fenicial Capital Management LLP. FCA found he had created a false and...
FCA fines over treatment of customers in arrears
FCA has fined 3 entities in the Barclays group £26m for breaches of Principles 3 and 6 relating to failures in relation to their treatment of consumer credit customers who fell into arrears or were otherwise in...
FCA fines firms for unsuitable pensions advice
FCA has fined LJ Financial Planning Ltd £107,200 for recommending that 114 customers transfer their pensions to the value of around £6m into SIPPs over a period of nearly 3 years from March 2010. FCA found the firm...
Court of Appeal overturns Rothesay Part VII decision
The Court of Appeal has, for the first time, considered the approach courts should adopt to dealing with applications to sanction transfers of long term insurance business. In August 2019, a court had refused Prudential...
FOS loses judicial review hearing
The Court has found against FOS in a judicial review hearing brought by a forex firm. TF Global Markets (UK) Ltd has suspended a number of accounts, including those of three individuals who subsequently complained to...
FSCS Outlook November 2020
FSCS has published its half year edition of Outlook, which gives an overview of the levy position. FSCS acknowledges that 2020 has been a challenging year for the financial services sector. It has adapted well to the...
LCF report due to be published before Christmas
In a statement to Parliament, John Glen confirmed that Dame Elizabeth Gloster has delivered her final written report on her investigation into London and Capital Finance to FCA. He has asked FCA now to work with...
FCA fines FX options broker for market misconduct
FCA has fined TFS-ICAP Ltd £3.44m for communicating misleading information to clients. It found that over a 7 year period brokers at the firm had “printed” trades – which meant the told clients a trade...
FCA publishes BI appeal transcript
FCA has published the transcript from the last day of the appeal hearing on the business interruption insurance test case.
FCA updates on complaints handling during Covid-19
FCA has published an exchange of letters with FOS on how firms have been dealing with complaints handling during the pandemic. As it has previously stated, firms have had enough time now to embed new ways of working...
What next in BI appeal?
The hearing of the business interruption insurance test case appeal in the Supreme Court is now over. FCA has published the draft transcripts up to day 3, and the judges are aware of the importance of an early judgment...
Ombudsman News looks at trends and stats
The latest edition of Ombudsman News looks at its recently published complaints data (previously featured in detail in FIN), which saw a rise in complaints from people who borrowed money and then felt the debt was...
MFN strikes again
The CMA has published an infringement decision against Compare The Market for imposing wide most favoured nation clauses on home insurance providers using its price comparison platform. The fine, in the sum of £17.9...
FCA publishes BI appeal day 1 transcript
FCA has published the draft transcript of day 1 of the appeal hearing in its business interruption insurance case, and a link for those who wish to watch the recording of it.
FCA updates on Supreme Court BI appeal
FCA has updated its website to reflect the running order for the Supreme Court hearing in its test case on business interruption insurance. The hearing started on 16 November and is expected to close on Thursday. The...
FCA updates on BI insurance test case
The FCA has updated its webpage on business interruption insurance with details of the BI test case Supreme Court appeal. The Supreme Court will live-stream the appeal on: Monday 16 November: 11am-4pm; and Tuesday 17 –...
FOS publishes Q2 information
FOS has published complaints figures for July – September 2020 (Q2 2020). It: received 69,000 complaints in total received over 5,900 Covid-related complaints referred over 9,000 complaints to an Ombudsman upheld...
Complaints Commissioner issues final report on FCA complaint
The Complaints Commissioner has ordered the FCA to pay £50 compensation to an individual who complained about the customer service he received when he copied the FCA into his concerns about a firm and a financial...
FCA confirms BI appeal date
FCA has confirmed the Supreme Court’s permission to appeal in the test case on business interruption insurance. The appeal will be heard from 16 November, probably for 4 days. RSA has confirmed it will not be...
FOS focuses on SMEs
The latest edition of Ombusdman News focuses on the impact of Covid-19 on SMEs and how FOS can help small businesses. It summarises which businesses it can help and gives examples of how it has helped without actually...
SFO publishes DPA guidance
The SFO has published a chapter from its handbook that gives guidance on how it approaches DPAs and engages with companies when it is considering a DPA. The guidance, which is internal guidance for SFO staff and...
FCA and PRA fine GSI for 1MDB risk management failures
FCA and PRA have fined Goldman Sachs International a total of £96.1m for risk management failures connected to its role in three fund raising transactions for 1Malaysia Development Berhad, a Malaysian state-owned...
Financial Services Bill starts Parliamentary passage
The Financial Services Bill was introduced into Parliament on 21 October. The key aims of the Bill are: to implement the remaining Basel 3 standards; to create a more proportionate investment firms’ prudential...
FCA publishes BI High Court declarations
FCA has published the High Court declarations made in the test case, which are the culmination of the test case judgment. The declarations set out how and to what extent the policies in the representative sample used in...
FCA says no more excuses for complaint handling delays
FCA says firms have now had enough time to embed the new ways of working the pandemic has demanded, and that any more failures to comply with FCA’s complaint handling requirements should only arise in exceptional...
FCA fines for short selling disclosure breach
FCA has issued its first fine for breach of the Short Selling Regulation. It fined Asia Research and Capital Management Limited, an asset management firm based in Hong Kong, nearly £875,000 for failing to notify FCA and...
SFO looks to future challenges
Lisa Osofsky has spoken on future challenges in economic crime. She focused on: the success of the National Economic Crime Centre in its first 2 years of existence; the refreshed Economic Crime Plan; better engagement...
FCA skilled persons reports update
In July – September 2020, FCA commissioned 14 skilled persons reports – of which half were on the retail side and half the wholesale side. 3 related to retail banking and payments and 2 to retail lending...
Another breach of the SME Banking Undertakings
The CMA has published details of another firm breaching the SME Banking Undertakings 2002. Between December 2019 and August 2020, AIB NI had failed to inform staff that SME customers were not required to open or...
Leapfrog certificates granted in BI test case
FCA has confirmed the granting of “leapfrog” certificates to it, six of the insurers involved and the Hiscox Action Group for an appeal to the Supreme Court, and may now apply for permission to appeal. At...
FCA files skeleton arguments for leapfrog BI hearing
FCA and the insurers involved in the business interruption insurance test case did not reach the hoped-for agreement on the interpretation of some key points in the judgment. As a result they have filed skeleton...
Ex-banker acquitted in FCA document destruction trial
In a case brought by the FCA, Konstantin Vishnyak has been found not guilty of one count of destroying documents in September 2018. The FCA was investigating Mr Vishnyak for suspected insider dealing when it brought the...
CMA letter re PPI Order breaches
The CMA has written to Cardiff Pinnacle about two breaches of the PPI Order: breach 1: 77 customers did not receive their Annual Reviews on time; and breach 2: 167 customers did not receive accurate information in their...
FCA reports on regulatory perimeter
FCA has published its second report on the regulatory perimeter. The report looks at: consumer confusion about the perimeter – and when FCA has the power to act. It also notes that customers may be confused as to...
FCA updates on BI appeal and lodges leapfrog application
FCA has updated its information page on the consequences from the judgment in the business interruption insurance test case. It noted that it held meetings with policyholders and their lawyers over 4 days in the week of...
FCA launches investigation under Competition Act
The FCA is investigating suspected anti-competitive arrangements under Chapter I of the Competition Act 1998.
BI consequentials hearing set for 2 October
FCA says the Court has confirmed the consequentials hearing following judgment in the BI insurance test case will take place on 2 October, probably in the morning. FCA will live stream the hearing, at which the parties...
FCA writes to CEOs on BI judgment
FCA has written to the CEOs of insurers following publication of the High Court judgment on the BI test case. It expresses its gratitude to the insurers that were parties to the case and to all those who have co...
FCA plans £100,000 penalty on individual for market abuse
FCA has published a decision notice imposing a £100,000 penalty on an individual for market abuse and banning him from performing any functions in relation to any regulated activity. It found that Corrado Abbattista...
BI test case: Court largely supports policyholders
The High Court has handed down its judgment in the test case FCA brought to seek clarity on key issues on business interruption insurance policies and how they have reacted to COVID-19-related claims. Overall, it agreed...
Increasing calls for extension of Complaints Scheme consultation
The Treasury Committee has received increasing numbers of representations that the 8 week consultation period that ended today (14 September) to submit comments on the revised regulatory complaints scheme, was too short...
FCA and PSR publish annual reports
FCA has published its annual report and accounts for 2019/20. The report notes FCa’s key achievements for the year. Apart from the obvious measures to address the problems caused by Covid-19, it highlights:...
ICO issues £130,000 fine for unauthorised pension cold calls
The Information Commissioner’s Office (ICO) has issued a penalty notice under section 55A of the Data Protection Act 1998 to Swansea based CPS Advisory, fining the company £130,000 for making over 100,000...
FCA censures individual for market abuse
FCA has publicly censured the former CEO of Worldspreads and banned him from any roles linked to regulated activity, as as result of market abuse. It originally fined Conor Foley around £650,000 but imposed a public...
Complaints Commissioner calls for action on disability issues
The Complaints Commissioner has published its response to a mental health worker who had complained to FCA that it did not have in place appropriate policies to comply with its “anticipatory duty” under...
Complaints Commissioner upholds complaint on FCA cloned firm process
The Complaints Commissioner has ordered FCA to pay £200 compensation to an aggrieved investor who invested in a clone firm which was not at the time listed on the FCA Register. A scammer had cloned the details of a...
FCA updates on complaints data return dates
FCA has notified firms it will allow them to apply a 2 month deadline to the complaints data summary due on 31 August, so that the data for complaints covering reporting periods ending between 1 January and 30 June 2020...
FOS focuses on Covid-19 complaints
The latest edition of Ombudsman News focuses on complaints arising from Covid-19 and its impact on consumers and SMEs. FOS notes that some of the issues are new, but others are common issues made worse by the pandemic...
London and Capital report delayed
Dame Elizabeth Gloster has explained to FCA that she will need until late November to complete and report on her investigation into FCA’s regulation of London and Capital Finance. FCA is happy to work with her...
Court says Treasury should tell whereabouts of frozen assets
A consortium of reinsurers had tried, unsuccessfully, to trace funds owned by the Syrian state and its agents. The funds are frozen as a result of sanctions, and if the reinsurers could locate them, they would ask the...
HMRC publishes list of MLR miscreants
HMRC has published its list of businesses who, over the past tax year, have not complied with their obligations under the MLRs. Over the period, there were 15 “major” penalties, including a fine of nearly...
FCA publishes final BI case transcripts
FCA has published the final transcripts from each day of the Business Interruption Insurance test case.
FMLC responds on departure from EU case law
FMLC has offered its views to the Ministry of Justice on whether courts and tribunals other than the Supreme Court and High Court of Judiciary should have the ability to depart from retained EU lase law after the end of...
CMA revokes HSBC directions
The CMA has on 6 August revoked the Directions given to HSBC under the Retail Banking Market Investigation, as the Implementation Trustee confirmed HSBC’s compliance with the Order on App-to-App Redirection...
Tribunal finds FCA acted unreasonably and must pay firm’s costs
The Tribunal has rules on an application by a firm for FCA to pay the costs of a previous Tribunal hearing. FCA decided to cancel the authorisation of a firm that had failed to pay its fees and failed to satisfy FCA...
FCA adds more BI documents
FCA has now published the transcript of day 8 of its Business Interruption insurance test case and a number of supplementary notes.
FCA updates on BI test case
The test case FCA brought to get court clarity on the application of certain clauses in a number of business interruption insurance policies is now complete. FCA has now published the draft transcripts for days 1-7 of...
FCA updates on Covid-19 and complaints handling
FCA has reviewed and updated its webpage on how firms should handle complaints during Covid-19. It has made some minor changes to its previous statement and will review it again at the end of October. The guidance...
FCA consults on consumer refund guidance
FCA has published a guidance consultation on how firms should be helping customers with rights and routes to refunds. The guidance builds on FCA’s previous statements on consumers’ rights when their trips...
FCA publishes Day 2 BI test case transcript
FCA has published the draft transcript from Day 2 of the Business Interruption Test Case hearing. Counsel developed the arguments from the details discussed on the first day, with reference to specific policies, and to...
BoE publishes enforcement update
BoE has published the 2019/20 report of its Enforcement Decision Making Committee. The committee was set up in 2018 to decide contested enforcement cases and covers all regulatory areas where BoE has enforcement powers...
Day 1 BI test case transcript published
FCA has published the draft transcript of Day 1 of the business interruption insurance test case. Much of the first day focused on how the pandemic developed, the actions of UK government and the effects on business...
Regulators consult on easier complaints scheme
BoE, PRA and FCA are consulting on making the process of complaining about the regulators easier. The main changes are to use plainer language and make the scheme more user friendly to its main users, who are consumers...
FCA updates BI papers ahead of trial
FCA has updated its list of documents relating to the business interruption insurance test case in preparation for the trial starting on 20 July. The documents now published are: the agreed list of issues and common...
Court rules “No DSS” unlawful under the Equality Act
York County Court has ruled that so called “no DSS” policies – which put in place a ban on renting property to people who are on housing benefit – are discriminatory and unlawful under the...
Ireland and Romania fined for late implementation of MLD4
The Court of Justice of the EU has fined Ireland €2m and Romania €3m for failure to transpose MLD4. Both jurisdictions had neither transposed the Directive in full nor notified the Commission of the measures they had...
FCA publishes defendant BI case skeleton arguments
FCA has published the Defendants’ skeleton arguments in the business interruption insurance test case as well as the Defendants’ joint skeleton arguments on the principles of contractual construction and on...