UK: Weekly Financial Services Regulatory Update - Week To 06.07.12

This weekly update from Clyde & Co's Financial Services Regulatory Team summarises new developments as reported by the FSA, the UKLA, the Upper Tribunal, the Financial Ombudsman Service and the London Stock Exchange over the past week, with links to the full documents where these are available.

We hope that you will find this update useful.

Consultation papers:

No new developments this week.

Discussion papers:

No new developments this week.

Policy statements:

No new developments this week.

Press releases:

No new developments this week.


3 June: Annual Public Meeting – Chairman's Speech. The FSA has published a speech by Lord Turner, Chairman of the FSA, given at the FSA Annual Public Meeting. Lord Turner outlines the progress made by the FSA between April 2011 and March 2012 in the context of the banking crisis and includes mention of the RBS report published in December 2011 which identified key areas for significant change, including in the areas of banking liquidity and reserves, and the level of regulatory supervision. Lord Turner also comments on the recent LIBOR scandal and its effect upon the public's trust in the banking industry, stating that this will certainly be an issue that is addressed in a FCA approach document due for publication in the autumn. He ends by looking towards the future and the last few hurdles that must be overcome before the twin peaks model is in place, thanking those who have assisted in bringing it to this point so far.

2 July: The FCA – our vision for enforcement. The FSA has published a speech given by Martin Wheatley, CEO Designate of the FCA, at the FSA's Enforcement Conference in London. In his speech, Wheatley outlines the background to the reforms before focusing on how the FCA intends to put consumers to the forefront of the approach that will be adopted and explains that it will be ensuring that it puts credible deterrence at the heart of its enforcement agenda.

2 July: Credible deterrence: here to stay. The FSA has published a speech given by Tracey McDermott, acting director of the Enforcement and Financial Crime Division, at the FSA's Enforcement Conference in London. McDermott's talk continues on from Martin Wheatley's and begins by explaining how enforcement has developed within the FSA over the past two years, highlighting how issues affecting consumers have had a greater focus. Following this, she outlines the FCA's plans for the future of enforcement, including the importance of maintaining the integrity of the markets and how it intends to tackle financial crime and unauthorised business with the ultimate aim of restoring consumers' trust in the financial system.

Bulletins and newsletters:

29 June: Credit Union Newsletter Issue 15. The FSA has published the June issue of the Credit Union Newsletter. This issue focuses on the following:

  • Regulatory reform
  • The Legislative Reform Order
  • Lending limits and subordinated loans
  • Single customer view reporting requirement

Final notices:

No new developments this week.

Application refusals:

No new developments this week.

Approved person refusals:

No new developments this week.

Research publications:

No new developments this week.

Consumer research:

No new developments this week.

Other FSA publications:

5 July: List of Banks as compiled by the FSA on 30 June 2012. The FSA has published an updated list of banks. Since 31 May 2012, the list has been amended with the additions of Bank of Cyprus UK Limited and Cambridge & Counties Bank Limited.

5 July: FG12/16 – Assessing Suitability: Replacement business and centralised investment propositions. The FSA has published finalised guidance on replacement business and centralised investment propositions (CIPs) in relation to the Retail Distribution Review (RDR). The guidance considers the issues firms should consider when recommending switching a client's investment, and the steps firms should take when assessing the suitability of CIPs. It also provides examples of good and poor practice. The guidance applies to firms regardless of whether they provide an independent or a restricted advice model post-RDR.

5 July: Internal Model Approval Process. The FSA has published a webpage providing information for firms about the FSA's intended approach to the review of technical provisions as part of the Internal Model Approval Process in which it states that it intends to align its review approach with that of the Society of Lloyd's.

3 July: Smaller Firms – Payment Protection Insurance: The FSA has published a series of webpages for smaller firms on how to handle payment protection insurance (PPI) complaints.

3 July: Adviser network goes into administration. The FSA has published news that Sage Financial Services Ltd (based in Macclesfield) and Burns-Anderson Limited (based in Bristol) have gone into administration. The two firms ran a network of financial advisers, a list of which is provided here by the FSA. The FSA provides brief guidance to persons who may be affected.

2 July: Ewa Karczewska. The FSA has published a decision notice, dated 7 February 2012, objecting to the acquisition of at least 70% of the issued share capital of Think Finance. com by Ewa Karczewska. The reason for the objection is due to the FSA's concerns about the reputation of the s.178 notice-giver, Ms Karczewska (for reasons including a lack of honesty and integrity), the reputation and experience of the person who will direct the business as a result of the proposed acquisition, and whether the UK authorised person would be able to comply with its prudential requirements.

29 June: Policy Development Update No.148. The FSA has published a Policy Development Update newsletter setting out the publications that have been released since the last issue, information about updates and developments relating to the Handbook and an updated timetable for forthcoming publications.

UKLA publications:

No new developments this week.

Upper Tribunal (Tax and Chancery Chamber) (formerly Financial Services and Markets Tribunal (FSMT)):

No new developments this week.

Financial Ombudsman Service (FOS):

4 July: Ombudsman news issue 103. The FOS has published Ombudsman news issue 103 which includes an analysis of complaints involving whole-of-life policies with case studies about how these types of complaint are handled by the FOS, a snapshot of the ombudsman's first quarter 2012 statistics, an analysis of mortgage difficulties including case studies on how the FOS handles complaints in this area, and a Q&A section on how the FOS can assist consumers to cancel "continuous payment authorities", for which neither the company they gave the authority to nor their card provider or bank will accept responsibility.

London Stock Exchange (LSE):

4 July: Monthly Market Report – June 2012. The LSE has published the monthly market report for June. It states that 30.1 million trades were carried out in June, totalling £153.1 billion, down 24 per cent on June 2011. The press release also provides a more in-depth breakdown of the individual order books.

2 July: UK's largest private investor show launches 26 October. The LSE will this year be hosting the London Investor Show at Olympia which is the largest private investor exhibition and conference in the UK.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.