UK: Weekly Financial Services Regulatory Update - Week To 17.08.12

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. If you have any queries about any of the information in this update or financial services regulatory matters generally, please contact one of the individuals listed in the 'Contacts' section of this publication.

If you have any comments on the content or format of the update or if you no longer wish to receive it, or have a colleague who would like to receive it, please email financial. services@clydeco.com.

Consultation papers:
No new developments this week.

Discussion papers:
No new developments this week.

Policy statements:
No new developments this week.l

Press releases:
No new developments this week.

Speeches:
No new developments this week.

Bulletins and newsletters:

14 August: Market Watch Issue No.42. The FSA has published Issue 42 of its Market Watch Newsletter. The newsletter focuses on the EU Short Selling Regulation (EU No.236/2012) which comes into effect on 1 November 2012. The Regulation will be directly applicable and, as such, will have direct effect in UK law in its own right with no general need for implementing measures in domestic legislation and FSA rules to apply its provisions. This edition of Market Watch is intended to provide advance notice of the FSA's approach in these areas to help those subject to the Regulation in their preparations for its coming into effect. It also discusses the removal of the domestic short position disclosure regime (noting that the Regulation offers the option that existing national short selling measures can continue to operate in parallel with the European regime until July 2013) and discusses the penalty policies that the Regulation will require Member States to establish, amongst other issues.

http://www.fsa.gov.uk/static/pubs/ newsletters/mw_newsletter42.pdf

Final notices:

17 August: Richard Rhys. The FSA has issued a Final Notice, dated 27 July 2012, prohibiting Mr Richard Rhys from performing any function in relation to any regulated activity on the basis that he is not a fit and proper person and lacks competence and capability. Mr Rhys referred the Decision Notice, dated 20 January 2012, to the Upper Tribunal but, following settlement discussions with the FSA, later withdrew the reference with the permission of the Tribunal. Mr Rhys was the leading approved person in relation to an investment scheme which was unlawfully promoted by MNFA Limited ("MNFA") (in liquidation) and which has caused investors to sustain substantial losses. Statements made by Mr Rhys when promoting the scheme obviously risked misleading investors and he misunderstood the regulatory requirements that apply when promoting an unregulated collective investment scheme and consequently caused MNFA to promote the scheme without compliance with these requirements.

http://www.fsa.gov.uk/static/pubs/final/richard-rhys.pdf

17 August: Anthony Adams. The FSA has issued a Final Notice, dated 21 February 2012, prohibiting Mr Anthony Adams from performing any significant influence function other than as, or through, an appointed representative on the basis that he is not a fit and proper person and lacks competence and capability. Mr Adams was a director and the compliance officer of MNFA Limited ("MNFA") (in liquidation) and failed to understand the restrictions on promoting unregulated collective investment schemes and shared responsibility with Richard Rhys for the unlawful promotion of one such scheme which subsequently caused investors to lose substantial sums of money.

http://www.fsa.gov.uk/static/pubs/final/anthony-adams.pdf

15 August: 3 Old Brothers Limited. The FSA has issued a Final Notice cancelling 3 Old Brothers Limited's registration as a small payment institution under the Payment Services Regulations 2009 ("PSR") under Regulation 10(1)(h). The FSA decided to take this action as a result of 3 Old Brothers Limited's failure to pay fees and levies totalling £559.60 owed to the FSA, and for failure to demonstrate a readiness and willingness to comply with its regulatory obligations and to deal with the FSA in an open and co-operative way.

http://www.fsa.gov.uk/static/pubs/final/3-old-brothers.pdf

14 August: Zim Network Financial Services Limited. The FSA has issued a Final Notice cancelling Zim Network Financial Services Limited's registration as a small payment institution under Regulation 10(1)(h) of the Payment Services Regulations 2009 ("PSR"). The FSA decided to take this action as a result of Zim Network Financial Services Limited's failure to comply with the FSA's regulatory obligations and for failure to deal with the FSA in an open and co-operative way. It failed to pay fees and levies totalling £1,034.60 for 2010/2011 and 2011/2012 despite repeated requests to do so, and did not submit Payment Services Transactions Returns for the periods ended 31 December 2010 and 31 December 2011.

http://www.fsa.gov.uk/static/pubs/final/zim-network.pdf

14 August: Mian International Limited. The FSA has issue a Final Notice cancelling Mian International Limited's ("Mian") registration as a small payment institution under Regulation 10(1)(h) of the Payment Services Regulations 2009 ("PSR"). The FSA decided to take this action as a result of Mian's failure to comply with the FSA's regulatory obligations which required paying fees and levies totalling £559.60 despite repeated requests to do so, and for failing to deal with the FSA in an open and co-operative way, which was not in the interest of consumers.

http://www.fsa.gov.uk/static/pubs/final/mian-international.pdf

14 August: Idowu Oyewole. The FSA has issued a Final Notice cancelling Mr Idowu Oyewole's registration as a small payment institution under the Payment Services Regulations 2009 ("PSR"). The FSA decided to take this action as a result of Mr Oyewole's failure to pay fees and levies of £559.60 owed to the FSA and to respond to the FSA's repeated requests to do so. Mr Oyewole further failed to submit two Payment Service Directive Transaction Returns, which were due to be submitted by 31 January 2011 and 31 January 2012. Overall, Mr Oyewole failed to demonstrate a willingness to comply with his ongoing regulatory obligations and to deal with the FSA in an open and co-operative way.

http://www.fsa.gov.uk/static/pubs/final/idowe-oyewole.pdf

14 August: Eciru and Company Limited. The FSA has issued a final notice cancelling Eciru and Company Limited's ("Eciru") registration as a small payment institution under the Payment Services Regulations 2009 ("PSR"). The FSA decided to take this action as a result of Eciru's failure to pay its fees and levies of £559.60 owed to the FSA, and its failure to submit the Payment Services Directive Transaction Returns for the period ended 31 December 2011, and to respond adequately to the FSA's repeated requests that it does so. Eciru failed to demonstrate a willingness to cooperate with the FSA and to comply with its ongoing regulations.

http://www.fsa.gov.uk/static/pubs/final/eciru.pdf

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:
No new developments this week.

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):

15 August: Ombudsman News - Issue 104. The FOS has published Issue 104 of its publication, Ombudsman News. In this issue, in an article entitled 'Changing times, changing service', the lead ombudsman, Jane Hingston talks about an "experimental" casework project. The newsletter also discusses several case studies regarding PPI policies and there is a Q&A section featuring questions that businesses and advice workers have raised recently with the ombudsman's technical advice desk.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/104/104.pdf

London Stock Exchange (LSE):
No new developments this week.

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.

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