UK: Financial Regulatory Developments (FReD) - 7 September 2012

Last Updated: 12 September 2012

HEADLINES

  • Presidency publishes MiFID compromises
  • Presidency publishes MAR compromise
  • EP updates voting dates
  • Commission consults on benchmarks
  • FSA consults on sales incentives

EUROPEAN UNION AND INTERNATIONAL

Presidency of the European Union (Presidency)

Presidency publishes MiFID compromises: The Presidency has published new compromise texts for the revised Markets in Financial Instruments Directive (MiFID 2) and Regulation (MiFIR). The changes to MiFID 2 focus on algorithmic trading, organised trading facilities (OTFs), and market transparency and integrity. The changes to MiFIR focus on liquidity of markets and instruments.  (Source: Compromise Text for MiFID 2 and Compromise Text for MiFIR)

Contact: Rosali Pretorius or Madeleine de Remusat.

Presidency publishes MAR compromise: The Presidency has published a new compromise text for the Regulation on insider dealing and market manipulation (market abuse) (MAR). It incorporates the European Commission's amendments to bring benchmark manipulation within scope. It also includes new provisions on the legality of disclosing inside information during market soundings, where a seller of financial instruments contacts potential investors before the announcement of a transaction. New text also clarifies aspects of trading in emissions allowances and on how to decide appropriate sanctions applicable under MAR. (Source: Compromise Text for MAR)

Contact: Rosali Pretorius or Madeleine de Remusat.

European Parliament (EP)

EP updates voting dates: The EP has brought forward the Committee and Plenary votes on MiFID 2 and MiFIR to, respectively, 26 September and 23 October.  

Other voting dates have been postponed:

  • the indicative Plenary sitting date for the Capital Requirements Directive and Regulation (CRD4 and CRR) is now 21 November;
  • the indicative Plenary sitting date for the Omnibus 2 Directive is now 20 November;
  • the indicative Plenary sitting date for the revised Credit Rating Agencies Regulation (CRA3) and the Directive amending the UCITS Directive and the Alternative Investment Fund Managers Directive (AIFMD) to reduce reliance on credit rating agencies is now 11 December; and
  • the date for the Committee vote MAR and the Directive on Criminal Sanctions for Market Abuse (CMAD) is now 8 October, and the Plenary sitting date is now 16 January.

 (Source: OEIL File for CRD4, OEIL File for CRR,OEIL File for Omnibus 2, OEIL File for MAR, OEIL File for CMADOEIL File for CRA3, OEIL File for Directive amending UCITS and AIFMD to reduce reliance on CRAs, OEIL File for MiFID 2 and OEIL File for MiFIR

Contact: Emma Radmore or Juan Jose Manchado.

ECON publishes Omnibus 2 final report: The Economic and Monetary Affairs Committee (ECON) of the EP has published the report on the Omnibus 2 Directive it adopted in March. Among other changes to the Commission's original proposal, this text contains a power for supervisory authorities to require insurance and reinsurance undertakings to file a full detailed list of their assets. It also expands on the calculation of the risk-free interest rate term structure. (Source: ECON Omnibus Report)

Contact: Rosali Pretorius or Edward Hickman.

ECON publishes report on EuVECA and EuSEF Directives: ECON has published reports on the Commission's proposals on European Venture Capital Funds (EuVECA) and European Social Entrepreneurship Funds (EuSEF). For venture capital funds and during the two years following their first investment, ECON proposes to reduce from 70% to 55% the requirement to make equity and quasi-equity investments to early-stage small undertakings. (Source: ECON EuVECA Report and ECON EuSEF)

Contact: Jim Baird or Rosali Pretorius.

ECON to discuss Banking Union, shadow banking and CMAD: At its 10 September meeting, ECON will adopt a motion for a resolution on the Banking Union, consider its rapporteur's draft report on shadow banking, and discuss the amendments tabled to CMAD. (Source: ECON Draft Agenda for 10 September)

European Commission (Commission)

Commission consults on benchmarks: In the wake of the alleged manipulation of LIBOR, EURIBOR and TIBOR, the Commission is seeking views on a number of areas. It believes that just changing the sanctioning regimes (as it now proposes as part of the MAD review) may not be enough to improve the way benchmarks are produced and used. It asks for comments on:

  • indices and benchmarks: what they are, who produces them and for which purposes;
  • the calculation of benchmarks: governance and transparency;
  • the purpose and use of benchmarks;
  • the provision of benchmarks by private or public bodies; and 
  • the impact of potential regulation: transition, continuity and international issues.

The consultation is open until 15 November. (Source: Consultation on the Regulation of Benchmarks)

Contact: Rosali Pretorius or Madeleine de Remusat.

Commission to propose single banking supervision: The Commission will introduce proposals for a single banking supervision mechanism in the euro area on 12 September. The move towards integrated deposit guarantees and bank resolution will follow at a later stage. (Source: Commission to Propose Single Banking Supervision)

Contact: Andrew Barber or Emma Radmore.

Commission publishes FTT feedback: The Commission has not accepted the amendments EP made to the Commission's proposal for a Directive on a Financial Transactions Tax (FTT). Its feedback document also describes how, because of some Member States' opposition to legislative action at European level, the technical work and discussions with the EU Council are following a "two-track approach". The approach will explore options for a gradual implementation of the original proposal and for alternative measures. (Source: Commission Publishes Feedback to EP FTT Decision)

Contact: Emma Radmore or Rosali Pretorius.

Commission publishes transposition tables: The Commission has published a set of tables showing transposition of post-Financial Services Action Plan (FSAP) Directives by country and category of Directive. (Source: Post-FSAP Transposition Tables)

Contact: Emma Radmore or Juan Jose Manchado.

Commission reviews national basic payment measures: The Commission has published a staff working document that looks at national measures taken in relation to basic payment accounts. The study follows a 2011 Recommendation from the Commission. (Source: Commission Reviews National Basic Payment Measures)

Contact: Andrew Barber or Emma Radmore.

European Securities and Markets Authority (ESMA)

ESMA to consult on short selling exemption: ESMA has announced it will shortly consult on the market making and authorised primary dealer exemption under the EU's Short Selling Regulation (SSR). It will also consult on the procedure firms and regulators should follow in dealing with notifications of intention to use the exemption. Applicants can already notify ESMA of their intention to use the exemption, although the SSR does not take effect until 1 November. The consultation will harmonise Member States' procedures. (Source: ESMA to Consult on Short Selling Exemption)

Contact: Rosali Pretorius or Matthew Sapte.

Joint Committee of the European Supervisory Authorities (ESAs)

ESAs consult on capital at conglomerate level: ESAs are consulting on regulatory technical standards to apply the Financial Conglomerates Directive (FICOD) in the light of the CRD4 package. Article 6(2) of FICOD requires regulated entities in a conglomorae ensure that own funds are available at the level of the financial conglomerate, which are always at least equal to the capital adequacy requirements calculated under FICOD. ESAs put forward two calculation methods: one based on the consolidated accounting position of the group; the other on the accounts of solo entities but with aggregation of own funds and deduction of participations in other entities of the group. A combination of both methods would also be possible if more appropriate. These methods follow the principle of removing multiple gearing and the intra-group creation of own funds. The consultation is open until 5 October. (Source: ESAs Consult on Calculation Methods under Art. 6.2 FICOD)

Contact: Edward Hickman or Rosali Pretorius.

UK GOVERNMENT AND PARLIAMENT

Parliament

Parliament urges free access to cash machines: The Treasury Committee has published a report urging banks to allow basic bank account holders free access to cash from any cash machine. Barclays, HSBC and Santander have already committed to this, and the Committee wants RBS and Lloyds TSB to make a similar commitment. (Source: Parliament Urges Free Access to Cash Machines)

Contact: Andrew Barber or Emma Radmore.

Treasury Committee publishes correspondence on RBS IT problems: The Treasury Committee has published the correspondence between it, FSA and RBS concerning the IT failure at RBS Group in June. The 6 July answer by Stephen Hester to Andrew Tyrie sets out the contingency plans used and the proactive redress offered to RBS and non-RBS customers. (Source: Treasury Committee Publishes Letters on RBS IT Failure)

Contact: Andrew Barber or Emma Radmore.

Department for Business, Innovation and Skills (DBIS)

DBIS consults on banning "above-cost payment surcharges": DBIS is consulting on the early implementation of the ban, introduced by the Consumer Rights Directive, on charges that are above the cost traders incur in accepting payment. This follows recommendations by OFT and the agreements it secured with airlines to eliminate surcharges. The ban would extend to all payment methods. The consultation also covers the costs that businesses do incur, which could be passed on to consumers. The consultation closes on 15 October. (Source: Consultation on Ban on Above-Cost Payment Surcharges)

Contact: Andrew Barber or Emma Radmore.

DBIS publishes computer trading conclusions: DBIS has published the results of research into the effects of computer trading in financial markets. The research considers a number of policy measures under debate for MiFID 2, and its main conclusions include:

  • general support for the use of circuit breakers;
  • support for a coherent tick size policy across similar markets;
  • less support for policies imposing market-maker obligations;
  • concerns over the introduction of minimum resting times; and
  • uncertainty over the effectiveness of proposed measures to require notification of algorithms or minimum order-to-execution ratios.

(Source: DBIS Publishes Computer Trading Conclusions)

Contact: Rosali Pretorius or Madeleine de Remusat.

Serious Fraud Office (SFO)

SFO confirms Barclays/Qatar investigation: SFO has confirmed it has opened an investigation into certain commercial arrangements between Barclays Bank and Qatar Holdings in 2008. (Source: SFO Confirms Barclays/Qatar Investigation)

Contact: Emma Radmore or Andrew Barber.

UK FINANCIAL SERVICES AND MARKETS REGULATOR

Financial Services Authority (FSA)

FSA consults on sales incentives: FSA has published the results of a review into how financial institutions' sales forces are incentivised. It found that poorly designed incentive schemes can encourage a culture of mis-selling. FSA suggests that firms might have turned a blind eye to the risks arising from incentive schemes. In line with its new supervisory approach of intervening earlier to reduce the causes of consumer detriment, FSA is proposing guidance on what action it expects from firms and will be closely monitoring this area. This guidance provides examples of incentive scheme features that significantly increase the risk of mis-selling. It also identifies the following good practice in managing the risk and governance of incentive schemes:

  • firms should use a wide range of management information to analyse trends, paying particular attention to those staff selling the most;
  • checking that the sales manager's role is not affected by conflicts of interest, as the manager may earn incentives based on the sales made by the staff they supervise;
  • monitoring calls to identify inappropriate staff behaviour; and
  • senior management should be involved in overseeing incentives schemes.

FSA expects firms to:

  • properly consider if their incentive schemes increase the risk of mis-selling and, if so, how;
  • review whether their governance and controls are adequate;
  • take action to address any inadequacies – this might involve changing their governance and/or controls, and/or changing their schemes;
  • where risks cannot be mitigated, take action to change their schemes; and
  • where a recurring problem is identified, investigate, take action and pay redress where consumers have suffered detriment.

Martin Wheatley, announcing the results of this review and the proposed guidance, said FSA wants to stamp out bonus or other schemes within the culture of financial institutions that make customer service staff see consumers as sales targets rather than someone to serve. He gave the example of payment protection insurance, where incentive schemes proved to be "rotten to the core", and demanded a cultural change that must come from the top of financial institutions. The consultation closes on 31 October. (Source: FSA Guidance Consultation on Risks to Customers from Financial Incentives and Martin Wheatley Speech)

Contact: Andrew Barber or Emma Radmore.

FSA consults on changes to PSR approach: FSA is consulting on changes to its Payment Services Regulations (PSR) "Approach" document. The changes mainly reflect the Payment Services Regulations 2012, modifying the registration requirements for small payment institutions from 1 October. FSA asks for comments by 17 September. (Source: FSA Consults on Changes to PSR Approach)

Contact: Andrew Barber or Emma Radmore.

Up next from FSA: FSA's latest Policy Development Update Newsletter notes the following publications due over the coming months:

  • a consultation on national depositor preferences by the end of September;
  • feedback on recovery and resolution plans, Solvency 2 implementation and large exposures before the end of 2012;
  • a policy statement on the Mortgage Market Review by the end of September (but FSA has postponed indefinitely issuing the final rules on arrears and approved persons);
  • a consultation on CASS, EMIR and porting by the end of September;
  • policy statements on payments to platform service providers, packaged bank accounts and client assets firm classifications by the end of the year; and
  • consultations on what may be a new sourcebook for firms affected by AIFMD over the third and fourth quarters of 2012.

(Source: Policy Development Update Newsletter August 2012)

Contact: Emma Radmore or Juan Jose Manchado.

FSA consults on short selling changes: FSA is consulting on changes to its handbook to reflect the SSR that takes effect from 1 November 2012. FSA proposes to make several changes to chapter 2 of the Financial Stability and Market Confidence Sourcebook (FINMAR) to:

  • delete most of FINMAR 2, which contains disclosure requirements for the UK's domestic short selling regime;
  • include how it will use its temporary suspension powers under the SSR;
  • set out details of how euros will be converted to sterling for the purposes of the regime; and
  • explain the procedure for reviews of decisions by the FSA to prohibit persons from using the market-maker and authorised primary dealer exemption.

It will also amend the Decision Procedure and Penalties Manual (DEPP) to:

  • note that the existing interview policy covers the SSR; and
  • apply the existing penalties policy contained in DEPP 6 to the SSR.

Finally, it proposes to amend the Supervision Manual (SUP) to provide that a firm must allow access to FSA representatives to its business premises to enable FSA to meet its obligations under the SSR.

Consultation closes on 20 September so FSA can meet the EU deadline. (Source: FSA Consults on Short Selling Changes)

Contact: Rosali Pretorius or Matthew Sapte.

FSA publishes RDR Newsletter: FSA has published the latest edition of its Retail Distribution Review (RDR) newsletter. The newsletter reminds firms of what they should do to be ready for the RDR, including checking they have the right permissions. FSA has also published a note setting out how the provision of advice will change under the RDR. (Source: RDR Newsletter)

Contact: Andrew Barber or Emma Radmore.

FSA updates on milestones: FSA has published a new set of tables showing how it has performed against its targets. (Source: FSA Updates on Milestones)

Contact: Emma Radmore or Juan Jose Manchado.

FSA updates on swaps to SMEs review: FSA has updated on progress in the exercise it agreed with major banks to review sales of interest rate hedging products to SMEs. FSA is inspecting the reviewers appointed by banks, to ensure they have no conflicts of interest and are independent. FSA has also required banks to develop a methodology on how to conduct the past business review and redress. Banks must also run a pilot exercise. The objective is to ensure banks have a robust process in place to ensure fair treatment for all customers who could have been affected by mis-selling. (Source: Information on Interest Rate Hedging Products)

Contact: Rosali Pretorius or Madeleine de Remusat.

UKLA updates on provision of individual guidance: In its latest Primary Market Bulletin, the UK Listing authority (UKLA) reviews the practical implications of forthcoming changes to its Helpdesk. All requests for individual guidance will need to be submitted in writing and on a named basis. (Source: UKLA Primary Market Bulletin Issue No. 3)

Contact: Laura Cansdale or Matthew Sapte

OTHER REGULATORS/AUTHORITIES/INDUSTRY ASSOCIATIONS     

Bank for International Settlements (BIS)/Basel Committee on Banking Supervision (Basel Committee)

Basel updates Basel 3 monitoring FAQs: The Basel Committee has answered two new questions in its Basel 3 monitoring FAQs document. (Source: Basel 3 Monitoring FAQs)

Contact: Edward Hickman or Rosali Pretorius.

British Bankers' Association (BBA)

BBA comments on trading book review: BBA has responded to the Basel Committee's consultation on the fundamental review of the trading book. BBA says a review of Basel 3 methodology for Counterparty Valuation Adjustment should take place first. It also raises concerns about the proposals for a standardised floor that would limit the risks of relying on poorly specified internal models. To determine where the boundary between the trading and the banking book lies, BBA favours a test based on evidence of intent and ability to trade. This boundary should be permeable, to cater for changes in business model. Disclosure of transfers between books would do more for financial stability than the current proposal to stop the possibility of those transfers. (Source: BBA Response to Trading Book Review)

Contact: Edward Hickman or Rosali Pretorius.

BBA raises questions about CASS RP: BBA has written to FSA with queries about the requirement to keep a resolution pack (RP) for the client assets (CASS) held by a firm. The letter covers issues such as the storage of customer agreements, when to notify FSA if the RP is inaccurate, the obligation to keep the RP updated, legal enforcement of continuity of supply, and identifying key personnel. (Source: Re: Client Asset Sourcebook Recovery and Resolution Plan)

Contact: Andrew Barber or Rosali Pretorius.

Financial Action Task Force (FATF)

FATF announces next plenary: FATF's next plenary session will take place from 17 to 19 October in Paris. The plenary will discuss current issues, including peer reviews of compliance with the FATF Principles and reviewing progress made by countries with deficiencies in their Anti Money Laundering (AML) laws. (Source: FATF Announces Next Plenary)

Contact: Emma Radmore or Andrew Barber.

International Association of Insurance Supervisors (IAIS)

IAIS publishes responses to ComFrame consultation: IAIS has published the responses to its consultation on ComFrame, the framework for group-wide supervision of internationally active insurance groups. (Source: Responses to ComFrame Consultation)

Contact: Emma Radmore or Rosali Pretorius.

International Swaps and Derivatives Association (ISDA)

ISDA and FIA publish cleared derivatives addendum: ISDA and the Futures Industry Association (FIA) have published standard documentation that will facilitate the clearing of OTC swaps entered into by US futures commission merchants and their customers. (Source: Cleared Derivatives Addendum)

Contact: Roy Neillie or Edward Hickman.

FORTHCOMING EVENTS

Compliance Register MLROs conference: Jerome Walker of SNR Denton US LLP will speak at the Compliance Register MLROs and AML Professionals Conference on 21 September. For further details please contact Ben Goh, Secretary, Compliance Register.

FReD Live 11 September: FReD subscribers should already have received an invitation to our FReD Live breakfast briefing on 11 September. The topic will be "Complaint Handling and Mis-Selling Claims". The speakers will be Felicity Ewing and Katharine Harle, plus colleagues from the Financial Markets Disputes department. Please register here.

Compliance Register Compliance Management and Practice Course: Members of our Financial Markets Dispute Resolution and Financial Services and Funds practices will be speaking at this workshop on 12 October. Places are limited. To book, please contact Ben Goh, Secretary, Compliance Register.

SNR Denton to Host Compliance Register Seminar: Emma Radmore, Andrew Barber, Katharine Harle and Madeleine de Remusat will speak at the Compliance Register's Conference: Preparing for the Regulatory Changes Ahead - Technical Update on the FSMA Regulatory Regime on 19 September. This day-long conference costs £190 + VAT per delegate. For further information, please contact Ben Goh, Compliance Register.

SNR Denton Funds Seminars: Please note the dates for the next set in our series of Investment Funds Seminars. The breakfast seminars will take place on 26 September and 21 November.

RECENT PUBLICATIONS

New This Week

Rate Setting and Regulation: In Everyone's Interests?: Rosali Pretorius, Madeleine de Remusat and Katharine Harle wrote an article for Financial Regulation International on the background to LIBOR setting and potential regulatory action.

Financial Crime

Dealing with Anti-Corruption Laws – the Bribery Act and FCPA in Context: This article summarises the effects of the Bribery Act and US Foreign Corrupt Practices Act. For further information, please contact Emma Radmore or Dominic Sedghi (London), or Michelle Shapiro (New York).

New EU Sanctions Expand Restrictions on Iran: Michael Zolandz, Peter Feldman, Stuart Cavet and Emma Radmore have written an update on the new EU sanctions against Iran.

Testing your ABC – the Bribery Act Six Months on: Emma Radmore  and Dominic Sedghi have updated our previous suite of articles on Bribery Act implementation.

Financial Crime Podcast: Emma Radmore joined Finance IQ to discuss the FSA's Financial Crime Guide and issues associated with cutting financial crime.

Compiling the Pieces: The FSA's Financial Crime Guide: Emma Radmore wrote an article for Compliance Monitor on FSA's new draft Financial Crime Guide.

Bribery and Sanctions presentation: Our UK and US offices gave a seminar on dealing with bribery and sanctions risks. Please check our website for up to date summaries of key sanctions regimes.

Investment Services and Markets Reform

Treasury Publishes LIBOR Consultation: We have written a summary of the initial report and consultation of the Wheatley Review of LIBOR.

Money through your mobile – regulation of m-payments: Andrew Barber and Emma Radmore have written an article for Compliance Monitor on the regulatory aspects of mobile payments.

Bank Notes March 2012: The latest edition of our Bank Notes newsletter includes two articles by Rosali Pretorius and Emma Radmore.

The Battle for Control of the Mobile Wallet: Alex Haffner and Ingrid Silver have written an article on the Project Oscar initiative to make mobile payments across networks easier.

Treasury presents FS Bill: We have produced a separate summary of the FS Bill and accompanying documents. For more information, please contact Rosali Pretorius or Emma Radmore.

MiFID 2 – Prescription and Change: Emma Radmore wrote an article for Compliance Monitor on the breadth of the proposals to amend the Markets in Financial Instruments Directive (MiFID 2).

I'm a commodity dealer – get me out of here!: Rosali Pretorius and Matthew Hodgson have written an article (published in two parts on Thomson Reuters Compliance Complete) on the effects of the MiFID II proposals on commodity dealers.

The Son of MiFID: Rosali Pretorius, Josie Day and Emma Radmore have written an article looking at the major impacts of the potential changes to the Markets in Financial Instruments Directive (MiFID) on hedge funds.

Prudential Regulation

UK Treasury Publishes Banking Structure Reform Plans: This article summarises the June 2012 White Paper on implementation of structural change to UK banking (as covered in FReD 15 June). For more information, please contact Rosali Pretorius, Emma Radmore or Andrew Barber.

EU Living Wills Plans – the Key Proposals: This article is the latest in our suite of articles about Living Wills and Recovery and Resolution Plans looks at the European Commission's proposals. For further information, please contact Rosali Pretorius or Andrew Barber.

Living Wills update: We have produced an update on FSA's current plans for Recovery and Resolution Plans. For further information, please contact Rosali Pretorius or Andrew Barber.

Reform of Financial Services and Banking 2012: Rosali Pretorius and Emma Radmore look forward to some of the key changes facing UK-regulated financial institutions in 2012.

Financial Stability Board Identifies 29 Global SIFIs and Announces Agreed Policy Measures: We have written an article exploring the FSB announcements and policies endorsed at the November G20 Summit. For further information, please contact Jerome Walker (US) or Rosali Pretorius (UK).

Living Wills in the US and UK: We have written an article on the current US and UK laws and proposals on living wills. For more information contact Robert Bostrom or Jerome Walker (US) or Rosali Pretorius, Emma Radmore or Andrew Barber (UK).

What the Vickers Report means to you: Rosali Pretorius and Emma Radmore have written a note on the major impacts of the Vickers Report.

Recovery and Resolution Plans – Breaking up the banks by stealth: Rosali Pretorius has written an article on FSA's proposals for Recovery and Resolution Plans.

Asset Management

AIFMD's Impact on Private Equity Funds: If you were unable to attend our briefing on an update on AIFMD implementation, critical issues and remuneration provisions, you can now watch the lecture. For further information please contact Rosali Pretorius, Richard Nicolle or Josie Day.

AIFMD Level 2: Josie Day and Emma Radmore have written an article for Compliance Monitor on ESMA's consultations on Level 2 measures and industry response.

Outsourcing for Fund Managers: Rosali Pretorius and Amanda Lewis have written a guide to key success factors for outsourcing in fund management.

Product Regulation

More Protection for Retail Markets – the EU's PRIPs Package: We have written a detailed summary of the PRIPS, IMD2 and UCITS V proposals.

SEC No Action Letter on Foreign-Issued Covered Bond: Thomas Parachini has written a briefing on the US SEC no-action letter in respect of the Royal Bank of Canada's plan to offer and sell covered bonds in the United States in a public offering registered on SEC Form F-3.

Another Stable Door?: Emma Radmore and Katharine Harle wrote an article for Thomson Reuters Complinet on IOSCO's proposals for complex product distribution.

Product Bans – A Radical New Power: Katharine Harle has written an article for Thomson Reuters Complinet on FSA's powers to ban products.

FSA's Product Design Consultations: Emma Radmore has written an article for Thomson Reuters Complinet on FSA's latest consultations on product design.

Product Intervention: Hitting the Wrong Note?: Emma Radmore and Rosali Pretorius wrote an article for Thomson Reuters Accelus on industry and FSA's responses to proposals for Product Intervention.

The Future for PRIPs: Rosali Pretorius and Emma Radmore have written an article for Compliance Monitor on current proposals affecting Packaged Retail Investment Products.

Enforcement and Litigation

The Long Arm of FSA: Overseas Firms and Senior Management Beware: Emma Radmore and Katharine Harle have written an article for Compliance Monitor on the lessons from recent FSA enforcement cases involving overseas firms and their approved persons.

FSA Lessons for Foreign Firms: Senior Management Expectations Crystal Clear: Katharine Harle, Felicity Ewing and Emma Radmore have written an article on the implications of FSA's enforcement action against Mitsui Sumitomo Insurance Company (Europe) Ltd.

Tribunal Backs CEO Against FSA Fine: Katharine HarleRichard Caird and Felicity Ewing have written an article on the Upper Tribunal's Decision reversing FSA's decision to fine John Pottage for misconduct.

More Confusion on Client Money: Rosali Pretorius and Josie Day have written an article on the Supreme Court decision in the Lehman client money case.

FSA Not Obliged to Provide Cross-Undertaking in Damages: Alexandra Doucas has written an article for Thomson Reuters Complinet on Financial Services Authority v. (1) Sinaloa Gold plc and others.

The Pitfalls of Personal Recommendations: Richard Caird, Sam Coulthard and Kattalin Truman have written an article on the Zaki and others v. Credit Suisse (UK) case.

An end to the PPI Saga? Wider Implications of the PPI Judgment: Alexandra Doucas and Katharine Harle wrote an article for Thomson Reuters Accelus on learning points for firms stemming from the PPI judgment.

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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Events from this Firm
28 Sep 2017, Seminar, London, UK

On 26 July the FCA published its long-expected consultation paper on the extension of the SMCR to all FCA-authorised firms. The so-called "core regime" introduces the key concepts of regulator-approved senior managers, firm-approved certification staff and conduct rules applicable to virtually all staff.

3 Oct 2017, Conference, Zurich, Switzerland

As the founding Partner of the Europe-Iran Forum, Dentons Europe will once again support this year’s event. This compelling event which explores all Iran-related topics will take place in Zürich on 3rd and 4th October.

4 Oct 2017, Workshop, London, UK

We are hosting an interactive workshop where we will run a mock High Court trial of an employee competition case – where the members of the audience are the judges. The session, aimed at in-house counsel and HR professionals, will offer an insight as to how disputes involving employees moving to a competitor play out in practice.

 
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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 unsubscribe@mondaq.com 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.

Cookies

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.

Links

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.

Mail-A-Friend

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.

Security

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 webmaster@mondaq.com.

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 EditorialAdvisor@mondaq.com.

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 enquiries@mondaq.com.

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