UK: Weekly Financial Services Regulatory Update - Week To 12.10.12

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.

Speeches:

11 October: Mansion House Speech: Adair Turner, FSA chairman.

The FSA has published a speech by Adair Turner in which he reflects upon his tenure as FSA Chairman and the issues the financial services industry has faced during recent years. He considers the causes of the financial crisis and comments that they should have been foreseeable. The failings he says came not only from the FSA for conducting a too light touch system of regulation, but also that there were deficient rules, a deficient structure and a dangerous culture surrounding the financial markets. The rules allowed banks to function with equity capital resources and liquidity buffers which were well below safe levels. The structure of governance gave the FSA too much to do in combining good conduct and prudential regulation in one body.

In addition, neither the FSA nor the Bank of England gave adequate attention to the risks posed by increases in leverage, booming credit supply and asset prices. Failings in banking culture came from too much focus and importance being placed on short-term return, increasing leverage and higher return for shareholders. Not enough appreciation was given to how the market would be affected if a bank were to fail. Turner also sets out the steps already taken to combat the issues of the financial crisis as well as those still in consideration. These include the creation of the FCA, PRA, and FPC. In addition, there have been European capital liquidity requirements put in place and the recommendations from the Vickers' Commission on banking. He praises the City for work already done and concludes that while many new systems are coming into place, there is still much to be done to recover from the events of 2007/8.

http://www.fsa.gov.uk/library/communication/speeches/2012/1011-at.shtml

Bulletins and newsletters:

No new developments this week.

Final notices:

8 October: Final Notice – John Blake

The FSA has published a final notice issued to John Blake, former MD of Welcome Financial Services Ltd (Welcome) (a subsidiary of Cattles Plc, now Cattles Ltd), banning him from performing any function relating to any regulated activity and issuing a fine of £100 000.

The FSA found that Mr Blake who was MD at Welcome between August 2007 and February 2009 engaged in market abuse and approved (along with other directors) Welcome's 2007 report which contained false and misleading statements. This report was fed into Cattles Plc's annual report and also its rights issue prospectus in 2008. In March 2012, the FSA published the final notices it issued to Cattles and Welcome, as well as James Joseph Corr (former finance director of Cattles) and Peter Douglas Miller (former finance director of Welcome). The FSA considered this a serious breach as it took place over a sustained period of time. The publication of Mr Blake's final notice was delayed as he referred the FSA's decision to the Upper Tribunal, but subsequently withdrew his referral.

http://www.fsa.gov.uk/static/pubs/final/john-blake.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:

11 October 2012: FSA Handbook Release 130

The FSA has published updates to the Handbook including changes to the glossary, regulatory processes, redress, business standards, high level standards and prudential standards. There are also changes to the specialist sourcebook, COLL.

http://www.fsa.gov.uk/library/policy/handbook/releases/2012/130

11 October: FSA Frequently Asked Questions

The FSA has published three sets of FAQs to help firms complete sections of the retail mediation activities return. These data reporting requirements will form part of the FSA's supervision and monitoring of compliance with the requirements of its new retail distribution review.

9 October 2012: FSA to repeat Insurance stress test exercise

The FSA has updated its webpage on the quantitative techniques and tools it has developed in relation to insurance firms in its internal model approval process (IMAP) under Solvency II. The FSA plans to repeat the general insurance stress test carried out in 2011. This will help the FSA monitor firms' internal models and focus future discussions with firms. The FSA will update firms by the end of 2012.

http://www.fsa.gov.uk/about/what/international/solvency/implementation/imap/quantitativ e

10 October: Details of £54m package for CF Arch cru investors

The FSA has published details on its website relating to Arch cru following on from the announcement of the £54m package for investors in the suspended CF Arch cru Diversified Funds and CF Arch cru Investment Funds on 21 June 2011. A webpage providing latest news and FAQs was also made available on the same date.

http://www.fsa.gov.uk/consumerinformation/firmnews/2012/cf_arch_cru.shtml

http://www.fsa.gov.uk/consumerinformation/firmnews/2012/cf-arch-cru-faq.shtml

9 October: FSA updates Payment Services Regulations approach document

The FSA has updated its approach document aimed at helping firms implement the relevant rules and guidance of the Payment Services Regulations 2009. This revised document incorporates changes the FSA has made in response to its consultations in April and September 2012.

http://www.fsa.gov.uk/static/pubs/other/psd_approach_oct12.pdf

Other publications:

12 October: HM Treasury publishes draft Financial Services (Banking Reform) Bill

HM Treasury has published a paper on its proposals for banking reform. The paper includes a draft version of the Financial Services (Banking Reform) Bill, and sets out an overview of Government policy on banking reforms as well as explanatory notes to the Bill. The draft Bill is intended to give the Treasury the power to implement the recommendations of the Independent Commission on Banking, including the ring-fencing proposals. The draft Bill will now be subject to pre-legislative scrutiny by the Parliamentary Commission on Banking Standards, which is scheduled to report by 18 December 2012. The government intends to introduce the Bill formally to Parliament in early 2013.

http://www.hm-treasury.gov.uk/fin_stability_regreform_icb.htm

9 October: Serious Fraud Office revises policies on facilitation payments, business expenditure (hospitality and gifts) and corporate self reporting

The SFO has issued revised statements of policy on facilitation payments, business expenditure (hospitality and gifts) and self-reporting which will take immediate effect and supersede previous statements of policy or practice. The SFO confirmed that facilitation payments (for example, payments to perform a pre-existing duty) are illegal under the Bribery Act 2010. The purpose of the revised policies is to restate the SFO's primary role as an investigator of fraud and corruption and ensure there is consistency with other prosecuting bodies. All decisions to prosecute will be governed by joint SFO/ CPS guidance.

http://www.sfo.gov.uk/press-room/latest-press-releases/press-releases-2012/revised-policies.aspx

9 October: Complaints Commissioner recommends FSA waive fees for e-money issuer

The Office of the Complaints Commissioner has published a decision (dated 4 September) in response to a claim against the FSA brought by a small firm offering e-money services. The firm was registered with the FSA under the Payment Services Regulations 2009 and the complaint stated that it was not made aware, when it registered with the FSA, that it would be expected to pay annual fees to the FSA.

The FSA has accepted that the information was not sufficiently clear and agreed to waive the fees for the 2010/11 period The decision, however, recommends the FSA also waive the fees for 2011/12 as it only waived the fees for the 2010/11 period once the firm became liable for the 2011/12 period.

The FSA has accepted this decision and will implement the recommendation.

http://www.fscc.gov.uk/documents/final/GE-L01433.pdf

8 October 2012: Financial Services fines to go to the Exchequer

HM Treasury has issued a press release stating that financial services fines (in excess of enforcement case costs) will no longer be directed back into the industry. £35 million of fines revenue relating to attempted LIBOR manipulation has been earmarked to support Britain's Armed Forces, and in future, regulatory fines (excluding enforcement case costs) for the year will go to the Exchequer. Currently this revenue is used to reduce the annual levy placed on other financial institutions. These new arrangements will be set out in amendments to the Financial Services Bill and will apply to fines received from 1 April 2012, which will include the penalty imposed on Barclays in relation to LIBOR, and all fines imposed by the new FCA and PRA, and to fines imposed by the Bank of England in the course of exercising its regulatory powers in relation to financial services.

http://www.hm-treasury.gov.uk/press_90_12.htm

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):

10 October: Ombudsman News Issue 105

The Financial Ombudsman Service has published issue 105 of Ombudsman News. Contents include: complaints statistics for the second financial quarter, case studies on travel insurance complaints, and a question and answer section including distinctions between technical terms.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/105/105.pdf

London Stock Exchange (LSE):

11 October: Direct Line Insurance Group raises £787m in London's largest UK capital-raising of 2012

The group was valued at £2.6bn when Paul Geddes CEO opened trading on the London Stock Exchange. Direct Line Insurance group opened for conditional dealings in its shares ahead of its admission to the LSE on 16 October. The group's shares were priced at 175p each and the offering raised £787m making this the largest company fundraising on London's markets this year.

http://www.londonstockexchange.com/about-the-exchange/media-relations/press-releases/2012/directlinegroupraisesgbp787m.htm

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 Mondaq.com.

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

Authors
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
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
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (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 www.mondaq.com

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 Mondaq.com’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.

Disclaimer

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.

Registration

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 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.