UK: Weekly Financial Services Regulatory Update (Week To 31.05.13)

Update

This weekly update from Clyde & Co's Financial Services Regulatory Team summarises new developments as reported by the FCA, the PRA, 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 publications@clydeco.com.

Consultation papers:

No new developments this week.

Discussion papers:

No new developments this week.

Policy statements:

30 May: PRA Policy Statement PS3/13: Financial Conglomerates Directive Technical Review. The PRA has published a policy statement (PS3/13) setting out the final rules implementing the Financial Conglomerates Directive Technical Review (2011/89/EC) (FICOD 1) which amends the previous Directives that apply to financial conglomerates. In CP12/40 the FSA consulted on proposals for implementing FICOD 1, and adjustments following consideration of the responses received are set out in this statement. FICOD 1 introduced technical amendments aimed at correcting unintended consequences and improving inefficiencies of the original directive. The FICOD 1 changes relate to:

  • The application of conglomerate supervision
  • The conglomerate capital calculation methodology
  • Inclusion of asset management companies and alternative investment fund managers within the conglomerate identification process
  • Conglomerate identification threshold triggers
  • Requirements for conglomerate stress testing

A copy of the instrument, which comes into force on 10 June 2013, is set out in the Appendix.

http://www.bankofengland.co.uk/pra/ Documents/publications/policy/2013/ ficodps3-13.pdf

Press releases:

No new developments this week.

Speeches:

No new developments this week.

Bulletins and newsletters:

No new developments this week.

Final notices:

31 May: Final Notice: David John Nickless. The FCA has published a Final Notice cancelling David Nickless' permission to carry out regulated activities. In making this decision, the FCA concluded that Mr Nickless failed to satisfy the threshold conditions and was not a fit and proper person because he had failed to pay regulatory fees and levies owed to the Authority totalling £1,307. Furthermore, Mr Nickless had not been open and co-operative in all his dealings with the Authority, in that he failed to respond to the Authority's repeated requests for him to pay the overdue balance.

http://www.fca.org.uk/static/documents/final-notices/ david-john-nickless.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 FCA and PRA publications:

31 May: FCA revised note on the UK notification process for market makers and authorised primary dealers. The FCA has published a revised note on the UK notification process for market makers and authorised primary dealers relating to the exemption applicable to the entities under Article 17 of the Short Selling Regulation. The note sets out the process for making notifications to the FCA, taking into account the Guidelines issued by the European Securities and Markets Authority on the exemption which enters into force on 2 June 2013. The exemptions apply only to the transactions carried out in performance of market-making activities and as authorised primary dealers; they do not apply to the entire scope of activities the notifying person carries out.

http://www.fca.org.uk/static/documents/uk-notification-process.pdf

31 May: Notice of Undertaking: Equitable Life Assurance Society. The FCA has published a notice of undertaking given by Equitable Life Assurance Society (Equitable Life), following the FCA's assessment that a disclaimer used in Equitable Life's payment instruction form (PI Form) is likely to be unfair. The FCA believed the PI Form to be unfair because it may have the effect of absolving Equitable Life from all liability under a customer's original contract, which may deter a customer from making a valid claim against the firm. In this undertaking, Equitable Life has agreed to change the PI form so that it makes it clear that:

  • Equitable Life's obligation to make payments only ends after it has fully paid the customer what they are due under the policy
  • Signing the PI Form does not remove a customer's right to bring a claim about any other act or omission by Equitable Life

Anyone who has already signed a PI Form (or a form with similar disclaimer wording) will be treated as though the new wording applies to them.

http://www.fca.org.uk/static/documents/undertakings/the-equitable-life-assurance-society.pdf

31 May: Notice of Undertaking: Clerical Medical Investment Group. The FCA has published an undertaking given by Clerical Medical Investment Group Ltd (Clerical Medical), following the FCA's assessment that a disclaimer used in Clerical Medical's form of authority and discharge (FAD) is likely to be unfair. The FCA thought that the FAD disclaimer was unfair because it seemed to absolve Clerical Medical from all liability under the customer's original contract, which might have deterred a customer from making a claim against the firm if they thought that Clerical Medical had done something wrong such as inappropriately investing their funds before they were transferred or surrendered. In this undertaking, Clerical Medical has agreed to change the FAD and remove the relevant wording. Clerical Medical will also make clear that paying the transfer of surrender value only ends the contract. Anyone who had previously signed a FAD (or a form with a similar disclaimer) will be treated as though the new wording applies to them.

http://www.fca.org.uk/static/documents/undertakings/ clerical-medical-investment-group.pdf

31 May: Statement on FSA Consultation Paper CP12/25 'Enhancing the effectiveness of the Listing Regime'. The FCA has published a follow-up statement regarding last October's consultation (FSA CP12/25) on proposed changes to enhance the effectiveness of the Listing Regime, which closed on 2 January 2013. Although the original intention was to publish feedback this spring, due to the large number of responses and continuing discussions with stakeholders, the FCA does not expect to publish feedback on this consultation until later in the summer.

http://www.fca.org.uk/news/firms/statement-on-cp-12-25

30 May: Mortgage Market Review (MMR) Roadshow Webcast. The FCA has developed a webcast of the material presented at its Mortgage Market Review roadshows earlier this year. The webcast covers all areas of the reforms, including:

  • The responsible lending rules which impact predominantly on lenders
  • The distribution and disclosure requirements which have an impact on both lenders and intermediaries
  • The niche markets
  • The prudential reforms for non-deposit taking lenders
  • Some further information of what the FCA expects from all firms
  • The MMR implementation timetable

http://www.fca.org.uk/news/mmr-webcast

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):

29 May: FOS annual review 2012/13. The FOS has published its annual review for 2012/13, containing facts, figures and information about the FOS' workload and complaints trends, including the following information:

  • The FOS received over 2 million enquiries and complaints from consumers, including a record 508,881 new cases, up 92% on the previous year
  • 74% of new cases were about the sale of payment protection insurance (PPI), with the number of PPI complaints rising 140% to 378,699
  • Investment-related complaints increased by 33%, while banking disputes and complaints about insurance other than PPI roles by 20%
  • 223,229 cases were resolved, resulting in compensation for consumers in 49% of complaints
  • 58% of all disputes were resolved within 6 months

http://www.financial-ombudsman.org.uk/publications/ ar13/index.html

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.

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.