UK: Financial Regulatory Developments (FReD) - 7 February

Last Updated: 19 February 2014

UK Government and Parliament


Treasury makes consumer credit SIs: Treasury has made two statutory instruments (SIs) making changes consequent on the transfer of consumer credit regulation to FCA under the Financial Services and Markets Act 2000 (FSMA):

  • the FSMA (Consumer Credit) (Miscellaneous Provisions) Order 2014 comes into force partly on 26 February (largely for the purpose of making rules and guidance) and otherwise on 1 April. Among other things, it:
  • allows applications to make enforceable agreements that would not otherwise have been enforceable because of a breach of the authorisation requirement;
  • aligns certain exclusions in the Regulated Activities Order to apply them also to consumer credit; and
  • makes consequential amendments to reflect FCA's new position and powers.
  • the FSMA (Appointed Representatives) (Amendment) Regulations 2014 come into force on 1 April and allow:
  • a person with permission to carry on the regulated activity of operating an electronic system in relation to lending to appoint an appointed representative under certain circumstances; and
  • an authorised person whose permissions relate only to certain consumer credit-related regulated activities to act as an appointed representative..

(Source: FSMA (Consumer Credit) (Miscellaneous Provisions) Order 2014 and FSMA (Appointed Representatives) (Amendment) Regulations 2014)


TSC writes on incentives: Sir Andrew Tyrie, Chair of the Treasury Select Committee (TSC), has written to Martin Wheatley in the wake of the fine on Lloyds Banking Group for failings relating to sales incentives. He points out that the changes recommended by the Independent Commission on Banking Standards noted the risks caused by remuneration incentives for sales staff. However, the Government and FCA's response would not address the failings that led to the Lloyds fine as the relevant staff would not be classed as "material risk takers". Martin Wheatley had said that to extend the Remuneration Code to sales staff would go beyond any international standards. However, he said FCA was considering introducing high level principles on remuneration for sales staff. The letter now asks for an explanation of the basis of the fine and for an outline of FCA's current plans. (Source: TSC Writes on Incentives)

HM Treasury (Treasury)

Treasury updates sanctions: Treasury has updated the sanctions and terrorist financing lists in respect of Sudan, Libya and terrorism and terrorist financing. (Source: Treasury Updates Sanctions)

Bank of England (BoE)

BoE publishes cyber-attack report: BoE has published a report on the second Waking Shark exercise, which was aimed at rehearsing the response of the wholesale financial sector to a cyber-attack. The report was presented in the context of a summit organised by the Department for Business, Innovation and Skills (BIS) and which brought together regulators from different sectors to discuss addressing cyber threats to essential services. (Source: BoE Publishes Report into Cyber-Resilience Exercise and Government and Regulators Meet to Combat Cyber Threats to Essential Services)

Competition Commission

Competition Commission publishes payday lending working papers: The Competition Commission has updated on the progress of its market investigation into payday lending. It has also published working papers which flag up the competition issues on which it is focusing. The working papers cover:

  • Payday loan products. This paper sets out a working definition of payday loan and description of eligibility for them, in order to provide an explanation of the position of payday loans within the credit sector.
  • Competition between payday lenders and other credit providers. The paper finds that credit cards and overdrafts share characteristics with payday loans but consumers are mostly unable to switch to these products due to their reduced access to mainstream credit. The Competition Commission has found little evidence of payday lenders adjusting their product offering in response to actions by providers of alternative, non-pay lending products.
  • Review of the websites of payday lenders and lead generators. This paper expresses concerns about lead generators' lack of transparency towards customers on the role they play and the commission they earn. In some cases lead generators claimed that, with them, customers would be spared the need to shop around, which customers could misinterpret as meaning that they were being matched with the "best value" loans for them.
  • Competition in product innovation. This paper discusses non-price innovations, such as those affecting access to credit and flexibility in their repayment.
  • An outline of the legal and regulatory framework applying to payday lending.
  • A description of the main payday lending companies.

The Competition Commission asks for comments on the issue statement and working papers by 28 February. The provisional findings of the market investigation are expected in May/June. (Source: Annotated Issues Statement and Working Papers)

Law Commission

Law Commission consults on insurance clauses: The Law Commission is consulting on draft clauses for the Insurance Contract Law Draft Bill. The clauses relate to:

  • fair presentation (disclosure and representations) in business insurance;
  • damages for late payment of claims;
  • insurers' remedies for fraudulent claims; and
  • good faith.

The Law Commission says it is still working on clauses on warranties and contracting out for business insurance. It asks for high level comments on whether the draft wording meets the policy objectives it has previously consulted on. It asks for comments by 21 February 2014. (Source: Law Commission Consults on Insurance Clauses)

Sentencing Council

Sentencing Council finalises economic crime guidance: The Sentencing Council has published its "definitive guideline" on sentencing of corporate offenders in cases of fraud, bribery and money laundering. The guidelines set out steps a court must take in determining whether to make a compensation or confiscation order, the category of the offence and the starting point and range for fines. It then covers factors that may lead to adjustment or reduction of fines and ancillary orders. (Source: Sentencing Council Finalises Economic Crime Guidance)

UK Financial Services and Markets Regulators

Financial Conduct Authority (FCA)

FCA finalises referrals payments ban: FCA has published a policy statement confirming its new rules which:

  • ban new referral payments from a discretionary investment manager (DIM) to an adviser where the adviser recommends a client places additional money with a DIM who makes payments to the adviser following a pre-Retail Distribution Review (RDR) referral; and
  • ban referral payments when an adviser firm does not provide personal recommendations to clients but provides other services to them.

Respondents to the consultation on the rule changes were supportive. Some respondents favoured a phase-out of trail commission, but this would require further consultation and would not be consistent with the regulatory view previously adopted. FCA also proposes a small amendment to the rules to confirm that firms should report complaints against individual advisers to it. The referral bans will take effect from December 2014 but FCA intends the complaints changes to take effect from June 2014. (Source: FCA Finalises Referrals Payments Ban)

FCA fines State Street for transitions management failings: FCA has fined two State Street entities a total of £22,885,000 for developing and using a strategy in its transitions management business that would deliberately charge clients substantial mark-ups on certain transitions. The mark-ups were hidden from the clients and were in addition to the agreed fees and commissions. FCA found that, in a 15-month period, the firms deliberately overcharged six clients a total of over $20 million. The failings came to light when a client notified staff of unagreed mark-ups. The individuals responsible told both the client and the State Street compliance department that the overcharging was a mistake. They arranged for a substantial rebate to the client but did not disclose the existence of other mark-ups relating to the same transition. Once senior management became aware of the issues it took action to investigate and improve its culture. FCA said these failings showed complete disregard for the interests of customers and are at the most serious end of the spectrum, and said firms must be in no doubt it will continue to shine a spotlight on wholesale conduct. FCA found the firms had breached three of its principles. In assessing the penalty, it considered the seriousness of the breaches to be at level 5, and applied a further increase of 10% for aggravating and mitigating factors and a multiplier of three for deterrence. (Source: FCA Fines State Street for Transitions Management Failings)

FCA finalises AIFM remuneration guidance: FCA has published its finalised guidance on the Alternative Investment Fund Manager (AIFM) Remuneration Code. The guidance covers:

  • the date the Code takes effect (from 31 January 2014), its scope (all firms once they are authorised as full-scope AIFMs) and the payments to which it will first apply (the first full performance period after the firm becomes authorised);
  • proportionality in applying the Code, in relation to different characteristics of AIFMs, including size and thresholds and other elements such as internal organisation, and nature and complexity of activities. The guidance also looks at proportionality in respect of delegation of portfolio management, staff performing permitted business which is not AIF management and remuneration committees;
  • how to treat payments to partners or members of an AIFM, assessing various possible approaches;
  • remuneration in the form of units, shares or other instruments, including applying proportionality to these payments; and
  • minimum retention periods.

FCA also gives examples of Code application. It has updated its AIFMD web pages to reflect the new guidance. (Source: FCA Finalises AIFM Remuneration Guidance and FCA Updates AIFM Web Page)

FCA makes new rules: FCA has made several new instruments. It made the instruments at its meeting on 30 January unless stated otherwise below:

  • on 12 December it made an instrument not listed in its December Handbook Notice  ̶  the Supervision Manual (SUP) (Product Sales Data and Mortgage Lending and Administration Return) Instrument 2013. This amends SUP from 1 January 2015 and sets requirements for data collection connection with the Mortgage Market Review reforms;
  • on 17 January it made various changes in the Capital Requirements Directive IV (CRD IV) (Reporting Guidance) Instrument 2014. These changes amended SUP from 20 January 2014 to make minor changes to reporting requirements under CRD IV;
  • the Senior Management Arrangements, Systems and Controls Sourcebook (SYSC) (AIFM Remuneration Code) Instrument 2014 amends SYSC and the Investment Funds Sourcebook (FUND) from 31 January 2014 to provide guidance on compliance with the AIFMD Remuneration Code;
  • the CRD IV (Handbook Administration) Instrument 2014 took effect on 31 January 2014 and makes minor changes to the Glossary, the Prudential Sourcebook for Investment Firms (IFPRU) and SUP;
  • the Training and Competence Sourcebook (TC) (Accredited Bodies and Qualifications Amendments No 10) Instrument 2014 took effect on 1 February 2014 and updates the list of appropriate qualifications in the Glossary and TC;
  • the Retail Distribution Review (Adviser Charging No 7) Instrument takes effect on 31 December 2014 and amends the Conduct of Business Sourcebook (COBS) in respect of referral payments (see above);
  • the SUP (Suspicious Transaction Reports) (Amendment) Instrument 2014 took effect on 6 February and deletes SUP 9.5 to discontinue the Listing Authority Review Committee;
  • the Over-the-Counter Derivatives, Central Counterparties and Trade Repositories (No 2) Instrument 2014 took effect on 31 January and amends the Glossary, SUP and the Enforcement Guide to cater for the additional supervisory and enforcement powers FCA has under EMIR;
  • the Listing Rules (LR) and Disclosure and Transparency Rules (DTR) (Primary Information Providers) (PIPs) Instrument 2014 took effect on 31 January and amends the Glossary, the Fees Manual (FEES), LR and DTR in respect of the new statutory regime for PIPs; and
  • the Fees (Consumer Credit) Instrument 2014 takes effect on 1 April 2014 and amends the Glossary and FEES in respect of fees payable under the consumer credit licensing regime.

(Source: FCA Handbook Notice No 8)

FCA bans and fines adviser for making up certificates: FCA has banned Ewan King and fined him £19,900 for fabricating the Statements of Professional Standing (SPS) FCA requires advisers to hold. Mr King was an appointed representative who led his principal to believe he held an SPS from the Chartered Insurance Institute and had made up two certificates when asked to produce them when in fact he had failed the relevant exams. (Source: FCA Bans and Fines Adviser for Making Up Certificates)

FCA publishes regulation round up: FCA's latest regulation round up encourages firms to complete a survey on FCA's website and digital presence, and highlights key recent publications and regulatory changes. (Source: FCA Publishes Regulation Round Up)

FCA publishes warning notice statements: FCA has published two individual warning notices using its new powers under the Financial Services Act 2012. The notices do not name the individuals but note FCA intends to take action in respect of the conduct the notices describe. The notices relate, respectively, to a submitter at a bank and a manager at a bank. One notice refers to the trader's conduct in making benchmark submissions which took into account trader requests, collusion with other dealers and traders and the fact he was aware of the interest rate derivative positions on the trading book when making submissions. The other notice refers to the fact the manager was aware of the conduct and the lack of policies, systems or controls and of the conflicts of interest and was responsible for the oversight and supervision of the submitters. (Source: FCA Publishes Warning Statement on Benchmark Submitter and FCA Publishes Warning Statement on Benchmark Supervisor)

FCA announces CPP redress scheme: FCA has announced the compensation scheme for customers who were mis-sold Card Protection Plan (CPP) products will be open from mid-February to the end of August. FCA expects the first payments under the redress scheme to start from March. The amount of redress will depend on the length of time a customer had the product. (Source: FCA Announces CPP Redress Scheme)

FCA updates on IRHP review: FCA has updated on banks' progress in their review of sales of interest rate hedging products (IRHP). Overall, banks have completed more than half the compliance assessments of customers who have opted into the review and the number of customers in the redress phase or whose redress determinations are complete is continuing to rise. The amount of redress paid has almost doubled since the December report. The banks are also close to their estimates of completed cases at this stage in the review, which all will have completed by the end of June. (Source: FCA Updates on IRHP Review)

FCA publishes MIPRU modification by consent: FCA has published a modification by consent for home financing firms and home finance administration connected to regulated mortgage contracts. It will delay some of the amendments that should take effect with the Mortgage Market Review (MMR) from 26 April for one year. It is available only to firms with £50 million or less of total lending in the 12 months the waiver covers. It will delay a change in the prudential requirements in Chapter 4 of the Prudential Sourcebook for Mortgage and Insurance Intermediaries (MIPRU) and a reporting requirement in SUP. Firms that want to take advantage of the waiver should apply to FCA. (Source: FCA Publishes MIPRU Modification by Consent)

FCA consults on sponsor competence: FCA is proposing amendments to LR in relation to regulating the competence of sponsors. Sponsors provide guidance to premium listed issuers and confirm the ability of these issuers to meet their obligations. FCA's consultation focuses on the competency requirements that sponsors need to meet to become approved and on joint sponsor arrangements. (Source: FCA Consultation on Sponsor Competence)

FCA speaks on price formation: David Lawton, Director of Markets at the FCA, has spoken on how maintaining the integrity of price formation is reflected in the FCA's agenda. He noted the trend to push for transparency in the functioning of benchmarks and off-exchange mechanisms. (Source: Price: the Cornerstone of Markets)

FCA publishes guidance on applying for CRR permissions: FCA has published on its website guidelines to the following CRR applications:

  • liquidity subgroup applications;
  • individual consolidation method applications;
  • inclusion of interim or year-end profits in Common Equity Tier 1 capital; and
  • issuances of Common Equity Tier 1 instruments.

(Source: Useful CRR Permission Application Guidelines for CRD IV Firms)

Prudential Regulation Authority (PRA)

PRA publishes consultation responses: PRA has published its responses to consultations on miscellaneous changes to its rules. PRA had already made four instruments in December 2013 (see FReD 3 January 2014). It has now made two further instruments, to cater for the removal of designated investment exchanges as a defined term in the rulebook from 1 March 2014, and to implement its proposals on related party transaction risk from 1 February. It has also taken the opportunity to make a change to the definition of "listed" in Chapter 11 of SUP to create a wider range of PRA-regulated firms for which advanced approved applications can be made for acquisition or disposal of control and in doing so reflect current practice. This change also takes effect from 1 March. (Source: PRA Feeds Back on Rule Changes)

PRA updates on skilled persons reports: PRA has published statistics of skilled persons reports it requisitioned during the third quarter of 2013-14. There were six reports, one of which PRA commissioned using its powers under the Financial Services Act 2012 to contract directly with a skilled person. Half the reports related to banks and half to insurers. Four related to governance, controls and risk management and two to insurance prudential matters. (Source: PRA Updates on Skilled Persons Reports)

Charity Commission

Charity Commission consults on Common Deposit Fund Schemes: The Charity Commission is consulting on proposals to align the regulation of Common Deposit Fund Schemes with the AIFMD, which affects the managers of such schemes. (Source: Commission Consults on Common Deposit Fund Schemes)

Other Regulators/Authorities/Industry Associations

Basel Committee on Banking Supervision (Basel Committee)

Chairman announces Basel Committee's priorities for 2014-15: Stefan Ingves has spoken on the Basel Committee's priorities for 2014-15. Together with finalising work on the global standards under the Basel III framework and ensuring consistency of implementation, the Basel Committee will also examine how to measure the impact and accountability of supervisors. (Source: Finishing the Job)

Financial Action Task Force (FATF)

FATF publishes diamond laundering report: FATF and the Egmont Group have published a report looking at money laundering and terrorist financing through trade in diamonds. The report notes there are considerable vulnerabilities and risks in the diamonds trade and looks at how money laundering and terrorist finance could take advantage of them. (Source: FATF Publishes Diamond Laundering Report)

ICE Benchmark Administration

ICE adopts LIBOR Code of Conduct: ICE has adopted the LIBOR Code of Conduct originally adopted by BBA's Interim LIBOR Oversight Committee. This Code of Conduct is confirmed FCA industry Guidance and therefore contributing banks that follow it will be regarded as compliant with the Benchmarks chapter in the Market Conduct Sourcebook (MAR 8) of the FCA Handbook. Users of benchmarks can also consult the Code of Conduct when deciding whether LIBOR is an appropriate rate to use in contracts. (Source: LIBOR Code of Conduct)

International Organisation of Securities Commissions (IOSCO)

IOSCO looks at crowdfunding: IOSCO's research department has published a report on crowdfunding. The report looks at the risks of what it refers to as "financial return" crowdfunding, an expression which encapsulates both peer-to-peer lending and equity-based crowdfunding. (Source: IOSCO Looks at Crowdfunding)

International Swaps and Derivatives Association (ISDA)

ISDA publishes derivatives regulation tables: ISDA has published two tables on the regulatory reforms under Dodd-Frank and EMIR:

  • a comparison of the derivatives regulatory reforms in the US and EU; and
  • a table on the relevance of ISDA protocols and other documentation for non-US/EU market participants.

(Source: Comparison US/EU and Protocols for Non-US/EU Counterparties)

Forthcoming Events and Recent Publications

Forthcoming Events

New This Week: FReD Live: Capital Resources for Investment Firms: In the first FReD Live breakfast briefing of 2014, Michael Wainwright will highlight the most significant changes CRD IV has brought to the prudential and systems and controls rules and will give practical guidance on how to meet the new requirements.

Investment Funds Breakfast Briefing: In this session on 12 February, Samantha Hutchinson and Liz Soutter, fund finance specialists, will look at the changing landscape for the subscription finance market and highlight some of the issues that are likely to be encountered by funds on these types of facilities.

Recent Publications

Financial Crime 

The Bribery Act – Has It Made A Difference?: We have updated our previous overview of the Bribery Act to take into account the Serious Fraud Office's latest guidance. (updated October 2012)

UK authorities move forward on tougher financial crime prevention: Emma Radmore wrote an article for Financial Regulation International on current consultations on sentencing and deferred prosecution agreements. (August 2013)

Sanctions restrictions do not prevent payment of debtsRichard Caird and Tom Rocher comment on the judgement in DVB Bank SE and others v. Shere Shipping Company Limited and others. (August 2013)

Deferred Prosecution AgreementsEmma Radmore has written an article for Financial Regulation International on the introduction of Deferred Prosecution Agreements in the UK. (June 2013)

Anti-Bribery and Corruption Laws in Key Jurisdictions: Lawyers from Dentons offices in six jurisdictions prepared a table comparing key provisions of anti-corruption laws for Thomson Reuters Compliance Complete. (May 2013)

Preventing Financial CrimeEmma Radmore has written an article for Financial Regulation International on recent developments in financial crime prevention. (April 2013)

The Evolving Financial Sanctions Landscape – UK and US Perspectives: Emma Radmore, Thomas Laryea, Michael Zolandz and Peter Feldman have written an article for Financial Regulation International on financial sanctions under the UK and US regimes. (November 2012)

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). (May 2012)

Investment Services and Markets Reform

Regulators respond to roar of crowdfundingEmma Radmore and Juan Jose Manchado have written an article for Compliance Monitor on the FCA's views on, and proposals for the regulation of, crowdfunding.

Consumer Credit Regulation: Are you ready for the seismic shift?: Please contact Andrew BarberEmma Radmore or Howard Cohen if you have any questions about what you need to do to prepare for the transfer of consumer credit regulation to FCA.

Are you clear on EMIRRosali Pretorius and Emma Radmore have written an article for Compliance Monitor on EMIR's application and recent developments. (October 2013)

Mobile Banking - FCA sets out the risks: Candice ChapmanAndrew Barber and Winston Green comment on FCA's thematic review of mobile banking. (See also FReD 30 August.) (August 2013)

Mobile Network Operator BillingAndrew Barber and Alex Haffner have written an alert on the effects of the Payment Services Directive on the development of direct-to-phone-bill purchases by mobile network operators. (August 2013)

US Government announces six-month delay in FATCA rules: John Harrington, Jeffrey KoppeleMarc Teitelbaum and Jerome Walker have written an update on the delay in implementing certain elements of FATCA. (July 2013)

Take aim for AIFMD implementationEmma Radmore and Kam Dhillon have written an article for Compliance Monitor on the final steps towards implementation of the AIFMD. (July 2013)

Taking the Credit - the Transfer of Consumer Credit Regulation: Andrew Barber, Emma Radmore and Juan Jose Manchado have written an article for Compliance Monitor on the transfer of consumer credit regulation to FCA. (April 2013)

Last Lap to Legal Cut-Over: Emma Radmore has written an article for Compliance Monitor on FSA's first two consultations on preparing for the new regulatory regime. (January 2013)

A New Handbook for a New Era?: Emma Radmore has written an article for Thomson Reuters Compliance Complete on FSA's proposals to update the General Provisions Sourcebook for legal cut-over. (October 2012)

Treasury Publishes Banking Reform Bill: Read our summary of the Bill implementing the Vickers reforms into FSMA. (October 2012)

RDR: How Long Can it Last?: Emma Radmore and Andrew Barber have written an article for Compliance Monitor on the future of the Retail Distribution Review. (October 2012)

What's next for LIBOR? Summary of the Wheatley Review Recommendations: We have written a summary of the Wheatley 10-point plan for the reform of the LIBOR process. (September 2012)

Rate Setting and Regulation: In Everyone's Interests?: Rosali Pretorius and Katharine Harle wrote an article for Financial Regulation International on the background to LIBOR setting and potential regulatory action. (August 2012)

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. (May 2012)

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). (January 2012)

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. (June 2012)

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. (June 2012)

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. (May 2012)

Asset management

The Alternative Investment Fund Managers Directive – Theory Becomes Reality: Rosali Pretorius and Emma Radmore wrote an article on implementation of the AIFMD for the Global Asset Management & Servicing Review 2013/14 published by Euromoney Yearbooks.

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. (July 2012)

Another Stable Door?: Emma Radmore and Katharine Harle wrote an article for Thomson Reuters Complinet on IOSCO's proposals for complex product distribution. (April 2012)

Enforcement and Litigation

It is not a misrepresentation to state interest rate swaps carry no premium: Sam Coulthard, Richard Caird and Thomas Rocher have written an article on the summary in another swap mis-selling claim, Nextia Properties Limited v. National Westminster Bank plc and The Royal Bank of Scotland plc. (December 2013) 

Court of Appeal dismisses interest rate swap appeal: Richard Caird and Kattalin Truman have written a briefing on the Court of Appeal judgment in the appeal by Mr Green and Mr Rowley against the decision that RBS had not missold an interest rate swap. (October 2013)

Appeal dismissed in first interest swap case: Richard Caird and Kattalin Truman have written an article on the Court of Appeal's decision in the first interest rate swap case in the English courts. (August 2013)

It's all in the detail: a cautionary tale for handling complaintsRichard Caird and Felicity Ewing have written an article on the FCA's fine on Policy Administration Services.

Having Your Cake and Eating It: FOS Award is no Bar to Issuing ProceedingsKatharine Harle has written an article for Compliance Monitor on the High Court award in Clark and another v. In Focus Asset Management & Tax Solutions Ltd. (January 2013)

The Not So Remote Risks of Recommendations: Richard Caird, Sam Coulthard and Kattalin Truman have written an article on the case of Rubenstein v. HSBC Bank plc. (September 2012)

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. (August 2012)

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. (March 2012)

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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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.