i-law

Compliance Monitor

The need for discretion
In the practitioner community, product provider / distributor responsibilities remains a hot topic. Raised (like everything apart from global warming) under the Treating Customers Fairly (TCF) banner, we practitioners take a different view to the..
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Advice or execution only?
The thin line between what constitutes investment advice and what constitutes execution only business has always been an area of concern for the regulator and the regulated. John Virgo , barrister and Philip Ryley , solicitor, take a brief look at the legal definitions.
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Corruption – the rising risk
The successful judicial review of the Serious Fraud Office’s decision to end its investigation into allegations of bribery against BAE is just one of a series of events that is likely to lead to a rise in anti-corruption investigations and proceedings warn Arun Srivastava , Oliver Kerridge and Jerome Tomas of Baker & McKenzie. Indeed, the Financial Services Authority is already examining potentially corrupt practices by UK financial institutions as part of its effort to reduce the occurrence of financial crime in the Square Mile.
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
T&C: its hour is now
Nothing is quite what it seems, in regulation as elsewhere, says David Jackman of Resources Compliance. Training and Competence (T&C) is a part of the FSA regime, which is perceived by some to be of lessening importance. In fact, the themes of sound training, developing expertise and raising standards of competence have never been more significant.
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Holding the regulator to account
In order to achieve its statutory objectives, the FSA has a range of means open to it. It has power to bring civil claims, to initiate regulatory enforcement and to prosecute before the criminal courts. Some of its decisions in these matters have a ready means of challenge. A regulatory decision such as whether to grant or refuse authorisation, or to impose a regulatory penalty, can be taken to the Financial Services and Markets Tribunal (FSMT). A criminal conviction can be appealed to the Court of Appeal (Criminal Division), as can certain preparatory matters leading to trial.
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Managing to comply: outsourcing arrangements
Negotiating any significant outsourcing contract can be a major undertaking. The sheer effort required makes it tempting to think of signing the contract as mission accomplished – a time to celebrate and order newly branded mouse mats, mugs and tee shirts rather than the start of the next phase of the journey. But the signature of the contract really is only the end of the beginning, writes Dan Burge of Denton Wilde Sapte.
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Treating Customers Fairly – wholesale firms, management information and other animals
The deadline for embedding treating customers fairly within organizations is the end of this year. At the same time, Sarah Wilson who heads up the TCF team at the FSA has commented that the project applies equally to some wholesale firms. Regulated businesses still glaze over, grizzle and panic when anyone mentions the management information requirements. The FSA has just reported that only 13% of relationship managed firms met the March deadline for being able to show using management information whether they are achieving the six TCF outcomes. This all seemed like a good reason to bring in regular contributor, Adam Samuel , to cast some light beyond the shadows.
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Insurer with-profits inherited estates offered shield from mis-selling claims
Proprietary insurers may no longer be permitted to charge compensation for mis-selling activity to inherited estates of with-profits funds under proposals in CP08/11. The FSA believes that the current rules do not provide enough incentive for..
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Solo supervision gains support
The requirement to calculate and hold capital resources at solo subsidiary and associate firm as well as at group level received broad support from industry in its responses to DP07/5. Economic capital models were not favoured as a substitute for..
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Merchant Securities fined £77,000 for poor data security
If an advisor has around 150 customers, only 20% of whom are in frequent contact, it is not sufficient to rely on recognition of their voices and chatting about personal matters like holidays or hobbies as means to verify identity. The practice has..
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Inside guide to information control
Regulated firms have strengthened controls over inside information around public takeovers since the FSA focused on the topic in the July 2007 issue of Market Watch, number 21, according to the latest June 2008 edition. The newsletter notes the high..
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Deposit protection debate continues
Three options have emerged in discussions about limits on depositor protection under the Financial Services Compensation Scheme (FSCS), following the January 2008 consultation “Financial stability and depositor protection”, issued by the..
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Woolworths fined for late release of price sensitive information
Woolworths, the highstreet general goods store, has been fined £350,000 after the FSA found that it should have notified the market earlier of a discount offered on home entertainment products, which one of its subsidiaries supplied to Tesco,..
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Chepstow mortgage broker fined £10,500 for self-certification breaches
Chepstow Financial Services, the trading name for a small mortgage broker run by Andrew Jeffreys, has paid a £10,500 penalty for failings around sales of self-certification mortgages. In the period 31 October 2004 to 12 September 2007, the firm..
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Short shrift for rights speculation
Selling short shares or other instruments equivalent to more than a 0.25% economic interest in the equity of a company embarked on a rights issue must be disclosed to a Regulatory Information Service by 3.30pm the following business day, under new..
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Widespread unfairness in consumer contract terms
More than half the consumer contracts reviewed by Gfk NOP in an anonymous survey of 120 firms of all sizes for the FSA contained at least one variation term that was “clearly unfair” under the Unfair Terms in Consumer Contracts..
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008
Looking for trouble
Timon Molloy, Editor.
Online Published Date:  01 July 2008
Appeared in issue:  Vol 20 No 10 - 01 July 2008

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