Compliance Monitor

When an employee leaves because of misconduct, Compliance may find that their interests clash with other functions in the firm. Alexandra Carn suggests a path through the pitfalls.

£6.9 million fine for weak bribery controls Insurance broker Willis Ltd has been fined £6.895 million by the FSA for inadequate anti-bribery and corruption systems and controls. Over a five-year period ending in December 2009, the firm..

In our June issue, columnist Adam Samuel looked at the FSA’s publication of decision notices now permitted by section 13 of the Financial Services Act 2010 and proposals to extend this to warning notices. During August, both the Administrative Court and the Upper Tribunal issued important, if apparently conflicting, judgments on the change and a market abuse decision notice. Adam reviews the decisions.

A withering report from the FSA in June on banks’ anti-money laundering performance and the likelihood of enforcement action against at least two institutions are very good reasons to revisit your firm’s controls in this area. Peter Ray outlines lessons to be learnt when dealing with high risk clients.

Both internal audit and compliance functions should now be well down the track in their preparation for phased implementation from 1 January 2013 of the EU Solvency II Directive. But don’t spare the horses, as many insurers still have much ground to cover. John Webb sets out a suggested testing programme.

The FSA could take the view that the criminal law is pretty much irrelevant to enforcement of its rulebook, says Steven Francis; yet it is convinced that imprisonment for such offences as insider dealing works. He considers the regulator’s criminal agenda and the issues these cases raise for compliance staff.

Under changes just over a year away, recognised investment exchanges will have to comply with new rules if they want to auction EU emissions allowances. Charlotte Hill and William Maycock report on the Treasury and FSA’s consultations for Phase III of Europe’s greenhouse gas emissions trading system.