Compliance Monitor

Further to recent research by PwC, the FSA proposes in CP12/10 to revise down the return assumptions used to inform customers of investments’ likely performance and also to increase the span of flanking rates either side of the intermediate figure. Adam Samuel scours through past and present quagmires in a “tawdry story”.

As the regulator’s aggressive enforcement strategy continues, more individuals are fighting their corner in the Upper Tribunal. But in a recent case the FSA’s own process was put under scrutiny in the High Court – which has issued a costly quashing order regarding a decision notice that failed to address the claimant’s representations. Steven Francis and Alex Lincoln-Antoniou report.

Barclays’ LIBOR compliance lacuna Barclays reached a settlement that sees it paying $450m to US and UK regulators because of its role in the LIBOR and EURIBOR manipulation scandal. The FSA has imposed a £59.5m fine – its..

Temporary product intervention rules may be conceived as temporary, but stricter regulation of financial products and their design is here to stay, comment Charlotte Hill and William Maycock. They discuss the imminent regime along with fears that it will give the regulator too much power and stifle innovation within the sector.

Recent enforcement actions against firms and approved persons with overseas head offices should sound warning bells to all FSA-authorised firms with an international client base for whom a UK presence serves greater global needs. Emma Radmore and Katharine Harle look at lessons from two recent cases.

The Retail Conduct Risk Outlook 2012, like that of the previous year, highlighted platforms and centralised investment propositions (CIPs) as emerging risks. And now the FSA has published a new consultation paper (12/12) on ‘Payments to Platform Service Providers and Cash Rebates from Providers to Consumers’. Together with the guidance contained in its consultation on replacement business and CIPs, it is clear that most firms need to review their business models thoroughly to ensure that they embrace best market and regulatory practice. These papers should serve as a red alert for all advisory firms, say Jayne Adair and Roisin Hynes, who illustrate that some have underestimated their impact.

If you have won ‘Independent Financial Adviser of the Year’ you will likely want to crow about it – only you must first negotiate a regulatory minefield. Adam Samuel reports.

Dynamic Decisions Capital Management founder Alberto Micalizzi’s behaviour “is amongst the most serious that the FSA has encountered” and he “has demonstrated a total lack of honesty and integrity” says the regulator. So why has he escaped criminal prosecution, asks Chris Hamblin?

The Champagne-fuelled, bloated bubble of those years has long since burst, but the long and bitter hangover continues and has lurched into another phase. Public and political anger have been enflamed by publication of Barclays’ final notice from the FSA for LIBOR and EURIBOR manipulation, which was facilitated by a severe lack of systems and controls around submission of data contributing to these rates. Banks hardly needed another scandal on their hands but those that were allegedly involved in interest rate rigging now face a Parliamentary inquiry, possible criminal charges from the Serious Fraud Office as well as pressure to claw back bonuses. Alexandra Carn reports on the compliance context and potential legal actions.