Compliance Monitor

The regulator is vexed about why some firms make what it sees as suspiciously few Suspicious Transaction Reports (STRs) and plans to conduct spot checks. Sara George and Joe Gosden ask how reasonable 'reasonable grounds to suspect' need to be and when is making an STR advisable?

Every penny at financial services firms is being scrutinised, say compliance recruiters, which has led to a sluggish job market and leaner pay rises – if you’re lucky enough to get one at all.

Martin Currie’s conflict of interest pickle The Edinburgh-based fund management group Martin Currie has received the FSA’s biggest ever fine for mishandling a conflict of interest – that is, £3.5m ($5.6m) – while..

The regulator is on the warpath about why some firms make what it sees as suspiciously few Suspicious Transaction Reports (STRs) and plans to conduct spot checks. Sara George and Joe Gosden ask how reasonable ‘reasonable grounds to suspect’ need to be and when is making an STR advisable?

Though former UBS head of wealth management John Pottage had a £100,000 fine from the regulator overturned at the Upper Tribunal, the London managing director of Mitsui Sumitomo, Yohichi Kumagai, capitulated to a lifetime ban and personal fine of £119,303. Peter Wright and Molly Ahmed outline how the case illustrates particular compliance concerns and the FSA’s “crystal clear” intentions to keep pursuing senior managers for breaches.

The FSA published delayed feedback to its autumn 2011 consultation on Recovery and Resolution Plans (RRPs) in May 2012. The main message was ‘watch this space’ as the regulator has decided to delay its final rules yet further. But it has published some significant changes to its proposals. Rosali Pretorius and Andrew Barber answer main questions arising from the feedback.

The FSA’s determination to hold individual senior executives – such as former UBS Wealth Management UK CEO John Pottage – responsible for compliance failures under their watch will have negative consequences, Tom Custance and Deepak Arora contend.

Adam Samuel drafts a template communication to directors about inadequate resourcing for complaint handling.