i-law

Compliance Monitor

“Small number” of firms face possible criminal action over AML failings
Criminal prosecutions are a potential outcome for “a small number of investigations” that the FCA is carrying out into anti-money laundering systems and controls in certain firms involved in the capital markets. This is the first time..
Online Published Date:  12 September 2018
Judge warns the City as he sentences two Euribor traders to 13 years
In sentencing two former traders to jail, a Crown Court judge said he is sending “a clear message of deterrence” to others that “those convicted of dishonestly manipulating interest rates will face lengthy custodial..
Online Published Date:  12 September 2018
Dropped RBS GRG investigation highlights regulatory hole for SMEs
Affected small business owners have been disappointed by the Financial Conduct Authority’s decision to close its investigation into Royal Bank of Scotland’s Global Restructuring Group without taking action against the bank or..
Online Published Date:  12 September 2018
Minimum cash savings rate proposed to tackle ‘price discrimination’
The Financial Conduct Authority wants to introduce a basic cash savings rate, as its research shows that banks take advantage of longstanding customers by giving them lower interest rates than they could find shopping around. This would apply to all..
Online Published Date:  12 September 2018
Investor platforms urged to improve consumer protections
The investment platform sector is on notice to introduce reforms or to face a set of remedies imposed by the FCA. While the Financial Conduct Authority accepts that that sector “is working well for most consumers”, it has..
Online Published Date:  12 September 2018
Tribunal upholds ban but lowers fine of IFA director
Alistair Burns – who referred his decision notice to the Upper Tribunal – has had his ban from senior roles upheld, but the £233,600 fine proposed by the regulator was lowered to £60,000. The disputed conduct occurred..
Online Published Date:  12 September 2018
Future of minimum monthly repayments under question for credit cards
The Financial Conduct Authority is proceeding cautiously with a proposal that could see minimum monthly repayment rules dropped for credit card borrowers. Removing this pathway “has the potential to increase consumers’ credit card..
Online Published Date:  12 September 2018
Public directory extended beyond senior managers, in FCA U-turn
The new Directory of Financial Services Workers will include a broader range of people than the FCA originally proposed — as the regulator bows to pressure to extend coverage beyond those in the Senior Managers Regime. The directory will now..
Online Published Date:  12 September 2018
Clean-up proposed for payment services and e-money sectors
The FCA has published proposals that would create one consistent set of rules for payment service providers and e-money issuers rather than the “mismatch in conduct standards and communications requirements” which now applies. ..
Online Published Date:  12 September 2018
4MLD – a year in review
More than 12 months after the Fourth Anti-Money Laundering Directive was implemented in the United Kingdom, the current AML regime is acknowledged as woefully inadequate for the extent of the challenge. Indeed, enforcement director Mark Steward has announced the possibility of criminal prosecutions by the financial conduct regulator against a small number of firms. Nicola Finnerty provides an update of current problems and coming changes.
Online Published Date:  19 September 2018
Four directors banned for duping customers into fake services
Four men have been banned by the Financial Conduct Authority because their firm took fees of over £7.2 million from around 124,000 customers by deceiving them into believing they had been approved for short-term loans. David Mullins, Edward Booth,..
Online Published Date:  19 September 2018
US metes $4.9bn penalty on RBS, for RMBS “fraud”
“It’s like quasi organised crime” lamented Royal Bank of Scotland’s US chief credit officer about the residential mortgage-backed securities scheme that the firm engaged in between 2005 and 2007. A decade later, the troubled bank tries to draw a line under its unbridled plunge into greed and unethical practices with a $4.9 billion payment to American authorities, reports Esther Martin.
Online Published Date:  19 September 2018
SMCR extension countdown – near-final rules
The Financial Conduct Authority issued near-final rules on the extension of the Senior Managers and Certification Regime to all regulated firms on 4 July 2018. While the regime currently applies to banks and Prudential Regulation Authority-authorised firms, it will take effect for all FCA-authorised firms on 9 December 2019. Steve Murphy discusses the latest updates and key areas of concern for firms and individuals.
Online Published Date:  19 September 2018
Cliff-edge Brexit: a “large economic shock” and “idle bankers”
A fissure between analyses of the impact of a hard Brexit on financial markets has opened up across the English Channel. British regulators believe the smooth functioning of the transition is being put at risk, reports Esther Martin.
Online Published Date:  19 September 2018
The evolving framework of UK fintech regulation
Rather than craft a bespoke solution, United Kingdom regulators believe that the existing regime adequately provides for regulated activities involving new and developing financial technologies. Penny Sanders and Ian Mason discuss where some popular fintech-related products and services sit in relation to the regulatory perimeter.
Online Published Date:  19 September 2018
FOS in focus – the Lloyd Report
After a Channel 4 Despatches programme in March 2018 made damning allegations about the performance of the Financial Ombudsman Service, the Treasury Select Committee demanded an external review to assess these charges – with just a two-month completion deadline. Adam Samuel examines the result.
Online Published Date:  19 September 2018

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