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European Union financial services update
In this month’s regular update on EU financial services we review the following: Prospectuses: European Commission presents an amended proposal for a Directive on prospectuses on 9 August 2002; Financial Services & Taxation Council: results of the Council of Economics and Finance Ministers Meeting on Financial Services and Taxation on 12 July 2002; Capital adequacy: significant progress on new Basel Capital Accord.
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01 September 2002
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Vol 15 No 2 - 01 September 2002
Complaints handling and limitation defences
The efficiency of complaints handling is not just a regulatory issue but is also one which impacts upon the commercial well-being of an authorised firm. John Virgo, barrister and Philip Ryley, solicitor, examine a recent High Court judgment which may have far-reaching consequences as to how complaints may be handled in the future when an issue of limitation arises.
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01 September 2002
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Vol 15 No 2 - 01 September 2002
Private Equity – an alternative investment for money launderers?
There can be no doubt amongst the compliance fraternity that money laundering, or more specifically the steps that should be taken to identify potential launderers, has shot to the top of the charts in recent months. As the systems of detection become more sophisticated, we can expect the criminals to diversify their laundering methods in an attempt to avoid them. Traditionally investors in private equity have seemed unlikely money launderers. Investment tends to be made by well-established players for the longer term with limited early access to their investment, but, warns Isabelle David of Apax Partners Ltd, this could change as the criminal seeks alternative markets.
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01 September 2002
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Vol 15 No 2 - 01 September 2002
The Sandler Review
The Sandler Review of the UK market for medium and long-term investment will have far-reaching implications for financial services firms and not least for compliance, says Jonathan Bundy of Deloitte & Touche. Its core objectives of increasing market efficiency, improving value for consumers, and improved investment decision-making are ambitious but need to be considered in the context of wider initiatives to increase the overall savings ratio for the UK as a whole. Although there will inevitably be individual “winners & losers” in the process, the recommendations may yet serve to expand the market if embraced by the industry, the regulator and HM Treasury.
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01 September 2002
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Vol 15 No 2 - 01 September 2002
Davies welcomes Sandler
Howard Davies, Financial Services Authority chairman, declared that he was happy in general with Ron Sandler’s report on the UK savings industry. He noted that Mr Sandler’s belief in the need for a simplified regulatory approach for..
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01 September 2002
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Vol 15 No 2 - 01 September 2002
Royal & Sun Alliance fined £1.35 million over pensions review
“Systemic weaknesses” in internal controls across parts of its pension review up to August 2000 have cost the Royal & Sun Alliance a £1.35 million fine by the Financial Services Authority. R&SA group companies had already..
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01 September 2002
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Vol 15 No 2 - 01 September 2002
Operational risk transfer
Original operational risk (OR) provisions appeared in CP97 “Integrated Prudential Sourcebook” (PSB) in June 2001 but the Financial Services Authority now proposes that some of its guidance on OR management systems and controls, which..
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01 September 2002
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Vol 15 No 2 - 01 September 2002
Integrated insurance
Responses to CP97 “Integrated Prudential Sourcebook” (PSB) have prompted secondary consultation on two aspects of concern to insurers. In the case of credit risk (PRCR10), to disallow reinsurance credit exposures when these exceeded the..
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01 September 2002
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Vol 15 No 2 - 01 September 2002
The long road to integration
It was back in June 2001 that the Financial Services Authority issued CP97 “Integrated Prudential Sourcebook” (PSB) in which it took the first mighty steps towards a single prudential regime for banks, building societies, insurance..
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01 September 2002
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Vol 15 No 2 - 01 September 2002
Looking over the hedge
The global hedge fund industry is worth an estimated US$500 billion (source: TASS, the hedge fund information service) and is currently the preserve of wealthy individuals and private endowment funds with usual minimum investments of US$100,000...
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01 September 2002
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Vol 15 No 2 - 01 September 2002
Back-up needs buck-up
Although the City’s top 35 financial institutions have adequate disaster recovery plans in place according to the Financial Services Authority, it still has major concerns about the readiness of the rest of the regulated sector. An FSA..
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01 September 2002
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Vol 15 No 2 - 01 September 2002
List checking
A decade has elapsed since the last review of the Listing Rules and the Financial Services Authority has embarked on a full-scale review, timely in light of the current debate on corporate governance, accounting standards and European legislative..
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01 September 2002
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Vol 15 No 2 - 01 September 2002
A question of independence
Analyst independence is a major concern in the US with class actions pending after links emerged between the broking and investment banking arms of some major Wall Street firms in the wake of the dotcom collapse. Howard Davies, FSA chairman, says..
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01 September 2002
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Vol 15 No 2 - 01 September 2002
News
Mortgage movement
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01 September 2002
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Vol 15 No 2 - 01 September 2002
To boldly go…back
Timon Molloy, Editor
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01 September 2002
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Vol 15 No 2 - 01 September 2002