Latest: Financial Services Authority

Investment banks fail on anti-bribery & corruption controls

The Financial Services Authority (FSA) says it is amending its regulatory guidance on financial crime, having considered the findings of its recent review into anti-bribery and corruption (ABC) systems and controls at investment banks. From August 2011, the regulator visited 15 firms (including eight major global investment banks) to examine how firms mitigate bribery and [...]

March 30, 2012 | 0 Comments More

Former Cattles directors fined and banned

Two former directors of sub-prime lender, Cattles, and its subsidiary, Welcome Financial, have been censured by the Financial Services Authority (FSA) for publishing misleading information to investors and acting without integrity in discharging their responsibilities. James Corr, Cattles’ former finance director, has been fined £400,000 and Peter Miller, Welcome’s former finance director, has been fined [...]

March 28, 2012 | 0 Comments More

Coutts fined £8.75m for anti-money laundering failures

Coutts has been fined £8.75 million for failing to take reasonable care over its anti-money laundering controls. The Financial Services Authority (FSA) found that failings at the bank were serious, systemic and had persisted for almost three years. They came to light in October 2010 when the regulator visited Coutts as part of its review [...]

March 26, 2012 | 0 Comments More

FSA chief executive to step down in June

Hector Sants, the chief executive of the Financial Services Authority (FSA), has announced that he intends to leave the organisation at the end of June this year. Sants has been the FSA’s CEO for the last five years and led the overhaul of the organisation’s approach to regulation following the financial crisis. He has also [...]

March 16, 2012 | 0 Comments More

“Shadow banking” in need of urgent reform

Financial Services Authority (FSA) chairman, Lord Turner, has been tackling the regulatory issues surrounding the “shadow banking” sector. In a speech to the CASS Business School, he described the sector as “covering multiple specific institutions and activities including securitised lending, hedge funds active in credit markets, investment bank trading of credit securities, the issuance of [...]

March 15, 2012 | 0 Comments More

FSA fines Credit Suisse head of credit sales

The Financial Services Authority has fined Nicholas Kyprios, head of European credit sales at Credit Suisse in London, £210,000. Mr Kyprios has been found guilty of improper market conduct, having disclosed client confidential information ahead of a significant bond issue, in November 2009. Credit Suisse acted on behalf of Liberty Global during its takeover of [...]

March 13, 2012 | 0 Comments More

Regulator warns on early release pension scams

Britons are being warned to steer clear of pension offers that claim to be able to provide loans or release tax-free cash from people’s pension pots, before they reach age 55. The Pensions Regulator, Financial Services Authority (FSA) and HM Revenue and Customs are all aware of a rise in the number of “transferred funds” [...]

February 27, 2012 | 0 Comments More

Santander fined £1.5m over FSCS failings

Santander has been fined £1.5 million by the Financial Services Authority (FSA) for failing to confirm under which circumstances its structured products would be covered by the Financial Services Compensation Scheme (FSCS). Customers began querying the extent of FSCS cover towards the end of 2008, but it was January 2010 before Santander clarified the position. [...]

February 20, 2012 | 0 Comments More

FSA’s Cole to step down

The Financial Services Authority’s (FSA’s) interim managing director, Conduct Business Unit, Margaret Cole, is to step down later this year. Ms Cole joined the regulator in 2005 as director of enforcement. Managing a division of 450 people, she has responsibility for enforcement policy, intelligence gathering, forensic investigations, and civil and criminal proceedings, in areas that [...]

February 16, 2012 | 0 Comments More

FSA bans Sinha and issues £2.867m fine

Ravi Shankar Sinha has been fined £2.867m by the Financial Services Authority (FSA) for fraudulently acquiring for himself £1.367m from a company owned by a private equity fund advised by JC Flowers. The fine consists of £1.5m punitive element and £1.367m disgorgement, and Sinha has been barred from performing any function in relation to any [...]

January 31, 2012 | 0 Comments More

FSA appoints investment banking advisor

The Financial Services Authority (FSA) has appointed Will Samuel to the role of investment banking senior advisor. Mr Samuel, who takes up the post today (30th January), has more than 35 years of experience in investment banking, most recently as vice chairman of Lazard & Co. Commenting on the appointment, FSA chief executive, Hector Sants, [...]

January 30, 2012 | 0 Comments More

Government publishes Financial Services Bill

The Government has today published legislation aimed at strengthening financial regulation in the UK. According to Financial Secretary to the Treasury, Mark Hoban, the Financial Services Bill sets out a “clear, coherent and comprehensive regulatory framework” that should help mitigate against future risks to stability. In brief the Bill: 1. Gives the Bank of England [...]

January 27, 2012 | 0 Comments More

Consumer credit websites found wanting

An EU-wide investigation of websites offering credit cards and other consumer credit has resulted in 70% (393) of sites examined being referred for further investigation. Checks took place to see whether consumers are receiving the right information under EU law before signing a consumer credit agreement. They focused in particular on the Consumer Credit Directive, [...]

January 13, 2012 | 0 Comments More

FSA: new rules on deposit protection publicity

The Financial Services Authority (FSA) is planning to make it obligatory for all banks, building societies and credit unions in the UK to prominently display how much compensation savers could claim in the event of an institution failing, and where from. The information will need to be displayed in every branch and on all websites. [...]

December 14, 2011 | 0 Comments More

FSA publishes report on RBS failure

In its long-awaited report on the failure of Royal Bank of Scotland (RBS), the Financial Services Authority (FSA) concludes that poor decisions made by the RBS management and board, deficiencies in the global capital regime and flaws in the FSA’s supervisory approach were all to blame. Specifically, the report concludes that the failure of the [...]

December 12, 2011 | 0 Comments More

FSA confirms Northern Ireland credit union switch

The Financial Services Authority (FSA) and HM Treasury have announced that Northern Ireland’s credit union customers will have their deposits protected to the value of £85,000. The change comes into effect on 31st March 2012 when regulation of all the province’s 177 credit unions passes from the Northern Ireland Department of Enterprise and Investment to [...]

December 11, 2011 | 0 Comments More

FSA fines HSBC £10.5m

The Financial Services Authority (FSA) has fined HSBC £10.5m, a retail fine record, following its subsidiary NHFA Limited (NHFA) giving elderly customers inappropriate investment advice. In addition to the fine an estimated £29.3m will be paid out in compensation to NHFA customers. From 2005 to 2010 2,485 customers invested in asset-backed products, and many of [...]

December 5, 2011 | 0 Comments More

FSA: traded life policy investments “toxic”

The Financial Services Authority (FSA) has warned that traded life policy investments (TLPIs) are high risk, toxic products that are generally unsuitable for the majority of UK retail investors and should therefore not be promoted to them. TLPIs are known as “death bonds” because investors are putting their money into a pooled investment or fund [...]

November 28, 2011 | 0 Comments More

New EU rules on short-selling and CDS trades

The European Parliament has voted into law regulation that will curb short-selling and trading in credit default swaps (CDS). Both short-selling and CDS trading have been blamed for fuelling market volatility, with CDS trades in particular linked to the troubles of Greece. The new rules therefore virtually ban certain CDS trades as follows: 1. Naked [...]

November 15, 2011 | 0 Comments More

FSA fines Coutts £6.3m

The Financial Services Authority (FSA) has fined Coutts & Company £6.3m due to failings related to the sale of an AIG fund. In addition, Coutts has undertaken to carry out a past business review, which will be supervised by an independent third party and aim to give fitting compensation to all customers who lost out [...]

November 8, 2011 | 0 Comments More