FSA - New rules on Platforms »
The Financial Services Authority (FSA) has published rules on
platforms regulation. This follows a review of the regulation of
platforms in the context of the objectives of the Retail
Distribution Review (RDR). The rules published extend the consumer
protection elements of the RDR into a rapidly developing area of
investment services. These new rules have two key aims; firstly, to
ensure that consumers receive a better service and, secondly, for
the market to be more transparent and operate more efficiently.
BBA - Merlin banks on track to meeting commitments »
The Merlin banks (Barclays, HSBC, Lloyds Banking Group, RBS and
Santander) are on track to meet business lending commitments. The
five banks delivered £100.4 billion in gross new lending to UK
businesses during the first half of the year, including £37.4
billion to SMEs. The banks are committed to providing capacity of
£190bn of gross new lending, including £76bn for SMEs, available in
2011.
FSA - Tribunal upholds FSA decision to ban and fine hedge fund CEO and CFO £2.1million for deceiving investors and market abuse »
The Upper Tribunal (Tax and Chancery Chamber) has directed the
Financial Services Authority (FSA) to fine Michiel Weiger Visser £2
million and Oluwole Modupe Fagbulu £100,000 and ban them both from
performing any role in regulated financial services for breaching
Principle 1 of the FSA's Statements of Principle for Approved
Persons and for engaging in market abuse.
FSA - Fines Sir Ken Morrison for Disclosure and Transparency Rules failings »
The Financial Services Authority (FSA) has fined Sir Ken
Morrison £210,000 for breaching the Disclosure and Transparency
Rules (DTR) by failing to disclose his reduced shareholding and
voting rights in Wm Morrison Supermarkets Plc (Wm Morrison).
BBA - Warns of the real cost of regulatory change »
A chorus of concerned bankers and business people is now warning
about the consequences to economic growth of further uncosted
regulatory change, warns the British Bankers' Association. As
the Bank of England warns of the volatility of market sentiment -
characterised by the Bank's head of financial stability as a
yo-yoing appetite for risk - policy makers need to be acutely aware
of the dangers of further increasing the cost of banking at a time
when businesses should be building for recovery, said BBA chief
executive Angela Knight:
FSA - RDR hits the headlines »
This proposed guidance will be of interest to retail investment
advisers and trade associations. During their RDR roadshows, FSA
were asked specific questions about the changes and what firms are
required to do. They have published some of these FAQs to further
clarify the rules and FSA's expectations of firms post-RDR. If
you want to know the FSA's answers to any of the eleven
questioins below, just click on the link at the foot of the
article.
UK owned banks' exposures to EEA sovereigns and financials »
On 16 June 2011, the Interim Financial Policy Committee (iFPC)
recommended that the FSA compile data on the current sovereign and
banking exposures of UK banks not subject to the European Banking
Authority (EBA) stress tests to European Economic Area (EEA)
countries. They recommended the FSA publish these exposures in
aggregate.
Hedge funds and systemic risk »
This paper sets out the results of the Financial Services
Authority's (FSA) latest Hedge Fund Survey (HFS) conducted in March
2011 and the Hedge Fund as Counterparty Survey (HFACS) conducted in
April 2011. The surveys are conducted every six months and form an
important part of FSA's work on assessing risks to financial
stability from outside the boundary of prudential regulation. This
in turn forms a key component of FSA's efforts to protect and
enhance the stability of the UK financial system, which is one of
the FSA's four statutory objectives.
Hector Sants defends comments on the RDR »
Hector Sants, Chief Executive Officer of the FSA, has written to
Andrew Tyrie, Chairman of the Treasury Select Committee, on the
subject of the Retail Distribution Review. The Committee reported
on the RDR, the FSA responded briefly pending a fuller (and
presumably more considered) response later in the year, and Hector
then offered further comment by way of an apology.
Commission on funding of care and support »
Margaret Cole, Managing Director of the FSA, has written to the
Commission setting out the FSA's view on the role of financial
services products - and the Regulator - in relation to the funding
of care and support for the elderly. She stated:
FSA - Assessing Suitability »
Nausicaa Delfas, Head of Conduct Risk, FSA, made the keynote
speech at the Retail Conduct Risk Seminar at the Queen Elizabeth II
Conference Centre, Westminster, London. Referring to the recent
report on suitability, entitled "Suitability: establishing the
risk a customer is willing and able to take and making a suitable
investment solution" she stated that the report highlighted
some important drivers of unsuitable investment selections, which
are common across different firms and product areas.
ABI - To speed up life assurance payouts »
The ABI announced on Monday 23 May that beneficiaries will
receive life insurance payments more quickly after bereavement, as
the ABI issues new guidance to insurers cutting the time it takes
from four months to just four weeks. Over 32,000 life insurance
claims are made by families who have lost a loved one every year in
the UK, many of which will now be able to benefit from this
change.
Breaking the downward spiral: why improving financial capability is important to our industry »
In the grand scheme of financial services reform, few
issues seem less controversial than enhancing the public's
financial capability. It is one element of government financial
regulation policy that has remained relatively constant on either
side of last year's General Election. However in the life, pensions
and protection sector, much needs to be done by both the industry
itself and the newly rebranded Money Advice Service to improve
consumer engagement.
Are emerging markets really the future? »
A few years ago I was chairing a conference on the topic of
investing for retirement. Alongside the expected array of income
and bond managers was a group extolling the virtues of committing
your retirement pot solely to their Global Emerging Market funds.
Their arguments were simple and well rehearsed. Economic power was
shifting inexorably to the developing world, so any long term
investor must secure above average exposure to these markets. And
what more typical long term investor is there than a pension
fund
The taxation of interest from joint accounts and from accounts set up for minor children »
With the top rate of income tax increasing to 50% it is now even
more important to consider tax planning by spreading money
throughout a family. However, for this to work, it needs to be done
properly. The decision in the recent case of P A Lorber (TC 977)
[2011] shows that in order to be able to deal with future tax
issues that might arise it is vital to keep proper records and
evidence of financial transactions within the family.