Financial Services Regulation Bill

The Queen’s Speech gave confirmation of an overhaul of the regulation of financial services “Legislation will reform financial services regulation to learn from the financial crisis …” which is supplemented by a release on the official site of the Prime Minister’s Office. The latter advises that the Financial Services Regulation [...]

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Client Money and Assets

A reminder for those firms in receipt of a ‘Dear CEO’ letter under the heading of ‘Client Money & Asset Report’ that went out earlier this year (see Regulatory Roundup #8). A response was expected from each recipient firm, although no specific date was given. The FSA has now started [...]

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Combined Code

The Financial Reporting Council (FRC) has released a revised version of the Combined Code, or, as it is now called, the UK Corporate Governance Code. Although the Code is strictly only applicable to companies with a Premium Listing (ex Primary Listing), corporate governance is very much high on the agenda [...]

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FSA Fees

The FSA has issued PS10/7 – “Consolidated Policy Statement on our fee-raising arrangements and regulatory fees and levies 2010/11”. As mentioned in Regulatory Roundup #5, fees will be a combination of a basic minimum £1,000 plus a ‘straight line recovery’ which basically means the fees now increase in proportion to [...]

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Stress Testing

Although Christmas seems a long way off, relevant BIPRU firms may wish to ensure that they are on track to meet the reverse stress testing requirements that come into force on the 14 December and which was originally flagged up in Regulatory Roundup 6 from 18 December last year. Reverse stress [...]

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Close Links

As mentioned in Regulatory Roundup #5, the amended rules governing close links reporting which came into effect on 1 June 2010. The main change is that close links notification now has to be done using a new FSA form (see the link for details). The new form has to be [...]

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Extending German Shorts

Following on from Regulatory Roundup 14 which detailed the surprise temporary BaFin naked short selling restrictions, BaFin plan to permanently ban naked short selling of certain euro zone securities. The draft bill proposes to ban naked short selling of domestic German stocks, credit default swaps based on eurozone sovereign bonds [...]

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FSA Actions On Money Laundering

The FSA has released details of penalties it has imposed on both a firm and its MLRO for inadequate anti-money laundering systems and controls. Alpari (UK) Ltd and Sudipto Chattopadhyay were fined £140,000 and £14,000 respectively (with the usual notification that these sums represent a 30% discount because both parties [...]

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Anti-Money Laundering Guidance

The JMLSG has recently released Part III to its anti-money laundering guidance entitled ‘Specialist Guidance’. Part III will include some existing material that the JMLSG feels does not sit comfortably within Parts I & II as well as including some new material. Sections include guidance on equivalent jurisdictions and equivalent [...]

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Transaction Reporting Problems

Following on the heels of the £4.2m fine imposed on three big name firms for transaction reporting failures (see Regulatory Roundup No 12) the FSA released details of a further firm – CommerzbankAG – to be fined for transaction shortcomings. What is interesting about the latest fine (£595,000) is that [...]

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Winterflood Securities Fined

Winterflood, the largest market maker on the AIM market, lost its appeal against the decision of the Financial Services and Markets Tribunal in March 2009, which found they had committed market abuse. Winterflood had been accused of failing to recognise and react to clear warning signs that something was amiss, [...]

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Other FSA Fines

Further to the Winterflood and Commerzbank fines, this marks the end of a very busy April for the FSA. The month saw a total of 16 fines added to the 2010 fines table (although some cases stem from the same source e.g. the Winterflood case gives rise to three separate [...]

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Bribery Act 2010

The Bribery Act 2010 creates new statutory offences, replacing common law. The most significant change is the introduction of a corporate offence, ‘failure to prevent bribery’ by persons associated with a business. ‘Bribery’ would include the suggestion of a bribe and penalties include an unlimited fine. The UK courts could [...]

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FINMAR

FINMAR will be the abbreviation given to a new Handbook module: the Financial Stability and Market Confidence Sourcebook. It is referenced in the latest consultation paper from the FSA – CP10/11 “Implementing aspects of the Financial Services Act 2010”. The CP has been released following the Financial Services Bill 2010 [...]

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Transaction Reporting

The FSA hit with a vengeance when it fined three big name firms a total of £4.2m for transaction reporting failures. It will be recalled that Barclays suffered a penalty of £2.45m last August for similar failings. Interestingly, in all these cases, including Barclays, there was an inability to report [...]

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