Sukuk and see

HM Treasury and FSA have issued a joint document on ‘alternative finance investment bonds’ (‘AFIBs’). These are a subset of the sukuk market, which in turn are financial instruments that conform to the principles of Islamic law (Shariah). The structure of some sukuk instruments means that they will be regarded [...]

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Fine time

UBS (AG) has been fined £8m for failures in systems and controls that enabled four employees to carry out unauthorised transactions involving customer money ‘on at least 39 accounts’. As is the norm, the fine would have been larger (£10m) but for UBS agreeing to settle at an early stage. [...]

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AML Review

HM Treasury has announced a review of the Money Laundering Regulations 2007 which implemented the EU’s Third Money Laundering Directive in the UK. The intention is to consider how effective and proportionate the UK’s anti-money laundering rules are. To assist in the AML review, HMT is calling for evidence in [...]

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FSA and AML

After the shock of reading that the FSA had apparently gone soft – or had lost its argument – on Darren Morton and Christopher Parry (who were accused of market abuse – details were in the last Regulatory Roundup), it came as relief to learn that the FSA is back [...]

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FSA and fraud

And for good measure the FSA has fined Seymour Pierce £154,000 for poor controls to guard against employee fraud. The facts of the case made incredible reading; an employee managed to steal £150,000 completely undetected in 36 separate transactions over a three year period. Around half of this amount was [...]

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UK rules OK

A survey by the World Economic Forum shows that the UK is now the top financial centre out of 55 of the world’s largest financially-focussed countries. The previous holder was the US but has now slipped to third place behind Australia. The rankings are based upon more than 120 different [...]

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Liquidity Standards

This week the FSA published PS09/16 (‘Strengthening liquidity standards’) which, for the immediate future, should be the final word on liquidity following three Consultation Papers. The liquidity requirements are contained in a new BIPRU chapter (BIPRU 12). Fortunately the regime for ‘non-ILAS’ firms (basically BIPRU limited licence; BIPRU limited activity; [...]

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Turner Review

Back in March the FSA published The Turner Review and ‘A regulatory response to the global banking crisis’ (DP09/2). They arose from a request from the Chancellor of the Exchequer made in October 2008 to review the causes of the then current financial crisis. Both documents, totalling 340+ pages between [...]

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Global Economy

Some cheering news from the IMF. Its latest World Economic Outlook reports that global economic growth has turned positive, although recovery will be slow. Latest IMF projections show that world output is forecast to expand by around 3% in 2010. The table in the attached link shows that China and [...]

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UCITS

Not that long ago one would not have expected to see ‘Hedge fund managers’ and ‘UCITS’ appearing in the same sentence. However things have been changing, no doubt in part fuelled by memories of Lehman’s, Ponzi schemes and the proposed AIFM EU Directive. We have recently seen the likes of [...]

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Compliance Seminars

The UCITS presentation referred to above was one of a series of seminars being held at our 4 Cavendish Square address. Future topics include US Regulatory Development; Financial Crime; and Market Conduct. If you would be interested in attending one of these then please refer to the link below for [...]

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Market abuse

As we all know, the FSA been stepping up the pressure on market abuse as part of its ‘credible deterrence’ strategy and will happily take enforcement action against firms and individuals. Therefore the publication by the FSA of Final Notices in respect of Darren Morton and Christopher Parry, two bond [...]

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