Directed trades

Anjam Ahmad was the subject of a Final Notice for having directed trades to a broker with which he had entered into an improved commission agreement with. Although an initial commission rate of 5bps was agreed between the broker and Ahmad’s firm (AKO) he later entered into an improvement arrangement [...]

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Oil futures and alcohol

An unusual Final Notice relating to Stephen Perkins was published on the FSA website. Mr Perkins, a (now ex) oil futures broker was fined £72K by the FSA and prohibited from performing any controlled function for at least five years for market abuse. His unauthorised trading actions over 29 and [...]

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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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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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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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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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Insider Dealing

It will not have escaped your attention that FSA and SOCA have carried out a joint operation involving address searches and arrests in a clampdown on insider dealing; firms such as Exane, Novum, Deutsche Bank and Moore Capital have been named. Although not official policy, in the real world it [...]

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FATF

It may be recalled that the Financial Action Task Force (FATF) used to maintain a list of ‘Non-Cooperative Countries and Territories’ – a total of 23 countries/territories appeared on the list at one time or another. As and when a listed entrant made significant progress in addressing AML/CFT deficiencies it [...]

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Broker abuse

Another FSA fine on an individual, this time for abuse of inside information. Alexei Krilov-Harrison was a broker at Pacific Continental Securities (the latter, as you may be aware, was itself subject to Public Censure in January of this year and only escaped a proposed fine of £2,000,000 because by [...]

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Cumming and Going

The Regulatory Roundup of 5 November reported on the £8m fine imposed upon UBS (AG) after four employees carried out unauthorised transactions involving customer money ‘on at least 39 accounts’. The FSA has now released details of the ban and fine it imposed on Andrew Cumming, a former client adviser [...]

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FATF and the UK

The Financial Action Task Force (FATF) has acknowledged the work done by the UK in remedying deficiencies found in 2007. In that year FATF issued a report on the UK’s compliance with FATF’s 40 Recommendations (and the 9 Special Recommendations). Although hardly a damming report there were a few modest [...]

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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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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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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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Insider dealing

A finance director and two lawyers are the latest to be pursued for insider dealing (in respect of Neutec Pharma). All three have been committed to stand trial at Southwark Crown Court on eight counts of insider dealing. Details on the charges can be found on the link below (note [...]

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AML & JMLSG

Following the overhaul of Part I of the guidance the Joint Money Laundering Steering Group (JMLSG) have released a revised Part II, which is the section that offers firm specific guidance. The changes are out for consultation (Oct 21 deadline). The changes seem to relate to improved guidance rather than [...]

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Financial Crime

The latest edition of the FSA’s Financial Crime Newsletter is published reminding us about what could be ominous news for those that can read between the lines. You will be aware from a previous Roundup that Philip Robinson, the FSA’s Director of Financial Crime and Intelligence Division, is retiring at [...]

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