Transactions Actions

Things have been quiet of late in respect of transaction reporting failings by firms since City Index (see Regulatory Roundup 25). However the silence was broken by the publication of details of two Final Notices in respect of such failures (albeit that one of the Final Notices was published in [...]

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Currie Conflicts

A Final Notice reveals that the FSA has fined Martin Currie Investment Management Ltd (MCIML) and Martin Currie Inc (MCI – together Martin Currie) for failing to properly manage a conflict of interest. Both MCIML and MCI’s UK branches are FSA authorised and are both registered with the SEC as [...]

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Corporate Governance: Mitsui

Only a matter of days after Hector Sants’ speech on corporate governance (see previous article) the FSA published Final Notices relating to corporate governance failings by Mitsui Sumitomo Insurance Company (Europe) Ltd (Mitsui). Whilst Mitsui may be an insurance company and part of one of the world’s largest non-life insurance [...]

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CICA

Combined Insurance Company of America (CICA) had the honour of being the last firm to incur an FSA imposed financial penalty in 2011. Although CICA’s business is the provision of accident and sickness policies, many of the failings identified in the Final Notice would be relevant to a wider range [...]

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Mercurius

Two related Final Notices have been published which are interesting in the miscellany of wrong-doings committed. Mercurius International was a Cayman based hedge fund with investment management undertaken by Mercurius Capital Management Ltd based in EC2. The subjects of the Notices are Mr Fagbulu (Compliance Officer and CFO) and Mr [...]

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Prompt Response

A prompt, but hasty, response to a FSA letter cost Towry Investment Management Ltd (TIM) £494K in penalties. A ‘Dear CEO’ letter was sent out in January 2010 (see Regulatory Roundup 8 for further details) to firms that held client money and/or assets. The letter drew attention to the FSA’s [...]

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Swift Decision

As may be recalled, under the Financial Services Act 2010 the FSA, in enforcement action cases, now has enhanced powers allowing it to publish decision notices before issuance of the final notice – previously the FSA only had power to publish final notices which added to the time that had [...]

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Client Money: FSA Action

Whilst on the subject of client money, ActivTrades Plc, a broker specialising in FX, CFDs and futures, has been fined £85,750 for client money failings. Firms that hold client money may wish to review the Final Notice in the light of their own processes and procedures. In addition sections of [...]

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Shadow Partner Banned

In June of last year Vantage Capital Markets LLP (VCM), an inter-dealer broker, was subject to a fine of £700K arising from the activities of Daniel Hassell. Mr Hassell’s former business merged with VCM’s predecessor company and he played a part in the formation of VCM. It would seem that [...]

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Transaction Failings

City Index Ltd is the seventh firm to be fined by the FSA in the past 18 months or so for transaction reporting failures. The last transaction reporting case was against Societe Generale in August 2010 – see Regulatory Roundup 20 for further information. Five of the six previous actions [...]

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Client Money

Not a good start to the year for Barclays. On top of the £7.7m fine for investment advice failings (Barclays Bank), Barclays Capital (BarCap) incurred a £1.12m fine for client money failings. Although BarCap properly segregated client money overnight, when the deposits matured the following morning the funds flowed into [...]

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Fines 2010

It has been a bumper year for FSA fines, with a total of £89,121,281.50. £50m of that sum was down to actions taken against JP Morgan (client money failings) and Goldman Sachs (failing to tell the FSA that a CF30 had been subject to interest from the SEC), whilst the [...]

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