The FCA has recently completed a review of 24 firms for their compliance with CASS. Although the firms reviewed operated in the CFD and spread betting arena, all firms subject to CASS should take on board the findings to compare them with their own internal processes. The review makes depressing [...]
Seven insider dealers have been ordered to pay £3.2 million following a court case bought by the FCA. According to the FCA, the seven men obtained market sensitive information from investment banks on proposed future takeover bids, which they then used to make spread bets ahead of the announcements. This [...]
Transaction reporting (SUP 17) continues to be a problem area for firms. RBS is the latest big name to be fined (£5.6m after a discount for early settlement, otherwise it would have been £8m) for transaction reporting failures. Previous firms fined for similar failings include Barclays (£2.45m), SocGen (£1.575m) and [...]
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 [...]
The well publicised LIBOR and EURIBOR issues at Barclays Bank led to an FSA fine of £59.5M. As a result of the Barclays affair the FSA Fines Table 2012 now stands at an all time peak of £93.4M – the previous record being £89M for calendar year 2010 (in which [...]
Following the FSA action taken against Coutts & Company in March for money laundering failings, the FSA has fined a further firm for such issues. Habib Bank AG Zurich (Habib), a privately owned Swiss bank with branches in the UK, suffered a penalty of £525,000 after the usual 30% discount [...]
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 [...]
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 [...]
It may be recalled that the Client Money failings at J P Morgan Securities Ltd (JPMSL) resulted in an eye-watering financial penalty of £33.32M being imposed by the FSA in June 2010 (see Regulatory Roundup 16). The failings, concerning the segregation of client money, occurred over the period 1 November [...]
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 [...]
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 [...]
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 [...]
Regulatory Roundup 29 mentioned the continuing interest of the FSA in the marketing of unregulated collective investment schemes (UCIS) and the penalty of £35,000 imposed on Specialist Solutions Public Limited Company for regulatory failings in such marketing. The FSA action has now moved from the regulated entity to the approved [...]
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 [...]
Regulatory Roundup 28 contained an article on the fine imposed upon ActivTrades for client money failings. The FSA action arose following an FSA thematic visit and consequent s166 skilled person report. In a follow up the FSA has also issued a Final Notice in respect of the firm’s compliance officer [...]
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 [...]
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 [...]
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 [...]
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 [...]
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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