On 18 November, 2011, the Financial Services Authority fined Dr Sandradee Joseph, a former Compliance Officer at hedge fund company Dynamic Decisions Capital Management, £14,000 for failing to exercise due skill, care and diligence in managing the business of the firm for which she was responsible in her CF10 controlled function (Principle 6 of the FSA’s Statement of Principles for Approved Persons). The FSA also banned Dr Joseph from performing any significant influence function in regulated financial services, considering that she did not meet FSA’s fit and proper test. FSA Press Release. Final Notice to Dr Sandradee Joseph.
Financial Services Authority
FSA Releases Proposed Guidance And Warns Against Retail Sales of ‘Toxic’ Death Bonds
On 28 November, 2011, the Financial Services Authority released proposed guidance on traded life policy investments (TLPIs) and at the same time issued a strong warning that TLPIs are not to be marketed to UK retail investors. The FSA points to serious problems with how the TLPIs are designed, marketed and sold, considering them to be “toxic products” unlikely to be suitable for the majority of retail investors. The FSA has stated that it ultimately aims to ban TLPIs from the UK retail market. FSA Press Release. Guidance Consultation.
FSA Implementation of the Remuneration Code
On April 19, the Financial Services Authority issued guidance to banks, building societies and Capital Adequacy Directive investment firms on compliance with the Remuneration Code, as modified and extended on January 1. The FSA issued guidance on general compliance with the Remuneration Code’s compensation rules as well as on varying the proportionality tier of a firm. The FSA is seeking consultation on its general guidance by May 18. General Compliance Guidance. Self-Assessment of Compliance for Tier 2. Self-Assessment of Compliance for Tiers 3 and 4. Retention Periods. Guaranteed Variable Remuneration. FAQ on the Remuneration Code. Proportionality Tier Guidance.