On March 24, the FCA published a report which sets out its findings from a survey of hedge fund activity in the UK.
Key findings are:
The Financial Conduct Authority (FCA) has fined Besso Limited, an independent management owned general insurance broker in the Lloyd’s Broking group, £315,000 for a failure to take reasonable care to establish and maintain effective systems and controls for countering the risks of bribery and corruption. Press Release.
The Financial Conduct Authority (FCA) and the Bank of England, including the Prudential Regulation Authority (PRA), have agreed on a Memorandum of Understanding (MoU) that sets out how they cooperate with one another in relation to the supervision of markets and market infrastructure, which includes financial markets infrastructures (FMIs). The FCA and the Bank concluded that the MoU’s arrangements for cooperation over the first 11 months of the authorities’ new responsibilities have worked well. The FCA and the Bank continue to refine their cooperative working arrangements and welcome the industry’s suggestions for some areas of consideration. Memorandum of Understanding.
On February 25, the FCA published the final notice it issued to David Hobbs, a former derivatives trader, banning him from performing any regulatory function.
The final notice follows the decision of the Upper Tribunal (Tax and Chancery Chamber), which found that in putting forward a false defense to the FSA (the FCA’s predecessor) and in maintaining that defense in evidence before the tribunal, he had exhibited a lack of integrity. It held that he was not a fit and proper person to perform regulatory functions. Final Notice.
On February 10, the FCA published two factsheets, both dated February 7, 2014, concerning EMIR.
On January 29, the FCA published a final notice regarding Anthony Verrier, a former inter-dealer broker at BGC Brokers LP.
The FCA has adjudged Mr. Verrier not to be a fit and proper person due to concerns it had over his integrity. These concerns came about as a result of the evidence Mr. Verrier gave in a UK High Court case.
The case, Tullett Prebon plc v BGC Brokers LP (and 13 others, including Verrier), concerned Mr. Verrier’s participation in an unlawful means conspiracy, including his inducement of certain Tullett brokers to breach their employment contracts with Tullett by leaving early to join BCG without lawful justification.
The FCA has prohibited Mr. Verrier from performing any function relating to any regulated activity carried on by any authorized or exempt person or exempt professional firm. Final Notice. Tullett Prebon plc v BGC Brokers LP.
On January 6, The UK Regulator, the Prudential Regulation Authority (PRA) published a press release confirming its intention to undertake an enforcement investigation into the Co-Op Bank. The UK’s other regulator, the Financial Conduct Authority (FCA), has confirmed in a press release that it will also be investigating the bank and events up to June 2013. The PRA will be considering the role of senior managers at the bank. Press Release. FCA Press Release.
On September 12, the FCA published a speech by Martin Wheatley, FCA Chief Executive, on the FCA’s plans for 2014, which focus on issues relating to asset management, MiFID II and EMIR (the Regulation on OTC derivatives, central counterparties and trade repositories) (Regulation 648/2012). Speech.
On December 11, the FCA published a final notice to Lloyds Banking Group in which it was fined a record GBP £28 million. The fine was imposed for “serious failings” in its sales practices, the largest UK regulatory penalty for a retail banking misdemeanor. The FCA was particularly critical of “seriously flawed” sales practices and bonus structures in place between January 2010 and March 2012 that involved sales people being potentially demoted, with a potential cut in salary of up to 50 percent, if they failed to hit targets. Final Notice.
On November 26, the FCA published a speech made by the FCA Director of Supervision on the future of retail banking and the issues identified by the FCA.
In particular, the speech notes that banks must focus on rebuilding consumer trust, dealing with new and potentially threatening technologies, addressing changes in consumer behavior in light of technological developments and addressing issues such as misselling and building a stronger business model.
The speech also notes that the FCA intends to encourage a competitive market and urges banks to focus on evolving in a consumer friendly way. Speech.
