FSA bans former Merrill Lynch trader
by Gill Montia
Story link: FSA bans former Merrill Lynch trader
The Financial Services Authority (FSA) has banned a former proprietary trader at Merrill Lynch International Bank (MLIB).
Alexis Stenfors was employed as a senior trader on the short-term interest rate trading desk of the London branch of the bank, and the regulator found that he deliberately mis-marked the positions he traded between mid-January 2009 and mid-February [...]
Senior investment banker charged with insider dealing
by Gill Montia
Story link: Senior investment banker charged with insider dealing
The Financial Services Authority (FSA) has charged a senior investment banker and his wife with 13 counts of insider dealing and one count of conspiracy to commit insider dealing.
Christian Littlewood and spouse Angie Littlewood (also known as Siew Yoon Lew and Angie Lew) have been bailed to attend City of Westminster Magistrates’ Court on 6th [...]
FSA recruits to stamp out market abuse
by Gill Montia
Story link: FSA recruits to stamp out market abuse
The Financial Services Authority (FSA) is proposing to take on an additional 460 staff to help clean up the UK’s financial services sector.
In an interview with The Sunday Telegraph, the regulator’s soon-to-be outgoing chief executive, Hector Sants, described market abuse in the UK as at an “unacceptably high level”.
Mr Sants then qualified his remark by [...]
Watchdogs propose consumer protection committee
by Gill Montia
Story link: Watchdogs propose consumer protection committee
The Financial Services Authority (FSA), Office of Fair Trading (OFT) and Financial Ombudsman Service (FOS) want to boost public confidence in the UK’s financial services sector by setting up a consumer protection committee.
The proposed committee would identify emerging risks that could turn into widespread problems, and act “quickly and decisively” in dealing with any threats.
However, [...]
FSA alert on bank accounts with insurance add-ons
by Gill Montia
Story link: FSA alert on bank accounts with insurance add-ons
In its 2010 Financial Risk Outlook report, the Financial Services Authority (FSA) notes that banks are responding to today’s pressures by increased diversification into products and services that generate fee income, possibly at the customer’s expense.
One example where the regulator sees the potential for “consumer detriment” is “packaged accounts” which “may offer value for money [...]
FSA redesigns bank stress tests
by Gill Montia
Story link: FSA redesigns bank stress tests
In its 2010 Financial Risk Outlook report, the Financial Services Authority (FSA) has told UK banks they must retain core tier one capital ratios of at least 4%.
While acknowledging that the UK economy is expected to continue to recover, the regulator wants financial firms to be equipped for the possibility of a peak-to-trough fall in [...]
FSA holds fire on enhanced liquidity regime
by Gill Montia
Story link: FSA holds fire on enhanced liquidity regime
The Financial Services Authority (FSA) is holding fire on its enhanced liquidity regime, which aims to ensure financial firms’ capital buffers reflect the lessons of the credit crisis.
The details of the regime were published in October 2009, but the regulator says economic recovery needs to be assured before they can be implemented, given that all [...]
Metro Bank ready to launch
by Gill Montia
Story link: Metro Bank ready to launch
London is the launch pad for Metro Bank, which has now secured a banking licence from the Financial Services Authority.
The new venture hopes to get ahead of the competition with opening hours that extend from 8am to 8pm on weekdays and 10am to 4pm at weekends.
The first branches will be unveiled in Holborn and South [...]
FSA fines insider trader £967k
by Gill Montia
Story link: FSA fines insider trader £967k
The Financial Services Authority (FSA) has imposed its largest penalty on an individual to date, despite recognising that the case involved no intent to commit market abuse.
The regulator fined Mehmet Sepil, the chief executive officer of Turkish oil exploration company, Genel Enerji, £967,005 for dealing in the shares of UK listed Heritage Oil Plc, on [...]
FSA fees up 9.9% with larger firms to pay
by Gill Montia
Story link: FSA fees up 9.9% with larger firms to pay
The Financial Services Authority (FSA) has announced its proposed annual funding requirement for 2010/11, which has increased to £454.7 million, up from £413.8 million in 2009/10.
The regulator says the budget reflects its “determination to continue delivering intensive supervision and the substantial international regulatory reform agenda”.
Overall funding for the year has risen by 9.9% as a [...]
Hector Sants to quit FSA
by Gill Montia
Story link: Hector Sants to quit FSA
The Financial Services Authority (FSA) is losing its chief executive officer.
Hector Sants will be leaving this summer after three years in the post and in line with his original timescale for heading up the regulator.
Having joined the FSA in May 2004 from Credit Suisse First Boston, Mr Sants took up his responsibilities as chief executive [...]
FSA issues ultimatum to investment banks
by Gill Montia
Story link: FSA issues ultimatum to investment banks
The Financial Services Authority (FSA) is reported to have instructed investment banks with UK operations to keep bonuses in line with regulatory guidelines or risk having their licences revoked.
According to The Daily Telegraph, the regulator has issued “an extraordinary ultimatum” insisting that 60% of bonuses must be deferred, regardless of whether pre-existing contractual agreements are [...]
Skipton sends account details to wrong customers
by Gill Montia
Story link: Skipton sends account details to wrong customers
A technical glitch has meant that over 3,000 savers with Skipton Building Society have received details of other customers’ accounts.
The mutual sent statements addressed to one customer with another’s account details (including balance and interest earned) printed on the reverse.
According to a report in the Yorkshire Post, withdrawals from the accounts cannot be made without [...]
Complaints handling data must be published by August
by Gill Montia
Story link: Complaints handling data must be published by August
Banks, insurance companies and other financial institutions must publish information on how they handle complaints by 31st August 2010, the Financial Services Authority (FSA) has decreed.
The move is aimed at driving up standards across the industry and keeping consumers fully informed as to how particular firms perform when their customers are dissatisfied.
The new rules apply [...]
FSA consults on corporate governance
by Gill Montia
Story link: FSA consults on corporate governance
The Financial Services Authority (FSA) has published a consultation paper on effective governance standards within financial institutions.
The regulator intends to place greater emphasis on the role of senior management at firms, following up on a “Dear CEO” letter sent out in October last year.
The letter outlined the FSA’s new approach to approving and supervising persons [...]
Tough new measures on mortgage arrears handling
by Gill Montia
Story link: Tough new measures on mortgage arrears handling
The Financial Services Authority (FSA) has set out a package of measures aimed at ensuring mortgage holders in arrears are treated fairly.
The proposals strengthen existing rules on arrears handling and at the same time reinforce the regulator’s “tough stance” against mortgage fraud.
Under the proposals lenders will not be able to:
Add early repayment charges on arrears [...]
FSA fines Standard Life Assurance £2.45m
by Richard Kilner
Story link: FSA fines Standard Life Assurance £2.45m
The Financial Services Authority has fined Standard Life Assurance Limited (SLAL) £2.45m for serious failures in systems and controls, causing misleading marketing material pertaining to SLAL’s Pension Sterling Fund to be released.
Some 98,000 retail consumers had invested in the fund as of 23 December 2008.
There was a serious lack of proper systems and controls in [...]
FSA fines up 53% in value
by Gill Montia
Story link: FSA fines up 53% in value
The Financial Services Authority (FSA) imposed fines totalling £34.8 million in 2009, penalties having increased 53% on a year earlier.
According to research from law firm, Reynolds Porter Chamberlain (RPC), the average fine per firm stood at £891,000, compared with £453,000 in 2008, and eight financial services companies faced fines of £1 million plus.
However, the regulator [...]
FSA fines Toronto Dominion Bank £7m
by Gill Montia
Story link: FSA fines Toronto Dominion Bank £7m
Toronto Dominion Bank has been fined £7 million by the Financial Services Authority (FSA) for repeated systems and controls failings around the pricing of sophisticated financial products at its London branch.
The breaches relate to pricing issues uncovered on a proprietary trader’s books within the bank’s Credit Products Group, which resulted in a negative adjustment of [...]
Banks to be exposed on £1m plus pay deals
by Gill Montia
Story link: Banks to be exposed on £1m plus pay deals
The Walker Review is recommending that banks should be forced to make public the number of their employees paid over £1 million per year, although no individuals will be named.
The review, commissioned by the Government to improve the corporate governance of financial institutions, also wants non-executive directors of banks to be empowered to exert greater [...]
