FSA action on short selling supports HBOS share price
by Gill Montia
Story link: FSA action on short selling supports HBOS share price
The Financial Services Authority (FSA) has published new rules on “short selling”.
The practice, whereby traders profit from falling share prices, has been blamed for some of this week’s fall in the value of HBOS stock, prior to its rights issue.
HBOS needs to raise £4 billion from shareholders but the fundraising has been in jeopardy this […]
HBOS rights issue in jeopardy
by Gill Montia
Story link: HBOS rights issue in jeopardy
HBOS’s £4 billion rights issue looked in jeopardy today as the bank’s share price fell below the proposed offer price of 275p.
Shares in the UK’s largest mortgage lender fell almost 12%, to 258p, as the markets took up the strain of mounting concerns over the UK housing market.
This week’s news on the property sector has […]
FSA launches young person’s website
by Gill Montia
Story link: FSA launches young person’s website
The Financial Services Authority (FSA) has launched a new website for young adults.
It takes the form of a one-stop money information shop and has been created as part of the authority’s National Strategy for Financial Capability.
According to the latest research, more than two-thirds of young people are not planning ahead financially and 80% of […]
Adair Turner appointed FSA chairman
by Gill Montia
Story link: Adair Turner appointed FSA chairman
The Financial Services Authority (FSA) has appointed a new chairman.
Adair Turner, a former director general of the CBI, has been appointed by the Treasury for a five year term and will take over from Sir Callum McCarthy in September of this year.
Mr Turner currently heads a Government committee on climate change but will be relinquishing […]
Compliance costs set to rise
by Gill Montia
Story link: Compliance costs set to rise
A new report from professional services firm, Deloitte, is warning that the cost of regulation in the financial services sector is set to rise steeply in the years ahead.
The world’s 100 leading financial institutions have already experienced a 30% hike in compliance costs over the past three years, with the total bill increasing to around […]
FSA beefs up investigations team
by Gill Montia
Story link: FSA beefs up investigations team
The Financial Services Authority (FSA) is planning a clampdown on those who attempt to manipulate the markets for personal gain.
The regulator has more than doubled the size of its investigation team, to 30, and plans to bring more prosecutions to stamp out both rogue trading and insider dealing.
The move follows an incident in mid-March when […]
BBA opposes FSA attack on tied advice
by Gill Montia
Story link: BBA opposes FSA attack on tied advice
The British Bankers’ Association (BBA) has criticised new measures being proposed by the Financial Services Authority (FSA) that could curtail or even outlaw tied advice, such as advice given by a bank based on the range of products its provides.
The BBA believes that consumers could lose out under the proposals because they would be caught between […]
FSA warning on personal data security
by Gill Montia
Story link: FSA warning on personal data security
The Financial Services Authority (FSA) has warned UK financial institutions that they must do more to ensure that customers’ personal data does not fall into the hands of identity thieves.
The regulator has recently reviewed the data security systems of 39 firms including banks, building societies, insurance companies and financial advisers.
One case has been referred for […]
New FSA powers challenge rogue lenders
by Gill Montia
Story link: New FSA powers challenge rogue lenders
Consumers should face better protection from rogue lenders under new Government proposals.
Loan providers will have to meet more stringent conditions to secure a consumer credit licence from the Financial Services Authority and in future, the regulator will be paying particular attention to firms that use methods of debt collection that intimidate customers.
In addition, sales […]
FSA seeks staff with market-based experience
by Gill Montia
Story link: FSA seeks staff with market-based experience
The Financial Services Authority (FSA) wants to increase its budget by around £15 million this year, to allow it to raise staff numbers.
The Authority is looking for some 100 new appointments, following its admissions of failure over the Northern Rock crisis.
It is understood that the internal audit into the collapse of the mortgage bank highlighted […]
FSA powers to include “plea bargaining” for whistle-blowers
by Gill Montia
Story link: FSA powers to include “plea bargaining” for whistle-blowers
The Chancellor of the Exchequer, Alistair Darling, is considering extending the powers of the Financial Services Authority to allow it to plea bargain with City whistle-blowers.
The move comes days after market rumours wiped 20% of HBOS shares in the space of one hour.
The incident led to speculation that the rumours emanated from traders manipulating the […]
FSA admits Northern Rock shortcomings
by Gill Montia
Story link: FSA admits Northern Rock shortcomings
The Financial Services Authority (FSA) has today published a report in which it admits to certain shortcomings in the regulation of Northern Rock.
Four key areas have been identified as significant in the process which led to the mortgage bank having to seek emergency funding from the Bank of England.
These include a lack of sufficient supervisory […]
FSA head of retail departs
by Gill Montia
Story link: FSA head of retail departs
The Financial Services Authority (FSA) has announced that Clive Briault, the managing director of its retail business division, will be leaving his post at the end of April.
Mr Briault has been deeply involved in the Northern Rock debacle, in that he headed the team that monitored the mortgage bank.
During the enquiries that followed the UK’s […]
FSA warns on market rumours as HBOS shares plunge
by Gill Montia
Story link: FSA warns on market rumours as HBOS shares plunge
Rumours that HBOS has liquidity problems has led to an investigation by the Financial Services Authority (FSA), which will be looking at the possibility of market abuse, after the bank’s shares fell heavily today.
It is possible that the speculation, which included suggestions that the Bank of England is arranging an emergency meeting with HBOS, emanated […]
FSA short-staffed on Northern Rock accountability
by Gill Montia
Story link: FSA short-staffed on Northern Rock accountability
A request from The Times newspaper under the Freedom of Information Act has revealed that five of the seven Financial Services Authority (FSA) employees who had direct responsibility for the oversight of Northern Rock prior to the run on the bank, are no longer employed by the Authority.
The regulator, which is charged with ensuring that […]
MPs report on credit crunch failures of BoE and FSA
by Gill Montia
Story link: MPs report on credit crunch failures of BoE and FSA
The Treasury Select Committee that has been examining the Northern Rock crisis and other issues surrounding the credit squeeze, has criticised the Bank of England and the Financial Services Authority (FSA) for failing to ensure that financial institutions addressed serious risks within their businesses.
The Committee acknowledged that the Bank and the regulator did try to […]
FSA head heralds end of cheap credit
by Gill Montia
Story link: FSA head heralds end of cheap credit
The head of the Financial Services Authority, Hector Sants, has warned that the UK’s era of cheap credit may be over forever.
Speaking on the BBC’s Today programme, on Radio 4, Mr Sants stated: “I don’t think markets are ever going to return to the way they were.”
Adding: “The idea that at some point they will […]
FSA supports new parents with money guide
by Gill Montia
Story link: FSA supports new parents with money guide
The Financial Services Authority (FSA) is to provide new parents with money advice packs that contain information on budgeting, benefits and the cost of childcare.
The Parent’s Guide to Money (PGM), which will be distributed by midwives to mothers in the early stages of pregnancy, will also contain information on maternity leave and Child Trust Funds.
The […]
FSA changes to investment business disclosure
by Gill Montia
Story link: FSA changes to investment business disclosure
The Financial Services Authority (FSA) is developing a new regime for the conduct of investment business.
Following the introduction of a “principles-based approach to disclosure” in the FSA’s Conduct of Business Sourcebook published last November, the regulator plans to introduce a single disclosure document.
The document will combine the information enclosed in the Menu and Initial Disclosure […]
FSA warns of organised mortgage fraud
by Gill Montia
Story link: FSA warns of organised mortgage fraud
The Financial Services Authority (FSA) has referred over 70 mortgage brokers to its enforcement division, which has the power to issue hefty fines and penalties.
The regulator currently has around 200 mortgage brokers under investigation for home loan fraud.
Some brokers have been involved in complex criminal schemes whereby false surveys with inflated valuations have been submitted […]
