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 [...]
FSA warns of troubled 2008
by Gill Montia
Story link: FSA warns of troubled 2008
The Financial Services Authority (FSA) has warned that “a significant minority” of people could find themselves in financial trouble in 2008, because of high levels of borrowing.
In its Financial Risk Outlook report the authority expresses concerns that difficult market conditions are putting the business models of some financial service providers under strain.
It expects these pressures [...]
Consumer Panel responds to FSA Retail Distribution Review
by Gill Montia
Story link: Consumer Panel responds to FSA Retail Distribution Review
The Financial Services Consumer Panel, the independent voice for consumers of financial services, has commissioned a piece of research in connection with the Financial Services Authority’s (FSA) Retail Distribution Review.
The findings show that consumers are confused by the current advice framework, with the majority not distinguishing between different types of adviser when talking about or [...]
SII responds to FSA Retail Distribution Review
by Gill Montia
Story link: SII responds to FSA Retail Distribution Review
The Securities & Investment Institute (SII) has responded enthusiastically to the Financial Services Authority’s (FSA) Retail Distribution Review discussion paper.
The review seeks to enable the financial services sector to deliver its services and retain the public’s trust, and the Institute is suggesting that there are already many examples of good practice in the industry that [...]
Bankers oppose new FSA powers
by Gill Montia
Story link: Bankers oppose new FSA powers
The Chancellor of the Exchequer’s plans to give additional powers to the Financial Services Authority (FSA) are likely to face opposition from bankers.
The proposals, which are due to be published this week, are aimed at preventing a reoccurrence of the conditions that caused last September’s run on Northern Rock.
They include giving the FSA fresh powers [...]
FSA to receive additional powers
by Gill Montia
Story link: FSA to receive additional powers
In the coming week, the Chancellor of the Exchequer, Alistair Darling, is expected to reveal plans to give the Financial Services Authority additional powers.
These could include the power to seize and protect cash deposits and gain access to information to assess a bank’s liquidity position.
The changes are aimed at preventing another run on a UK [...]
FSA orders London Scottish Bank to increase reserves
by Gill Montia
Story link: FSA orders London Scottish Bank to increase reserves
The Financial Services Authority (FSA) has already taken action using new rules on the liquidity status of banks that became effective at the beginning of 2008.
London Scottish Bank (LSB), which specialises in personal loans and has approximately 220,000 customers, is the first London-listed bank to be ordered by the FSA to increase its reserves.
The [...]
FSA provides online support for post-Christmas budgeters
by Gill Montia
Story link: FSA provides online support for post-Christmas budgeters
The Financial Services Authority (FSA) has published the results of a seasonal survey in which 48% of respondents admitted that, come January, they are more likely to go on a diet or book a holiday than attempt to sort out their finances.
Only 13% of those surveyed were dedicated to the task, despite the fact that [...]
FSA to curb lending as banks prioritise “profits over prudence”
by Gill Montia
Story link: FSA to curb lending as banks prioritise “profits over prudence”
The Financial Services Authority (FSA) has accused banks of prioritising profits over prudence, in a statement referring to the ways in which banks and other financial institutions use the short-term money markets.
Furthermore, the authority is proposing to introduce new rules to curb lending by some of the larger banks and building societies.
The measures, which [...]
Norwich Union Life given highest ever FSA fine
by Richard Kilner
Story link: Norwich Union Life given highest ever FSA fine
The FSA has fined Norwich Union Life close to £1.3m as punishment for the firm exposing millions of people to the possibility of fraud.
The fine is the largest the FSA has ever issued for fraud, however it would have been even greater (£1.8m) had the firm not settled at an early stage and thus earned [...]
