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 [...]
FSA Warn Further Credit Problems On The Way
by Stewart Douglas
Story link: FSA Warn Further Credit Problems On The Way
The Financial Services Authority has today cast further doubt over the state of secured credit in the wake of the sub-prime sector collapse, suggesting banks should brace themselves for continuing problems in the lending market in terms of preparing liquidity and reassessing asset value.
In a report released today, the Financial Services Authority suggested that there [...]
FSA extends waiver on bank charge claims
by Gill Montia
Story link: FSA extends waiver on bank charge claims
The Financial Services Authority (FSA) has extended a waiver to allow High Street banks to continue to put on hold any further complaints about excessive overdraft charges.
The Authority is bringing a High Court case to establish the legality of such charges and the move is aimed halting customer complaints until the outcome of the case [...]
FSA outlines new Financial Services Compensation Scheme
by Gill Montia
Story link: FSA outlines new Financial Services Compensation Scheme
The Financial Services Authority (FSA) has published details of the new funding arrangements for the Financial Services Compensation Scheme.
The scheme, which will operate from April 1st 2008, will ‘considerably’ increase the funding available to pay valid claims to consumers.
It also aims to increase consumer protection and thereby help maintain market confidence.
The funding available to pay [...]
BBA challenges Treasury on Northern Rock crisis
by Gill Montia
Story link: BBA challenges Treasury on Northern Rock crisis
The British Bankers’ Association (BBA) has written to the Treasury Select Committee proposing that the Bank of England should cut its interest rates on emergency loans.
The BBA believes that during a period of crisis the current penalty rate of 1% above base rate should be dropped.
The Association is also demanding an investigation into why the [...]
FSA considers “naming and shaming”
by Gill Montia
Story link: FSA considers “naming and shaming”
The Financial Services Authority (FSA) is being urged to “name and shame” companies that breach its rules.
Whilst the authority prides itself on being open in its dealings, it is currently preparing a discussion paper on the merits of greater transparency.
However, the FSA’s managing director of retail markets, Clive Briault, has pointed out that [...]
FSA checks up on hedge funds
by Gill Montia
Story link: FSA checks up on hedge funds
The Financial Services Authority (FSA) has warned London-based hedge funds that it is dissatisfied with the level of market abuse, such as insider trading, being practiced by the sector.
As a result, the FSA is planning a series of checks on the anti-abuse measures put in place by hedge fund managers. The visits should begin in [...]
FSA concedes Northern Rock errors
by Gill Montia
Story link: FSA concedes Northern Rock errors
The Financial Services Authority (FSA) has admitted that no thorough supervisory check had been carried out on Northern Rock in the 18 months before its liquidity crisis became headline news, in August.
The last full risk assessment of the bank was carried out between December 2005 and February 2006, after which FSA staff visited the bank [...]
FSA chiefs to explain actions over Norther Rock
by Gill Montia
Story link: FSA chiefs to explain actions over Norther Rock
The chief executive and chairman of the Financial Services Authority (FSA) are to explain their part in the Northern Rock crisis to a Treasury Select Committee.
When Mervyn King, the Bank of England’s governor, faced MP’s over the near collapse of the bank it was clear that he could not identify which branch of government had [...]
IFAs outperform banks and building societies
by Gill Montia
Story link: IFAs outperform banks and building societies
Which?, the consumer group, has issued a report in which it suggests that independent financial advisers (IFAs) are providing consumers with better advice than many banks and building societies.
The Association of Independent Financial Advisers (AIFA) has welcomed the findings and its director general, Chris Cummings, has said that “the report made it clear that advisers [...]
FSA concerns over Sipp sales
by Gill Montia
Story link: FSA concerns over Sipp sales
The Financial Services Authority (FSA) has raised concerns over the sale of self-invested personal pensions (Sipps), which are being recommended by some advisers when a stakeholder or personal pension would be more appropriate, and could possibly even be better value.
The Authority has found that financial advisers are recommending Sipps because they offer a wide fund [...]
FSA framework for industry guidance
by Gill Montia
Story link: FSA framework for industry guidance
The Financial Services Authority (FSA) has introduced a new framework for recognising industry guidance, which forms an important part of the authority’s plans to move towards principles-based regulation.
The framework allows trade associations, professional bodies and companies to seek formal confirmation for the guidance they produce to help their members understand and comply with the FSA’s [...]
Banks set to benefit from IFA reforms
by Gill Montia
Story link: Banks set to benefit from IFA reforms
Banks could be the beneficiaries of the misfortune predicted for up to 50% of all Independent Financial Adviser (IFA) businesses in the UK.
Such businesses could be at risk of losing customers to the banks, if proposals outlined under the Financial Services Authority’s (FSA) retail distribution review are introduced.
The review involves the FSA working together with [...]
New FSA guidance on treating customers fairly
by Gill Montia
Story link: New FSA guidance on treating customers fairly
The Financial Services Authority (FSA) has published new guidance on the fair treatment of customers by providers and distributors of products and services.
The Guidance has been developed from the FSA’s Treating Customers Fairly initiative and is based on the regulator’s view that a customer should receive the same fair treatment regardless of whether their product [...]
FSA appoints new chief executive
by Gill Montia
Story link: FSA appoints new chief executive
The Financial Services Authority (FSA) has appointed a new chief executive who will replace John Tiner, in late July.
The new regulator, Hector Sants, is currently Managing Director, Wholesale and Institutional Markets at the FSA.
As such he has responsibility for all regulated markets, the operation of the UK Listing rules and regulation of firms or groups [...]
