News for March 2010

FSA publishes consultation on changes to client asset rules

31 March 2010 at 15:30

The Financial Services Authority (FSA) has published a consultation on changes to its client asset rules, to ensure that clients are confident their money and assets are safe.  Read more

Economists 'divided over spending cuts'

30 March 2010 at 16:05

Economists are split down the middle when it comes to government cuts in spending, those with Financial Services Authority authorisation (FSA authorisation) have been told.  Read more

Gartmore shares 'fall after FSA investigation link'

30 March 2010 at 18:00

Shares in Gartmore have fallen after speculation linked one of its fund managers, Roger Guy, to a Financial Services Authority (FSA) investigation into insider dealing, it has been reported.  Read more

FSA issues new handbook guidance for building societies

29 March 2010 at 17:00

The Financial Services Authority (FSA) has announced additional handbook guidance to ensure those building societies that switch away from traditional business models have the right risk management systems and skills in place to operate safely.   Read more

FSA announces new adviser charging rules

29 March 2010 at 17:00

New rules have been published by the Financial Services Authority (FSA) to remove commission bias from advice on retail investment products.

Those with FSA authorisation will want to make a note of the new regulation, after the regulator said that it expects the changes will restore consumer confidence in the market.

From the end of 2012, companies will need to be "upfront" on how much their services cost and should not hide how much they will charge for advice behind the price of a product, the FSA said.

"Today's new rules are designed to boost confidence and trust in the retail investment market by removing commission bias, actual or perceived, and exploding the myth that investment advice is free," explained Sheila Nicoll, FSA director of conduct policy.

Earlier this month, the FSA fined Charles Palmer, director of Gloucestershire-based Financial Ltd for management failings that led to customers being placed at risk of receiving poor pension switching advice.  Read more

FSA: We are at a pivotal point in financial regulation

26 March 2010 at 17:30

Now is a "pivotal" time for the regulatory business, according to Sheila Nicoll, director of conduct policy at the Financial Services Authority (FSA).

In a speech at an Association of Luxembourg Funds Industry conference, Ms Nicoll explained that the combination of factors has led to "phenomenal, though not insurmountable, challenges for all of us - as industry, as regulators and as consumers".

These factors include a "broader trend of globalisation", a significantly more deeply integrated Europe, the economic crisis and the increased "complexity of consumer circumstance and needs".

She asserted that financial regulation needs to be durable but maintain the ability to adapt to inevitable changes.

It should also be able to deal with local needs while still recognising that the FSA has obligations as Europeans and as partners in international financial markets.

The new chief of the Association of British Insurers Kerrie Kelly recently said that FSA regulation work is in proportion to the risk posed to both consumers and shareholders.  Read more

Three men lose summary judgment for unlawful deposit taking

26 March 2010 at 17:30

The Financial Services Authority (FSA) has won a summary judgment against three men who were found to have unlawfully accepted deposits from UK consumers.

Defendants John Anderson, Kenneth Peacock and Kautilya Nandan Pruthi were found to be in breach of section 19 of the Financial Services and Markets Act 2000 by the High Court.

The three men, who were operating under the trading names of Business Consulting International, John Anderson Consulting and Kenneth Peacock Consulting, were said to be involved in unlawful deposit taking and did not have FSA authorisation.

"This case emphasises the importance of taking care to ensure that any firm or individual consumers deal with are authorised or approved by the FSA, "commented Margaret Cole, director of enforcement and financial crime at the FSA.

She added that FSA authorisation "offers consumers valuable protection".

The FSA recently announced that a seventh individual had been arrested as part of its insider dealing investigation with the Serious Organised Crime Agency.  Read more

Seventh man arrested in FSA insider dealing investigation

25 March 2010 at 18:00

The Financial Services Authority (FSA) has revealed that a seventh individual has been arrested as part of its insider dealing investigation.  Read more

Banks 'failing to provide sound advice'

25 March 2010 at 18:00

Banks and building societies are not providing consumers with good advice, according to a new report that may concern those with Financial Services Authority authorisation (FSA authorisation).  Read more

FSA 'should introduce fiduciary duty'

24 March 2010 at 14:24

The Financial Services Authority (FSA) has been called on to introduce fiduciary duty "as a standard of care".  Read more