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19 firms struck off by FSA

The FSA has cancelled the permission of 19 firms in the last year and caused over 100 to make changes to the way they operate.

In the year to June 30, around 50 firms addressed breaches of the FSA&#39s threshold conditions when faced with the prospect of a referral to the regulator&#39s threshold conditions team while 59 other firms took remedial steps when they were threatened with imminent enforcement action.

Nineteen firms had their permission to conduct investment business cancelled while two individuals with convictions for financial crime were prohibited.

The FSA&#39s threshold conditions require firms to have professional indemnity insurance in place, hold adequate financial resources, comply with FOS awards, co-operate with the FSA and pay FSA fees.

Managing director of the retail markets business unit Clive Briault says: “We aim to work with firms to help them maintain the required standards but the action taken over the last 12 months should send a message to all small businesses regulated by the FSA that we will not allow firms which fall significantly below the minimum standards to remain authorised.”


Merrill Lynch offers discount protection

Merrill Lynch has become the latest firm to introduce a discount protectionmechanism. The new policy means investors in the Merrill Lynch greater Europeinvestment trust clients will be able to sell back their shares at a 2 per cent discount of net value twice a year regardless of whether the shares are selling for a bigger […]

IFAs paying FSA fees by direct debit will not be penalised

Many of the IFAs who have not yet paid their FSA fees will not face penalties bec-ause they are paying by direct debit while some companies have not yet received their invoices. Last week, FSA mana-ging director David Kenmir said only 388 IFAs had paid their fees despite 3,627 invoices being sent out. The deadline […]

FSA says 40% now have PI covering IMD

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New cars popular choice for lifetime mortgage customers

Norwich Union Equity Release says buying a car is one of the main reasons older people take out a lifetime mortgage. Twenty eight per cent of people releasing equity from their home are spending at least some of the money on a new car according to NU. Director Mark Kelly says: “Having a car is […]

India rate cut – more to come?

Kunal Desai, Head of Indian Equities at Neptune Investment Management India’s stockmarket rallied this week following news that the central bank was cutting interest rates more aggressively than expected. Commenting on the rate cuts and what this means for India’s economic growth, Kunal Desai notes that there were two important details in the announcement that have […]


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