View more on these topics

FCA sees 80% jump in contested enforcement cases

FCA logo glass 3 620x430

The number of FCA enforcement cases contested by firms has increased by 80 per cent in one year, data shows.

FCA figures show 17 more cases were referred to the regulatory decisions committee last year, bringing the total number to 38 for 2015, the Financial Times reports.

The committee is part of the FCA’s independent appeals process.

Regulatory consultancy Bovill compiled the figures.

Consultant Prem Griffth says: “The lack of a responsible culture surrounding affordability assessments forms a main concern, as well as poorly thought-out and unfair contract terms.”

Cases against Libor and foreign-exchange manipulation scandals will also be reviewed by the RDC, after the panel ruled some were “inappropriate for further action”.

In 2015, the panel rejected the FCA’s case against Bruno Iksil, also known as the London Whale, for failing to prevent significant losses related to derivative trades carried out at JP Morgan.

The new statistics around enforcement cases come as the regulator and the Prudential Regulation Authority announced changes to their enforcement processes including an overhaul of the RDC’s role.

Following the proposed changes, the RDC will determine the penalty in cases that are partly contested. At the moment, the FCA sets the penalty which can then be challenged by the RDC.

Recommended

FCA logo new 3 620x430
1

Six providers face FCA enforcement over closed-book failures

Six providers have been referred to FCA enforcement after the regulator uncovered widespread failures as part of its closed book review. Abbey Life, Countrywide, Old Mutual, Police Mutual, Prudential and Scottish Widows will be investigated to uncover the extent of disclosure of exit fees and paid-up charges, including after December 2008. Abbey Life and Old […]

FCA logo new 3 620x430
5

FCA eyes enforcement over wealth manager failings

Wealth managers are failing clients on suitability, with two-thirds of firms falling short of the FCA’s expectations, a thematic review has found. The FCA is considering enforcement action against five of the 15 firms it reviewed as they need to undertake “significant remediation programmes to raise standards”. The regulator is also considering forcing the firms to […]

YBS Share Plans offers financial education in the workplace

YBS Share Plans, part of the UK’s second-largest building society, has teamed up with Secondsight and WEALTH at work to offer its corporate clients access to financial education in the workplace. Secondsight, the multi-award winning employee benefits specialist, has created the share plan online portal to educate employees on the advantages of the share plan […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. They needed a regulatory consultancy to count to 38?

  2. I can see the look on the faces of those at the FCA,….. its like what? you want to question our methods and reasoning ?

    Don’t you know we only work on blind acceptance, you are not required to ask for a second opinion ! if we decide you are guilty, then all is required of you is; pull your britches down and take the medicine in whatever form we see fit !

Leave a comment