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Regulator to probe turmoil at HBOS and RBS

The FSA is to launch a formal investigation into the events that led to the problems at Royal Bank of Scotland and HBoS.

The investigation is understood to be looking at the role of executives and board directors as well as reviewing the banks’ internal controls.

FSA supervisory officials will examine whether the banks’ boards and shareholders were given enough infor mation as well as the performance of directors before rights issues undertaken by HBoS and RBS earlier last year.

The FSA is reckoned to have called for tenders from major accountancy firms to aid the inquiry, which is expected to start in the next few weeks.

The FSA refused to comment on the investigation.

Bill Warren Compliance managing director Bill Warren says: “There was a lot of in-depth risk analysis that should have been undertaken that was not and hopefully this will drive it out.

“The FSA has to look at how good the banks were at analysing real risks as opposed to traditional risks. I suspect some of the assumptions made concerning risk were made on traditional concepts, not modern-day risks.”


Standard says wrap sector oversupplied

The UK wrap market is oversupplied and new launches are unlikely this year, warns Standard Life head of communications Mark Polson.

Foreign policy

Income is all the rage at the moment, with sales in the UK equity income sector pulling in £369m in net retail sales in February, the third best selling sector. Corporate bonds are also playing on the income theme and in January the sector took in a staggering £1.4bn in net retail sales followed by £1.1bn in February.

Greece: the sideshow continues

Artemis managers James Foster, Mark Page and Laurent Millet comment on the Greek deal, describing it as “just another fudge” getting in the way of bigger developments in China, the UK and the US. To read the full article click here.


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