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Rule changes to shift burden on fines

Proposed changes to the FSA approved person’s regime could lead to more companies being fined as the regulator has less scope to fine individual employees, warns law- yers Freshfields Bruckhaus Deringer.

The firm says the rules, which are expected to come into force next April, will merge previously specific systems and management roles within financial services companies into two generic sets of roles to reduce the admin burden.

The FSA will no longer be able to fine individuals ceasing to be approved persons but will be able to prohibit them from holding particular roles in the future.

FBD says the FSA’s reduced ability to discipline individ-uals might increase its willingness to discipline the firm itself for regulatory breeches.

It says companies will be required to ensure appropriate internal systems are in place to monitor the fitness and propriety of employees, with the FSA suggesting that the firm’s compliance officer becomes responsible for this.

Firms will have to decide what internal training and competence policies they apply to wholesale employees in future as FSA rules will no longer require them to pass exams.

A Freshfields Bruckhaus Deringer spokesman says: “The removal of large num- bers of employees from the scope of the regime raises the possibility that the FSA’s reduced ability to discipline these individuals might increase its willingness to dis- cipline the firm itself for regulatory breaches.”


Cazalet upgrades Pru WP

Prudential’s with-profits fund has been upgraded in the Cazalet with-profits ratings but the outlook remains bleak for most investors in the sector. Despite a marginal increase in the average equity exposure of with-profits funds in the first half of this year from 33 per cent to 34 per cent in the same period last year, […]

‘FSA is soft on guilty’

The FSA’s move to rein in misleading promotions by protection providers has been slammed as “woefully inadequate” by consumer group Which?. The FSA says it has uncovered evidence of scaremongering in product literature. However, Which? says the regulator should impose severe penalties on guilty providers rather than just writing to warn them. A recent FSA […]

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Healthcare predictions for 2015 from Jelf Employee Benefits

The continuing fall-out from the Competition and Markets Authority’s (CMA’s) review, the rise of the private GP and digital engagement will be the primary focuses in the private healthcare industry during 2015, according to Iain Laws, managing director, healthcare and group risk, at Jelf Employee Benefits.


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