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Happy Holidays!
The holidays are here and 2009 is finally drawing to a close. This has been a difficult year for most businesses, and the financial services sector was particularly hit. Happily, things have taken a definite turn for the better and there are more smiles in the City than even a month ago. Having said that, on the regulatory front, the FSA has changed their tune in a decisive way and firms will have to do things differently going forward. A recent speech by Margaret Cole to the British Bankers Association, summarises quite eloquently the new approach. I suggest that you read what she had to say:
For the full speech click here.
To further drive home the message of regulatory change, we are delighted to have as our authors this month Richard Burger, a senior associate at city law firm Reynolds Porter Chamberlain LLP and formerly a lawyer in the Enforcement Division of the FSA and Lisa Jones, also of RPC.
Finally, we will be catching up with our globetrotting risk expert who has now reached Vietnam.
From all of us here at Powerchex, our warmest wishes to you and your families for the holiday season.
In the Regulator's Cross Hairs
By Richard Burger & Lisa Jones,
Reynolds Porter Chamberlain LLP |
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In the last year there has been a marked shift in the Financial Services Authority’s (FSA) approach towards Approved Persons, with the FSA now taking a much more interventionist role. Hector Sants, FSA Chief Executive, said in a speech on 9 November 2009 that “...[the] FSA…has evolved and has introduced a radically new approach; intensive supervision; designed to deliver our outcomes-focused philosophy…”
A key effect of the move towards “intensive supervision” is that Approved Persons’ influence on regulated firms will be increasingly monitored. Mr Sants made this clear: “...We all recognise that culture is driven by individuals and in particular senior executives who: ‘set the tone from the top’...our authorisation regime should seek to make a determination of an executive’s ability to set a strong ethical framework and to foster the right culture. [The] enforcement regime can also be used where we find cultures that are driving inappropriate behaviours…”
This change in focus means that the screening of potential Approved Persons for regulated firms is under more scrutiny than ever before.
Read this article in full |
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Articles of interest |
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Won't Someone Please Give Me a Chance?
Here is the City news, 28 October 2009
Bankers will have to prove their ethics to land top jobs
Times Online, November 10th, 2009
Powerchex Wins Innovation Award Second Year in a Row
Press release, 10th November 2009
Job Offers on the Up in the UK Financial Services Sector
Press release, 11th November 2009
On the mend (or so King hopes)
CITY AM, 12th November 2009
Fake payslips that cheat the banks
The Observer, Sunday 15th November 2009
How IT contractors can prepare for the upturn
Contractor UK, 18th November 2009
Downturn brings surge in crime by ‘cappucino fraudsters’
Times Online, 19th November, 2009
Powerchex Condemns the Practice of Illegal Data Sharing
Press release, 20th November 2009
Write Stuff: CVs are sales documents
Witan Jardine, 20th November 2009
Commons Speaker John Bercow's wife lost job over phantom Oxford degree
Times Online, November 22nd, 2009
Data Protection Bites – Tough New Sanctions for Breaches of the Data Protection Act
McDermott Will & Emery, October 26th, 2009
Unfair dismissal: Employer only liable for losses it has caused
Hill Dickinson, 26th October 2009
The Itch: November; Enter self-promotion, more-for-less humility and raw talent
Contractor UK, 27th November 2009
New vetting checks designed to protect children have gone 'too far', judges rule
Mail Online, 29th October 2009
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FSA News |
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The FSA's agenda for fighting financial crime
In a recent speech to the British Bankers Association, Margaret Cole, Director, Enforcement and Financial Crime Division, FSA gave clear guidance to what regulated firms should be working towards. Here are some quotes from the speech:
We are the gatekeeper of the UK financial system. Firms or individuals wishing to operate in the UK must meet our 'fit and proper' standard. Those who don't, stand to be rejected during our authorisation, approval or change of control processes. There are numerous aspects to fitness and properness – competence, integrity and the ability to establish the right culture and tone at the top are important features.
A murky past, a reputation for unscrupulous business methods or sailing close to the wind will also call fitness and properness into question. Applications from countries where personal histories are obscure or controverted, or corruption is endemic in business life, add to the challenge.
People seeking to bypass the FSA as gatekeeper can expect little sympathy. In September this year we brought our first prosecution against an individual for acquiring a controlling interest in a regulated firm without giving the FSA prior notice and for making false and misleading statements – and we obtained a conviction. A second prosecution is under way.
But we don’t or shouldn’t perform the gatekeeper function in isolation – we do expect authorised firms to work with us in the fight against financial crime and to assist us in keeping undesirable companies and individuals away from UK authorised firms and their customers.
On Data Security:
And data security is another area where we can, and will, use enforcement action to support the work of our supervisors. We expect firms to consider how their actions or failures leave others open to the threat of fraud. We continue to learn of data security lapses that put customers’ personal information at risk. This summer’s enforcement action against three units of HSBC saw substantial fines paid for weak controls over the security of customer data. And we will follow up with further enforcement cases to demonstrate the importance of this subject.
The full speech can be viewed at: http://www.fsa.gov.uk/pages/Library/Communication/Speeches/2009/1119_mc.shtml
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Conferences & Events |
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Snow White and the twelve months of the year, Member Forum
City HR Association, London, 3rd December 2009
Building Organisational Capability
CIPD, London, 3rd December 2009
CPD Seminar: FSA's criminal insider dealing prosecutions - What are the practicalities of being subject to criminal investigation for an individual and a firm?
Securities & Investment Institute, London, 8th December 2009
Immigration Law: The Points Based System
JSB Training, London, 10th December 2009
Understanding Regulation and Compliance
Securities & Investment Institute, London, 26/27 January 2010
Employee Engagement Conference
CIPD, London, 26th January 2010
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Alternative Strategies - A year away from the City