Watchdogs join forces with consumer protection committee
by Gill Montia
Story link: Watchdogs join forces with consumer protection committee
The Financial Services Authority (FSA), Office of Fair Trading (OFT) and Financial Ombudsman Service (FOS) are proposing to set up a consumer protection committee.
In a discussion paper, the watchdogs state: “A key element in rebuilding consumer confidence in financial services is that firms carrying out activities regulated by the FSA and/or licensed by the OFT [...]
FSA consults again on PPI reforms
by Gill Montia
Story link: FSA consults again on PPI reforms
The Financial Services Authority (FSA) has published feedback on its plans to reform the Payment Protection Insurance (PPI) market and at the same time announced a further consultation on a revised package of measures aimed at ensure customers are treated consistently and fairly, either when buying new PPI policies or making a complaint about an [...]
ELSA promises Code of Practice for life policy securitisation
by Gill Montia
Story link: ELSA promises Code of Practice for life policy securitisation
The European Life Settlement Association (ELSA) has announced that it is developing a Code of Practice for sellers of traded life policy investments.
The body has also welcomed an address given by the Financial Services Authority (FSA) earlier this week at the ELSA/LISA European Life Settlement Trade Mission in London.
The regulator raised concerns over the [...]
FSA calls brokers to account over capital resources
by Gill Montia
Story link: FSA calls brokers to account over capital resources
The Financial Services Authority (FSA) has written to insurance intermediaries outlining concerns that “many firms” do not have adequate financial resources.
The regulator says its supervisory work “regularly shows” that brokers are not paying sufficient attention to threats to their financial viability.
For example, one firm failed to make adequate provision for its obligations to fund additional [...]
General insurers see FSA fees almost double
by Gill Montia
Story link: General insurers see FSA fees almost double
The Financial Services Authority (FSA) has announced its proposed annual funding requirement for 2010/11.
The regulator says the new budget needs to reflect its “determination to continue delivering intensive supervision and the substantial international regulatory reform agenda”.
Consequently a 9.9% rise in overall funding is required, taking the annual requirement for 2010/11 to £454.7 million, up [...]
FSA requires publication of complaints handling data
by Gill Montia
Story link: FSA requires publication of complaints handling data
The Financial Services Authority (FSA) has confirmed that it will require insurance companies and other financial institutions to publish information on how they handle complaints, by 31st August 2010.
The move is aimed at keeping consumers informed on how firms are performing in this area and driving up standards across the industry.
Companies that receive 500 or [...]
FSA tackles governance and risk management
by Gill Montia
Story link: FSA tackles governance and risk management
The Financial Services Authority (FSA) has published a consultation paper on effective governance standards and the role of senior management at firms.
The proposals implement recommendations contained in Sir David Walker’s review of corporate governance published in November, and follow up on a “Dear CEO” letter sent out in October 2009.
The letter tackled the shortcomings exposed [...]
FSA proposals extend approved persons regime
by Gill Montia
Story link: FSA proposals extend approved persons regime
Amid new measures aimed at protecting mortgage borrowers in arrears and stamping out mortgage fraud, the Financial Services Authority (FSA) is proposing that all mortgage advisers are personally accountable to the regulator.
The Approved Persons’ proposals apply to those advising or arranging non-advised sales in relation to regulated mortgage contracts, regulated sale-and-rent back agreements, home purchase [...]
FSA gets tough over client money handling
by Gill Montia
Story link: FSA gets tough over client money handling
The Financial Services Authority (FSA) says it has sent a letter and report to the chief executive officers of major insurance brokers and investment firms that hold money or assets on behalf of clients.
The communication draws attention to the FSA’s concerns over the handling of both and follows a letter sent out in [...]
FSA fines Standard Life over Pension Sterling Fund
by Gill Montia
Story link: FSA fines Standard Life over Pension Sterling Fund
The Financial Services Authority (FSA) has fined Standard Life Assurance Limited £2.45 million for serious systems and controls failings that resulted in the production of misleading marketing material for its Pension Sterling Fund (PSF).
The regulator found that between 10th July 2006 and 28th February 2009, the life and pension provider made errors that resulted in [...]
FSA bans broker for hoarding premiums
by Gill Montia
Story link: FSA bans broker for hoarding premiums
The Financial Services Authority (FSA) has banned Mark Hazelwood, who operated Hertfordshire-based broker, Synergys Ethical Limited.
The company director has been found guilty of lying to customers and the FSA, and failing to pass on premiums to insurers.
Mr Hazelwood’s firm focused on arranging locum insurance for doctors, covering GP surgeries for any liability they might [...]
ABI calls for swift action on RDR clarification
by Gill Montia
Story link: ABI calls for swift action on RDR clarification
The Association of British Insurers (ABI) has called on the Financial Services Authority (FSA) to “act quickly” to ensure the full benefits of the Retail Distribution Review (RDR) are secured.
The regulator has plans to replace commission with adviser charging, and also intends to raise the professional standards of financial advisers.
However, the ABI has pointed out [...]
Swinton fined £770,000 for PPI mis-selling racket
by Gill Montia
Story link: Swinton fined £770,000 for PPI mis-selling racket
The Financial Services Authority (FSA) has fined Swinton Group £770,000 for serious failings in the sale of single premium payment protection insurance (PPI).
The high street broker will also be contacting over 350,000 customers who paid for the cover and offer a full refund.
The regulator found that between December 2006 and March 2008 the firm’s PPI [...]
FSA tackles shifting MPPI terms
by Gill Montia
Story link: FSA tackles shifting MPPI terms
The Financial Services Authority (FSA) has announced that it has developed an industry-wide package of measures in conjunction with Mortgage Payment Protection Insurance (MPPI) providers, which will result in consumers receiving refunds totalling around £60 million.
According to the regulator, the industry has acted in response to its concerns over recent increases in premiums and reductions [...]
No hiding place for PPI mis-sellers
by Gill Montia
Story link: No hiding place for PPI mis-sellers
The day of reckoning has arrived for lenders who mis-sold single premium payment protection insurance (PPI) alongside unsecured loans and credit card agreements, and then tossed aside consumer complaints about their practices.
The Financial Services Authority has announced “a package of tough measures” which it says will “tackle the key issue that too many complaints are [...]
EU proposes continent-wide super regulator
by David Masters
Story link: EU proposes continent-wide super regulator
The European Union wants to push through proposals for a continent-wide ’super regulator’.
The proposed regulator, the European System of Financial Supervisors, would act as a referee between national regulators, and blow the whistle on banks and insurance firms behaving in a way that threatens the financial system.
National regulators could be told to take action, and [...]
ABI and FSA launch pension calculator
by Gill Montia
Story link: ABI and FSA launch pension calculator
The Association of British Insurers (ABI) has joined forces with the Financial Services Authority (FSA) to launch an online calculator designed to help people gauge their income in retirement.
According to the FSA, new research that takes into account how life events affect financial survival in later years indicates that 31% of Britons may see their [...]
Barclays challenges restrictions on PPI sales
by Gill Montia
Story link: Barclays challenges restrictions on PPI sales
Restrictions on the sale of payment protection insurance (PPI) due to come into force next year, are being challenged by Barclays.
PPI is frequently sold alongside unsecured loans to provide cover for repayments if the borrower loses their job or becomes too ill to work.
For years, consumer groups have claimed that the market is uncompetitive [...]
Life and pension complaints plummet
by Gill Montia
Story link: Life and pension complaints plummet
The Financial Services Authority (FSA) has published aggregate figures showing the volume of complaints regulated firms have received from their customers.
The data, which is the first of its kind to be published by the regulator, covers the period 2006 to 2008, during which time the overall number of complaints increased by 5.7%, from 1.4 million [...]
FSA tightens usage of with-profits surpluses
by Gill Montia
Story link: FSA tightens usage of with-profits surpluses
The Financial Services Authority (FSA) has announced that life insurance companies will no longer be able to meet compensation and redress payments from their with-profits funds.
From 31st July, liabilities arising from operational failures (including mis-selling) must be borne by shareholders, not policyholders.
Last year, a report by the Treasury Select Committee accused the FSA of [...]
