[Misconduct] Game Changing FCA Fines Senior Officer for Pension Transfer Failings

1. FCA launched a investigation in FGS McClure Watters (FGS) and Lanyon Astor Buller Ltd (LAB) and subsequently fined Watters  £75,000 for failing to exercise due skill, care and diligence in his role as compliance oversight officer

2. the investigation found that Watters failed to take reasonable steps to ensure that the process in place at FGS and LAB, for giving advice on ETV pension transfer exercises, was adequate and met regulatory standards. 

[Misconduct] FCA Probes Risk of Fund Manager Failures

1. In April The Financial Conduct Authority investigated how the financial system would cope in the event of a fund manager failure. 

2. The regulator is concerned that a 'disorderly failure' of investment managers and/or their portfolios could disrupt the financial system.

3. The regulator examined the design of investment products, probing investment managers' oversight of investors' portfolio oversight and questioning some of the motives behind the launch of new funds.

[Misconduct] Deutsche Bank Fined £163 Million and $7.2 Billion for 2 Serious Failings

1. Deutsche Bank reaches a $7.2 billion settlement over US mortgage-backed securities

2. Deutsche Bank Fined £163 million by FCA for Anti-Money Laundering Failings.

[Misconduct] FCA's Asset Management Review Uncovers 'Market Failure'

1. In November 2016, the Financial Conduct Authority (FCA) released a report and labeled the asset management sector as ‘a market failure in the economic sense’.

2.  Notably in the performance of actively managed funds and the charging structure used for such funds.

[Misconduct] Wells Fargo Employees Creating Fictitious Accounts

1. Imagine paying fees on a ghost account you didn't sign up for.

2. In September,  federal regulators reported that Wells Fargo  employees secretly created millions of unauthorised bank and credit card accounts without their customers knowing it since 2011. 

[Misconduct] FCA's Review on Management and Monitoring of Appointed Representatives

1. In July 2016, the Financial Conduct Authority (FCA) published a thematic review titled "Principals and their appointed representatives in the general insurance sector" and has voiced concerns over ways in which non-life firms and intermediaries manage and monitor appointed representatives (ARs). 

[Misconduct] Transitions Management Failings

"State Street UK has been fined £22,885,000 by the Financial Conduct Authority (FCA). State Street UK’s Transitions Management (TM) business had developed and executed a deliberate strategy to charge clients substantial mark-ups on certain transitions, in addition to the agreed management fee or commission."
Published:  31/01/2014
Source: fca.org.uk

[Misconduct] Fined For Investment Advice Failings

"Santander UK Plc has been fined £12,377,800 by the Financial Conduct Authority (FCA) after the regulator uncovered serious failings in the way it offered financial advice from its bank." Published:- 26/03/2014
Source: fca.org.uk

[Misconduct] AXA Fined For Advice Failings In Investment Sales

"The Financial Conduct Authority (FCA) has fined AXA Wealth Services Ltd (AXA) £1,802,200 for failing to ensure it gave suitable investment advice to its customers." Published:- 13/09/2013
Source: fca.org.uk

[Misconduct] Fined and Banned For Delaying The Allocation Of Trades

"Between January 2010 and October 2012, Mr Miah exploited weaknesses in the trading systems and controls at Aviva Investors in order to delay the booking and allocation of trades." 
Published : 17/11/2015
Source: fca.org.uk

[Misconduct] Financial Reinsurance Product Fraud

REINSURANCE FRADULANT ACCOUNTING PRACTICES
1. in 2010,Gen Re agreed to pay $US31.7 million ($35m) to settle charges brought by the US Securities and Exchange Commission for its role in fraudulent accounting practices in 2000 and 2001 at insurers American International Group and Prudential Financial.

[Misconduct] Miselling & Incentives - Good Intentions With Poor Executions

FINED FOR POOR MANAGING OF INCENTIVES
1. Management often have schemes to help boost sales such as recruiting third party as agents/advisors or providing commissions and bonus to staffs.

"The Financial Conduct Authority (FCA) has fined Lloyds TSB Bank plc and Bank of Scotland plc, both part of Lloyds Banking Group (LBG), £28,038,800 for serious failings in their controls over sales incentive schemes. The failings affected branches of Lloyds TSB, Bank of Scotland and Halifax (which is part of Bank of Scotland)."
Source: www.fac.org.uk

2. The news was announced in December 2013 and below are key points pertaining to the SOP and management of incentives and advisors.

[Misconduct] Largest Retail Fine For Poor Complaints Handling

FINED FOR  POOR COMPLAINTS HANDLING

"The Financial Conduct Authority (FCA) has issued its largest ever retail fine (£117m) to Lloyds Bank Plc, Bank of Scotland Plc and Black Horse Ltd (together Lloyds) for failing to treat their customers fairly when handling Payment Protection Insurance (PPI) complaints between March 2012 and May 2013."

"In March 2012, Lloyds issued guidance instructing complaint handlers that the overriding principle when assessing complaints was that Lloyds’ PPI sales processes were compliant and robust unless told otherwise (the Overriding Principle)"
Source: www.fca.org.uk

[Misconduct] Libor Fixing Scandal - A Study in Greed & Failed Controls

BACKGROUND

Bankers ensure that any un-needed surplus would be deposited by the dealers towards the end of a trading day. They would place this money on overnight deposits with other banks. The benchmark for interest payment on this deposit would be the Libor (or Euribor).

Settlement rate was not determined by what rates were actually in the market. Instead, the British Banker’s Association (BBA) polled banks, asking them what the rates were. The highest and lowest quoted rates were discarded and the rest were averaged, giving the settlement rate. 

The Libor was also used as an "weather report" of what conditions were in the market that day and a rough indicative of the banks' financial condition.  

[Misconduct] Misselling of Structured Notes in Singapore - Part 1 - Background Info

BACKGROUND

This post will provide pertinent details from the Monetary Authority of Singapore's investigation report on the sales and marketing of structured notes linked to Lehman Brothers. The aim of this post is to highlight the importance of complying with regulations and guidelines on product's sale and marketing materials especially during the planning stages which no doubt has a rippling effect.

[Misconduct] Misselling of Structured Notes in Singapore - Part 2 - Key Findings, Impact, Root Causes & Views

KEY FINDING
we will look at the types and number of lapses found by MAS for each FIs. Before we delve further, here is a list of internal approval obtained in the various FIs for the distribution of the Structured Notes. . There are two distinct types of approval structures in any organization being a vertical (require higher authority approval depending on predefined policy) and horizontal (sign-off from stakeholders) with vertical structures usually being the faster route.