Welcome to the January 2018 edition of our corporate crime update – our round up of developments in relation to corruption, money laundering, fraud, sanctions and related matters. Our update now covers a number of jurisdictions. For the full update on each jurisdiction, please click on the name of the jurisdiction below. Continue reading
Unit-linked insurance products have recently given rise to a number of regulatory issues. These cover:
- the responsibility of the insurer on the one hand and the intermediary on the other;
- the impact of Solvency II on the calculation of technical provisions;
- the liberalisation of the classes of asset which these policies may link to;
- in the absence of harmonisation of conduct of business rules, whose country’s rules apply to which products?
- governance questions.
To find out more about these questions please read our e bulletin.
In October 2013, the Financial Conduct Authority (FCA) published the much-anticipated report of its thematic review into anti-money laundering (AML) and anti-bribery and corruption (ABC) systems and controls at asset management and platform firms. The report follows the FSA/FCA’s previous thematic reviews of ABC controls in commercial insurance broking (2010), ABC controls in investment banks (2012), and AML and sanctions controls in trade finance (2013). As with other thematic work, whilst the review is of a particular sector, the FCA expressly expects other regulated firms to consider the findings and examples of good and poor practice. Continue reading
On 31 May 2013, new European legislation was passed to amend the Regulation on credit rating agencies which was first introduced in the aftermath of the financial crisis. Its primary objective is to help discourage the high level of reliance which has typically been placed by market participants on credit ratings. However, amongst its most controversial provisions, it introduces a new cause of action giving rise to civil liability on the part of credit rating agencies where losses are suffered by investors or issuers as a result of breaches of the Regulation caused by the agency’s gross negligence.
In an article recently published in Law and Financial Markets Review, Senior Associate Harry Edwards looks at the detail of the new cause of action and considers the tensions it creates with the wider objectives of the legislation. Click here to read the article.
The Financial Conduct Authority (“FCA”) recently published two documents which provide additional information about its current supervisory and enforcement approach and priorities in relation to financial crime issues. These are the FCA’s Anti-Money Laundering Annual Report 2012/13 (“AML Report”) and the first Financial Crime Newsletter since the transition to the FCA (“Newsletter”). This e-bulletin summarises points of particular interest in these documents. Continue reading
The FCA is continuing its clampdown on Collective Investment Schemes (“CISs”) being operated and/or promoted without the requisite authorisations, with a trial likely to start in the High Court in Autumn 2013 in relation to two particular schemes: Continue reading
Thursday 14 February 2013 9:30 – 10:30am UK time
The Bribery Act 2010 has now been in force for over 18 months. In this round-up webinar we will look at:
- the revised SFO guidance and other SFO related developments;
- Deferred prosecution agreements;
- FSA developments; and
- the U.S. Department of Justice and the U.S. Securities and Exchange Commission jointly issued “A Resource Guide to the U.S. Foreign Corrupt Practices Act”. Continue reading
The FSA is consulting (as it is required to do under the Act) on the new power given to the FCA under the Financial Services Act 2012 to issue temporary product intervention rules without the chore of a consultation (CP12/35).
Such rules cannot be in force for more than 12 months – but that alone is far from an adequate safeguard when the rules we are talking about include banning a product from sale.
So, what more is needed to allay concerns that it will be used inappropriately? Continue reading
As New Year’s resolutions go, “read Schedule 16 to the Crime and Courts Bill” may not have been top of anyone’s list. Buried, however, in the Bill’s provisions on deferred prosecution agreements (“DPAs”) are some interesting pointers to the future use of DPAs and their potential availability to prosecutors other than the Serious Fraud Office (“SFO”) and Crown Prosecution Service (“CPS”). In particular, the offences listed as being capable of resolution using a DPA suggest that, contrary to earlier indications, DPAs may comprise an additional tool in the armouries of the Financial Conduct Authority (“FCA”), and HRMC, in 2014/15. In this post we briefly explain the relevant provisions.
Lord Turner recently informed the Chairman of the Treasury Committee that the FSA was unable to use its powers to extend an internal FSA leak inquiry to enable it to interview third parties because the leaked information was not market sensitive. Continue reading