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The FSA fined J P Morgan Securities Ltd £33.32 million for failing to protect client money by segregating it appropriately.
Under the FSA’s client money rules, firms are required to keep client money separate from the firm’s money in segregated accounts with trust status.  This helps to protect client money in the event of the firm’s [...]

The Discussion Paper considers the current position for redress and complaints handling in the financial services industry and any potential changes. It is a joint publication by the Financial Services Authority, the Office of Fair Trading, and the Financial Ombudsman Service.

The analysis which lies behind the FRO helps inform how the FSA sets priorities and deploys its resources. The FRO has been divided into the following four sections: Macroeconomic background and outlook, Financial Stability and Prudential Risks and Issues, Market Risks and Issues, and Retail Conduct Risks and Issues.
Excerpt:
“Domestic and global GDP levels have stabilized [...]

The Financial Services Authority published feedback on its plans to reform the Payment Protection Insurance (PPI) market, and announced a further six week consultation on its revised package of measures.

Under the new framework ( PS10/4: Enforcement Financial Penalties), fines will be linked more closely to income and be based on:

Up to 20% of a firm’s revenue from the product or business area linked to the breach over the relevant period;
Up to [...]

“Firms giving investment advice must ensure they fully assess clients’ needs and make suitable recommendations – they must also have the necessary systems and controls in place to demonstrate this,” said FSA director of enforcement and financial crime Margaret Cole

The FSA publicly censured Park Row Associates Limited, a national IFA network, for failing to ensure its sales were suitable and secured customer redress estimated at between £5m and £7.8m.

An FSA investigation found FCI’s sales showed scant regard for their customers. Potentially misleading sales pitches were used to persuade people to buy shares, regardless of whether those shares were suitable.

The FSA censured Wills & Co, a London based stockbroking firm, for poor sales practices and not monitoring its advisers properly despite a fine and a previous requirement to take remedial action.