Enforcement Watch

Editor's Note

The last 4 months of enforcement activity have been a mixed bag. Some of the relatively usual diet of breaches and misconduct, although no less interesting for that, but also a couple of firsts that we include in our write ups. And, looking on the horizon, we cover a number of issues, some more immediate than others, that may alter the enforcement landscape. We hope you find it interesting.

FCA Fines Tullett Prebon £15.4m

The FCA has fined inter-dealer broker Tullett Prebon for breaches of Principle 2 (acting with due skill care and diligence), Principle 3 (effective organisation and controls) and Principle 11 (open and co-operative dealings with the regulator) of the FCA Principles for Businesses.

First Jointly Contested Enforcement Case Before the FCA and PRA Decision Making Committees

The PRA and the FCA have decided to ban and fine Stuart Malcolm Forsyth, the former CEO of a small insurer, £76,180 and £78,318 respectively.

Henderson Funds Fined £1.9 million for Failing to Protect Retail Customers

The FCA has imposed a financial penalty of £1,867,900 on Henderson Investment Funds Limited (HIFL) for breaches of Principle 3 (management and control) and Principle 6 (customers' interests).

PRA Fines Citigroup Companies £44m in Largest PRA Fine to Date

The PRA has fined Citigroup Markets Limited, Citibank Europe Plc UK branch and Citibank N.A. London branch (together "Citi") £44 million, after a 30% settlement discount, for failings in respect of their internal controls and governance arrangements.

First FCA Fine Under the Market Abuse Regulation for PDMR Notification Failures

The FCA has fined Kevin Gorman £45,000 (including early settlement discount) for breach of Article 19 of the Market Abuse Regulation (MAR).

Enhanced Whistleblowing Requirements for The Society of Lloyd's Following PRA Written Notice

The PRA has published a Written Notice setting out concerns regarding The Society of Lloyd's (Lloyd's) whistleblowing systems and controls, and requiring enhanced monitoring and reporting for a period of three years.

FCA Speech on Brexit and the Future of Financial Services Regulation in the UK

On 28 October 2019, Nausicaa Delfas (Executive Director of International at the FCA) delivered a speech at the UK Financial Services Industry Beyond Brexit Summit, on preparations for Brexit and the future of financial services regulation in the UK.

Personal Account Dealing: the FCA's Concerns About Complacency

FCA authorised firms should be familiar with the requirement to have in place systems and controls to mitigate the risks associated with personal account dealing (PAD) by employees and other relevant individuals (COBS 11.7 and COBS 11.7A).

Senior Managers and Certification Regime (SMCR) – Implementation Challenges and Enforcement Outcomes

9 December 2019 was the implementation date for the wider roll-out of SMCR bringing most firms authorised by the FCA only (solo-regulated firms), into the regime.

Cryptoasset Businesses and the Fifth Money Laundering Directive

On 10 January 2020, the UK's Money Laundering Regulations were amended to incorporate changes brought about by the fifth money laundering directive.