The FCA is in danger of attracting regular readers to its Market Watch newsletter. Here’s an extract from Edition No. 46, about this momentary spike in the price of HSBC back in January…
We feel sympathy for the FCA. But then, the hole in which it finds itself is of its own digging.
Consider the fresh news. Having spent eight months mulling over the evidence presented in Ian Hannam’s Upper Tribunal appeal against the regulator’s earlier imposition of a £450,000 fine for supposedly passing on inside information, the Upper Tribunal has concurred that Hannam did indeed breach the UK rulebook.
But as is gradually being realised, the rulebook itself is unworkable. It involves pursuing upright citizens for synthetic crimes. Read more
Fresh from the Upper Tribunal. Click below for the judgment.
Do click for other Terms of Reference of the FCA independent directors’ inquiry into the FCA’s role in the implosion of life-insurance shares last month…
SEE UPDATE BELOW — OUCH!
Are we about to see
Mr Martin Wheatley do the perp walk? Read more
The Financial Conduct Authority (FCA) has today issued two Warning Notice Statements. This is the sixth and seventh time the FCA have issued a Warning Notice Statement since it was given the power to do so by the Financial Services Act 2012. The Government’s principal rationale for giving the FCA this power was to promote early transparency of enforcement proceedings. Read more
The UK Financial Conduct Authority has published its long awaited rules for crowdfunders and peer-to-peer lenders. You can read the full policy statement here, but lets cut straight to some frothy outrage from Barry James, founder of the Crowdfunding Center.
On a day like today one has to wonder whether our FCA is the worst regulator in the western world. The words that spring first to mind are inflexible, stubborn and unimaginative. Maybe it’s time for a change. Read more
A friend of FT Alphaville who works in the real world, far from finance, asked us what we think about putting money with peer-to-peer lenders.
We advised him to buy gold-bitcoins instead, but it made us want to take a look. It turns out we’re not alone. The chancellor is expected on Thursday to launch a consultation on blessing peer-to-peer lending with inclusion in the UK’s popular ISA scheme for tax free savings accounts.*
But where we think we might be alone, for now, is worrying about something that has afflicted lenders from time immemorial: run risk. Read more
The Financial Conduct Authority has written to the banks, suggesting that they think long and hard before enforcing contractual terms agreed with their small business borrowers.
This post has been substantially revised in the wake of an internal discussion here at the FT…
Close readers will recall that just earlier this week we were pondering the case of one Richard Usher, formerly chief FX dealer for JP Morgan in London. His mangled remains were found under the proverbial publicity bus that is the official regulatory investigation into the supposed fixing of the daily WM/Reuters forex price fix, which is currently underway on both sides of the Atlantic. It seemed a shame to us that someone had been executed, professionally, for simply being in possession of an alleged Skype chat, therein containing some colourful banter. Especially when no evidence of said Skype chat had yet been presented.
It looked to us like someone, almost certainly in regulatory circles, was trading Usher’s name for political gain.
But now we’re confused. Read more
He’s dead, of course, professionally. Former chief FX dealer for JP Morgan in London, Richard Usher. Bloomberg has the glee:
…wrote instant messages while he was at Royal Bank of Scotland Group Plc (RBS) that U.K. regulators are scrutinizing as part of their investigation of alleged currency manipulation, two people with knowledge of the matter said. Read more
Some scumbag correspondence from firstname.lastname@example.org…
We hope this email finds you well. It has been brought to our attention that you have been approached by a number of sales companies in the past regarding the purchasing of carbon credits. For example, some of the particular companies in question are: Capital Asset Partnership, Worldwide Commodities, MH Carbon Limited as well as many others.
Within the “sanction” section in the Final Notice on the JP Morgan Whale affair, the FCA takes eight full pages, containing 42 clauses, to get to this:
Conclusion Read more
The Regulatory and other investigations or proceedings part of the Barclays rights prospectus, published on Monday, is worth reading in full. But first you need to look at this chart, because it provides some context for what happened at Barclays in October 2008. The price of BARC stock more or less halved that month.
First up, consider this comic flow chart from the FCA. Click to enlarge.
Yes, of the 30,169 cases of potential mis-selling of interest rates hedges to gullible British businesses, a sum total of 10 cases have so far been settled. The bill to date is £500,000, but there’ll be a few zeros added to that figure before we’re through. Read more
How’s this for a bank bondholder disclosure? Bear in mind — it’s over 20 years old.
We’re completely thrown. Read more
Much hoopla on Monday from the FCA, Britain’s newly-fashioned regulator, as it meted out a $903,176 fine to Michael Coscia, a dirty HFT operator caught manipulating crude oil futures back during the autumn of 2011.
We learn that…
Between 6 September 2011 and 18 October 2011 Coscia used an algorithmic programme of his own design to instigate an abusive trading strategy known as “layering”. During this time, Coscia placed thousands of false orders for Brent Crude, Gas Oil and Western Texas Intermediate (WTI) futures from the US on the ICE Futures Europe exchange (ICE) in the UK.
Full details are available in the final notice, but you’ll want to click on the image below for an “animated example of Mr Coscia’s trading…” Read more
A new word to you? Yes, well, we were searching for a suitable adjective to describe this:
20 June 2013
Tullett Prebon plc
Statement in relation to court proceedings
Buy UK property, we suspect.
When it comes to money laundering, the estate agency sector in the UK is regulated by the Office of Fair Trading. Here’s the guidance that Britain’s 7,000 plus agents are supposed to adhere to. Click to read: Read more
You’ll have read a preview of this here, but the plan of action for reforming or replacing the London Inter Bank Offered Rate has now been mapped out by the incoming boss of the Financial Conduct Authority, Martin Wheatley, is now out.
Don’t get too excited. Read more
UK financial watchdog bodies will gain powers to ban retail investment products and to warn investors of pending enforcement actions when the Financial Services Authority is broken into three bodies late next year, reports the FT. The government will shortly outline measures to strengthen a planned consumer champion and two other regulators, Mark Hoban, the financial secretary to the Treasury, told the FT. The Consumer Protection and Markets Authority – to be renamed the Financial Conduct Authority – will be able to ban products or limit their distribution for up to 12 months. The FCA, to be headed by Hong Kong regulator Martin Wheatley, will also be permitted to announce its intention to penalise banks, brokers and individuals pre-emptively, before the target can present its case to an internal appeal body.