Business and Other Briefings
FSA: The Financial Services Authority (FSA) has fined 3 HSBC firms over £3m for not having adequate systems & controls in place to protect their customers' confidential details from being lost or stolen. These failings contributed to customer data being lost in the post on two occasions.
HSBC Life UK Limited (HSBC Life) was fined £1,610,000, HSBC Actuaries and Consultants Limited (HSBC Actuaries) was fined £875,000 and HSBC Insurance Brokers Limited (HSBC Insurance Brokers) was fined £700,000. FSA Principle 3 states that a firm must take reasonable care to organise & control its affairs responsibly and effectively, with adequate risk management systems.
Press release ~ Final notices for HSBC Life ~ HSBC Insurance Brokers ~ HSBC Actuaries ~ FSA review findings of how well financial services firms protect their customers' data ~ FSA – Data Security
FSA: The Financial services Authority has confirmed changes to with-profits rules, which mean that any liabilities arising from operational failures (including mis-selling) after the rule comes into effect on 31 July 2009 must be borne by shareholders, not policyholders.
Under current rules, a firm may pay compensation & redress from assets attributable to shareholders or from the inherited estate of its with-profits fund (if any).
FSA: The fast payout rules, which come into force on 31 December 2010, will mean many individuals & small businesses will receive compensation within a target of 7 days, and all payments within 20 days, as required under the Deposit Guarantee Schemes Directive. This will greatly reduce uncertainty for consumers.
An additional change is that in future, payouts will be made on a ‘gross’ basis, which will effectively ring fence the deposits if a depositor has savings and loans with the same firm. Currently, any outstanding loan or debt held with a firm would have been deducted from the amount of an individual’s or small business’ savings before compensation was paid out. The new rules change this arrangement and ensure that the customer's savings will be protected to the limit of £50,000 and not used to offset loans.
Consumer awareness of the FSCS will also be boosted by a new rule which comes into force from 1 January 2010, requiring firms to provide information on the existence of the FSCS and level of protection it offers to depositors, as well as proactively informing customers of any additional trading names under which the firm operates.
Press release ~ Banking and Compensation Reform policy statement ~ FSCS ~ Deposit Guarantee Schemes Directive
The brief announces that certain services performed by psychologists became exempt from 1 July 2009.
HMRC: Revenue & Customs Brief 42/09
In this brief, HMRC is announcing a change of view on the Tonnage Tax treatment of specialist vessels that provide transportation in connection with services provided at sea.
In this brief, HMRC is announcing a change of view on the Tonnage Tax treatment of specialist vessels that provide transportation in connection with services provided at sea.
