FSA MONTHLY UPDATE

5 Sep 2006 10:15 AM

The key announcements below have been grouped together to reflect the FSA's aims for 2006/07 under three broad headings:

  • promoting efficient orderly and fair markets;

  • helping retail consumers achieve a fair deal; and

  • improving our business capability and effectiveness

Details of these aims can be found in the FSA's Business Plan

Key FSA announcements

Click on the links below to view the full press release on the FSA website

Promoting efficient orderly and fair markets

1/8: FSA fines GLG Partners and Philippe Jabre £750,000 each for market abuse

The FSA has fined hedge fund manager GLG Partners LP (GLG) and Mr Philippe Jabre, a former managing director of the firm, £750,000 each for market abuse and breaching FSA principles. This is the largest fine the FSA has issued against an individual.

Contact: David Cliffe for more information

7/8: FSA fines Merrill Lynch £150,000 for transaction reporting failures

The FSA has fined Merrill Lynch International £150,000 for failing to accurately report certain transactions to the FSA and previously the Securities and Futures Authority. Accurate transaction reports are critical to the FSA's ability to maintain confidence in the financial markets and reduce financial crime.

Contact: Eleanor Hughes for more information

24/8: FSA fines Kyte £250,000 for client money and accounting failures

The FSA fined London based clearing firm, The Kyte Group Limited, £250,000 for systems and controls failings resulting in inadequate client money protection and poor accounting systems.

Contact: Vanessa Wood for more information

24/8: Court shuts UK firm for assisting overseas boiler rooms

The High Court has placed Securetrade & Title Company Limited (STT) into liquidation after the company, based in East Sussex, assisted a number of unauthorised overseas firms, commonly known as boiler rooms, which were unlawfully promoting and selling shares to UK investors.

Contact: Eleanor Hughes for more information

Helping retail consumers achieve a fair deal

17/8: FSA fines Hoodless Brennan £90,000 for unacceptable sales practices and not treating customers fairly

The FSA has fined stockbrokers Hoodless Brennan Plc (Hoodless) for using unacceptable sales practices and failing to treat its customers fairly when selling shares in a company called Knowledge Technology Solutions Plc (KTS) on 12 June and 25 July 2003.

Contact: Eleanor Hughes for more information

25/8: FSA fines Friendly Society £55,000 for financial promotions failings

The FSA has fined The Ancient Order of Foresters Friendly Society Limited (Foresters) £55,000 for financial promotions failings including substandard television advertisements and direct offer packs which targeted elderly consumers. This is the first time the FSA has fined a friendly society for financial promotions failings.

Contact: Vanessa Wood for more information

Improving our business capability and effectiveness

17/8: FSA announces Information Systems contracts

The FSA has signed a multi-year agreement with Capgemini, Tata Consultancy Services (TCS) and Xansa to work in partnership with the FSA to transform its Information Systems Division's capability.

Contact: Vanessa Wood for more information

31/8: FSA to simplify approved persons regime

The FSA has issued a consultation paper outlining a new proposal to merge the customer functions in the approved persons regime in response to feedback from the industry. This feedback from retail and wholesale firms follows the publication of a consultation paper in July 2005 detailing a series of proposals to streamline and simplify the Handbook.

Contact: Robin Gordon-Walker for more information

Other

31/8: Financial Services Authority confirm Lambeth Building Society merger with the Portman Building Society

The FSA announced that it has confirmed the proposed transfer of the engagements of the Lambeth Building Society to the Portman Building Society.

Contact: Robin Gordon-Walker for more information

31/8: New members appointed to Consumer Panel

The FSA has announced the appointment of five new members to the Financial Services Consumer Panel. The appointments of Kay Blair, Stephen Crampton and Lindsey Rogerson take effect from 1 September 2006, while Michael Chapman and Jenny Hamilton will join the Panel on 1 January 2007.

Contact: Abi Jones for more information

No FSA speeches in August

Statements

14/8: FSA v Fradley & Woodward

On 12 May 2006 we settled our legal proceedings against Mr Woodward and Mr Fradley for conducting a collective investment scheme without FSA authorisation.

22/8: Implications of MiFID on the Depolarisation Regime

As part of the FSA wider consultation on the Markets in Financial Instruments Directive (MiFID) in October 2006, it will be consulting on the impact on depolarisation and its disclosure documents. Within this, the regulator is proposing to maintain the Menu and the Initial Disclosure Document (IDD) while it continues to undertake the post-implementation review of the regime which was announced when the new rules were introduced.

Briefing Notes

1/8: Number 26 Financial promotions: Good progress overall but firms must do more

The FSA published a report detailing its financial promotions work over the last two years, including an evaluation of industry progress and an outline of future plans in this area.

Contact: Abi Jones for more information

Consumer Information

Consumer Warnings: Anthony Michael Naughton trading as Stag Associates and Castlefield Group

The FSA are investigating the activities of Anthony Michael Naughton, who traded as Stag Associates and Castlefield Group from an office in Manchester.

Mr Naughton sent out mailshots in 2003 inviting investors to join a syndicate known as Property Plus, which aimed to use their money to buy property and land and to share the profit from its development, re-sale or letting. Neither Mr Naughton nor his business under the above trading names is authorised by the FSA to carry on any activities that are regulated under the Financial Services and Markets Act 2000 (FSMA).

Press Office: 020 7066 3232 Outside office hours number: 07795 351 956 Email: press.office@fsa.gov.uk Website www.fsa.gov.uk