Case Summaries Up To March 2009
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By Law Brief Publishing on 27/03/2009 18:20
The FSA’s first insider dealing criminal prosecution led to convictions of a solicitor and his father-in-law in respect of profits made from knowledge acquired in his position of General Counsel for TTP Communications in respect of a proposed take-over of the company. The FSA obtained a court order freezing the profits made from the trade. Both received sentences of imprisonment, the father-in-law’s sentence being suspended.
By Law Brief Publishing on 25/03/2009 17:27
The FSA banned Ashfad Ahmed from performing any function in relation to any regulated activity. He had also traded as Dockside Mortgages. Mr Ahmed had submitted two mortgage application forms for himself through Eastside Mortgages providing false and misleading information about his self-employed income. The FSA decided that Mr Ahmed had failed to conduct himself with honesty and integrity.
By Law Brief Publishing on 24/03/2009 18:23
The FSA publicly censured a mortgage broking firm for failing to ensure it provided suitable advice and exposing up to 80 of its customers to the risk of being sold an unsuitable self-certified mortgage.
By Law Brief Publishing on 19/03/2009 18:24
The FSA fined a broker specialising in managing insurance claims for property repairs £21,000 for not maintaining appropriate systems and controls for the recruitment, training and monitoring of appointed representatives; for misleading clients by telling them that its services were free of charge when cancellation charges could be incurred and appointed representatives had a discretion to charge an insurance excess and that all its contractors were screened and only quality local tradesmen were ...
By Law Brief Publishing on 11/03/2009 17:26
The FSA found that Mr Abiona knowingly submitted mortgage applications containing false or misleading information to lenders on his own and his customers’ behalf. Mr Abiona also failed to protect confidential customer information; to ensure file reviews were adequately carried out and recorded; and to make sure that information on mortgage application forms was not misleading. Mr Abiona was banned.
By Law Brief Publishing on 17/02/2009 00:00
The FSA succeeded in recovering a substantial sum against a firm of solicitors who had approved an offshore share broker’s promotion and operated an ‘escrow account’ for investor funds. The promotion on its face was innocuous in that it offered the relevant investor a free research report in to a listed UK company in which the investor already had shares. However by returning the investor would at the same time agree to be contacted by the overseas company. It was at thi ...
By Law Brief Publishing on 05/02/2009 00:00
In its first full civil trial the FSA obtained declarations and injunctions in respect of the UK operations of a share investment scheme being promoted from Spain as well as the individuals and entities abroad. The UK operatives agreed to pay back more than £1,000,000 and compensation of more than £1,000,000 was also ordered to be repaid against the boiler room entities. The regulated activity of advising on investments took place in the United Kingdom where the advice was recei ...
By Law Brief Publishing on 21/01/2009 00:00
The Chairman of the FSA (Adair Turner) said recently that three reforms are being proposed to financial regulations.  These are: (1) new approaches to capital adequacy, entailing more capital held against risky trading strategies and counter-cyclical capital requirements to build up adequate buffers during good economic times, which can be drawn on in bad; (2) a new liquidity regime focused not just on individual firms’ liquidity but also on market-wide risk; and (3) ensuring t ...
By Law Brief Publishing on 16/01/2009 00:00
The FSA is considering whether to extend disclosure of short selling to all companies publicly traded in the UK. It has decided to relax an outright ban on short selling banking stocks which had been in force since September 2008; from 16 January 2009 investors are allowed to short sell banking shares provided that they disclose it. The FSA is now consulting about whether to extend disclosure to cover every quoted company.
By Law Brief Publishing on 15/01/2009 00:00
The Coroners and Justice Bill was published on 15 January 2009 and includes a proposal that the FSA can grant immunity and other protections to witnesses in criminal investigations by an amendemnt to the Serious Organised Crime and Police Act 2005. The power is expected to come into force in late 2009 or early 2010.
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