Publications by Philip Ryley
FSA focus falls on poor practice with contract terms
Published by FT's Financial Adviser 26 April 2012
Last month the subject of unfair contract terms was raised again in a speech by Clive Gordon of the FSA, who outlined the regulator’s view of what consumer contract terms were considered to be unfair, what it considered to be good practice and what it considered to be poor practice.
FSA departures make breaking up hard to do
Published by FT's Financial Adviser 9 May 2012
On 2 April this year, the FSA implemented the next major milestone in the so-called ‘twin peaks’ regulation by splitting supervision of dual regulated firms between the Conduct Unit and the Prudential Unit.
Swapping scandals
Published by FT's Financial Adviser 29 March 2012
In recent months, the ever increasing storm clouds have been looming, threatening the next big financial services mis-selling scandal – interest rate swaps. The spotlight has been directed at the banks rather than at the intermediary advisers.
Back on the trail
Published by FT's Financial Adviser 15 March 2012
Last month the FSA published (PS12/3) further clarification and useful examples regarding when advisers can receive trail commission, post-31 December 2012, payable on legacy assets purchased by clients before the retail distribution review comes into effect.
Language lesson
Published by FT's Financial Adviser 1 March 2012Last month, Hector Sants announced the introduction of the 'twin Peaks' model scheduled to be operating within the FSA from 2 April this year.
Meet the new boss
Published by FT's Financial Adviser 2 February 2012Last month, Martin Wheatley gave a speech at the British Bankers' Association to give his vision for the Financial Conduct Authority.
The X-files
Published by FT's Financial Adviser 2 February 2012
In January the FSA imposed a fine of more than £2m for failings by two insurers to prevent files, that the regulator had requested, from being improperly altered. A sobering lesson can be learnt from the events.
An eye on Difs
Published by FT's Financial Adviser 12 January 2012Last month, the FSA published proposed updates to its factsheets relating to distributor influenced funds.
Hot on the trail
The roll out of the RDR regarding the requirements concerning trail commission and legacy commission has not been straight forward.
The Right Appoach
This month the FSA and the Office of Fair Trading have jointly published a consultation paper on proposed guidance to firms in relation to payment protection insurance with the purpose of helping to prevent the problems associated with PPI recurring in a new generation of products. The next generation includes products such as short-term income protection, or debt freeze or debt waiver as elements of a credit agreement or mortgage.
Wishing list
Last month, Lord (Adair) Turner spoke at the Mansion House City Banquet in which he set out how the new authorities (the FPC and the FCA) would undertake their roles and the powers they would need to deliver their objectives, also recognising the constraints they faced and how they need to be tackled and clearly explained to society.
Knock at the door
The next 12 to 18 months will see a considerable change to the retail financial services sector as it prepares for the implementation of the RDR and the commencement of a new regulatory regime, which proposes to be more intrusive and more consumer focused.
The right side
Recently, the FSA fined a financial adviser firm £35,000 and imposed partial prohibitions on two directors and an adviser.
Changing roles
The relationship between financial advisers and discretionary investment managers will change when the new rules under the retail distribution review come into effect. The changes are set out in Policy Statement 10/6 and particularly in Cobs 6.1A.4R, Cobs 6.1A.6G and Cobs 6.1B.5R.
The last hurrah
Past experience has shown that when a financial services regulator is in its last throes of life, it demonstrates greater effect in its enforcement capability.
Fine ignorance
In July, the FSA fined one of the largest insurance and reinsurance brokerage and risk management firms in the UK, £6.9m, for failings in its anti-bribery and corruption systems and controls.
Ucis mis-selling
Ucis schemes have always posed potential risks for investors, regulated firms and regulators alike, partly because although Ucis schemes themselves are not authorised, any person carrying on regulated activities in the UK in relation to Ucis schemes (including their establishment, operation and providing personal recommendations) is subject to FSA regulation.
Lessons Learnt
Confidence in the financial services sector as a whole has been at possibly an all time low in recent years, not least because of the fall out of the banking crisis. Under the government’s plans, the UK will move to a new model of regulation, creating three new regulatory arms to replace the Financial Services Authority, generally regarded as no longer fit for purpose.
The Bonus Level
In June, the FSA published its annual report for 2010/11, outlining its performance against the priorities set out in its 2010/11 Business Plan and its statutory objectives.
Suitability woes
Last month, the head of conduct risk at the FSA gave a keynote speech on assessing suitability: establishing the risk a customer is willing and able to take and making a suitable investment selection. Quite a mouthful, but one that needs some risk awareness.
External advice
The FSA recently published a Final Notice relating to an individual performing a compliance oversight function (CF10) for failing to comply with 'statement of principle seven' in connection with treating client money properly. The penalty was a £3000 fine (originally proposed at £20,0000) and a prohibition order. The case is an alarming one for compliance officers for several reasons.
Quickening pulses
In March last year, the FSA, the Financial Ombudsman Service and the Office of Fair Trading published DP10/1 on consumer complaints (emerging risks and mass claims), a subject that has the potential of sending heart beats racing throughout the industry.
It's hammertime
In recent weeks, the FSA has published a number of final notices relating to enforcement actions, resulting in substantial fines being imposed and prohibition orders being issued against mortgage brokers.
Over-exposure
The Complaints Commissioner investigates complaints made by the FSA. The Complaints Commissioner has no power to enforce any decision or action upon the FSA but he does have the limited power of setting out his position on a complaint and then, if he deems it necessary, to make his recommendations to the FSA. Those recommendations are not binding on the FSA
Business unusual
Last month, the FSA published its business plan for 2011/2012. Every year, I say that this document should be read by senior management in all firms as it is basically a road map showing us where the regulator is going and what its objectives are for the coming year.
Last of a breed
At the end of February, the FSA published its first Retail Conduct Risk Outlook. In previous years, the FSA produced its Financial Risk Outlook, but bearing in mind the FSA as a legal corporate entity will soon be turned into the Financial Conduct Authority, it makes sense to make this preparatory change.
The fines are fine
Recently, the FSA published details of the enforcement action that it has been taking against mortgage intermediaries which includes the banning of five mortgage intermediaries and fining one of them £104,000.
Out of harm's way
This month, the FSA published its guidance consultation on assessing suitability which is likely to be of most relevance to firms providing investment advice or discretionary management services to retail customers.
Ucis suitability
Unregulated collective investment schemes have posed potential risks for investors, regulated firms and regulators alike, partly because although Ucis schemes themselves are not authorised, the person carrying on regulated activities in the UK in relation to Ucis (including their establishment, operation and providing personal recommendations) is subject to FSA regulation.
All out of focus
Consumer Focus, the consumer watchdog, is one of the quangoes to be abolished in 2012 as part of the government's spending cuts.
Platform bias
Recently, the FSA published a consultation paper (10/29) on platforms and the retail distribution review which followed on from the discussion paper (10/2) published in March.
Regime Change
As we all know, George Osborne announced at the Lord Mayor's dinner that the government is to abolish the tripartite regulatory regime and that the FSA will cease to exist in its current form....
This article was first published by Financial Adviser on 17 June 2010
Hang tough
In April, the FSA reported that it is taking tough action after finding weaknesses in five banks' handling of customer complaints...
This article was first published by Financial Adviser on 17 June 2010
The Next Evolution
Last month, the FSA delivered a speech which articulated the regulatory framework that the industry will come to realise is the next stage in the evolution of the regulator...
This article was first published by Financial Adviser on 3 June 2010
Dirty Laundry
Money laundering reporting officers up and down the country will no doubt be taking an interest in an FSA enforcement action that was reported this month...
This article was first published by Financial Adviser on 20 May 2010
So, does it work?
In June the FSA is hosting a conference exploring the effect of FSA enforcement and how it changes the behaviour of the firms and individuals that it regulates. Does it work, asks Philip Ryley, Head of Financial Services & Markets at Michelmores.
This article was published by Financial Adviser on 6 May 2010
A closer watch
The vetting of employees and volunteers working with vulnerable groups has been tightened by the new Vetting and Barring Scheme, explains Shivaji Shiva, Head of Charities and Social Enterprise at Michelmores
This article was first published in Caritas in April 2010
The Odd Couple
The FSA has, at times, appeared uncomfortable with the conceptual relationship between the use of distributor-influenced funds and the provision of independent financial advice, says Philip Ryley, head of financial services & markets at Michelmores.
This article was published by Financial Adviser on 22 April 2010
Shaky Ground
In March, the FSA published its findings following its thematic review of the quality of the advice provided by intermediaries when recommending investments held on platforms. Philip Ryley comments on the review and the FSA's stance going forward.
This article was published by the FT Financial Adviser on 8 April 2010
Regime Change
The FSA can certainly talk the talk, but will its latest policy statement on the Approved Persons Regime have the desired effect on the policing of the industry, asks Philip Ryley, head of financial services and markets at Michelmores.
This article was published by Financial Adviser on 13 August 2009
Pawn takes FSA
As the Conservatives propose to dismantle the FSA, Philip Ryley wonders whether replacing, rather than reforming, the regulator is the sensible solution.
This article was published by Financial Adviser on 30 July 2009
The Enforcer
The FSA's intention to deliver 'intensive supervision' and 'credible deterrence' appears to be on track, says Philip Ryley, head of financial services and markets at Michelmores
This article was published by the Financial Adviser on 16 July 2009
Reading glasses
A new paper examining the financial crisis does not pull any punches in its assessment of the causes, says Philip Ryley, head of financial services & markets at Michelmores.
This article was published by Financial Adviser on 2 July 2009
Blame game
It is not a lack of rules that has led to the banking crisis, but a lack of implementation and policing of the rules. With the current regime under scrutiny, what is needed now is a credible and effective method of regulation, argues Philip Ryley, head of financial services & markets at Michelmores.
This article was published by Financial Adviser on 18 June 2009
The damage done
The FSA will now include a strong focus on the risk consequences of renumeration policies, says Philip Ryley, head of financial services & markets at Michelmores.
This article was published by Financial Adviser on 11 June 2009
Name and shame
A new 'name and shame' scheme will be introduced for regulated financial businesses later this year, but opponents argue that the publication of data could undermine consumer confidence in the sector as a whole, says Philip Ryley, Head of Financial Services & Markets at Michelmores Solicitors.
This article was published by Financial Adviser on 14 May 2009
Be very afraid
A regulator needs to command the respect of those it regulates, not scare them, says Philip Ryley, head of financial services & markets at Michelmores.
This article was published by Financial Adviser 30 April 2009
Litigation limit
Litigation may not always be the best route for those seeking damages for losses arising from mis-selling, says Philip Ryley, head of financial services & markets at Michelmores.
This article was published by the FT Financial Adviser on 2 April 2009
A silver screen
The banking crisis means that we are entering a new age of regulation for financial firms, but it would be a mistake to call for a total overhaul of the current model, says Philip Ryley, head of financial services and markets at Michelmores.
This article was published by the FT Financial Adviser on 23 March 2009
Regulation overhaul in danger of overreaction
Philip Ryley's letter to the Editor of Financial Adviser asking whether a radical overhaul at the FSA to resolve the current financial crisis would go too far.
(Letter published in the Financial Adviser on 19 March 2009.)
Key repossession ruling opens door to mortgage mis-selling
Philip Ryley, Head of Financial Services & Markets at Michelmores, comments in an article featured in the Observer on the ombudsman verdict on the mis-selling of mortgages.
(This article was published by the Observer on 22 March 2009.)
Going gets tough
The FSA will be an active regulatory presence in 2009 and firms will need to be extra vigilant to ensure their compliance, warns Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by the FT Financial Adviser on 22 January 2009.)
Deal or no deal
The economic downturn is not preventing business transactions, but there are many issues to consider before embarking on a sale or purchase, says Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by the FT Financial Adviser on 5 February 2009.)
Time to regulate FSA pay?
Why the disparity between FSA and public sector payscales, asks Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by the FT Financial Adviser on 19 February 2009.)
Conflict Resolution
With the FSA airing its views on managing conflicts of interest, firms who ignore the FSA requirements do so at their peril, says Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by the FT Financial Adviser on 26 February 2009.)
Taking to the platform
Platforms operate in different ways, which does present a problem for financial advisers as the FSA states that platform selection is the responsibility of the adviser, says Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by Financial Adviser on 6 November 2008.)
A fine time ahead
The FSA reports it is still finding serious problems in payment protection insurance sales, we can expect the regulator to get tougher and take enforcement action against firms and senior managers, says Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by Financial Adviser on 16 October 2008.)
Gone fishing
Just when you thought it was safe to get back into the water, cruising the regulatory ocean is another big scary fish. Yes, another pension transfer fright is upon us, says Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by the FT Financial Adviser on 8 January 2009.)
Out of the ashes
As the economic shift bites and firms find it hard to stay in business, there is a growing risk that senior managers may be inclined to consider ways of leaving liabilities behind and continue their profession using a new business entity, says Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by the FT Financial Adviser on 4 December 2008.)
First for everything
As the FSA disciplined a money laundering reporting officer, many officers up and down the country will be revisiting their procedures and controls, says Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by the FT Financial Adviser on 20 November 2008.)
The right platform
Platforms are important to today's market but they provide and extra regulatory layer of complexity to overcome, says Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by Financial Adviser on 9 October 2008.)
Who's responsible?
The momentous events of the last few months involving the collapse, and near collapse and rescue, of financial institutions both here in the UK and in the US will undoubtedly reshape both the financial markets and the regulators who regulate them, says Philip Ryley, Head of Financial Services & Markets at Michelmores.
(This article was published by Financial Adviser on 25 September 2008.)
