The Hong Kong Securities and Futures Commission (SFC) has reprimanded and fined the brokerage arm of global financial institution HK$18.5 million over internal control failures in relation to conflicts of interest, insufficient documentation of its electronic trading systems, reporting failures in relation to short selling orders and large open positions, and breach of position limits. […]

The content of the MiFID II Delegated Acts has left the industry in no doubt that the days are numbered for inducements. The rules surrounding inducements within the Delegated Acts are tight and make it clear that they can only be accepted if there is a clear, demonstrable effect on the service the customer receives […]

The latest HFSB consultation (CP4) on managing conflicts of interest (launched in March 2015) has been completed and the amendments have been published. The new amendments will come into effect on 2 May 2016 and the HFSB signatories are given six months to achieve conformity with them on a comply-or-explain basis. Please see all the […]

Following an earlier consultation the Hedge Fund Standards Board (HFSB) has issued a revised version of its standards. The revised standards will be effective from 2 May 2016 and aim to: strengthen internal compliance procedures; and improve disclosure of conflicts of interest. Signatories to the HSFB have six months to comply or explain their conformity […]

Angela Burns v The Financial Conduct Authority (previously the Financial Services Authority) [2015] UKUT 0252 (TCC) – Upper Tribunal finds FCA sanction was not commensurate with facts found proved by FCA (then the FSA) and reduces financial penalty imposed Conflict of interests Angela Burns was an FCA regulated Approved Person holding Controlled Function 2 (“CF2”) […]

SPL Private Finance (PF1) IC Ltd and others v Arch Financial Products LLP and others; SPL Private Finance (PF2) IC Ltd and others v Robin Farrell An investment manager, Arch Financial Products LLP (Arch FP), was found to have breached its fiduciary duties in advising upon an investment which was not in the best interests […]

The FCA has fined Aviva Investors Global Services Limited (Aviva) £17.6 million, including a 30 per cent discount, for weaknesses in their systems and controls that meant that Aviva were unable to manage conflicts of interest properly and fairly. These failings resulted in breaches of Principles 3 and 8 of the FCA’s Principles for Businesses. […]

The European Insurance and Occupational Pensions Authority (EIOPA) has published technical advice (EIOPA-15/135) on conflicts of interest in direct and intermediated sales of insurance-based products to the European Commission, following an earlier consultation The technical advice concerns possible delegated acts under Article 13c (3) of the Insurance Mediation Directive (amended by Article 91 of the […]