We have managed to condense a very busy week of regulatory news down to a mere 17 articles which raise issues for all sectors.

The leading article is an FSA hotspot. Some firms will have their RMAR and financial returns compared with results at Companies House and any discrepancies which are give or take 10% will generate queries. Firms prepare for a TCF visit by focussing on the 6 Desired Outcomes and the way they address these, but during the ‘visit’ the FSA may well – and frequently do – look at capital adequacy. We have mentioned this before and would urge firms to ensure that their capital adequacy is reviewed monthly and please remember that this requirement is continuous throughout the year, not just at the times of reporting.

Page 2 is dominated by a single article about the FSA fining a firm £700,000 for failing Senior Management Systems and Controls that did not prevent unsuitable advice on structured products. The FSA says it has committed itself to not judging suitability with the wisdom of hindsight but this case looks pretty close.

RDR will affect all investment firms who can thank the ABI for publishing their findings which, had they been commissioned by a private firm, would cost many tens of £1,000’s. (First article page 6.) The review includes findings from other surveys and the sum total provides IFAs with a very good pointer towards the future. Many thanks to the ABI for very valuable information.

Please read the last article on page 7 as this firm’s mistake is one which any firm could make. We have many instances where firms want to email files to ourselves or other third parties with minimal security. We all have security lessons to learn.

If we can be of any further assistance on these or any other regulatory subjects, please remember your helpline 08456 12 12 11 for a without obligation conversation or email admin@ifact.co.uk.

Kind regards

John Derry-Collins
FInst SM AMITD Fcol MInstD MIoD
Director
IFAct Services Ltd
Tel. No. 08456 121 211

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QBE Insurance (Europe) Limited “QIE” (No. 1761561) is authorised and regulated by the Financial Services Authority. Ensign is a trading name of QIE. Limit Underwriting Limited “LUL” (No. 1035198) is a managing agent for Syndicates at Lloyd’s and is authorised and regulated by the Financial Services Authority. DA Constable Syndicate Limited (No. 2262145) and Limit Technology & Commercial Underwriting Limited “LTCUL” (No. 3515409) are appointed representatives of LUL. Icon Insurance and Praemunio are trading names of LTCUL. QBE Management (UK) Limited (No. 3153567) is a service company and QBE International Holdings (UK) PLC (No. 2641728) is the holding company for QBE European Operations, a division of the QBE Insurance Group. The above companies are registered in England and Wales at Plantation Place, 30 Fenchurch Street, London EC3M 3BD. QBE Reinsurance (Europe) Limited (No. 53272) is registered in the Republic of Ireland at St. Stephen's Green House, Earlsfort Terrace, Dublin 2.

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