The FCA has banned former Credit Suisse executives Andrew Pearse and Surjan Singh from the UK financial services industry following US criminal convictions.
In a press release, the regulator said the two individuals lacked integrity after they were convicted in the US over arranging corrupt loans to the Republic of Mozambique.
Pearse and Singh had pleaded guilty to the charges against them in the US in July and September of 2019 respectively. The charges included money laundering and wire fraud. Both had also received illegal kickbacks in connection with the loans.
“In October 2021, the FCA fined Credit Suisse over £145m as part of a US $475m global settlement for serious financial crime due diligence failings related to the loans which the bank arranged for the Republic of Mozambique, worth US$1.3bn,” the press release adds.
In a separate enforcement action, the FCA has said it has charged a fifth individual, John Dobbs, over a suspected water investment scam including three counts of conspiracy to commit fraud by false representation.
“We allege that John Dobbs – alongside Bruce Rowan, David Simmons, Robert Sweeney and Justin Russell – was involved in the operations of an unauthorised investment scheme, which defrauded investors out of £3.9m [$5.05m],” the regulator said in a press release.
“We allege that, between 1 May 2015 and 23 July 2019, John Dobbs conspired to defraud UK investors via two companies, Hanover Merchant Capital UK Ltd and Liberty House Capital Ltd. This included false representations about:
- how their money would be invested;
- how their profits were generated;
- the security of their capital.
John Dobbs will appear before Southwark Crown Court on 25 March 2025, the FCA has said.
And in a dramatic U-turn in relation to the subject of enforcement and investigations, the FCA announced this week it will no longer proceed with controversial plans to publicly name and shame companies that it is investigating.
In a press release, the watchdog said: “Given the lack of consensus, we will not take forward our proposal to shift from an exceptional circumstances test to a public interest test for announcing investigations into regulated firms.
“We continue to prioritise our work to tackle non-financial misconduct, which we believe can help to improve outcomes for markets and consumers and reduce harm,” the press release adds.
Read our more detailed GRIP article covering important aspects of the FCA’s controversial proposal and the sudden U-turn.
And in the latest development around the UK’s motor finance arrangements scandal, the FCA said: “If motor finance customers have lost out from widespread failings, we are likely to consult on a redress scheme.”
In detailed statement, the regulator said: “We’re seeking to understand if firms failed to comply with requirements relating to DCAs and if consumers lost out as a result. If they have, we want to make sure consumers are appropriately compensated in an orderly, consistent and efficient way.”
Read the full story on this latest FCA announcement on GRIP.
Regulation
The FCA has backed the government’s decision to abolish the UK’s Payment Services Regulator (PSR) and consolidate its authority and duties into the FCA.
In a brief statement, FCA chief executive Nikhil Rathi said: “With a changed payments landscape, now is the right time to put in place a more streamlined regulatory framework. Doing so is a natural next step following recent work to improve co-ordination and clarity on regulatory responsibilities.”
The FCA also said it “will work closely with government, the Bank of England and the payment sector as the details of this change are decided and to ensure the transfer of any powers is smooth.”
We covered the announcement in some detail.
The FCA has insisted its “sustainability rules do not prevent investment in or finance for defence companies.”
In a statement, the regulator said: “There is nothing in our rules, including those related to sustainability, that prevents investment or finance for defence companies.
“These rules should not be confused with financial institutions’ own policies relating to the type of businesses they wish to support and their own appetite for risk,” the statement adds.
The FCA has expressed “utmost sympathy for the people who have lost money because of Safe Hands.”
In a detailed statement, the regulator has said it disagrees with the Commissioner’s findings that it did not identify significant risks in relation to the firm.
“We had limited powers to act against funeral plan providers before Parliament gave us responsibility to regulate the sector from July 2022,” the FCA said. It went on to say it had limited resources back in 2021 and had to prioritize certain objectives to protect customers from suspected wrongdoing, including bringing a whole new sector, funeral providers, under its remit.
The FCA’s full response to the Complaints Commissioner’s final report into Safe Hands is on its website.
The FCA has set out steps it says will support home ownership and help more people access a mortgage.
The regulator said the flexibility in rules is part of its work to support the government’s agenda on economic growth, and to support home ownership.
A press release from the regulator says: “The FCA wants to ensure firms are aware of the flexibility its rules provide, and that creditworthy consumers can access the affordable mortgage they need, supporting home ownership.”
Nikhil Rathi, Chief Executive of the FCA, said: “We are taking swift action to support people in getting the keys to their own home.”
Media
The FCA and the Prudential Regulation Authority (PRA) announced the appointment of Martyn Beauchamp as CEO of the Financial Services Compensation Scheme (FSCS) last week.
“Martyn has been interim CEO of the FSCS since October 2023, and during this time he has successfully overseen the FSCS’s transition to a new operating model,” the FCA said in a press release.
Commenting on his appointment, Martyn Beauchamp said: “FSCS puts customers back on track when their financial services firm fails, helping to build trust and stability in the UK financial services system and supporting long term sector growth. This is a mission I’m proud to now lead as FSCS’s CEO.”
The FCA has announced it is inviting applications for a bond consolidated tape provider.
In a statement the regulator said: “A UK bond consolidated tape (CT) will collate data on transactions, such as prices and volumes, and brings together information on trades executed on trading venues and over-the-counter with a broker.
“The CT will provide investors with high quality data on a timely basis, and ensure it is accessible in a cost-effective way. The FCA is committed to unlocking capital investment and liquidity,” the statement adds.