Professional and financial risks
Embracing digital change: the new reporting functions for the Financial Reporting Council
The Financial Reporting Council (FRC) has announced two new functions, to better understand its existing market intelligence and to deliver on UK growth and competition. However, following the King's speech this week, and with the industry expecting a new, more powerful regulator in the Audit, Reporting and Governance Authority (ARGA) under this new Labour government, are these new functions simply a steppingstone to wider auditing reform?
Read moreThe What, the How, and the Responsibility – Liability of Principals for actions of Appointed Representatives under FSMA s39
The Court of Appeal has recently affirmed the views of the lower court on the liability of principals for their appointed representatives' actions in KVB Consultants Limited v Jacob Hopkins McKenzie Limited and others.
Read moreFCA Review of Consumer Duty Outcomes Monitoring Across the Insurance Industry
In this blog we take a look at the FCA's recent review of Consumer Duty outcomes monitoring across the insurance sector.
Read moreEntering the codified world – Code of Conduct for directors
The Institute of Directors (IoD) has recently published a consultation paper on a Code of Conduct for Directors (the Code) to assist directors in making better decisions given their increasingly "vital, complex and challenging" roles and responsibilities.
Read moreLawyers Covered - June 2024
It can be tough for busy lawyers to find enough time to service clients, make it safely through the regulation obstacle course, win new work and keep up-to-date with developments, but we've got you covered! Welcome to the March edition of our Lawyers Liability & Regulatory Update, in which we highlight the last month's key developments affecting lawyers and the professional risks they face.
Read moreMoney Covered: June 2024 – the FCA's Consumer Duty – almost one year on
Welcome to Money Covered, a monthly podcast from RPC aimed at those dealing with complaints, claims and risk management in the financial services sector.
Read moreThe Financial Ombudsman Service Proactive Settlement Scheme - Here to Stay
The Financial Ombudsman Service's (FOS) Proactive Settlement Scheme (the Scheme), designed to encourage businesses to settle customer complaints quickly, is here to stay following its trial introduction in April 2023. The Scheme was trialled as a way to encourage early settlement allowing businesses to make a settlement offer in response to complaints referred to the FOS within 21 days, provided they notified the FOS of their intention to do so within 14 days of being told that a complaint had moved to the investigation stage. The FOS has now confirmed that the Scheme will become a permanent feature of their complaint resolution process.
Read moreAnother failed FOS judicial review on the issue of whether a customer was an "eligible complainant"
The High Court has rejected a judicial review claim arguing that (1) a complainant was not an eligible complainant having identified themselves as an "elective professional client" and (2) the FOS' approach to redress (adopting the FTSE UK Private Investors Income Total Return Index) and contributory negligence was irrational. The High Court judgment is a further example of the courts endorsing FOS' approach to complaints and its wide jurisdiction. The judgment is hot on the heels of the Court of Appeal judgment in Options last month. It is also a further example of permission having been granted to proceed with a judicial review and the increased appetite for respondent firms to challenge FOS, likely to be fuelled by the ever increasing FOS redress caps.
Read moreLawyers Covered - May 2024
It can be tough for busy lawyers to find enough time to service clients, make it safely through the regulation obstacle course, win new work and keep up-to-date with developments, but we've got you covered! Welcome to the May edition of our Lawyers Liability & Regulatory Update, in which we highlight the last month's key developments affecting lawyers and the professional risks they face.
Read moreFiduciary Duties Post Liquidation
In the recent case of Mitchell v Al Jaber [2024] EWCA Civ 423, the Court of Appeal confirmed that a shareholder and director may still be subject to a fiduciary duty when purporting to transfer company property, even after the company enters liquidation. The decision was made in relation to British Virgin Island (BVI) law, but on the basis of English case authorities.
Read moreFinfluencers update: Reality TV stars face FCA charges
The FCA has charged 9 individuals for allegedly promoting or advising on contracts for difference ("CFDs"), a financial product where investors bet on the price of assets, via their social media accounts. The defendants include several former Love Island TV stars including: Biggs Chris, Jamie Clayton, Rebecca Gormley and Eva Zapico, as well as The Only Way is Essex star Lauren Goodger
Read moreICAEW announces key Professional Indemnity Insurance changes, whilst scaling back on the full suite of proposed changes
The ICAEW has confirmed some of the changes to its professional indemnity insurance (PII) requirements, which will come into effect from 1 September 2024.
Read moreRaising standards, welcoming views and closing the gap in tax advice
This article considers the Government's attempt to kick incompetent, unprofessional, unscrupulous and substandard tax advisors out of the market.
Read moreFCA publishes Consumer Duty 'Dear CEO' letters
The FCA has published a series of 'Dear CEO' letters, setting out its expectations ahead of the the Consumer Duty's implementation in respect of closed products and services. The letters are sent ahead of the 31 July 2024 deadline.
Read moreMoney Covered: The Week That Was – 10 May
Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.
Read moreMultiple Dwellings Relief - a problem for tax advisers?
Recent cases before the tax tribunal have highlighted an issue for tax advisers involved with multiple dwellings relief – is the issue of multiple dwellings relief about to impact professionals outside of the legal industry?
Read moreMoney Covered: The Week That Was – 3 May
Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.
Read moreLawyers Covered - April 2024
It can be tough for busy lawyers to find enough time to service clients, make it safely through the regulation obstacle course, win new work and keep up-to-date with developments, but we've got you covered! Welcome to the March edition of our Lawyers Liability & Regulatory Update, in which we highlight the last month's key developments affecting lawyers and the professional risks they face.
Read moreMoney Covered: The Week That Was – 26 April
Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.
Read moreDerivative actions – The Court of Appeal considers when permission will be granted to shareholders of non-UK claims to pursue a derivative claim
In Durnont Enterprises Ltd v Fazita Investment Ltd [2024] EWCA Civ 299, the Court of Appeal recently dismissed the appeal of a shareholder of a Cypriot-based company for permission to continue a derivative action against various defendants.
Read moreThe beginning of the end for UK resident "non-doms"?
George Smith specialises in defending claims against financial professionals, including accountants, independent financial advisors, brokers and pensions professionals. Ben Simmonds is an Associate in the Professional & Financial Risks team at RPC, specialising in defending claims and complaints for professionals within the finance sector.
Read moreMoney Covered: The Week that Was - 19 April
Welcome to The Week That Was, a round-up of key events in the financial services sector over the last seven days.
Read moreFOS Plans and Budget for 2024/25
We take a look at The Financial Ombudsman Service's strategic plans and budget for the upcoming year ahead.
Read moreFCA vehicle finance review - the road trip continues
The FCA has provided a brief update on its ongoing review of vehicle finance arrangements. Difficulties with data gathering have been noted and firms are reminded of the need to maintain adequate financial resources. A judicial review application is also revving its engine!
Read moreFOS' plans to charge CMCs – an update (or lack of)
We reported back in February that the Financial Ombudsman Service (FOS) had announced plans to begin charging case management companies (CMCs) a fee for bringing a complaint. The consultation closed in January, and we've been eagerly awaiting the feedback. Following the publication of FOS' 2024/25 Plan and Budget, it seems there may be another opportunity for feedback to be provided.
Read moreWhat does it meme? The FCA's published guidance on 'finfluencers'
The FCA has published their guidance on financial promotions on social media, highlighting how firms and individuals can ensure their marketing strategy remains compliant with existing obligations.
Read moreA call for evidence: simplification of the Tax Administration Framework
As part of its ongoing review of the Tax Administration Framework, the government has issued a further call for evidence in relation to HMRC's enquiry and assessment powers, penalties and safeguards (the Call for Evidence). This follows two previous consultation publications and works towards the government's wider objective "to simplify and modernise the tax system, tackle non-compliance, make the tax system fairer for taxpayers and to make the customs system better for traders."
Read moreLawyers Covered - March 2024
It can be tough for busy lawyers to find enough time to service clients, make it safely through the regulation obstacle course, win new work and keep up-to-date with developments, but we've got you covered! Welcome to the March edition of our Lawyers Liability & Regulatory Update, in which we highlight the last month's key developments affecting lawyers and the professional risks they face.
Read moreFCA Business Plan 2024/25: Regulator sets out its plan of action for the next 12 months
The FCA has published its Business Plan for 2024/25, outlining its objectives over the next 12 months to deliver what it promised in its 3-year strategy, launched in April 2022. The FCA describes an "ambitious programme" of work ahead, seeking to achieve better outcomes for consumers and markets.
Read moreSome rumblings but little thunder – the FCA's Thematic Review of retirement income advice
The FCA has published the long-awaited result of its Thematic Review into retirement income advice. Predictably, this highlights some areas for improvement but (dare we say) the overall tone is perhaps positive.
Read moreFOS cap increases to £430,000 and £195,000 for complaints referred on or after 1 April 2024
In a press release yesterday, FOS announced increases to the applicable FOS cap that will impact complaints referred to FOS on or after 1 April 2024. £430,000 will apply to complaints about acts or omissions by firms on or after 1 April 2019 where the complaint is referred on or after 1 April 2024 and £195,000 will apply to complaints about acts or omissions by firms on or after 1 April 2019 where the complaint is referred on or after 1 April 2024.
Read moreWhen breach gets you nowhere – Ickenham Travel Group Ltd v Tiffin Green Ltd
In a recent judgement the High Court reiterated the principle that breach of duty alone is not sufficient to succeed in a claim of professional negligence against an auditor. This highlights the importance of evidencing actual loss and a chain of causation.
Read moreFCA consultation proposes changes to enforcement investigations
The FCA has recently released a consultation paper proposing changes to how it carries out enforcement investigations. We consider the key proposals and how they may impact upon both firms and individuals under the FCA's regulation.
Read moreFCA reviews ongoing client services following Consumer Duty implementation
The FCA has made a request for information from a number of networks with a view to determining what further work is needed to ensure that ongoing services provide fair value under the Consumer Duty. It has also recently published a webpage with examples of good practice and areas for improvement.
Read moreLawyers Covered - February 2024
Lawyers continue to face a wide range of challenges, and we are here to help guide you through them. So, welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.
Read moreFixing up the rules: changes to the fixed recoverable costs regime coming soon to a White Book near you!
Practitioners are eagerly awaiting the first decisions to see how the Court deals with tricky issues such as the effect of the transitional provisions and assignment of a complexity band. In the meantime, the Civil Procedure Rules Committee and the Ministry of Justice have been busy refining the rules and the 163rd update to the Civil Procedure Rules has been published. We've read it all so that you don't have to and explain below what's new in the world of FRC.
Read moreClaims against auctioneers: (not) going going gone!
Auctioneers – daytime TV shows suggest they are a rather friendly, energetic bunch of people, but did you know they're facing an increase in professional negligence claims? We delve into what happens if complaints are made after the gavel falls.
Read morePension Ombudsman upholds complaint against SSAS trustee for investment decision
In a complaint made against Rowanmoor as administrator and trustee of a small self-administered pension scheme (SSAS) regarding investments made by the SSAS in The Resort Group, the Pension Ombudsman has rejected the complaint against the administrator but upheld the complaint against the trustee. The decision addresses the responsibilities of a pension trustee when making investments including the obligation to diversify assets and to avoid investments "attended with hazard". As the customer was also a trustee of the SSAS (which is always the case with a SSAS) the Ombudsman also considered the contributory fault of the customer, finding that the customer as trustee was responsible for 20% of the loss and in doing so putting to one side the principle that trustees are jointly and severally liable for acts as trustee.
Read moreFOS aims to remain cost-free for consumers – by charging their CMCs
In what is perhaps a sign that the cost-of-living crisis is impacting more than just you and I, the Financial Ombudsman Service (FOS) has announced plans to begin charging case management companies (CMCs) a fee for bringing a complaint – the aim being to balance the needs of consumers, with financial sustainability. What impact is this likely to have on consumers and those facing complaints at FOS?
Read moreVehicle finance – FOS driving review forward, but is anyone behind the wheel?
In this article, David Allinson, Partner at RPC, has teamed up with Alex Barry, Claims Director at Collegiate Management Services Ltd, to consider a recent Financial Ombudsman Service decision concerning discretionary commission arrangements and vehicle finance loans. FOS has now published a small number of Final Decisions on this topic, which have been picked up by Martin Lewis (MoneySavingExpert.com) and the FCA, and could have wide-ranging consequences for a number of different professions and their insurers.
Read moreLawyers Covered - January 2024
We hope 2024 has started well for all of you. A new year but some things remain constant - lawyers continue to face a wide range of challenges, and we are here to help guide you through them. So, welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.
Read moreVehicle finance complaints gather speed
Following on from our recent blog on the changes to the FCA's complaint handling rules for complaints involving discretionary commission arrangements, the FOS has now published dedicated webpages concerning such complaints.
Read moreInsolvency trends and implications for claims against D&Os and Insolvency Practitioners
Looking into the crystal ball at the start of the year to forecast future trends isn’t possible, but one common theme that we expect will continue to impact upon both directors and officers and insolvency practitioners (IP) is the increasing rise of corporate insolvencies.
Read moreMoney Covered: January 2024 - predictions for the year ahead
Welcome to Money Covered, a monthly podcast from RPC aimed at those dealing with complaints, claims and risk management in the financial services sector.
Read moreDirectors' Duties to Disclose Interests In Proposed Transactions: Not a one-size-fits-all approach?
The Court of Appeal has recently grappled with the contentious issue of when directors will be considered to have acted in breach of their fiduciary duties for having pursued a business opportunity for their own benefit. In the case of Humphrey & Anor v Bennett [2023] EWCA Civ 1433, the Defendants were the directors and the majority shareholders of a property development SME company (the Company). The Claimants were former directors and minority shareholders of the Company. The Claimants' claim against the Defendants was brought derivatively in the name of the Company (with the permission of the Court) under section 260 of the Companies Act 2006 (CA06).
Read moreLawyers Covered - December 2023
What could be more festive than our December edition of Lawyers Covered – so here it is, a gift from the Lawyers Liability and Regulatory Group at RPC, to all of you, our lovely readers! If you have any feedback or ideas for topics that you would like us to cover in the newsletter or in our seminars, please let us know. Happy holidays!
Read moreMoney Covered: The Year That Was – a round up of all the key developments from 2023
Welcome to Money Covered, a monthly podcast from RPC aimed at those dealing with complaints, claims and risk management in the financial services sector.
Read moreAn insurance broker's standard of care – Bridging the insurance knowledge gap, not quite Sherlock Holmes but the broker must follow up obvious gaps and uncertainties
In a recent judgment, the High Court looked at the scope of duty of an insurance broker in circumstances where the claimant/policyholder had insufficient cover following a warehouse fire. The judgment arguably does not break new ground, but serves as a useful reminder that an insurance broker should make sure it fully understands a policyholder's business to be in a position to properly consider relevant insurance, notes of meetings are critical and warnings in generic documents are unlikely to discharge any duty if the insurance broker does not know enough about the business to recommend appropriate cover or is otherwise on notice of risks that it does not look to cater for. The judgment also looks at contributory negligence where the claimant/policyholder did not adequately calculate turnover for the purposes of business interruption cover, finding that the claimant contributed to the underinsurance position it was left in and reducing damages by 20%.
Read moreLawyers Covered - November 2023
Welcome to the latest edition of our Lawyers Liability & Regulatory Update, in which we look back over the last month at key developments affecting lawyers and the professional risks they face.
Read moreSevere consequences: severance of success fee provisions in a CFA not allowed
In Diag Human v Volterra Fietta [2023] EWCA Civ 1107 , the Court of Appeal held that a firm of solicitors that had entered into an unenforceable conditional fee agreement (CFA) could not obtain payment by severing the offending terms of the agreement and nor was payment on a quantum meruit basis permitted for public policy reasons. The consequence of this was that their clients were entitled to the return of sums paid on account.
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