October's Most Horrifying Regulatory News ??
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Happy Halloween, everyone!
How are you choosing to celebrate today? Have any plans to trick or treat with your children? A scary movie in the evening, perhaps?
Well, we hope you don't pick something too scary, because plenty has happened in the regulatory world this month which has struck fear and terror into the hearts of many compliance professionals...
And we're here to talk about it! So, in honour of Halloween today, we're going to sum up October's Most Horrifying Regulatory News for your most ghoulish pleasure.... enjoy!
1. Starling Banks "Shockingly Lax" Compliance Controls Leads to ￡29mil Fine
Big news around Starling Bank this month, as the FCA has revealed that the bank had?"shockingly lax" financial crime controls?and has subsequently fined the firm ￡29 mil. Some key takeaways include:?
A scary discovery for such a well known firm, but with big lessons for all! Business growth should not come at the expense of implementing strong compliance frameworks and financial crime controls.?
2. FCA Publishes Results Of Non-Financial Misconduct Survey Revealing Increase In Allegations
The FCA's survey of over 1,000 investment banks, brokers and wholesale insurance firms found that the number of allegations reported increased between 2021 and 2023.
Bullying and harassment (26%) and discrimination (23%) were the most recorded concerns. But 41% classed their concerns under 'other', which indicates how difficult it can be to categorise issues of personal misconduct.
Nothing sends a shiver up your spine like the words 'toxic workplace behaviour', and it's disheartening to see?the number of misconduct allegations increase. It also brings up an interesting question of just how well the FCA can challenge and discourage non-financial misconduct like this in the industry.?
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3. FCA Fines Volkswagen Finance ￡5.4m Over Treatment Of Customers In Financial Difficulty
The FCA has recently increased its enforcement actions in the car finance sector, in an attempt to protect end consumers from harmful financial products and services.?
The FCA found that, between 2017 and 2023,?Volkswagen Finance failed to properly support their customers and consider their circumstances, and in some cases, took cars away from vulnerable customers. Pretty frightening behaviour if you ask us... this has led to a ￡5.4 million fine, and?Volkswagen Finance has agreed to pay over ￡21.5m in redress to around 110,000 customers who may have suffered harm because of its failings.
4. FCA To Make Decision On Controversial Name And Shame Proposals Early Next Year
The FCA stirred up much controversy earlier this year with its plans to name firms under investigation. Some have welcomed these plans, saying that they will lead to greater accountability across the industry. Others have strongly denounced them, saying that the FCA will impose a 'guilty before proven innocent' mentality which may destroy the reputation of many firms.
The FCA have heard this backlash loud and clear, so now we wonder, will the regulator go forward with these plans which strike fear into the hearts of many? Will the UK's financial market be changed, for better or worse??Only time will tell, as the FCA has announced that they will make a decision on these proposals early next year.?
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