Category Archives: Regulators

Sunak rejects calls for BBC chair, Richard Sharp, to stand down

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PM says he does not want to prejudge inquiry and that appointment was made after the ‘correct process’

Rishi Sunak has rejected calls for Richard Sharp to stand down as BBC chairman, despite the businessman failing to declare his role in arranging a secret £800,000 personal loan for Boris Johnson.

Sharp has been criticised by MPs for “significant errors of judgement” over his failure to mention his role in helping to arrange the loan for the former prime minister in early 2020. Johnson later appointed Sharp, a Conservative party donor, to oversee the BBC’s board.

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Scams: FCA blocks more than 10,000 ads from Instagram, Facebook and YouTube

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Financial watchdog warns over rise of ‘fin-fluencers’ targeting younger people on social media

More than 10,000 misleading financial promotions and scams aimed at consumers via social media sites such as Instagram, Facebook, YouTube and TikTok have been identified and targeted by the financial watchdog during the past year.

The Financial Conduct Authority (FCA) said the use of social media marketing channels and the rise of so-called “fin-fluencers” – particularly directing investment products at younger age groups – exploded last year, resulting in a record number of takedown notices and alerts.

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UK charities watchdog ‘assesses concerns’ about Campaign Against Antisemitism

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Commission opens ‘regulatory compliance case’ after complaints that the charity is politically partisan

The Charity Commission has said it is “assessing concerns” about the Campaign Against Antisemitism, which was at the forefront of antisemitism allegations against Labour under Jeremy Corbyn’s leadership.

The commission has opened a regulatory compliance case against the CAA, after complaints including that the charity is politically partisan.

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FTX assets worth $3.5bn held by Bahamas securities regulator

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Authority says it is holding digital assets until they can be returned to creditors and former customers

The Bahamas securities regulator has said it has seized assets worth $3.5bn (£2.9bn) from the failed cryptocurrency exchange FTX and plans to return them to creditors and former customers.

The Securities Commission of the Bahamas said it had transferred all digital assets under the custody or control of FTX Digital Markets, a Bahamas subsidiary of the FTX operation, to its own digital wallets for “safekeeping”.

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Jeremy Hunt to outline plans for shake-up of City regulation

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Chancellor expected to target senior managers’ regime and ringfencing rules in 30-point package

Jeremy Hunt is due to unveil a 30-point package of City policy changes on Friday that will involve rowing back on regulations in order to boost competition and growth.

The chancellor’s announcement, referred to as the “Edinburgh reforms”, will outline how the government intends to “review, repeal and replace” a host of rules that were introduced to protect savers and the taxpayer after the 2008 financial crisis, but which ministers now believe risk hindering the success of London’s banks and insurers compared with their overseas peers.

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Labor government locks in compensation scheme for financial misconduct victims despite ‘god-like powers’ warnings

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Minister for financial services says government’s accountability regime is ‘locked and loaded’ and will not be changed

The Labor government will push ahead with a new compensation scheme for victims of financial misconduct, refusing to water down civil penalties for the finance sector, and rejecting a claim it would give the responsible minister “god-like powers” to punish banks.

The assistant treasurer and minister for financial services, Stephen Jones, said the government’s financial accountability regime was “locked and loaded” and will not be changed, and rejected Liberal senator Andrew Bragg’s call to have parliament determine the scope of a new levy on financial industry members that will pay for the scheme.

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Barclays could be fined £50m for failing to disclose 2008 Qatari deal

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Provisional fine relates to £322m bank paid to Gulf state allegedly in exchange for £4bn investment to save lender from bailout

The City watchdog could fine Barclays up to £50m for failing to disclose a deal struck with Qatar at the height of the financial crisis, reviving a controversial episode that failed to gain traction in UK courts.

The provisional fine – which Barclays is in the process of appealing against – relates to the £322m the bank paid to Qatar in 2008, allegedly in exchange for the gas-rich Gulf state investing £4bn, helping save the lender from a UK government bailout.

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UK trade regulators struggling to cope due to poor Brexit planning, MPs say

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Commons committee warns there are still shortages of staff to deal with UK’s new status as a third country

UK regulators are struggling to cope with the post-Brexit trading environment because of “poor preparation and planning”, a House of Commons committee investigation has found.

Almost two years after the UK quit the EU, there are still shortages of vets, toxicologists, lawyers and economists to deal with the UK’s new status as a “third country”, found the public accounts committee report, Regulating After EU Exit.

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Inflight wifi could be pricier if takeover of UK satellite firm goes ahead, says CMA

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Competition and Markets Authority says other operators may not be able to compete after merger of Inmarsat and Viasat

The $7.3bn (£5.4bn) takeover of the British satellite company Inmarsat by its US rival Viasat could result in higher-priced and lower-quality wifi for aeroplane passengers, according to the UK competition watchdog.

The Competition and Markets Authority said its investigation has identified concerns with the merger possibly leading to airlines being offered lower-quality products for onboard wifi and facing higher prices to deliver it.

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UK watchdog to examine whether telecoms companies mislead customers

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Cap says mobile and broadband users must get clear information about inflation-busting bill increases

The UK advertising watchdog has launched an investigation into whether telecoms companies are misleading consumers about inflation-busting bill increases when promoting deals in their marketing campaigns.

Telecoms companies make billions of pounds annually by instituting price rises to mobile and broadband bills midway through contract periods – increases that will add to the biggest squeeze on the cost of living facing households in generations.

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UK forces crypto exchanges to report suspected sanction breaches

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New rules in response to Russia’s invasion of Ukraine cover all notionally valuable digital assets

Crypto exchanges must report suspected sanctions breaches to UK authorities under new rules brought in amid concerns that bitcoin and other cryptoassets are being used to dodge restrictions imposed in response to Russia’s invasion of Ukraine.

Official guidance was updated on 30 August to explicitly include “cryptoassets” among those that must be frozen if sanctions are imposed on a person or company. As well as digital currencies, such as bitcoin, ether and tether, cryptoassets could include other notionally valuable digital assets such as non-fungible tokens.

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City regulators clears HBOS ex-bosses of misconduct over bank’s near-collapse

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Watchdogs say six-year investigation had determined no grounds for action against unnamed individuals

City regulators have cleared former bosses of HBOS of misconduct in the lead-up to its near-collapse in 2008, despite previously having blamed the bank’s board for its failure.

The Bank of England and Financial Conduct Authority (FCA) said on Friday that they had concluded “rigorous and forensic investigations” into unnamed former managers, after gathering more than 2m documents, interviewing former bank managers, and undertaking “substantial analysis” of the bosses’ roles and responsibilities at what was then the country’s biggest mortgage lender and savings institution.

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Blackmores subsidiary kept selling pregnancy vitamins despite hundreds of complaints, ex-employee alleges

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Whistleblower says he was instructed to tell customers the products were safe to consume, despite lack of testing evidence

A subsidiary of the supplements company Blackmores left a pregnancy multivitamin on shelves for nearly a year despite hundreds of complaints that it was contaminated with mould-like black spots, a former staff member has alleged.

In a complaint to the Therapeutic Goods Administration, Peter Ellis alleged FIT-BioCeuticals brushed aside concerns about its products, including pregnancy vitamins and vitamin D drops being used by a children’s hospital, in potential breach of quality regulations.

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Former US Coinbase employee and two others charged with insider trading

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Cryptocurrency exchange manager and his brother arrested in Seattle in what is described as the first case of its kind

A former Coinbase employee and two others have been charged in what federal authorities described as the US government’s first cryptocurrency insider trading case.

Ishan Wahi, a product manager at the cryptocurrency exchange, and his brother Nikhil Wahi were arrested in Seattle on Thursday. They and a third defendant, their friend Sameer Ramani, who remains at large, also face civil charges from the US financial watchdog, the Securities and Exchange Commission (SEC).

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CMA investigates sport broadcasters over ‘cartel-like behaviour’

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Watchdog says it suspects possible breaches of competition law around purchase of freelance services

The competition watchdog is investigating possible cartel-like behaviour by sport broadcasters including BT Group, ITV, Sky and IMG Media, which includes Premier League Productions, around the purchase of freelance services.

The Competition and Markets Authority said it believes there are “reasonable grounds to suspect one or more breaches of competition law”.

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UK watchdog opens investigation into Amazon’s marketplace practices

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CMA looks into whether firm gives own sellers unfair advantage over third-party rivals

The UK competition watchdog has launched an investigation into whether Amazon has been giving its own brands and those using its logistics services unfair advantage over third-party rivals on its online marketplace.

The Competition and Markets Authority (CMA) said it opened an investigation on Tuesday amid concerns the US tech corporation’s practices on its UK marketplace may be anti-competitive and could result in a worse deal for customers.

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Boris Johnson faces investigation into claims over 40 ‘new’ hospitals

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Trusts reveal only five wholly new hospitals planned, as Labour says the scheme ‘exists only in PM’s imagination’

The government’s official spending watchdog is to launch an inquiry into Boris Johnson’s claim that 40 new hospitals will be built by 2030, as concerns grow in Whitehall that the pledge is unaffordable and has been greatly oversold to the public.

In a move that could prove hugely embarrassing for the prime minister, the independent National Audit Office (NAO) has decided to conduct a “value for money review” into the entire scheme, which was a cornerstone of the Conservative party’s 2019 general election manifesto.

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Ofwat extends sewage dumping inquiry to include South West Water

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Regulator expands investigation after suggestions water firm was not complying with legal obligations

The regulator Ofwat has expanded its investigation into the dumping of raw sewage to include South West Water after finding “shocking” failures in the way the majority of water companies run their waste treatment works.

Ofwat said on Tuesday it had extended its inquiry after heightened concerns about South West Water’s environmental performance and suggestions it was not complying with its legal obligations.

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Power firms must ‘up their game’ after Storm Arwen failures, says Ofgem

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Regulator berates network operators for ‘unacceptable’ time taken to restore power to thousands of homes

Power companies must “up their game” after thousands of households in Britain faced “appalling conditions” when they were left without power for more than a week after Storm Arwen hit last year, the industry watchdog has said.

Publishing its full report into the response of power distributors to the storm, Ofgem said they were underprepared and provided an “unacceptable service” to customers, with nearly 1m homes losing power and 4,000 of those cut off for longer than a week.

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Youpla funeral fund collapse: minister seeks advice on compensating victims

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Stephen Jones says he needs to know scale of problem before committing to redress scheme

The new minister for financial services has asked Treasury for advice on how to compensate Indigenous people who were victims of the collapse of the funeral expenses fund Youpla.

Stephen Jones, who was sworn in last Wednesday after Labor’s election victory, stopped short of committing the Albanese government to compensating the victims, telling Guardian Australia he first needed to understand how big the problem was.

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