Safe haven to sanctions: how Jersey sheltered Roman Abramovich’s billions

Court papers show the island cautiously welcomed the oligarch – with London’s approval – before Russia’s invasion of Ukraine

For decades the Channel Islands tax haven of Jersey has played a big role in moving fortunes made in some of the world’s most despotic countries into the west, attracting overseas oligarchs with a mix of low tax and high levels of financial secrecy.

It is a secrecy that extends to Jersey’s relationship with the UK government. As a crown dependency, Jersey has its own parliament, but belongs to the king. The relationship between the two jurisdictions remains something of a black box, with very little public information on how the big decisions are made, or to what extent Westminster is consulted.

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Banks need stricter controls to prevent romance fraud, says City regulator

FCA cites study showing victims’ ‘red flags’ are often missed and calls for improved monitoring systems

The City regulator has called on banks and payment firms to bring in stricter controls protecting customers from romance fraud after a study showed a number of missed “red flags” that led to people losing huge sums of money.

The review by the Financial Conduct Authority (FCA) highlighted one case where someone lost £428,000, another where a customer made 403 payments totalling £72,000 to a fraudster and a case where someone wanted money to transfer cryptocurrency to their “partner” in Iraq.

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Millions in line for payouts from £18bn car loan compensation scheme

City regulator says motorists should start to get payments in 2026 with ‘most payouts likely to be under £950’

Millions of drivers could be handed a share of a multibillion-pound compensation package after the City regulator said it would open a redress scheme for consumers affected by the car finance scandal.

The Financial Conduct Authority (FCA) will consult on the redress scheme, which could cost banks between £9bn and £18bn when it begins paying consumers compensation next year.

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New ‘buy now, pay later’ affordability checks may cover even smallest loans

City watchdog publishes details of its plans to regulate the BNPL market, which has now grown to £13bn

Lenders may have to carry out affordability checks on even the smallest buy now, pay later loans under new rules drawn up by the City watchdog.

The Financial Conduct Authority (FCA)on Friday published details of its plan to regulate the £13bn buy now, pay later (BNPL) market.

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About £1bn in car loan compensation at risk because data deleted, lawyers warn

Lenders’ routine purging after six years means details of some car buyers due compensation may have been lost

Consumers are at risk of losing £1bn of compensation over inflated car loans because high street banks and specialist lenders deleted their data, claims lawyers have warned.

Borrowers, banks and the government are anxiously awaiting a ruling from the supreme court that could spark one of the biggest redress schemes since the £50bn payment protection insurance (PPI) saga.

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City watchdog ponders rule changes to simplify comparisons of financial products

FCA to explore simplifying communications about savings accounts and review parts of its credit advertising rules

The City watchdog is considering changing rules to allow people to receive clearer information from financial firms to make it easier for them to find and compare products.

The Financial Conduct Authority (FCA) is exploring how it can simplify communications about savings accounts. The watchdog, which will announce its five-year strategy on Tuesday, will also review parts of its credit advertising rules, such as lengthy terms and conditions.

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Ex-Barclays CEO gears up for explosive trial over City regulator’s allegations on Jeffrey Epstein ties

Court papers seen by the Guardian mean Jes Staley’s appeal against FCA ruling will demand answers on links to sex offender

The former chief executive of Barclays, Jes Staley, is gearing up for an explosive trial next month, that will force him to address evidence suggesting he hid the depth of his relationship with Jeffrey Epstein, the sex offender he referred to as “family”.

Court documents seen by the Guardian reveal myriad allegations made by the Financial Conduct Authority (FCA), including that Epstein messaged Staley about sex, women and foreign holidays, while working behind the scenes to bolster Staley’s career by liaising with government officials, business leaders and royalty.

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UK mortgage rules could be eased to increase growth

FCA also aims to change law to try to prevent a repeat of mass compensation schemes for consumers such as PPI

Mortgage rules could be loosened by the City regulator as it comes under government pressure to increase economic growth and home ownership across the UK.

The move to “simplify responsible lending” for property purchases is part of a range of proposals put forward by the Financial Conduct Authority in an attempt to prove that the watchdog is not standing in the way of the Labour cabinet’s “growth mission”.

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City regulators to start oversight of tech firms that provide ‘critical’ services to UK

New powers come amid concerns that cyber-attacks and outages could put the country’s financial stability at risk

City regulators will begin cracking down in the new year on tech firms providing “critical” services to UK banks amid concerns that cyber-attacks and outages at companies such as Google or Amazon could put the country’s financial stability at risk.

From 1 January, the Bank of England and the Financial Conduct Authority will be handed powers to regulate companies that are becoming a crucial part of the day-to-day operations of the increasingly digital banking and payments sector.

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Barclays fined £40m for ‘reckless’ failures in 2008 Qatari fundraising

Bank’s shares rise as it disputes FCA finding it should have disclosed more about deal during financial crisis

Barclays will pay a fine of £40m for “reckless” failures to disclose a fundraising deal with Qatar at the height of the financial crisis, after the British bank agreed to withdraw a legal challenge against it.

The FTSE 100 bank effectively won a discount of £10m by challenging the fine, but was found by the regulator to have committed serious misconduct. Barclays withdrew an appeal shortly before it was due to be heard on Monday by the upper tribunal, a court in London.

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More than 5,000 investors now suing Hargreaves Lansdown

Claims management company expects claims over collapsed Neil Woodford fund to exceed £200m

More than 5,000 people who invested in Neil Woodford’s collapsed equity fund are suing Hargreaves Lansdown, claiming that the investment platform was still promoting the fund even when it was aware of its problems.

The number of people suing Hargreaves Lansdown, the UK’s largest investment site, has almost doubled in the past two years, according to the claims management firm RGL Management. Two years ago the number of people taking part stood at 2,750.

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Reeves tells City regulator to encourage more risk-taking in financial sector

New remit given to FCA by chancellor raises fears of a weakening of rules meant to avert another financial crisis

The financial regulator has been ordered to encourage more risk-taking across the City, raising concerns that the Labour government is in danger of watering down rules meant to avoid another financial crisis.

In an official “remit” letter addressed to Financial Conduct Authority (FCA) boss, Nikhil Rathi, the chancellor, Rachel Reeves, said regulations meant to protect consumers should not stand in the way of “sensible risk-taking” by investors and the wider financial sector, which includes banks, asset managers and insurers.

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Lloyds shareholders could take £1bn hit over car finance crisis

Analysts forecast bank will have to halve £2bn buyback plan, as ex-boss of City regulator blames watchdog for crisis

Lloyds Banking Group could give almost £1bn less to shareholders this year as a result of the car finance crisis, analysts have said, as the City regulator’s former boss blamed the watchdog for the chaos.

The estimated size of a multibillion-pound compensation bill for motor lenders has grown after a shock court of appeal ruling last Friday, which said customers could not consent to motor loans that involved “secret commission” payments to brokers and car dealerships.

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Regulators urged to examine UK business dealings with Bangladeshi ex-minister

HMRC and FCA asked to look into property deals with Saifuzzaman Chowdhury now under investigation for corruption in Dhaka

British regulators have been urged by MPs to examine the relationship between London estate agents, lawyers and lenders and a former Bangladeshi government minister under investigation for alleged corruption.

Saifuzzaman Chowdhury was the land minister in Bangladesh until earlier this year, when the government of Sheikh Hasina was spectacularly toppled, after her regime’s violent suppression of student protests.

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Lack of City of London oversight hurting efforts to halt dirty money, FCA warns

Bodies responsible for monitoring accounting and legal sectors not doing enough to stop money laundering, watchdog says

A lack of proper oversight across the City of London’s network of lawyers, bookkeepers and accountants is hampering efforts to crack down on dirty money being funnelled through the UK, the City watchdog has warned.

The latest report by the Financial Conduct Authority (FCA) flagged concerns over the work of the UK’s 25 professional bodies – which oversee the accounting and legal sectors – and found that some were spending as little as £73 a year on anti-money laundering supervision or were outsourcing it entirely to third parties.

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Banks warned over denying sex workers business accounts

FCA gives detailed guidance to lenders after hearing lack of access could lead to ‘significant harm’ for individuals

The City regulator has warned UK banks over denying accounts for sex workers, after hearing that a lack of access to business banking could lead to “significant harm” for individuals.

The Financial Conduct Authority (FCA) said that while banks said they were able to provide accounts for the adult entertainment industry in theory, they were often denying or shutting down business accounts in practice.

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Surprise jump in number of UK people mainly using cash for daily spending

Banking body reports increase to 1.5m in 2023 – the highest since before Covid – despite move to cashless society

There has been an unexpected jump in the number of people who mainly use notes and coins for their daily spending, despite the UK moving closer to becoming a cashless society, a report has found.

The volume of contactless and mobile payments increased last year, while the number of cash payments resumed a downward trajectory after enjoying a brief comeback in 2022, the banking body UK Finance noted in its annual report on the UK payments market.

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Millions more in cash needed to fund UK’s open-banking watchdog

Exclusive: £10m needed for regulator charged with developing tools to thwart financial crime and protect consumers

Banks are under pressure to stump up millions of pounds in interim funding for the organisation that polices open banking, with regulators saying the new money is needed to prevent financial crime and protect consumers if things “go wrong”.

Large banks including NatWest, HSBC, Lloyds and Santander UK were among more than 40 City firms summoned by the Financial Conduct Authority (FCA) last week to discuss a cash injection into Open Banking Limited (OPL), the body that oversees innovation in this area.

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Fujitsu won £1.4bn in new government contracts after court ruling on Post Office software bugs

MPs find Treasury-affiliated bodies have engaged Horizon firm since damning 2019 high court judgment

The Japanese technology company Fujitsu, whose flawed technology for the Post Office led to the wrongful prosecution of hundreds of subpostmasters, is confirmed to have held contracts worth more than £3.4bn linked to the Treasury since 2019.

Figures published by the Commons’ treasury committee show £1.4bn of contracts were awarded to Treasury-affiliated organisations after a high court ruling in December 2019 over the company’s software. The judgment found that “bugs, errors and defects” in Fujitsu’s Horizon system could cause shortfalls in Post Office branch accounts.

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UK car finance: ‘millions of drivers could get payout’ as watchdog investigates

FCA to examine whether consumers have been charged inflated prices for loans on new and secondhand cars

Millions of drivers could be in line for a payout, it has been claimed, after the UK financial watchdog opened an investigation into whether consumers had been unfairly charged inflated prices for loans on new and secondhand cars.

The Financial Conduct Authority said on Thursday that it had decided to examine whether a compensation scheme was needed to deal with alleged large-scale mis-selling in the £50bn-a-year motor finance sector.

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