Industry Highlights – May
Controversy over the Regulators’ new offices
The new Prudential Regulatory Authority is going to be based in Moorgate in order to be closer to the Bank of England, of which it will be a subsidiary, when the FSA is split. The move will increase the organisation’s property costs by a reported £1m per annum.
Arch Cru redress scheme launched
The Financial Services Authority (FSA) has opened a consultation on a consumer redress scheme for investors who were mis-sold CF Arch Cru Investment and Diversified funds. This will be the first time that the FSA has used its powers, granted under section 404 of the Financial Services and Markets Act. PII policies may cover some firms depending on the policy clauses.
Boiler room scams ( jail sentences and increase in people trying, but failing to succeed)
Published statistics from the FSA dindicate that the number of reports of cloned firms or share fraud in 2011 have increased dramatically since 2010. The FSA has created and published a video designed to help defend consumers against share fraud