Category: Regulation

FCA
October 18, 2024 BY Sam Boughedda

UK Government Plans to Curb BNPL Risks with Regulations

The move aims to protect consumers and ensure that BNPL providers operate fairly and responsibly. On Thursday, the UK government launched a consultation on draft legislation to regulate the BNPL market. The proposed regulations seek to provide consumers with clear information, prevent unaffordable borrowing, and establish strong consumer rights. The FCA welcomed the government's consultation…

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ASIC ban
October 15, 2024 BY Sam Boughedda

ASIC Warns of 'Significant Increase' in Reports of Stolen Shares

The regulator explained in a release that fraudsters are impersonating individuals and stealing their shares, often leaving victims unaware until they receive unexpected notifications from share registries or the Clearing House Electronic Subregister System (CHESS). According to ASIC, there has been a significant increase in reports of stolen shares since August 2024. The regulator said…

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October 15, 2024 BY Sam Boughedda

UBS Told to Bolster Emergency Plans

The regulator informed the bank that it needs to ensure it can be wound down or sold without risking financial stability or taxpayer funds. As UBS integrates Credit Suisse, FINMA said it has suspended the annual approval of UBS's recovery and emergency plans. The regulator believes that additional measures are necessary to strengthen crisis preparedness…

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October 11, 2024 BY Sam Boughedda

ASIC Cracks Down: Cancels Two Financial Services Licences and 11 Credit Licences

The cancellations took place based on various compliance failures. These reportedly included non-membership in the Australian Financial Complaints Authority (AFCA), late lodgement of annual compliance certificates, failure to submit financial statements, and non-payment of industry funding levies. ASIC explained that AFCA membership is mandatory for financial services and credit licence holders. The membership means consumers…

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October 07, 2024 BY Sam Boughedda

Revolut Calls for Meta Platforms to Reimburse Fraud Victims

According to Revolut's Consumer Security and Financial Crime Report, Meta platforms remain the primary source of scams reported to the company, accounting for 62% of all scams in the first half of 2024. They stated that Facebook was the most common source, followed by WhatsApp and Telegram. Revolut is concerned that Meta's data-sharing partnership primarily…

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CFTC
October 02, 2024 BY Sam Boughedda

CFTC Orders Taiwanese Firm Taishin Securities to Pay $200,000 for Wash Sales

The CFTC revealed that Taishin executed 50 wash trades between October and December 2022, totaling 175 contracts worth approximately $17 million. The trades were designed to minimise market competition by offsetting purchases and sales of the same futures contract at the same price, effectively negating the risk and price competition inherent in open market transactions.…

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October 02, 2024 BY Sam Boughedda

ASIC Cancels Prospero Markets AFS License

Prospero's AFS license was suspended in December 2023 after the company failed to submit its 2023 audited financial accounts. Following an application by ASIC, the Federal Court ordered Prospero to be wound up and liquidators appointed in April 2024. Under the Corporations Act, ASIC said it has the power to suspend or cancel an AFS…

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FCA
September 27, 2024 BY Sam Boughedda

FCA Proposes New Rules to Protect Customers of Payments Firms

The FCA explained that while the use of payment firms has grown in recent years, it "continues to see poor safeguarding practices from firms," putting customers at risk of losing their money. While funds held by these firms are not directly protected by the Financial Services Compensation Scheme (FSCS), firms are required to have safeguards…

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SEC
September 26, 2024 BY Sam Boughedda

Merrill Lynch and Harvest Volatility Management Hit with $9.3m Penalty By SEC for Ignoring Client Instructions

According to the SEC's complaint, Harvest, as the primary investment adviser and portfolio manager for the Collateral Yield Enhancement Strategy (CYES), allowed numerous client accounts to exceed their designated investment limits. It led to higher fees, increased market exposure, and ultimately, investment losses for clients. Merrill Lynch, which introduced clients to Harvest and received a…

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