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Speaking at the FSA’s financial crime conference, Tracey McDermott (acting director of enforcement and financial crime) explained that the Financial Conduct Authority (FCA) will assume the FSA’s responsibilities on financial crime and will continue to focus on “the use of firms as a conduit for financial crime”

New complaints handling rules have been confirmed by the FSA and an increase in the FOS award limit from £100,000 to £150,000.

In the recently issued Regulation Round Up the FSA have confirmed that their online fee calculator will be updated at the end of May to allow firms to calculate the level of their forthcoming fees.

It has published its annual review covering the financial year, which reveals that in 2010/11 it received 7,067 mortgage complaints, down from 7,469 in 2009/2010 and 7,602 in 2008/2009. However 51% of the new cases were about the sale of payment protection insurance (PPI) with the number more than doubling to 104,597 – the highest number ever received in a year about a single financial product

If your firm has sold pure protection insurance then you should have received the FSA’s ‘Dear Compliance Officer’ letter dated 29^th November 2010. 

This requires all firms selling pure protection contracts to undertake a review of their processes and confirm in writing to the FSA that they are meeting the oral disclosure requirements of ICOBS. 

A deadline of six months was given to complete this check – which will expire at the end of May.

The Bank of England MPC has announced that base rate will remain at 0.5% -  at least for one more month.  Higher than expected inflation figures last month and a number of indicators suggesting that the economy was beginning to recover more strongly had pushed the case for rate rises, but events in the last few days have suggested that the economy may not be able to stomach a rise just yet!

Following on work which highlighted the shortcomings in current auditing practices involving client money the FSA has announced additional requirements which will take effect from 1st June 2011.

The Financial Ombudsman Service may have to impose an emergency levy on all firms following the refusal of many firms to pay case fees for PPI complaints whilst the results of the British Bankers Association Judicial Review are awaited.

The banning of payment protection insurance at point of credit sale has now been confirmed by the Competition Commission.  A seven day gap between the quote being issued and the PPI sale must be followed.  A number of additional rules have also been introduced.

In its Business Plan for 2011/12 published today, the FSA has insisted that the Mortgage Market Review (MMR) will not become a 'one size fits all' exercise and that they will look to balance consumer protection against consumer choice.