FSA – STATEMENT ON GOLDMAN SACHS

Following preliminary investigations the FSA has decided to commence a formal enforcement investigation into Goldman Sachs International in relation to recent SEC allegations.

The FSA will be liaising closely with the SEC in this review.


Source: Financial Services Authority

FSA Website

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FSA – QUINN INSURANCE

The Financial Regulator in Ireland announced on 21 April 2010 that it is permitting Quinn Insurance Limited (QIL) to write new business on provisional motor insurance in the UK.

The Irish Financial Regulator (IFR) stated that it had taken the decision after careful consideration and analysis of information provided by the administrators of QIL in relation to important improvements in the company’s underwriting model and significant strengthening of its pricing structure. The IFR has consulted closely with the Financial Services Authority prior to making its decision.

QIL was placed in provisional administration by the High Court in Ireland on 30 March and instructed to cease writing new business. Administration was confirmed on 15 April 2010.

The Irish regulator has confirmed that existing policyholders in the UK will continue to be covered. Customers of the firm can continue to make claims and should continue to pay direct debits and premiums in the normal way to remain covered.


Source: Financial Services Authority

FSA Website

FSA – HANDBOOK DEVELOPMENT

For the latest information regarding recent Handbook related development please see the FSA website link below.


Source: Financial Services Authority

FSA Website

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TCC Website

ABI – PETER MONTAGNON TO JOIN THE FRC

Peter Montagnon, the ABI’s Director of Investment Affairs is to leave the organisation to take up a new role at the Financial Reporting Council. In his decade at the ABI, Peter Montagnon has led a fundamental change in the landscape of UK corporate governance, with the ABI leading efforts to improve dialogue between boards and shareholders. ABI members currently own 15% of the UK listed market, the single largest group holding of UK equity.

Peter Montagnon will leave the ABI on 14 May ahead of taking up his new role with the Financial Reporting Council on 1 June.

Archie Kane, Chairman of the ABI, said:

“Peter Montagnon has made an invaluable contribution during his decade at the ABI, representing shareholders on a range of issues, both in the UK and internationally. On behalf of the ABI Board I would like to thank him for his hard work and wish him all the very best in his new role.”

Kerrie Kelly, Director General at the ABI, added:

“Although I have only worked with Peter for a short time, I have seen how effective he is in his dealings with companies and politicians alike. I look forward to working with him in his future role at the FRC.”

Peter Montagnon, Director of Investment Affairs, said:

“After nearly a decade in this role, now is the right time to take up a new challenge. It has been a privilege to represent the ABI’s members and play a leading role in driving forward higher standards of corporate governance and I look forward to continuing this work at the Financial Reporting Council.”


Source: Association of British Insurers

ABI Website

ABI – IMF PROPOSALS ON NEW TAX ON INSURERS NOT MERITED

Responding to reports that the IMF is planning a new levy on all financial institutions, not just banks, Kerrie Kelly, the ABI’s Director General, said:

“It is important that the financial system is made safe but it needs measures that are focused where the risks exist. Insurers were not a source of failure and their business model means they are not subject to the types of credit and liquidity risks that destroyed so many banks. Any inclusion of insurers within the scope of levies designed to impact on banks is essentially inappropriate and not justified.”

In addition to removing insurance from proposals for a bank bailout fund ABI calls on the IMF and G20 to consider:

• The need to ring fence any bail out funds so that they cannot be used for general public expenditure;

• How bail out funds would be apportioned across the EU and international borders;

• Bail out funds must be built up over time and should not be levied in such a way that damages companies as they continue working to emerge from this financial recession.


Source: Association of British Insurers

ABI Website

CML – GROSS LENDING UP IN MARCH

Gross mortgage lending was an estimated £11.5 billion in March, a 24% rise from £9.3 billion in February and a 3% rise from £11.2 billion in March 2009, according to data published by the Council of Mortgage Lenders. The figures are in line with the typical seasonal pattern of a rise in lending volumes in March.

Gross lending for the first quarter of 2010 was therefore an estimated £29.5 billion, a 24% decline from the fourth quarter of 2009 (£38.9 billion) and a 9% decline from £32.4 billion in the first three months of 2009. This is the lowest quarterly lending total since the first three months of 2000, but is very much in line with our forecast of a gross lending total of £150 billion this year.

In the CML market commentary, CML economist Paul Samter commented:

“Overall, housing and mortgage activity remains subdued, but is comfortably higher than in the depths of the recession a year ago. Despite the increase in activity late last year and a subsequent fall early this year - due to the end of the stamp duty holiday - the underlying position looks to have barely changed. But with the gradually improving economic backdrop and interest rates still low, we continue to expect a gentle improvement in market conditions later in the year.

“However, the longer-term problems facing the market remain and will limit the speed of recovery in the housing market and wider economy. Financial institutions still face the prospect of around £300 billion of official support schemes beginning to end from next year, and will need to find alternative funding sources. This will likely limit how much new funding can be made available to the housing market.”


Source: Council of Mortgage Lenders

CML Website

FOS – BANKS

Tony Boorman, Principal Ombudsman, spoke at the recent BBA conference. He set out how the Financial Ombudsman Service and the banking sector can better work together in future to improve complaints handling by:

• helping businesses understand our approach;

• handling complaints in a way that works for all;

• planning and sharing information about trends; and

• maintaining an open dialogue with businesses.


Source: Financial Ombudsman Service

FOS Website

FOS – TRAVEL INSURANCE INTERMEDIARIES

Tony Boorman, Principal Ombudsman, spoke to the Travel Insurance Industry and focussed his speech on the Icelandic volcanic ash issue.


Source: Financial Service Ombudsman

FOS Website