News round-up w/c April 26

The FCA has adopted a similar position regarding the proposed scheme of arrangement of a major doorstep lender to the stance it took when another one of these schemes was mooted by a guarantor lender a short time ago. Essentially, the regulator has made clear its concerns over the proposed scheme, but will not take action to block it, because the alternative of the firm pursuing an insolvency solution would mean that customers with complaints would receive an even smaller proportion of the amount they were owed by the company.


Financial recruitment agency reports massive improvement in the job market in first quarter

Recruitment consultancy BWD has reported that it has seen a remarkable recovery in financial services recruitment in recent months. It says that the numbers of interview invitations for candidates in its wealth management division have recovered to pre-pandemic levels. However, the number of job offers in the first quarter of 2021 was almost double that seen in the same period in 2020, even though the coronavirus pandemic did not really affect the UK significantly until close to the end of the first quarter of 2020.


Government announces compensation scheme for investors in failed mini-bond firm

The Government has launched a new compensation scheme for those customers of a failed mini-bond provider who were not eligible for redress from the Financial Services Compensation Scheme. However, these customers will not receive full compensation, as they might have been hoping to get from the FSCS. Instead, they can expect to be compensated for 80% of their initial investment, up to a maximum of £68,000.


FCA censures firm for failing to monitor its ARs effectively

The Financial Conduct Authority has publicly censured a Lloyds of London wholesale insurance and re-insurance broker and has also reached an agreement with the firm under which the London-based firm will pay £399,902 to disadvantaged customers. Had it not been for the evidence showing that the firm was experiencing financial hardship, it would also have been fined £958,100, or £670,600 with the 30% discount for early settlement being applied.


FCA’s acting COO to be interim CEO of FOS

Nausicaa Delfas will be the new interim chief executive and interim chief ombudsman of the Financial Ombudsman Service. Next month, Ms Delfas will leave the Financial Conduct Authority, where she is currently chief operating officer and head of international affairs. At the FCA, she was closely involved in the commencement of consumer credit regulation in 2014, and more recently, she has overseen the Brexit transition process.

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