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The article discusses the rise of "finfluencers," or amateur financial advisers on social media, and the potential dangers they pose to consumers. While some finfluencers provide helpful financial tips, many lack the necessary qualifications and can give misleading or harmful advice. Australia stands out as an outlier in regulating finfluencers, requiring them to be covered by an Australian financial services license (AFSL). However, the problem persists globally, as social media platforms are largely unregulated and allow access to finfluencers from other countries. It is important for consumers to verify the legitimacy of finfluencers by checking their licensing status, sponsored posts, and real identities. [Extracted from the article]

The chair of the UK's Financial Conduct Authority (FCA), Ashley Alder, has been cleared of wrongdoing after accusations that he failed to protect the identity of internal whistleblowers. Although Alder did not strictly adhere to the FCA's policies when forwarding emails from whistleblowers, it was determined that his intention was to ensure appropriate action was taken. The FCA's senior independent director recommended that internal rules be adjusted to clarify that information will only be shared on a confidential "need-to-know" basis. The allegations also included mishandling of communications from a former FCA employee, who was dismissed for alleged misconduct and lost an employment tribunal case against the authority. [Extracted from the article]

A survey of over 150 executives and directors at London-listed companies conducted by Deutsche Numis reveals that the British government should focus on simplifying corporate governance requirements and encouraging pension funds to invest in local stocks in order to attract more initial public offerings (IPOs) to the UK's capital markets. Respondents also emphasized the importance of executive compensation in attracting IPOs, with 43% calling for a more competitive pay environment. While 87% of those surveyed believe that the UK is an attractive market for listing or raising capital, only 16% are confident that London can significantly improve its appeal to investors. [Extracted from the article]

Complaints from bank customers in the UK regarding financial products increased by 70% in the last quarter compared to the previous year, with credit cards and car loans being the main sources of disputes, according to the Financial Ombudsman Service. The rise in complaints is concerning, especially given the cost-of-living crisis, said Abby Thomas, the chief executive and chief ombudsman of the FOS. The Financial Conduct Authority has warned motor finance firms to prepare for additional costs as it reviews car finance products, and the FCA and Payment Systems Regulator are also investigating the sale of insurance products and rising fraud claims, respectively. The ombudsman encourages consumers to bring their complaints directly to the FOS, as using professional representatives does not necessarily lead to a more favorable outcome. The FOS is considering implementing a case fee for professional representatives to help cover its costs. [Extracted from the article]

The chair of the Financial Conduct Authority (FCA) has been accused of violating the FCA's policy on protecting the confidentiality of internal whistleblowers. Ashley Alder allegedly forwarded unredacted correspondence from a whistleblower to other individuals within the FCA without obtaining consent. The whistleblower, who was dismissed from the FCA for alleged misconduct, raised concerns about opaque hiring practices, leading to an internal review. The FCA has not commented on the matter. [Extracted from the article]

CK Infrastructure Holdings Ltd. had a light trading debut in London, with only 1,525 shares changing hands at 564 pence apiece. This is in contrast to the firm's primary Hong Kong listing, which had over HK$182 million traded. CKI is the first company to be admitted to the London Stock Exchange under new rules introduced by the Financial Conduct Authority, which allows issuers with a recognized overseas listing to seek a second listing in London. The move is aimed at attracting more companies to London, which has seen a decline in initial public offerings in recent years. [Extracted from the article]

H2O, a troubled asset manager, has agreed to repay its investors €250 million ($273 million) as part of a settlement with the UK's Financial Conduct Authority (FCA). The FCA found that H2O failed to conduct appropriate due diligence when investing in companies tied to German financier Lars Windhorst between 2015 and 2019. The investments were deemed highly risky and illiquid. The FCA also criticized H2O for its lack of safeguards surrounding conflicts of interest. The funds, which have been frozen since 2020, will now be released to investors who have been unable to access their funds. [Extracted from the article]

Law firms are providing safe harbours for investment firms worried about straying across the advice boundary and helping them prepare them for changes in the future [ABSTRACT FROM AUTHOR]

The UK's financial regulator, the Financial Conduct Authority (FCA), is back in court with BlueCrest Capital Management over a $700 million demand for investor compensation. BlueCrest successfully fought off the demand last year, with the judge ruling that the FCA had no power to impose such a requirement on a single firm. The FCA has now appealed the ruling, arguing that the judge imposed unnecessary conditions. The case centers around allegations that BlueCrest favored partners in an internal fund, creating conflicts of interest. BlueCrest denies the findings and is vigorously defending its position. [Extracted from the article]

The board of Home REIT Plc, a UK property company that provided accommodation to the homeless, has decided to wind down the company and sell off its remaining assets due to the risks involved in stabilizing it. This decision comes after a report by short seller Viceroy Research criticized the company's governance. Home REIT owes creditors £114.6 million ($149 million) and plans to use the proceeds from property sales to repay debts, fund litigation, and eventually return capital. The company is also facing potential group litigation and an investigation by the Financial Conduct Authority. [Extracted from the article]

Reality TV stars and social media influencers, including former Love Island contestants and stars from The Only Way is Essex and Geordie Shore, have pleaded not guilty to charges of promoting an unauthorized foreign exchange trading product on Instagram. The Financial Conduct Authority (FCA) accused Emmanuel Nwanze and Holly Thompson of running an Instagram account that provided advice on buying and selling contracts for difference without authorization. The FCA has expressed concern about the growing trend of "finfluencers" advertising financial products on social media without appropriate risk warnings or authorization. The trials for the accused stars are set to take place in 2027. [Extracted from the article]

CK Infrastructure Holdings Ltd. is considering a second listing on an overseas stock exchange, potentially in London, according to a filing to the Hong Kong stock exchange. The company believes that a second listing could benefit its diverse shareholder base, enhance its profile, and provide a larger market for trading its shares. No final decision has been made, and the listing would not involve any fundraising. CK Infrastructure has investments in various sectors and operates in multiple countries, including Hong Kong, mainland China, the UK, US, Europe, Australia, Canada, and New Zealand. The UK's Financial Conduct Authority recently introduced new rules to attract more companies to list in London. [Extracted from the article]

IFLR's latest primer takes a look at the anti-greenwashing rules introduced by the UK's Financial Conduct Authority [ABSTRACT FROM AUTHOR]

Zegona has completed the acquisition of Vodafone Spain for €5 billion ($5.4bn) after receiving approvals from Spanish authorities, the Financial Conduct Authority (FCA), and the London Stock Exchange (LSE). The transaction consists of €4.1 billion in cash and €900 million in redeemable preference shares. Zegona financed the acquisition through debt financing, a revolving credit facility, Vodafone financing, and an equity raise. Following the completion of the deal, Zegona shares will be re-admitted to the London Stock Exchange. The senior management team has been restructured, with four new executives joining. Vodafone will continue to be present in Spain through its Innovation Hub in Malaga and a service agreement with Zegona. The acquisition was approved by the Spanish authorities, the FCA, and the LSE. Talks for the acquisition began in September 2023, and an agreement was reached in November of the same year. Zegona sees Vodafone Spain as an attractive target due to its position as the third-largest telecom company in Spain. Zegona aims to transform the business and return it to growth under the leadership of José Miguel García as CEO. The company is confident in its ability to improve the performance of Vodafone Spain and deliver value for shareholders. Advisers to Zegona included Deutsche Numis, ING, UBS, UniCredit, Travers Smith, and Gomez-Acebo & Pombo. Advisers to Vodafone included [Extracted from the article]

The Spanish authorities have approved the sale of Vodafone Spain to Zegona Communications for €5 billion ($5.4bn). The acquisition follows a strategic review of Vodafone's Spanish operations and negotiations between the two parties. The deal is set to be completed at the end of May 2024, with Vodafone receiving €4.1 billion in cash and €900 million in redeemable preference shares. Vodafone plans to initiate a €500 million share buyback program and return €2 billion over the next year. Approval is still needed from the Financial Conduct Authority and London Stock Exchange. [Extracted from the article]

Investec Plc has set aside £30 million ($38 million) to cover potential compensation and other costs related to an ongoing investigation by UK regulators into its auto lending business. The investigation focuses on historical motor finance commission arrangements and sales, specifically the practice of discretionary commission arrangements that allowed car dealerships to earn extra money by increasing interest rates for buyers. Investec is not the only South African lender involved in the probe, as FirstRand Ltd. and Lloyds Banking Group Plc have also allocated funds for potential compensation. Despite these costs, Investec's earnings increased due to high interest rates, and the bank declared a record dividend. [Extracted from the article]

The UK government has warned financial regulators that it is prepared to implement further reforms to prioritize the growth of the finance industry. This comes as a result of ongoing tensions between ministers and the Financial Conduct Authority (FCA), with criticism being directed at the FCA's plan to 'name and shame' firms under investigation. The government argues that this policy contradicts the FCA's objective to make the City more competitive. However, there is also pressure on regulators to maintain high standards, which are seen as a key attraction of the UK finance industry. [Extracted from the article]

The Financial Conduct Authority (FCA) has issued a warning to firms after discovering that one company's monitoring software failed to generate alerts for potential insider dealing for three years. The firm had not activated its news feed in the software, resulting in the system not considering news stories when tracking price moves and suspicious trading. The FCA has been testing financial services firms' trading surveillance systems and their underlying logic, with HSBC Holdings previously fined £64 million for monitoring failures. The regulator assessed nine investment banks last year on the effectiveness of their trading surveillance. [Extracted from the article]

SGS, the shopping center group, has completed a £445m refinancing deal with Lloyds Bank for four major UK shopping and leisure destinations previously owned by intu. The deal includes a £395m senior-term loan and a £50m capital expenditure facility, which has been used to repay £444m to creditors. As part of the deal, a new SGS board will be appointed, and the company has received support from 100% of creditors. Home REIT continues to sell assets and pay down debt while facing an investigation by the Financial Conduct Authority. The company sold 65 homes for £15.9m and repaid £3.9m of debt, reducing its total borrowings. Shareholders of UK Commercial Property REIT and Tritax Big Box REIT have approved a £1bn all-share merger between the firms, creating the UK's fourth-largest REIT with a £4bn market cap and a £6.3bn portfolio focused on UK logistics assets. [Extracted from the article]

The Financial Conduct Authority (FCA) is facing criticism from the UK government, highlighting a growing divide between regulators and policymakers in the post-Brexit era. Chancellor Jeremy Hunt publicly criticized the FCA's plans to name firms under investigation at an early stage, raising concerns that politics is overshadowing policy. This intervention follows previous criticism from UK Business Secretary Kemi Badenoch regarding plans to publish gender and ethnicity data for financial firms. The Conservative government and regulators have been increasingly at odds since Brexit, with expectations of regulatory changes for post-Brexit growth proving unfounded. The FCA's perceived intransigence and contradictory political pressures have caused frustration in Westminster and bemusement among regulators. Hunt's criticism has garnered support from the City of London, which argues that the proposal to "name and shame" firms at the beginning of investigations undermines fairness and hampers the financial services industry. Supporters of the FCA argue that the power to name firms will be used sparingly and in the public interest. The criticism reflects the challenges faced by the UK as it seeks to boost the City of London outside the EU, with regulation being a lever that must be carefully balanced due to the high regulatory standards that attract businesses to the Square Mile. The intervention by Hunt will likely lead to increased scrutiny of the FCA's decision-making process. The Treasury is not expected to comment further until the FCA reaches a decision on the proposal. [Extracted from the article]

A study published by the Green Finance Institute warns that UK banks may face significant losses in the coming years due to nature-related shocks such as water scarcity and pollution. Failure to address these risks could result in a 5% decline in the value of UK bank portfolios and a broader 12% economic decline by 2030. The UK is currently one of the most nature-depleted countries in the world, with three-quarters of the country suffering from ecosystem degradation. The study estimates that the financial consequences of ignoring these risks could exceed those of the 2008 financial crisis and rival the economic setback caused by the Covid-19 pandemic. The researchers emphasize the importance of acting early to prevent severe and irreversible implications. [Extracted from the article]

The UK's Financial Conduct Authority (FCA) is planning to expand its Environmental, Social, and Governance (ESG) investment rules to include a wider range of portfolios, such as those focused on private and wealth markets. The FCA aims to protect retail investors with these rules, but portfolio management firms serving professional clients can choose to opt into the labeling regime without being subject to naming and marketing requirements. The FCA has launched a consultation on the proposed expansion, which includes dividing funds into four labeled categories based on their ESG goals. The FCA plans to enforce the expanded rules starting from December 2, 2024, pending consultation feedback. [Extracted from the article]

The Financial Conduct Authority (FCA) in the UK has warned motor finance firms to prepare for potential financial fallout from its review of car finance products. The FCA has been reviewing historical commissions for car loans and has urged firms to plan for additional operational costs from increased complaints and to meet the costs of resolving those complaints. Lloyds Banking Group has set aside £450 million for possible compensation and other costs, while Close Brothers Group has decided not to pay dividends for the 2024 financial year. Barclays, on the other hand, has not made a provision for the probe due to its low market share and lack of complaints. The FCA's review could result in a significant bill for banks as it investigates discretionary commission arrangements that incentivized car dealers to increase borrowing costs. The FCA has also mentioned the possibility of extending its probe due to a legal challenge filed by Barclays. [Extracted from the article]

Barclays Plc has filed a legal challenge against a decision made by the UK's ombudsman for consumers with financial complaints regarding motor finance practices. This challenge may potentially extend the Financial Conduct Authority's ongoing investigation into the matter. The FCA aims to complete the initial stages of its review by September, but Barclays' request for a Judicial Review could force an extension. The FCA has stated that it will consider any court decisions as it determines its next steps. The case in question involves a customer who took out a loan to purchase a used car and argued that she was subjected to unfair commission arrangements. [Extracted from the article]

The Financial Conduct Authority (FCA) in the UK has issued new guidance for social media influencers, known as "finfluencers," who promote financial products on platforms like Instagram and TikTok. The FCA warns that influencers could face up to two years in prison if they fail to provide proper risk warnings when advertising financial products. The rules also apply to communications originating outside the UK if they can impact the country. The FCA has been increasingly concerned about influencers and companies that violate its rules, and last year asked firms to amend or remove 10,000 promotions. [Extracted from the article]

Norway's $1.6 trillion sovereign wealth fund has expressed concerns over the UK's plan to simplify rules around public listings, warning that it could undermine investor confidence in the market. The fund's chief governance and compliance officer, Carine Smith Ihenacho, and head of policy engagement, Elisa Cencig, wrote a letter stating that lowering corporate governance requirements may harm the UK's reputation as a market with robust investor protection. The UK's finance regulator aims to replace the standard and premium listings rules with streamlined eligibility and ongoing requirements to boost interest in London's stock markets. The fund also raised concerns about removing eligibility requirements for companies while supporting the current regime for controlling shareholders and annual disclosures and reporting requirements for UK governance, climate, and diversity. [Extracted from the article]

The UK Financial Conduct Authority (FCA) has fined trader Nailesh Teraiya £6 million ($7.6 million) and banned him from the industry for his alleged involvement in a Cum-Ex tax trading scheme. The scheme obtained €91.2 million ($99.4 million) in sham refunds from the Danish tax authority. Teraiya, who owned a London-based brokerage called Indigo Global Partners Ltd., received millions of dollars in fees for his role. The FCA has fined multiple finance firms and individuals over £20 million for their involvement in Cum-Ex trades. Sanjay Shah, a trader accused of being the mastermind behind the scam, is currently standing trial in Denmark. [Extracted from the article]

Transactive Systems Ltd., a UK electronic-money company, is shutting down after regulators revoked one of its licenses due to concerns about money laundering. The company had a license from the Bank of Lithuania, which was revoked last year, and now it will also surrender its license with the UK's Financial Conduct Authority. Transactive was processing over €1 billion of payments per month at its peak in 2022. The company's rise highlighted the issues with lightly-regulated electronic-money institutions in Europe, with regulators now concerned about fraud and poor anti-crime controls in the sector. A Bloomberg investigation in 2023 revealed that Transactive had obtained its licenses despite the questionable backgrounds of some of its senior employees and investors. [Extracted from the article]

Finnish payments-processing company Enfuce Financial Services Oy has received an electronic money institution license in the UK, allowing it to expand its e-money operations in the country. The approval from the Financial Conduct Authority enables Enfuce to offer electronic money services, card issuing, and payment solutions to new and existing customers. Enfuce has strategic partnerships with fintech and financial services companies in the UK and aims to expand its presence across Europe and the world. The company recently raised €8.5 million in equity funding and appointed Laurence Krieger as chairman of the board. [Extracted from the article]