The FCA has fined Arian Financial LLP (Arian) £288,962.53 for failing to ensure it had effective systems and controls against financial crime. Arian’s failure to implement adequate systems and controls against financial crime put it at risk of being used to support fraudulent trading and money laundering on behalf of clients of the Solo Group. This is the seventh case brought by the FCA in relation to cum-ex trading and withholding tax schemes. This has involved proactive engagement with EU and global law enforcement authorities. The FCA has imposed fines of more than £22m in relation to this trading. Continue reading…

The Commission welcomes the Council’s adoption of the 15th sanctions package against Russia. The focus of this package is to keep cracking down on Russia’s shadow fleet, as well as combating sanctions’ circumvention. It also includes substantial individual and entity listings related to the Russian military-industrial complex and increases the legal protection of EU Central Securities Depositories (EU CSDs). With this package, the EU has, for the first time, imposed ‘fully-fledged’ sanctions (travel ban, asset freeze and prohibition to make economic resources available) on various Chinese actors. Continue reading…

At its Annual General Meeting recently, the International Association of Insurance Supervisors (IAIS) adopted the global Insurance Capital Standard (ICS). Additionally, members endorsed substantial updates to the IAIS Insurance Core Principles (ICPs) and Common Framework for the supervision of internationally active insurance groups (ComFrame). This significant milestone marks a major advancement in insurance supervision – enhancing financial stability and building a more resilient global insurance sector to better serve and protect policyholders around the world. Continue reading…

The European Central Bank (ECB) has on 19 December published the results of the latest study on the payment attitudes of consumers in the euro area (SPACE). Despite the trend towards digital payments, the number of cash payments remains significant in 2024, especially for small-value and person-to-person payments. In terms of number of payments, cash is used at the point of sale in 52% of transactions, down from 59% in 2022. In terms of value, cards are the most dominant payment instrument (with a share of 45%, down from 46%), followed by cash (39%, down from 42%) and mobile apps (7%, up from 4%). Continue reading…

The European Central Bank (ECB) and the European Insurance and Occupational Pensions Authority (EIOPA) have on 18 December released a joint paper with a proposal designed to reduce the economic impact of natural catastrophes in the EU. The paper builds on the policy options presented in a 2023 joint ECB-EIOPA discussion paper which advocated a ladder approach to natural catastrophe insurance involving both the private and public sectors. Continue reading…

by Uzi Rosha

The intensified focus on conflicts of interest reflects its commitment to safeguarding investors and ensuring market integrity. For investment advisers, managing conflicts is not merely a regulatory obligation, but a fiduciary imperative. Recent enforcement cases have vividly highlighted the critical need for investment advisers to proactively address conflicts of interest. Firms that neglect to disclose or manage these conflicts are increasingly finding themselves facing severe penalties, significant reputational damage, and, most importantly, the erosion of investor trust. Both the regulators and institutional investors have made it clear: There is no room for ambiguity or complacency when it comes to conflicts of interest. Continue reading…

According to new research from Quantios, the trust and company service provider (TCSP) sector is split when it comes to AI. Only 53% of companies are either actively implementing AI solutions or developing an AI strategy. This leaves 47% of firms potentially lagging behind in their digital transformation journey. As demand for innovation soars, the pressure to invest in cutting-edge technology is mounting. Nearly a quarter (24%) of respondents agree that client digital expectations have grown this year, compared to only 9% last year – the biggest increase since Quantios began its research.  Continue reading…

In a concerted operation, Belgian and Dutch authorities have cracked down on an internationally operating ‘phone phishing’ gang, leading to the arrest of eight suspects. In addition to ‘phishing’, or trying to gain access to bank or financial data by phone or online, the suspects also visited mainly elderly victims at their homes, pretending to be bank employees or police officers. Eurojust and Europol coordinated and supported the actions in Belgium and the Netherlands, where 17 places were also searched. Continue reading…

The European Banking Authority (EBA) has recently published the findings from its fourth and final round of reviews of competent authorities’ approaches to tackling money laundering and terrorist financing (ML/TF) risks in the banking sector. With this round, the EBA has now assessed all competent authorities that are responsible for the AML/CFT supervision in thirty EU/EEA member states. Continue reading…

by Uzi Rosha

At the heart of the adviser-client relationship is the fiduciary standard, which obligates advisers to act in their clients’ best interests. It is fundamental to preserving trust and ensuring the integrity of the advisory relationship. This duty extends beyond mere disclosure and requires a proactive approach to managing conflicts. Conflicts of interest are pervasive in the advisory industry, particularly for private fund advisers. By identifying, disclosing, mitigating, and avoiding conflicts of interest, investment advisers can align their practices with regulators’ rigorous standards and protect the interests of their clients. However, it is not always the easiest responsibility to fulfil. Continue reading…