Law360 Expert analysis: The Financial Conduct Authority’s (FCA) new anti-greenwashing measures come into force this May. Written by Jingchen Zhao, professor of law and co-director of the Centre for Business and Insolvency Law at Nottingham Trent University Law School.

The Financial Conduct Authority (FCA) has provided guidance on the process of applying for approval to perform a senior management function (SMF). The steps include completing the relevant forms (Form A for new SMFs and Form E for internal transfers), submitting supporting evidence, and paying the required fee. The FCA emphasises the importance of transparency, detailed information, and addressing potential risks or conflicts of interest to avoid delays in the application process.

FCA’s guide to submitting a delayed disclosure information notification The FCA’s guide can be found

The Financial Conduct Authority (FCA) has concluded a review of its disclosure processes in regulatory enforcement cases, prompted by recommendations from the Upper Tribunal in Seiler and others v FCA [2023] and has implemented several changes to its disclosure practices. The FCA plans to monitor the effectiveness of these changes and conduct a further review in approximately 12 months.

The Financial Conduct Authority (FCA) has banned Detelina Subeva, a former Credit Suisse vice president, from engaging in the UK financial services industry due to a lack of integrity following a US conviction for conspiracy to commit money laundering. On 20 May 2019, Subeva pleaded guilty in the United States to accepting and retaining US$200,000 in unlawful kickbacks related to corrupt loans totalling US$1.3bn arranged for the Republic of Mozambique. The corruption associated with these loans resulted in a fine of £145m imposed on Credit Suisse by the FCA in October 2021 as part of a US$475m global settlement for financial crime due diligence failings.

The Financial Conduct Authority (FCA) has fined Mako Financial Markets Partnership LLP (Mako) £1,662,700 for failing to maintain effective systems and controls to prevent financial crime and for not adequately applying existing policies and procedures, breaching FCA Principles 2 and Principle 3. This case concludes the FCA's investigations into cum-ex trading, with fines totalling over £30m. Between December 2013 and November 2015, Mako executed over-the-counter equity trades worth approximately £68.6bn in Danish equities and £23.6bn in Belgian equities on behalf of Solo Group clients, earning £1.45m in commissions. The circular nature of these trades suggested financial crime, aimed at arranging withholding tax reclaims in Denmark and Belgium. Mako also failed to identify red flags in other transactions related to the Solo Group, resulting in a €2m loss for the Solo Group’s controller and increased money laundering risks. Mako's failure to spot these issues made it vulnerable to financial crime.

The Financial Conduct Authority (FCA) has imposed its first fine under the UK Markets in Financial Instruments Regulation(Assimilated Regulation (EU) No 600/2014) (UK MiFIR) for transaction reporting failures. Infinox Capital Limited was fined £99,200 for failing to submit 46,053 transaction reports between 1 October 2022 and 31 March 2023, specifically for single-stock contracts for difference (CFD) trades executed through one of its corporate brokerage accounts. Infinox breached Article 26(1) of the UK MiFIR.

The Financial Conduct Authority (FCA) has published a Final Notice censuring Link Fund Solutions (LFS) for breaches of Principles 2 and 6 of its Principles of Business. The FCA states this would have merited the imposition of a significant financial penalty of £50m but for the fact it would have reduced the amount of restitution available to be paid by LFS. The FCA has instead ordered LFS to pay restitution under a scheme of arrangement to the LF Woodford Equity Investment Fund (WEIF). In a separate action, the FCA has published a warning notice statement regarding its proposed enforcement action against Neil Woodford and Woodford Investment Management Limited (WIM) for their conduct in the management of the WEIF.

The Financial Conduct Authority (FCA) has imposed restrictions on Business Agent Limited (BAL) due to concerns about regulatory failings identified during a review of the firm's operations.

The Financial Conduct Authority (FCA) has imposed restrictions on Arthur Temlett, trading as Abacus Insurance Consultants, preventing the firm from conducting any regulated activities, including acting as an insurance broker. This action was taken due to concerns that Abacus Insurance, based in Dumfries and Galloway, may have been selling home and motor insurance without forwarding premium payments to the insurance provider. Customers are advised to verify their insurance policies directly with their providers and secure alternative coverage if necessary.

The Financial Conduct Authority (FCA) has fined TSB Bank plc (TSB) £10,910,500 for failing to ensure fair treatment of customers in arrears, and lacking suitable systems and controls to secure fair outcomes. TSB has paid £99.9m in redress to the 232,849 mortgage, overdraft, credit card and loan customers affected.

The Financial Conduct Authority (FCA) has fined Metro Bank Plc (Metro Bank) £16,675,200 for significant failings in its financial crime controls between June 2016 and December 2020. Metro Bank was found to be in breach of Principle 3 of the FCA’s Principles for Businesses (management and control). Metro Bank would have been fined £23,821,700, but it agreed to resolve these matters, qualifying for a 30% settlement discount.