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Daily News Roundup: Thursday, 5th July 2018

Posted: 5th July 2018


Banks brace for FCA's PPI complaints consultation

The Financial Conduct Authority (FCA) has issued a consultation paper clarifying rules on payment protection insurance (PPI) compensation which could lead to a new surge in new claims. In response to the Supreme Court’s March 2017 “Plevin” ruling, the watchdog warned that consumers who had previously made a rejected PPI complaint “will be able to make a new complaint to their lender”. The consultation closes on September 4.

No-deal Brexit can be overcome

Martin Taylor, external member of the Bank of England's Financial Policy Committee, has said that stress tests on the banking industry had proved that it has sufficient reserves to deal with any potential Brexit-related downturn. He commented: "The question for us was can the banking system survive and the answer is yes we think it can. It obviously would take a big hit but in terms of capital, they have got so much than they had, at least three times as much, than before the crisis."

Pensions equalisation lawsuit for Lloyds

Unions have warned that Lloyds could see a lawsuit by its pension scheme members regarding ‘Guaranteed Minimum Pensions’, which could result in a £20bn bill for thousands of other businesses.

SFO cites ‘insufficient evidence’ in dropping Lloyds Libor probe

Citing insufficient evidence against both the bank and the individuals involved, the Serious Fraud Office (SFO) has closed its investigation into alleged Libor manipulation at Lloyds Banking Group.

HBOS fraud victims accepting compensation

The Commons' Treasury Select Committee is today expected to reveal that over 50 of the 70 victims claiming redress for the HBOS Lloyds Banking Group fraud scandal have accepted some form of compensation. Though Lloyds initially set aside £100m to compensate victims, some estimates put the total losses at £1bn after struggling small businesses were loaded with unmanageable amounts of debt before being taken over and asset-stripped.

Money laundering responsibility dodged – SFO

Mark Thompson, interim director of the Serious Fraud Office, has said that senior bankers are avoiding responsibility for tackling money laundering, so that they and their firms can avoid consequences if clients turn out to be breaking the law. He asked “whether it is possible that senior figures in the banks avoid being involved in these decisions”.

Regulatory focus for banks to shift to the future

The Bank of England's executive director for prudential policy, Victoria Saporta, told bankers at the Westminster Business Forum yesterday that: "The wave of regulatory reform following the global financial crisis is now over. You should not expect a lot of further reform to bank regulation", particularly on capital and liquidity. However, she added that regulation will now look forward rather than backwards with the focus shifting to "unintended consequences and new risks".

Banker claims whistleblowing led to the sack

Dmitri Rozanov, former managing director of private banking at EFG Private Bank and market co-ordinator for Russia and eastern Europe, is suing EFG in an employment tribunal case.

Barclays moves staff into £65m Silver Fin in Aberdeen

A 14-strong Barclays team is soon to relocate into the Silver Fin building in Aberdeen. Stuart Brown, head of Barclays' Scottish and Northern Irish SME operations, said the move will help ensure the business is “future-ready.”

New Birmingham office for Secure Trust

Secure Trust Bank Commercial Finance is seeking to expand its regional presence, opening a new office in Birmingham headed by regional managing director David Parsons.

Ex-HSBC trader fights US extradition

Stuart Scott, former head of currency trading at HSBC, is fighting extradition to the US for a likely trial to face wire fraud charges after a London judge ordered his extradition last year.


Bumper European tech fund announced

UK venture capital firm Draper Esprit, behind Revolut and Crowdcube among others, has partnered with tech investor Earlybird Digital West in Germany to create a $1.3bn (£985.7m) fund for European tech businesses. One of the largest EU funds, the firms hope to deploy up to €200m (£176.8m) a year in funding for tech companies, ranging from seed to series C stages.


British court rejects Goldman claim against Novo Banco

The UK Supreme Court has dismissed an attempt by Goldman Sachs to enforce a claim through Britain’s legal system over an $835m loan to Portuguese bank Novo Banco.

Korean National Pension Service bids for Goldman building

Goldman Sachs' new London headquarters has a lead bidder in the National Pension Service of Korea, which has offered around £1.2bn. A sale and leaseback deal will allow Goldman Sachs to cope with Brexit uncertainty or a rise in interest rates by extracting capital from the building.

Danske Bank shares fall on allegations it may have been used to launder $8.3bn

Denmark’s business minister Rasmus Jarlov has indicated his concern after shares in Danske Bank tanked following reports it may have laundered up to $8.3bn through its Estonian operations.

Raiffeisen report raises questions for Europe’s co-operatives

Ralph Atkins examines how governance failings by Raiffeisen’s board are being blamed partly on its co-operative structure by financial supervisor Finma.


Summer strike threat by Ryanair staff

Cabin crew and ground staff at Ryanair have issued a list of 34 demands through the International Transport Workers' Federation, from fair pay to "not being forced to open an Irish bank account". The airline could face strikes in the summer unless it meets the demands.


Brexit uncertainty fails to hurt LCH results

LCH cleared more than $575.8trn in notional interest rate swaps in the first half of the year, up 23% on the previous year, despite being on the frontline of a dispute between the City and the EU over the euro-clearing market.

Tilney sees rapid revenues growth

Tilney, the private equity-backed wealth manager, has reported record revenue growth of 68% for the last calendar year, to £226.5m.

New FCA directory proposed

The Financial Conduct Authority has proposed a new financial services workers directory aimed at ensuring customers can find "the right people to deal with", with the regulator saying the directory would help to ensure the behaviour of financial services professionals meets clear standards. Mortgage and investment advisers will also be included in the directory. The move comes as the regulator prepares to extend its senior managers regime to the insurance sector.

Legal row between retailers and card processors faces fresh delay

The Competition Appeal Tribunal will have to hear three cases between UK retailers including Asda, J Sainsbury and Wm Morrison against Visa and Mastercard over the level of so-called interchange fees, the Court of Appeal ruled yesterday.


Talktalk stake increased

Toscafund Asset Management has raised its holding in Talktalk from 15.1% to 16.2%, with its approximately 186m shares now worth more than £200m.


Legal among top sectors for salary growth

A new report from CV-Library has revealed that the legal, IT, and education sectors were among the top five areas for salary growth in June. Advertised salaries for new roles across all sectors were up 1.2% in June, with legal pay up 13.1% and accounting by 2.3%.


Amazon customer satisfaction rated top

Online retailer Amazon remains rated the top organisation in Britain for customer satisfaction, with supermarket Iceland in top place among food retailers for the first time, the UK Customer Satisfaction Index, published by the Institute of Customer Service, suggests. Amazon’s rating is the sixth consecutive time it has been placed top.

Asda merger defended by Sainsburys chief executive

Sainsbury's chief executive Mike Coupe has defended a planned merger with Asda, following reports that rival Tesco is to do a deal with France's Carrefour. He remarked: "We stand by the deal”, adding: "The retail world is changing very rapidly and different competitors will respond in different ways. This market is about adapting and changing."

Edinburgh Woollen Mill Group makes Wyevale offer

Edinburgh Woollen Mill Group has offered to buy Wyevale Garden Centres from private equity investor Terra Firma, one of a number of possible suitors.


Services sector grows, with possible rates rise on horizon

The economy may be strong enough for the Bank of England to increase interest rates in August, with the services sector growing at its fastest rate since October 2017. A services survey showed that Brexit-related uncertainty had however obstructed business investment in the sector.


City financiers unclear on regulation after Brexit

Financiers and ministers remain unclear as to what arrangements they want to see in place after Brexit, as the cabinet gathers to finalise a policy document on leaving the EU.

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