FSA update from the Consumer Sector Team Financial Services by liaoqinmei

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FSA update from the Consumer Sector Team
August 2006
Key FSA announcements
1.   Anthony Michael Naughton trading as Stag Associates and Castlefield Group
     under investigation
2.   Countdown to checking your cheques...
3.   FSA Register – new version launched
4.   Merrill Lynch fined £150,000 for transaction reporting failures
5.   Kyte fined £250,000 for client money and accounting failures
6.   Court shuts UK firm for assisting overseas boiler rooms
7.   Hoodless Brennan fined £90,000 for unacceptable sales practices and not treating
     customers fairly
8.   Friendly Society fined £55,000 for financial promotions failings
9.   Financial Capability Innovation Fund
10. Financial Capability newsletter
11. Implications of Markets in Financial Instruments Directive (MiFID) on our
    advice regime
12. New members appointed to Consumer Panel




FSA Update from the Consumer Sector Team – August 2006                              Page 1
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Helping consumers protect themselves: warnings, and other information
1. Anthony Michael Naughton trading as Stag Associates and Castlefield Group
We are investigating the activities of Anthony Michael Naughton, who traded as Stag
Associates and Castlefield Group from an office in Manchester. Mr Naughton sent out
mailshots in 2003 inviting investors to join a syndicate known as Property Plus, which
aimed to use their money to buy property and land and to share the profit from its
development, re-sale or letting.

Neither Mr Naughton nor his business under the above trading names is authorised by
us to carry on any activities that are regulated under the Financial Services and Markets
Act 2000 (FSMA).
http://www.fsa.gov.uk/consumer/01_WARNINGS/warnings/stag.html

2. Countdown to checking your cheques...
The way you write cheques is changing from October 2006, so make sure you know
what to do!
http://www.fsa.gov.uk/consumer/02_HOW/Banking/mn_paying_cheque.html

3. FSA Register – new version launched
Consumers should always check a firm is authorised by us or is the agent of an
authorised firm before doing business with them. If they are not authorised and things
go wrong consumers will not have access to complaints procedures and compensation
schemes. We have launched a new look version of the Register.
http://www.fsa.gov.uk/Pages/Register/FAQs/index.shtml
We also publish a list of unauthorised firms that are currently targeting UK investors.
http://www.fsa.gov.uk/Pages/Doing/Regulated/Law/Alerts/index.shtml

Protecting consumers through our firm facing action
4. Merrill Lynch fined £150,000 for transaction reporting failures
We have fined Merrill Lynch International £150,000 for failing to accurately report
certain transactions to the FSA and previously the Securities and Futures Authority.
Accurate transaction reports are critical to the FSA’s ability to maintain confidence in
the financial markets and reduce financial crime.
http://www.fsa.gov.uk/pages/Library/Communication/PR/2006/078.shtml




FSA Update from the Consumer Sector Team – August 2006                                     Page 2
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5. Kyte fined £250,000 for client money and accounting failures
We have fined London based clearing firm, The Kyte Group Limited, £250,000 for
systems and controls failings resulting in inadequate client money protection and poor
accounting systems.
http://www.fsa.gov.uk/pages/Library/Communication/PR/2006/082.shtml

6. Court shuts UK firm for assisting overseas boiler rooms
The High Court has placed Securetrade & Title Company Limited (STT) into
liquidation after the company, based in East Sussex, assisted a number of unauthorised
overseas firms, commonly known as boiler rooms, which were unlawfully promoting
and selling shares to UK investors.
http://www.fsa.gov.uk/pages/Library/Communication/PR/2006/081.shtml

7. Hoodless Brennan fined £90,000 for unacceptable sales practices and not treating
customers fairly
We have fined stockbrokers Hoodless Brennan Plc (Hoodless) for using unacceptable
sales practices and failing to treat its customers fairly when selling shares in a company
called Knowledge Technology Solutions Plc (KTS) on 12 June and 25 July 2003.
http://www.fsa.gov.uk/pages/Library/Communication/PR/2006/079.shtml

8. Friendly Society fined £55,000 for financial promotions failings
We have fined The Ancient Order of Foresters Friendly Society Limited (Foresters)
£55,000 for financial promotions failings including substandard television
advertisements and direct offer packs which targeted elderly consumers. This is the first
time we have fined a friendly society for financial promotions failings.
http://www.fsa.gov.uk/pages/Library/Communication/PR/2006/083.shtml

Financial Capability
9. Financial Capability Innovation Fund
Applications are now invited for the second round of the Financial Capability Innovation
Fund. This will provide a grant to selected voluntary organisations running projects that
will help people understand financial issues and improve their financial capability.
http://www.fsa.gov.uk/financial_capability/innovation/index.html




FSA Update from the Consumer Sector Team – August 2006                                  Page 3
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10. Financial Capability newsletter – Issue 6 August 2006
This issue focuses on our workplace initiative, there is an interview with Jim Dredge,
the Workplace Programme Director and there are updates on all aspects of the financial
capability strategy.
http://www.fsa.gov.uk/financial_capability/pdf/newsletter6.pdf

Publications
11. Implications of Markets in Financial Instruments Directive (MiFID) on our
advice regime
As part of our wider consultation on the Markets in Financial Instruments Directive
(MiFID) in October 2006, we will be consulting on the impact on our advice regime
and its disclosure documents. Within this, we are proposing to maintain the Menu
and the Initial Disclosure Document (IDD) while we continue to undertake the post-
implementation review of the regime which was announced when the new rules
were introduced.
http://www.fsa.gov.uk/pages/Library/Communication/Statements/2006/
mifid_depolarisation.shtml

Other information
12. New members appointed to Consumer Panel
We have announced the appointment of five new members to the Financial Services
Consumer Panel. The appointments of Kay Blair, Stephen Crampton and Lindsey
Rogerson take effect from 1 September 2006, while Michael Chapman and Jenny
Hamilton will join the Panel on 1 January 2007.
The Financial Services and Markets Act requires us to establish a panel of persons to
represent consumers as part of the arrangements it must make for consulting consumers
on its general policies and practices. The Financial Services Consumer Panel was
established by us in December 1998, ahead of this legislation. The Consumer Panel
receives an annual budget and staff support from the FSA but, is independent of the
FSA in its views.
http://www.fsa.gov.uk/pages/Library/Communication/PR/2006/086.shtml




FSA Update from the Consumer Sector Team – August 2006                                Page 4
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We welcome your feedback on any aspect of this communication. If you have any
questions or wish to find out more about the issues identified in this update please
contact the Consumer Sector Team at consumersector2@fsa.gov.uk, who will put you
in touch with the right person. Please use this e-mail address if you want to be added
to the circulation list.
For more information about the work of the sectors, please visit our website at
http://www.fsa.gov.uk/Pages/About/Teams/index.shtml
The Financial Services Authority (FSA) is the independent watchdog set up by the
government to regulate financial services and protect your rights.
The FSA’s consumer publications aim to give consumers general information to help
them make financial decisions and to promote their understanding of the financial
system. The information does not constitute financial or other professional advice.
Consumers should consult a professional adviser for financial advice about their
personal circumstances.




FSA Update from the Consumer Sector Team – August 2006                                Page 5

								
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