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FCA launches anti-phoenixing group

The FCA has launched a working group in collaboration with other key bodies to tackle the ongoing issue of phoenixing in financial services.

Phoenixing is where firms and individuals deliberately try to avoid their liabilities to consumers or poor conduct history by closing down firms – or resigning senior positions – only to re-emerge in a different legal entity.

Representatives of the Financial Services Compensation Scheme, the Financial Ombudsman Service, the Insolvency Service and Scotland’s Accountant in Bankruptcy have joined forces with the FCA to tackle the problem.

An update from the watchdog today says the taskforce will discuss how these groups can work together more closely in the future by sharing data and intelligence on individuals and firms.

It adds this is the first time that they have come together as a group and in a formal way to discuss and tackle the issue.

The update goes onto say sharing data on issues such as FSCS claims, complaints and director disqualifications is proving highly effective in detecting instances of phoenixing.

It is also helping the FCA build cases to refuse applications for authorisation and expanding on the types of data shared through the working group can only improve this.

FCA director of authorisations Sarah Rapson says: “We have a shared responsibility to protect consumers and by working closely together we can prevent firms and individuals from deliberately avoiding their liabilities.”

FSCS chief corporate affairs officer Alex Kuczynski adds: “This is a great opportunity for the FSCS to share its knowledge and insights. This working group will support better outcomes for both consumers and levy payers who have to step in to fund FSCS’s compensation, and fully aligns with the ‘Prevent’ pillar of our strategy for the 2020s.”


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FCA seeks views on “intergenerational fairness”

The FCA is seeking views from “firms, consumers and other interested parties” on intergenerational fairness after releasing a paper on the topic. The report seeks to identify the differences in the financial straits between ‘baby boomers’, ‘generation X’ and ‘millennials’, and includes a focus on the housing market and property wealth. The difficulties which face […]

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AMI calls on FCA to explain “disproportionate” rise in broker levy

The Association of Mortgage Intermediaries has called on the FCA to explain why its levy on mortgage brokers and lenders is set to increase by 4 per cent, while the industry-wide increase is just 2.7 per cent per cent. The FCA says that its budget for ongoing regulatory activity this year is £537.7m, up by […]


FCA to target second charge and sub-prime sector

The Financial Conduct Authority has revealed plans to closely examine the second-charge and sub-prime mortgage market this year over concerns that some lenders are setting out to profit from borrowers who are unable to repay their loans. In its business plan for 2019/20 the regulator set out its priorities for the year ahead, including ongoing […]

Aldermore increases loan to income ratio

Aldermore has amended its residential mortgage criteria. The lending criteria changes include the bank increasing its maximum mortgage term from 35 to 40 years, as well as rising the loan to income ratio from 4.5 times to 5.5 times. The new loan to income ratio is applicable for applicants with an income of at least […]


Neptune video: UK economy: a sustainable recovery?

After years of a slowly brewing economic recovery, the UK has seen a strong rise in growth in recent months. Mark Martin, manager of the Neptune UK Mid Cap Fund, discusses the strength of this recovery and whether it is sustainable.

In the video, Martin addresses the following:

• Structural features supporting the UK economy
• UK mid-caps and the potential for M&A activity
• Valuations and opportunities in house builders


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