FCA in Motion: Tough Enforcement & Redress Reform
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FCA in Motion: Tough Enforcement & Redress Reform
This week’s updates reinforce the FCA’s dual commitment to enforcement and redress reform. The regulator initiated High Court action against an alleged £23 million unauthorised CIS, froze assets, and warned firms on investment vetting. A high-profile ban and fine for H2O’s former deputy CEO reaffirmed personal accountability. In contrast, FCA dropped proceedings against Tom Hayes and Carlo Palombo after their convictions were overturned - highlighting enforcement limits. Meanwhile, the appointment of Liam Coleman as interim chair of the Financial Ombudsman Service marks the beginning of planned redress system reforms. The era of stricter oversight, elevated leadership scrutiny, and modernisation of complaint handling is clearly underway.
£23m CIS Scheme Under FCA Scrutiny
The FCA has opened High Court proceedings over an alleged unauthorised collective investment scheme that raised £23 million for static home investments. Assets have been frozen, and promoters banned.
Action point: Vet all CIS-related partnerships and investment structures carefully.
Senior Accountability: H2O Executive Penalised
A £1m fine and lifetime ban was handed down to H2O’s Deputy CEO for misleading the regulator—a sharp reminder: executive-level compliance matters more than ever.
Trouble Falls Away: Hayes & Palombo
The FCA ended action against two legacy traders after the Supreme Court quashed their convictions. It’s a rare retreat—but a reminder that enforcement is subject to legal challenge.
Ombudsman Shake-Up: New Interim Chair
With Liam Coleman stepping in as interim chair of the Financial Ombudsman Service starting in October, redress reform is on the horizon. Expect consultation on case fees and resolution timelines to modernize complaint handling.
Final Thought
This week highlights both ends of the regulatory spectrum: from aggressive enforcement to meaningful reforms in redress. Firms that strengthen vetting, bolster leadership integrity, and prepare for systemic changes in complaints handling will be best placed to respond.
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