FCA finds poor consumer credit advert standards: FCA has carried out a review of consumer credit advertising and has told firms to raise their standards. It surveyed a sample of advertisements and found 20% did not meet its financial promotion rules requirements. Many of the failings related to advertisements for payday lending and debt management. FCA said firms were quick to make the necessary changes. (Source: FCA Finds Poor Consumer Credit Advert Standards)

FCA speaks on market reform: David Lawton, Director of Markets at FCA, has spoken on the implementation phase of financial markets' regulatory reform. He warned that firms will need to adapt their business models, citing as an example the banking industry, where banks are likely to have to spin out proprietary trading desks, change the way they allocate their working capital or exit large parts of the commodities market. Referring to where reform implementation could go wrong, he said that that policy-makers and regulators should continually ask themselves about the impact of reforms on aspects such as liquidity, innovation and the interplay between regulation and growth. The latter will be a focus of the Australian Presidency of the G-20, including aspects such as liquidity in the corporate bond markets, reviving securitisation and enhancing crowdfunding. His closing remarks provided an overview of recent culture failures at firms and related consumer detriment, noting that FCA's recent work on dealing commission offers firms an opportunity to show they are putting their clients first. (Source: The New Market Infrastructure)

FCA welcomes Lambert report: FCA has welcomed the report of the Banking Standards Review (see below) and says it looks forward to working further with Sir Richard Lambert and the industry. (Source:FCA Welcomes Lambert Report)

FCA fines inter-dealer broker over LIBOR manipulation: FCA has fined Martin Brokers (UK) Ltd. (Martins), an inter-dealer broker, £630,000 for failings relating to LIBOR. Martins' role in the interest rate, foreign exchange and derivatives markets allows it to provide its clients, in so-called "run-throughs", suggestions as to where LIBOR will set on particular dates. FCA found that Martins, at the request of a client trader at UBS, provided misleading "run-throughs" to banks on LIBOR's Panel of submitters, or created false orders to influence Panel Banks' views. Martins also requested that Panel Banks make specific submissions that would benefit the trader at UBS. UBS and Martins would then enter into "wash-trades", that cancelled each other out, to disguise payments to Martins as originating from brokerage services. FCA found this behaviour amounted to serious breaches of Principle 5 (proper standards of market conduct). The misconduct involved several brokers and included managers. Given its lack of systems and controls, procedures governing individual broker behaviour and limited compliance training for brokers, Martins also breached Principle 3 (reasonable care to organise and control a firm's affairs responsibly and effectively, with adequate risk management systems). FCA reduced the fine by 75% in view of Martins' financial circumstances, plus a further 30% on the resulting amount for early settlement. (Source: FCA Final Notice)

FCA updates on Crawley: Following the Court of Appeal's decision in the case FCA brought against Scott Crawley and others on unauthorised land banking activities (see FReD 9 May), the Court of Appeal has allowed FCA's application to proceed with its prosecution. The Crown Court had held that the proceedings should be stayed as there was no realistic prospect of the defendants getting legal representation. The Court of Appeal said the Crown Court judge's reasoning was unsustainable. (Source: FCA Updates on Crawley)