Rachel McDonnell (UK)

Firm/Organization: Norton Rose Fulbright

Blogs: Financial services: Regulation tomorrow

Latest Articles

Hope for investors in London Capital & Finance as FSCS continues to explore whether there are grounds for compensation

By David Harris (UK) & Rachel McDonnell (UK) on June 7, 2019

London Capital & Finance (LC&F), which collapsed in January 2019, was authorised by the FCA in relation to its promotional activities. However, the actual sale of mini-bonds by LC&F was not a regulated activity and so not typically protected by the Financial Services Compensation Scheme (FSCS), which has called into question the scope of protection for investors in these circumstances. In an encouraging development for investors, on 31 May 2019, the FSCS released a statement…

Financial services: Regulation tomorrow

FCA publishes Notice of Undertaking by debt management firm in relation to unfair cancellation terms in standard form contracts

By Katie Stephen (UK), Rachel McDonnell (UK) & Matthew Gregory (UK) on May 29, 2019

On 23 May 2019, the FCA published a Notice of Undertaking against the debt management firm, stating that it was concerned that: two of the terms in the firm’s standard form contracts had the potential to give the firm discretion to charge consumers unspecified amounts should a consumer cancel the contract, which could lead to unexpected high costs. The terms stated that if consumers chose to cancel their debt management plan the firm “reserve[d] the…

Financial services: Regulation tomorrow

FCA rejects Complaints Commissioner’s recommendation for ex gratia payment in respect of loss related to defective Financial Services Register

By Katie Stephen (UK) & Rachel McDonnell (UK) on May 13, 2019

The complainant suffered loss after she invested in a firm which was later identified as a clone. Before investing, the complainant had contacted the FCA to ask whether the firm (also regulated in Austria) was a regulated entity. The FCA confirmed that the firm was legitimate based on its registration number. The FCA also recommended that the complainant contact the Austrian regulator before investing. While the complainant did so, she did not await a response…

Financial services: Regulation tomorrow

FCA publishes undertaking by firm in relation to unfair termination clause in standard client terms

By Katie Stephen (UK) & Rachel McDonnell (UK) on May 13, 2019

On 9 May 2019, the FCA published an undertaking given by an investment management firm in relation to a term in its standard client contracts which allowed the firm to terminate the contract without the requirement to provide prior written notice. The FCA considered that the term was likely to be considered unfair under the Consumer Rights Act 2015 and the Unfair Terms in Consumer Contracts Regulations 1999. It was concerned that if the firm…

Financial services: Regulation tomorrow

The FCA has announced that there will be an independent investigation into the failure of London Capital & Finance

By David Harris (UK) & Rachel McDonnell (UK) on April 4, 2019

On 1 April 2019, the FCA announced that there will be an independent investigation into the failure of London Capital & Finance (LC&F). The FCA stated that the investigation should cover: whether the existing regulatory system adequately protects retail purchasers of mini-bonds from unacceptable levels of harm; and the FCA’s supervision of LC&F. LC&F was the issuer of mini-bonds which it stated it used to make loans to corporate borrowers to provide capital for further…

Financial services: Regulation tomorrow

Financial Ombudsman Service – increased award limits

By Rachel McDonnell (UK) on March 12, 2019

On 8 March 2019, the FCA confirmed that from 1 April 2019 the Financial Ombudsman Service’s (FOS) current £150,000 award limit will change to: £350,000 for complaints about actions or omissions by firms on or after 1 April 2019; and £160,000 for complaints about acts of omissions by firms before 1 April 2019, and which are referred to the FOS after that date. In addition, from 1 April 2020, both award limits will be adjusted…

Financial services: Regulation tomorrow

The FCA fines an individual for failing to observe proper standards of market conduct and on similar facts issues its first formal decision under its competition powers against three asset management firms

By David Harris (UK) & Rachel McDonnell (UK) on March 8, 2019

On 21 February 2019, the FCA fined two asset management firms for breach of competition law. No fine was imposed on the other asset management firm, Newton Investment Management Limited (Newton), as it had been given immunity under the competition leniency programme. This decision followed the FCA’s announcement on 4 February 2019 that it had fined Paul Stephany, a former fund manager at Newton, £32,200 for his conduct in relation to an Initial Public Offering…

Financial services: Regulation tomorrow

New Regulator for Claims Management Companies – FCA takes over

By Elisabeth Bremner (UK), Conor Foley (UK), Rachel McDonnell (UK) & Alex Shattock (UK) on October 10, 2017

On 22 June 2017, the Financial Guidance and Claims Bill (the Bill) was introduced in the House of Lords. Since then it has passed through its first and second readings and proceeded to committee stage on 6 September 2017. The Bill follows an independent review led by Carol Brady in 2016, which recommended that regulatory responsibility for claims management companies (CMCs) be transferred from the Ministry of Justice’s Claims Management Regulation Unit to the Financial…

Rachel McDonnell (UK)

Hope for investors in London Capital & Finance as FSCS continues to explore whether there are grounds for compensation

FCA publishes Notice of Undertaking by debt management firm in relation to unfair cancellation terms in standard form contracts

FCA rejects Complaints Commissioner’s recommendation for ex gratia payment in respect of loss related to defective Financial Services Register

FCA publishes undertaking by firm in relation to unfair termination clause in standard client terms

The FCA has announced that there will be an independent investigation into the failure of London Capital & Finance

Financial Ombudsman Service – increased award limits

The FCA fines an individual for failing to observe proper standards of market conduct and on similar facts issues its first formal decision under its competition powers against three asset management firms

New Regulator for Claims Management Companies – FCA takes over

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