FINANCIAL CONDUCT AUTHORITY
Fraudulent trading and carrying on regulated activities without authorisation – FCA commences criminal proceedings – 20 May 2021
The Financial Conduct Authority (FCA) has published a press release announcing that, following an investigation, it has commenced criminal proceedings against an individual for alleged fraudulent trading and carrying on regulated activities without authorisation. The individual has appeared at Westminster Magistrates’ Court in relation to three charges, including carrying on a business with the intention to defraud creditors and carrying on regulated activities (advising on investments and accepting deposits) without authorisation.
The FCA alleges that the individual:
- advised on investments and purported to invest deposits received from clients on their behalf without authorisation; and
- told clients that the money they deposited would be invested in various financial vehicles or otherwise put to specific use, although this was not always the case.
The individual will appear at Southwark Crown Court for a plea and trial preparation hearing on 17 June 2021.
Press Release: FCA charges Ian Hudson with fraudulent trading and carrying on regulated activities without authorisation
OFFICE OF THE COMPLAINTS COMMISSIONER
Complaint against the PRA – Complaints Commissioner recommends PRA consider ex-gratia payments scale for complaint delays – 18 May 2021
The Office of the Complaints Commissioner has published the final report (PRA00019) relating to a complaint against the PRA. Although the majority of the complaint was not upheld, the Complaints Commissioner upheld the part that related to how long it took the PRA to respond to the initial complaint.
The complaint concerned the PRA’s investigation of a complaint relating to the non-payment of a bank dividend in 2020. To address how long it took the PRA to respond to the initial complaint, the Complaints Commissioner recommended that the PRA offer the complainant an apology and an ex-gratia payment of £75 for the delay. It went on to recommend that the PRA consider putting in place an indicative scale for ex-gratia payments for delays caused with complaints.
In response to the Complaint Commissioner’s preliminary report, the PRA has stated it will ensure its recommendations are taken forward to apologise and review the recommendation to implement an indicative scale of ex-gratia payments for delay.
Final Report (PRA00019)
INFORMATION COMMISSIONER'S OFFICE
Monetary penalty notice – ICO fine for sending marketing emails without valid consent – 20 May 2021
The Information Commissioner’s Office (ICO) has fined American Express Services Europe Limited (Amex) £90,000 for sending in excess of four million unsolicited marketing emails in breach of regulation 22 of the Privacy and Electronic Communications (EC Directive) Regulations 2003 (SI 2003/2426) (PECR).
This was held by the ICO to be a serious breach of regulation 22 caused by Amex’s negligence and failure to take reasonable steps to prevent the contraventions. The recipients included customers who had opted out from receiving marketing messages from Amex. The ICO determined that the emails were marketing because they included content that encouraged customers to make purchases on their Amex cards, from which Amex stood to gain financially.
In its press release, the ICO reminded organisations that:
“Service messages contain routine information such as changes to terms and conditions and payment plans or notice of service interruptions. Direct marketing is defined as any communication of advertising or marketing material directed at particular individuals. It is against the law to send marketing emails to people unless consent has been freely given. This is contained in Regulation 22 of the Privacy and Electronic Communications Regulations 2003.”
Press Release: Amex fined for sending four million unlawful emails
Monetary penalty notice
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