Financial services

The Treasury has confirmed the RDR will not impact upon the ability of firms based in Europe to advise clients in the UK, although it insists the use of passporting to evade regulation will not be permitted.

New banking regulations could mean bondholders will be forced to absorb the losses of failing institutions, according to Standard Life Investments' Andrew Fraser.

Liontrust must stump up £415,000 for its contribution to the FSCS levy, a near 2000% increase on last year, as the industry continues to pay the cost of a series of investment firm failures.

Banks on a worldwide scale will be forced to shore up cash levels if their nation is on the brink of a credit bubble, according to new developments under the Basel III reform package.

The Treasury and the FSA are proposing to extend the regulator's powers to discipline firms who flout EU regulations or decisions made under UCITS IV.

The FSA is warning firms against using the word ‘cash' when naming Money Market Funds (MMFs), saying it is "potentially misleading".

Terry Smith, the City veteran planning to start his own fund group, warns of the "pernicious danger" of adviser inactivity following the RDR.

BASEL III

Goldman Sachs has agreed to pay a fine of £20m to the FSA after failing to disclose trader Fabrice Tourre was under fraud investigation by the US Securities & Exchange Commission.

The FSA is set to turn the regulatory spotlight on the valuation of traded positions and is calling for a specific assessment of valuation uncertainty.