Financial Conduct Authority (FCA)

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Why was Tesco Bank fined?

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The Financial Conduct Authority has explained why Tesco Bank has been landed with a £16.4m fine.

It said that in November 2016 cyber attackers exploited deficiencies in Tesco Bank’s design of its debit card, its financial crime controls and in its Financial Crime Operations Team.

The deficiencies left Tesco Bank’s personal current account holders vulnerable to a largely avoidable incident that occurred over 48 hours and which netted the cyber attackers £2.26m, the FCA said.

Mark Steward, executive director of enforcement and market oversight at the FCA, said: “The attack was the subject of a very specific warning that Tesco Bank did not properly address until after the attack started.

"This was too little, too late. Customers should not have been exposed to the risk at all."

Get the balance right, says FCA

Following the supercomplaint from Citizens Advice about loyal customers being ripped off, FCA chief executive Andrew Bailey says:

Citizens Advice have raised a number of important issues and we will work closely with the CMA as they investigate this super-complaint. We expect firms to look after the interests of all customers and treat them fairly, whether they are new or longstanding. It is important to get the balance right so that existing customers do not miss out on the benefits of competition and innovation, including when the purchase or renew their general insurance products.

FCA clears life insurers of customer mistreatment

Money and piggy bank

The UK's Financial Conduct Authority (FCA) has cleared four life insurance companies under investigation for alleged mistreatment of customers.

The watchdog said its scrutiny of Abbey Life, Old Mutual, Prudential and Countrywide did not warrant enforcement action.

However, it had uncovered some issues at each firm which would be addressed as part of its ongoing supervision of those firms.

The FCA launched the investigation following publication of a review of 11 life insurance firms in March 2016.

Investigations into Police Mutual and Scottish Widows were closed earlier without action.

How to be ScamSmart

BBC Radio 5 live

A new TV advert shows how a fraudster might spend someone else's savings
A new TV advert shows how a fraudster might spend someone else's savings

For those people who are concerned if they are being scammed by someone who wants to invest their pension savings elsewhere, Circle Financial Services Louise Claro says they should check with the Financial Conduct Authority and its ScamSmart website.

She says: "It asks you a series of very simple questions and what it will do at the end is tell you whether that company that you are engaging with is either on the hit list of the naughty step, as I call it, or not.

"It doesn't mean that you've got a get out of jail free card and should carry on, it is just that first step process of checking...what I would recommend, if the company isn't on the FCA register, you should just not deal with them."

FCA's statement on RBS investigation

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The FCA has released a statement discussing the decision it made following the independent review of RBS's treatment of small and medium-sized enterprise customers transferred to its Global Restructuring Group (GRG).

“We have consulted with independent, external leading counsel who has confirmed that the FCA’s conclusions are correct and reasonable," said the FCA's chief executive Andrew Bailey.

“I appreciate that many GRG customers will be frustrated by this decision but we have explored all the options available to us before arriving at this conclusion.

“The fact that we can’t take action in no way condones the behaviour of RBS. We expect high standards from the firms we regulate and RBS fell well short in its treatment of GRG customers."

Mr Bailey added that the FCA strongly felt that all the companies that suffered loss as a result of how they were treated by the GRG "must be appropriately compensated".

The FCA is now "closely monitoring" the complaints process overseen by Sir William Blackburne to ensure that things are put right.

And due to the Senior Managers Regime legislation introduced in 2016, the FCA says that it will be able to hold senior managers of banks to account for the way business customers are treated.