UK: FPC discusses bank executives' remuneration contracts

The record of the interim Financial Policy Committee meeting held on 21 November 2012 was published yesterday: see here (pdf). In addition to the discussion regarding bank capital, which has received much attention in the past couple of weeks, the Committee also discussed bank executives' remuneration and noted, amongst other things, that remuneration contracts could be better structured to expose executives to the potential downside outcomes over the full term of the risks they take.

Australia: ASIC's latest audit inspection report

The Australian Securities and Investments Commission has published its Audit Inspection Program Report for 2011–12: see here (pdf). The report presents findings in respect of ASIC's inspection of 20 Australian audit firms in the 18 months to 30 June 2012. The headline finding is a decline in audit quality: ASIC reports an increase in instances where auditors did not perform all of the procedures necessary to obtain reasonable assurance that the audited financial report was not materially misstated.

UK: Tribunal rejects FSA's finding that trader had engaged in market abuse

The Upper Tribunal (Tax and Chancery) gave judgment last month in Hobbs v Financial Services Authority (FS/2010/0024): see here (pdf). Mr Hobbs appealed the FSA's decision that he had engaged in market abuse, as defined by section 118(5) of the Financial Services and Markets Act 2000, when he instructed a broker to buy coffee futures. Mr Hobbs' appeal was successful: the Tribunal held that his trade had been carried out for legitimate reasons and was in conformity with market practice.

UK: Financial Services BIll - update

Third reading of the Financial Services Bill is timetabled for tomorrow. A copy of the Bill as it will begin this stage has been published: see here or here (pdf).

UK: A couple of consultation papers from the FSA

The Financial Services Authority has in the past few days published a couple of consultation papers concerning the new regulatory framework being introduced next April. In the first paper, available here (pdf), views are sought on the approach that the new Financial Conduct Authority should take when exercising its power to make temporary rule changes in respect of product intervention. In the second paper, available here (pdf), views are sought on substantive changes being proposed to the existing FSA Handbook in order to create the FCA's new handbook.