APB/FRC
APB announces changes to UK and Irish Audit Standards
http://www.frc.org.uk/apb/press/pub1880.html
FRC publishes an Update on Going Concern for Directors of Smaller Companies
http://www.frc.org.uk/press/pub1881.html
BAS publishes Exposure Draft of Actuarial Reporting Standard
FSA
New Contracts for Difference disclosure regime to take effect in June
Following extensive consultation and to help improve transparency in current market conditions, the new disclosure regime for Contracts for Difference (CfDs) will now take effect from 1 June 2009. The new rules would have applied originally from September 2009.
Details of the new regime are set out in a Policy Statement on CfDs published today by the Financial Services Authority (FSA).
The new rules cover financial instruments in the same company, which give a legal right to acquire shares or have a similar economic effect to shares. Shares and such financial instruments will have to be aggregated and disclosed once over the 3% threshold. This will ensure that they are not used covertly to influence corporate governance and/or build up stakes in companies. An exemption has also been put in place for CfD writers acting in a client-serving capacity, to prevent unnecessary disclosures to the market.
Alexander Justham, FSA director of markets, said:
“This is a very significant step in improving market transparency and we have brought the implementation date forward to reflect that. The new rules will resolve some of the concerns raised about the risks of market players devising ways to avoid disclosure or over-disclosing.”
FSA bans Wakefield mortgage broker for fraud
The Financial Services Authority (FSA) has banned Wakefield-based mortgage adviser Mohammed Ahmed for submitting mortgage applications on his and a customer’s behalf that were supported by false payslips.
Jonathan Phelan, head of retail enforcement at the FSA, said:
“Mr Ahmed lacks honesty and integrity in relation to his own personal financial dealings. His actions were serious and blatant. As this case demonstrates, our crackdown on mortgage fraud includes paying attention to the work of individual mortgage advisers and introducers as well as to approved persons and authorised firms. We banned over 20 mortgage brokers last year, and we will continue to make examples of people who commit mortgage fraud and who help others to commit mortgage fraud, in order to change behaviour.”
The FSA found that Mr Ahmed: submitted three mortgage applications containing false information about his personal and financial circumstances. The applications were supported by the submission of false P60 forms and payslips; failed to disclose the true extent of his property holdings when applying for a mortgage; and while working for The Mortgage Exchange, was knowingly concerned in the submission of false mortgage applications on behalf of eight customers.
