Car Finance Market in Disarray

Car Finance Market in Disarray

Consumer credit providers have met with the UK Treasury and regulators to request a freeze in the processing timeframes for complaints. This follows a shock Court of Appeal ruling that renders many commission arrangements with brokers as unlawful. There are fears that the ruling could apply beyond the car finance market, to which the case relates. It is estimated that compensation could reach £16 billion. Risk Audit will reflect on the immediate control implications during our Regulatory Update for Internal Auditors webinar.

Bank of London Board Departures

Labour Party grandee, Peter Mandelson, and private equity titan, Harvey Schwartz, had left the board of the Bank of London. The fintech suffered a near death experience which it was hit with a winding up petition from the tax authorities. Whilst the petition has now been withdrawn the bank had to raise £42 million to meet regulatory capital needs. Bank of London is now retrenching to focus on the UK following a spending spree in the US.

FTX Coder Spared Jail

Nishad Singh, a 29-year-old coder at FTX, has been spared a jail sentence following his extensive cooperation with the authorities and the restructuring firm. He pleaded guilty to fraud and campaign finance infringements. He agreed to forfeit a home on San Juan Island and $11 billion in assets!

US Sanctions Russian Facilitators

The US Treasury has sanctioned c.400 companies and individuals based in China, India and a number of other countries. These entities are accused of helping Russia equip itself with military equipment. As a result, the names parties will have their assets blocked and will be denied access to the US financial system. Third parties helping them could also face sanctions.