Financial Services Regulatory Framework

Candidate Name: YANG,Yanhao

Class: 18FS1

SCN:207172618

Word Count：2447
18FS1 YANG,Yanhao 207172618

Q1

In order to help you resolve the problem of misdirected bank correspondence, I

recommend that you have the option of making a complaint to the Financial
Ombudsman Services (FOS), which has been collating complaints between financial
businesses and their customers since it was established in 2001. If financial firms and
customers are unable to resolve a complaint themselves, the FOS will give a fair
response to what has happened.
On the one hand, the Bank of the East has made a final determination on your
legitimate complaint within eight weeks, but has not really resolved the correspondent
name issue completely. On the other hand, the business of Bank of the East against
which you are complaining is also within the scope of the FOS and the complaint case
has not exceeded the six-month deadline. Therefore, you, as an individual consumer,
are subjectively entitled to make a complaint to the FOS and this complaint is free of
charge.
The FOS has a number of channels for receiving complaints. During the Covid-
19, the FOS telephone service was busier than usual and you can call the FOS
between 8am and 5pm Monday to Friday, which is likely to involve a waiting period,
The FOS recommends that customers email or complain online where possible, it may
take several weeks for the FOS to acknowledge receipt of emails, postings, etc.
submitted online. and complaints. Unless FOS cannot be contacted in any other way,
sending an email is not recommended at this stage as FOS cannot deal with emails in
the usual way.

Here are the Contact details：

Phone methods：
0800 023 4567-phone line
0300 123 9 123 –  Calls to this number cost no more than calls to 01 and 02
numbers.
(18002) 020 7964 1000 – Calls using next generation text relay.

1
18FS1 YANG,Yanhao 207172618

+44 20 7964 0500 – Call this number if you're calling from abroad. We'll also be
happy to phone you back, if you're worried about the cost of calling us.
020 7964 1000 – our switchboard
020 7964 1001 – our fax number
Other methods：
complaint.info@financial-ombudsman.org.uk -Email address
https://help.financial-ombudsman.org.uk/help - complaint online
https://www.facebook.com/financialombuds/ -Face book
https://www.youtube.com/user/FinancialOmbudsman -YouTube
https://twitter.com/financialombuds -Twitter
www.linkedin.com/company/finincial-ombudsman-service -Linked in

You will need to submit a number of documents before you can make a
complaint. Some basic information, including your name and address; What the
problem is, and how you want things put right; Details such as the policy number or
account number that your complaint relates to.
When you first send information about your complaint to the FOS, you will
receive an acknowledgement notice to ensure that you have received the information.
You will also be given a case number and you will need to keep this reference number
secure; the FOS will check the information received from you to see if any further
information is required and contact you.
Once the FOS has the basic information needed to build your case, it will allocate
the case to a case handler. Some cases will be allocated within a few weeks and some
complex cases will take longer to allocate. When your complaint is allocated to a case
handler, they will contact you and they will be your point of contact throughout the
case.
Once the case handlers have completed their investigation, they will carry out an
initial assessment of your case. Usually, this part of the process takes up to 90 days. In
the case of very complex complaints, or other situations, it can take longer. As the
matter progresses, your case officer will update you on the situation.

2
18FS1 YANG,Yanhao 207172618

If you disagree with the FOS's initial assessment of your complaint, you can ask
one of the FOS ombudsmen to look at the matter again and make a final, legally
binding decision. You can still reject the ombudsman's final decision, but if you still
want to pursue your complaint, you can only take legal action.

Q2

The reason why Green Bank requires you to provide these documents before
opening an account is because this action is part of the bank's due diligence on the
customer.
The bank needs to confirm the identity of the customer at the time of opening
the account. If the transaction involves large amounts of money, the source of the
funds also needs to be clarified. This is the first step in the Anti-money laundering -
placement phase, which helps institutions to be able to identify the source of funds
before they enter the transaction system.
The main purpose of doing so is to help institutions identify suspicious
transactions and facilitate their subsequent tracing and investigation.
During the customer due diligence, the bank will ask the customer to provide
proof or documents of identity and current address when opening the account.
In your case, you do not have either a driving licence or a passport, both of which
are generally accepted by banks. However, it is worth noting that Green Bank does
not advise you that you can use the UK disability blue badge, which is in fact the
bank's acceptable document to prove your personal details.
In addition to documents, there are a number of documents that can be used to
prove your identity and address, one of which is a bank statement from current bank,
which is accepted by all banks, but it must include your current address.
As you have just moved, this will not be valid if you have not changed your
current address. If you require a bank statement, you will need to submit a request for
a change of address to Eastern Bank and have an amended bank statement issued as

3
18FS1 YANG,Yanhao 207172618

proof of your validity.

In addition, some banks will accept other documents, but you will need to check
with Green Bank in advance to see if they are acceptable.
Firstly, an email or letter from HMRC or DWP dated within the last 6 months,
addressed to you and including your current address, will also be accepted as proof of
your identity.
Secondly, an original utility bill from the last six months containing your current
address and name is also acceptable as proof of identity.
In addition, a bank issued credit card statement for the last six months containing
your current address and name is also acceptable as proof of identity, whereas a shop
issued credit card for purchases is not.
Finally, it is worth noting that as you have just moved, you may not have updated
your address and other information on these documents, so if you wish to use them as
proof, you will need to amend them in advance.

Q3

The requirements of the Bribery Act 2010. sets out four types of bribery that
constitute an offence, and Emma's receipt of gifts and favorable treatment is a breach
of Section 2 of the Act, which provides for the active solicitation or receipt of a bribe.
The Act also sets out a number of cases where Emma receives gifts and spa
treatments after facilitating loans to clients who have problems with their
documentation, which fits the description in Case 5: Case 5 is where R requests,
agrees to receive or accepts a financial or other advantage as a reward for the
improper performance (whether by R or another person) of a relevant function or
activity.
If Louise follows Emma's referral to the client to give them facilities and knows
in advance that the client will give her preferential treatment, then her behavior would
better fit the description in case 6: case 6 is where, in anticipation of or in
consequence of R requests, agreeing to receive or accepting a financial or other

4
18FS1 YANG,Yanhao 207172618

advantage, a relevant function or activity is performed improperly.

According to section 11 of the Act - Penalties
An individual guilty of an offence under section 1, 2 or 6 is liable
(a) on summary conviction, to imprisonment for a term not exceeding 12 months, or
to a fine not exceeding the statutory maximum, or to both,
(b)on conviction on indictment, to imprisonment for a term not exceeding 10 years, or
to a fine, or to both.
If Emma has committed an act of bribery, the penalty is a fine without a cap or a
term of imprisonment of up to 10 years or more.

What Louise should be doing is becoming a whistle blower, reporting to senior

management responsible for internal management in accordance with anti-bribery
procedures, and blowing the whistle on Emma to fulfil her role as whistle blower.

For banks, companies need to establish effective anti-bribery policies, procedures

and programmed based on risk assessments. According to section 9-Guidance about
commercial organizations preventing bribery.
 Proportionality: Green Bank must first assess the risk of bribery and then put in
place procedures that are appropriate to it. It is necessary for banks to have strict
procedures based on the high risk of bribery.
 Top-level commitment: The bank needs to focus on building a corporate culture
that emphasizes the company's commitment to fighting bribery and establishing
the right values for its employees.
 Risk assessment: Green Bank needs to set up external and internal risk analysis,
especially when dealing with a new transaction.
 Due diligence: Green Bank needs to investigate and verify the risk level of
individuals and not rehire those who cannot be trusted; Emma's bribery is a good
example of this lack.
 Communication: Green Bank needs to strengthen its post-employment training
and further assessment of employees. In particular, employees like Emma, who

5
18FS1 YANG,Yanhao 207172618

have already taken bribes, need to be vetted repeatedly.

 Monitoring: Green Bank also needs to monitor, review and improve. Also, a
whistleblowing process should be put in place and whistleblowers should be
protected.

Q4

According to the DPA 1998 and the (EU) General Data Protection Regulation
2018, these two legal provisions provide for the right of access for customers.
The right of access means that the customer can ask the financial institution
whether it uses or stores personal information about him or her, and that the customer
can submit a request to the financial institution, both verbally and in writing, for the
provision of the relevant personal information. In addition to this, customers can also
submit requests through social media and authorized third party organizations. This is
also referred to as a Subject Access Request (SAR).
This right allows the customer to find out what personal information the
institution holds about the customer, the source of the information, how the institution
will use the personal information and which companies the institution will share the
customer's personal information with. In most cases, banks and other institutions
cannot charge customers for this information. However, in certain circumstances,
institutions may be able to charge reasonable fees depending on the circumstances of
the customer.
Generally, the institution has one month from the date of receipt of the customer's
SAR to provide the information requested, but if the customer's requests are
numerous, the institution may extend the time limit by two months depending on the
circumstances. Institutions are required to provide information to clients in a format
that is convenient to the client and to respond to clients by email if the client does not
specifically request it and the client sends the request by email.
Banks and other institutions are required to provide all personal information held
about the customer upon request. However, some institutions have specific rules for

6
18FS1 YANG,Yanhao 207172618

particular documents and information, such as unstructured manual records, credit

files, health data, educational data, and social work data.

Here are some examples：

For Lloyds bank, customers can obtain a copy of all personal information held
about them by completing this form or by writing to this address：
DSAR
Lloyds Bank Customer Service Recovery
Charlton Place, C57
Andover
SP10 1RE
This includes information about user credit cards, loans, mortgages, bank
accounts etc.
For Barclays, customers can fill in the form as required and Barclays will send
you a copy of your personal details, including data relating to the customer's account,
such as the customer's bank statements, in PDF format or by email. Once Barclays has
approved a customer's request, they usually take 30 days to process it. If the customer
request is more complex, it can take up to 90 days.

Q5

（a）As the Bruce Limited DBPS is about to close, the PPF will protect the interests
of all Bruce Limited employees, including Lewis' father and mother, as their DBPS is
protected by the PPF.
The Pension Protection Fund (PPF) is a statutory PDF company, headed by its
Board of Directors and accountable to Parliament through the Secretary of State in the
Department of Pensions and Works.
The role of the PPF is to protect individuals with qualifying defined benefits in
the event of an employer's insolvency.
The PPF Executive Committee, headed by the Chief Executive Officer of the

7
18FS1 YANG,Yanhao 207172618

PPF, is responsible for the day-to-day management of the PPF. The Pension Protection
Fund (PPF) pays compensation to members of eligible defined benefit pension
schemes (DBPS) when an employer has a qualifying insolvency event and when the
assets in the pension scheme are insufficient to cover the level of compensation from
the PPF.
The PPF will cover 100% of the pension benefits of an insolvent DBPS if the
insolvent DBPS member has retired, or only 90% of the promised defined benefits if
the insolvent DBPS member has not retired.

（b）The PPF benefits for Lewis's father and mother are calculated as follows.
Lewis's father: He has 40 years of service subject to a maximum qualifying
period of 40 years. His final annual salary before retirement is E55,000 and the
accrual rate is 1/60th.
£55000*40*1/60=f36666.67
However, he has not retired and he is 59 years old, so he can only receive 90% of
the DBPS benefit paid by the PPF, which under the 2020 compensation cap factor is
capped at a whopping £33,646.55 derived at age 59, so £33,646.55*90% =
£30,281.90, so he receives £30,281.900 per year.
As for Lewis's mother, she is retired for two years so she can receive full
compensation same with the DBPS benefits. The 62 years old derived cap is up to
￡37179.86，so she can still receive ￡35000.

（c）The PPF's benefits will normally rise in line with inflation up to a maximum of
2.5% per year. And in fact, the calculation of the 90% compensation is capped and
recalculated each year, although the vast majority of members are not affected by this
cap. It is worth noting that ， In particular, members who have been paying into a
pension scheme for 21 years or more can apply for a higher cap.