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Several banks and credit card companies in the UK are facing a new £18bn payment protection insurance (PPI) claim. HSBC, Santander, and Lloyds Bank are accused of secretly charging commission payments of up to 95% when they sold PPI to customers. UK law firm Harcus Parker is waiting for the High Court’s permission to launch a group action against the banks. The court is expected to make its decision in early 2025. The claim comes as banks face a wave of compensation claims for hidden commission paid on motor finance deals, the cost of which has been estimated at £16bn. The PPI scandal was closed off by the FCA with a 2019 deadline for claims, but Harcus Parker believes it can reopen the issue because the new legal action is related to hidden commission rather than mis-selling. Gary Greenwood, investment analyst at stockbroker Shore Capital, warned that the combined claims risked a “total meltdown in financial services.”

 

The Daily Telegraph

The Confederation of British Industry (CBI) is set to warn that Labour's £25bn National Insurance tax increase will severely impact growth, investment, and jobs. Chief executive Rain Newton-Smith will address the CBI's annual conference today, saying that many industries, particularly retail and hospitality, are now in “crisis containment” mode. She will say that “profits are investment” and that hitting profits undermines competitiveness and growth. A recent survey revealed that half of CBI members are considering job cuts, while two-thirds are reducing recruitment plans. Chancellor Rachel Reeves is expected to respond in her own speech by chiding critics for failing to come up with alternatives to Labour tax hikes. She is expected to say: "We have asked businesses and the wealthiest to contribute more. I know those choices will have an impact. But I stand by those choices as the right choices for our country."

 

The Times

The Guardian

The Independent UK

Daily Mail

Recent data reveals that Britain's economy is stagnating, with private sector activity dropping to a 13-month low in November. Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "Companies are giving a clear 'thumbs down' to the policies announced in the Budget." The increase in employers' national insurance, aimed at raising £25bn, has led to concerns over job cuts and price rises among major retailers. The purchasing managers' index (PMI) indicates a decline in expected output, falling below the growth threshold. Paul Dales, chief UK economist at Capital Economics, warned that a contraction in the economy during the fourth quarter would not be surprising.

 

The Times

The Times

Barclays is contesting a £50m fine imposed by the Financial Conduct Authority (FCA) over alleged secret payments to Qatari investors during the 2008 financial crisis. The case, which is being heard in the Upper Tribunal, involves claims that Barclays acted "recklessly" by failing to disclose £322m in fees related to fundraising efforts. John Varley, the former chief executive of Barclays, is set to testify.

 

The Times

The Serious Fraud Office (SFO) has obtained a restraint order over funds in a Jersey bank account as part of its investigation into the collapse of Safe Hands Plans, which has left approximately 46,000 customers facing a £60m shortfall. The Royal Court of Jersey granted the order in September, pending the outcome of the SFO's criminal investigation into Safe Hands and its parent company, SHP Capital Holdings. Nick Ephgrave, head of the SFO, said: "Thousands of individuals from all corners of the UK lost peace and security after being sold a product on the basis it would help reduce the burden on their loved ones upon their death." The administrators at FRP Advisory estimate that only £7.06m to £9.39m may be recovered for funeral plan holders, significantly less than the estimated claims of £64m to £70m. Meanwhile, former owner Dave Milson faces allegations of selling the business through a dishonest scheme, which he denies.

 

The Times

Ministers will this week launch a consultation on regulating healthcare bosses in a move that could see NHS managers sacked and barred from working in the health service for life if they silence whistleblowers or endanger patients through misconduct. A statutory duty of candour could also be introduced as part of the government’s plans. This would make NHS managers legally accountable for responding to concerns about patient safety. Karin Smyth, a minister in the Department of Health and Social Care, said: “To turn around our NHS we need the best and brightest managing the health service, a culture of transparency that keeps patients safe, and an end to the revolving door that allows failed managers to pick up in a new NHS organisation.”

 

The Guardian

An employment tribunal has ruled that supporting Brexit does not qualify as a protected belief under workplace discrimination laws. Colette Fairbanks, a former UKIP councillor, claimed she faced bullying and harassment at her job with Change Grow Live, a drug and alcohol rehabilitation charity, due to her political views, which included opposition to illegal migration and a desire to leave the European Convention on Human Rights. However, employment judge Paul Jumble said: "There has to be a distinction between a philosophical belief and a strongly held opinion," and Fairbanks' views were not protected by the Equality Act. The tribunal concluded that Fairbanks' claims were based on opinions rather than philosophical beliefs, and her discrimination claim was dismissed.

 

The Daily Telegraph

The Times

The Financial Conduct Authority (FCA) faces severe criticism in a new report which describes it as "opaque and unaccountable" and "widely seen as incompetent." The 359-page document, compiled by the all-party parliamentary group on investment fraud and fairer financial services, highlights a "defective culture" within the FCA, suggesting it is too close to the entities it regulates. Concerns are raised about the treatment of staff who challenge the status quo amid claims of bullying and discrimination. Nikhil Rathi, the FCA's chief executive, is leading a £320m transformation programme, but some staff believe it prioritises cost-cutting over consumer protection. Bob Blackman, co-chairman of the parliamentary group, said that the FCA "comes across as an opaque and unaccountable organisation" and is "slow to act and even slower to admit it has got things wrong." Despite this, the FCA claims to have improved its internal trust index score and maintains that it protects consumers effectively.

 

The Times

Britain's largest companies paid £1.45bn in audit fees last year, marking a significant increase as accounting firms adjusted their pricing to accommodate heightened workloads. HSBC topped the list, paying £88m to PwC, while Shell and BP followed with £51m and £45m respectively. According to research by Thomson Reuters, the average audit fee for the top 500 companies rose by 14% this year, following a 13% increase the previous year. Kyle Gibbons, head of global accounts at Thomson Reuters Confirmation, said: "More rigorous audits . . . [have] pushed up the cost." The Financial Reporting Council has intensified scrutiny of audit practices, leading to increased demands on auditors, who now estimate that 40% more work is required compared to a decade ago. Gibbons cautioned: "Audit fees can't keep increasing at this pace."

 

The Times

The Financial Conduct Authority (FCA) has said life insurers need to enhance their claims processing and customer experience. A recent review indicated that while some firms provide commendable support during challenging times, many still fall short of FCA expectations. The review, which involved 15 life insurers covering over 75% of the market, revealed that claims processing times varied significantly, averaging between 20 and 122 days depending on the policy type. Matt Brewis, director of insurance at the FCA, said: “The loss of a loved one can be intensely stressful and we expect firms to offer the right support to help their customers during this difficult time.” Following the introduction of the Consumer Duty in July 2023, insurers are now mandated to prioritise consumer welfare and ensure timely service delivery.

 

Financial Times

Evening Standard

The Competition and Markets Authority (CMA) has mandated that Spreadex sell the business it acquired from Sporting Index last year, citing concerns over competition in the online sports spread-betting market. An independent panel determined that the proposed sale remedy by Spreadex could address these concerns, provided it included "some modifications and enhancements." A representative from Spreadex expressed strong disagreement with the CMA's "entirely disproportionate decision," saying: "We are reviewing all available options."

 

Reuters

The Competition and Markets Authority (CMA) has accused Apple and Google of limiting consumer choice in mobile web browsers, suggesting an investigation under the upcoming Digital Markets, Competition and Consumers Act. A report from the regulator highlights that both companies manipulate user choices to favour their own browsers, with a revenue-sharing deal that diminishes their incentive to compete. Apple disagrees with the findings, expressing concerns over user privacy, while Google defends its Android system as promoting choice. Jordan Ellison from Slaughter and May noted that this report is a significant test case for the CMA's new powers, saying: "The CMA is under pressure to show that the regime can be effective” but also avoid “regulatory overreach.”

 

The Times

UniCredit CEO Andrea Orcel has firmly stated that the bank will not relocate its headquarters to Germany, even if it pursues an acquisition of Commerzbank. Speaking at the JPMorgan European Financials Conference in London, Orcel responded "No" when asked about a potential move to Frankfurt or Munich. He emphasised that UniCredit operates under a federal model with its centre in Milan, and shifting headquarters would contradict the structure of its subsidiaries. 

 

Reuters

HSBC has announced the cessation of all payment processing for personal banking customers from Russia and Belarus. The bank stated on its retail banking website that it has "made the decision to stop processing payments" from these countries and will arrange alternatives for affected transactions.

 

The i

The managing director of Jaguar Land Rover has hit back at criticism over the company’s rebranding and denied a promotional video released on social media is a “woke” statement. The video failed to promote any vehicles, revealed that the famous leaping cat icon had been “reimagined,” and featured brightly dressed models diverse by race, sex and age. But Rawdon Glover said the intended message had been lost in “a blaze of intolerance” on social media. The new promotional campaign is intended to insert a dividing line between Jaguar’s past and its all-electric future, and attract a new, younger customer base. But critics say it has made a fatal mistake by abandoning its heritage.

 

Financial Times

The Daily Telegraph