Latest news with #FinancialServicesandMarketsAct
Glasgow Times
04-08-2025
- Automotive
- Glasgow Times
Mike Dailly: What to do if you have a car finance mis-selling claim
While claims management companies (CMCs) prepared for a bumper bonanza – their fees could have topped a third of the £44 billion claims bill – fate had other plans. Last October, the English Court of Appeal held that car sales firms couldn't lawfully receive commission from finance companies unless they had the customer's "fully informed consent". On Friday, the UK Supreme Court (UKSC) gave its ruling in the three linked appeal cases of Hopcraft, Johnson and Wrench. It decided car firms didn't owe their customers a fiduciary duty when arranging car finance. A fiduciary duty is a legal obligation to act in someone's best interests – like a trustee would owe to a beneficiary or a director owes to a company. The lack of a commission disclosure applied to almost all car finance agreements, so any claim based purely on that point is now lost. However, in the case of Johnson, an unfair relationship challenge was upheld under section 140A of the 1974 Consumer Credit Act. The UKSC said, 'the size of the commission paid by FirstRand (the lender) to the dealer was significant, amounting to 25 per cent of the advance of credit and 55 per cent of the total charge for credit (comprising interest and fees). The fact that the undisclosed commission was so high is a powerful indication that the relationship between Mr Johnson and FirstRand was unfair'. Car finance is a £40 billion per year business in the UK. Traditionally, most people would buy a car using a hire purchase (HP) or conditional sale agreement – both types of consumer credit where you own the car at the end of the agreement. After the financial crisis of 2008, personal contract purchase (PCP) grew to become the most popular form of credit to buy new and used cars in the UK. After an initial deposit, the monthly payments are lower than HP and after a few years you can either make a 'balloon payment' to own the car outright or swap the car for a new model. 83 per cent of car finance deals use PCP. Car dealers generally act as brokers for lending companies. Until January 2021, dealers were able to set the interest rate on loans within a low to high range – known as a discretionary commission arrangement (DCA). Their customers didn't know the car dealer would get a higher DCA if they persuaded you to accept a higher interest rate. This unethical conflict of interest was banned by the Financial Conduct Authority (FCA) in January 2021. But 40 per cent of car finance deals involved DCAs – the number of consumers with pre-January 2021 car finance who might have a valid claim runs into the millions. DCAs fall foul of the FCA's regulatory rules on fairness and transparency. The FCA is expected to announce a consultation on a 'redress scheme' under section 404 of the 2000 Financial Services and Markets Act by today. If this happens, the scheme will be free and easy to use. If you think you're affected don't use a CMC – why give a claims farmer a third of the hard earned cash you've already paid when you can do this for free? You can get free guidance on how to claim under any redress scheme from and other trusted consumer guides.
Time of India
31-07-2025
- Business
- Time of India
A responsible recovery in the aftermath of an alarming cyberattack
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Wealth 1. Insiders say this might be the big crypto presale of the year Replacing the fund management and distribution entity for creditors from an international entity - Zanmai India , which is fully registered with the Financial Intelligence Unit of India (FIU-IND) will handle fund distribution for users which means faster and compliant fund disbursement. , which is fully registered with the Financial Intelligence Unit of India (FIU-IND) will handle fund distribution for users which means faster and compliant fund disbursement. Compliance with the Financial Services and Markets Act (FSMA) was resolved when the Monetary Authority of Singapore (MAS) confirmed that Zettai would not fall under digital token licensing requirements, provided the restructuring is carried out in accordance with the approved scheme. Zettai, the parent company of crypto exchange WazirX, has unveiled a restructuring scheme that is more than a financial response to the 2024 cyberattack. It's a legal and operational reset that offers creditors a faster, more transparent, and ultimately fairer outcome than liquidation. To quote a blog from Global Law Experts which compares restructuring to liquidation: 'Creditors often have a better chance of recovering funds through restructuring rather than liquidation.'Creditors have made it clear: timely access to funds matters. The fastest way to unlock 85% of balances is through the restructuring scheme without having to wait for lengthy liquidation processes. It also facilitates a continued recovery process for the next three years so that all creditors are made whole based on what their balances were when the platform assets were stolen by opted for restructuring under the High Court of Singapore to benefit from forward-looking regulatory clarity tailored for emerging technologies such as crypto. These regulations are designed to balance innovation with trust and offer frameworks that are known to produce fair, transparent outcomes for all parties Zettai's restructuring scheme, creditors can choose control of their funds by voting YES instead of going through extended periods of uncertainty and no clear conclusion in sight. WazirX's creditors have complete faith in the scheme and its potential for recovery of lost funds, as was shown in its platform voting where 93.1% of creditors by count and 94.6% by value voted in favour of the Scheme. Despite a landslide support for the scheme, it faced a temporary pause for regulatory alignment when the Singapore High Court did not accept the application on 4 June, 2025, which was the hearing date for the Scheme. But in a pivotal legal milestone, the High Court of Singapore granted approval for a revote on the WazirX restructuring scheme on 16 July, 2025, based on user-first amendments in the scheme aligned with evolving clarity around the latest regulations. Rehearings of this nature, especially post-judgment reviews, are rare under Section 41(8) of the Supreme Court of Judicature Act 1969. The Scheme's new additions for the latest hearing, which were brought forth in as little as 45 days, were two key components:The updated scheme does not change the fundamentals, that is, how creditors' funds will be distributed, and their subsequent recovery process. For full disclosure about the restructuring process to all stakeholders involved, all information and any subsequent modification in the Scheme needs to be communicated as clearly as possible, which Zettai has achieved successfully. This underscores an added layer of trust-building alongside a relentless determination to fight for users' fund recovery. So essentially, the upcoming revote now offers a chance to reaffirm that trust the creditors had earlier demonstrated, paving the way for a timely the earlier order set aside and a new voting period scheduled from 30 July, 2025 till 6th August, 2025, WazirX is now positioned to move decisively. Once the amended scheme gets a majority of YES votes, the Scheme will be approved. Within 10 business days of the scheme being effective which will be finalised in the next court hearing, Indian entity Zanmai will start fund distributions within 10 business days, which could be in a few weeks after the voting development is more than a legal green light. It's a demonstration of how crypto companies can operate within strong legal frameworks, respond to evolving regulations, and protect user interests without compromising speed, compliance, or transparency.
Yahoo
16-07-2025
- Business
- Yahoo
Scoop: Singapore High Court clears path for WazirX revote, platform could resume operations within weeks
Scoop: Singapore High Court clears path for WazirX revote, platform could resume operations within weeks originally appeared on TheStreet. The Singapore High Court has overturned its June 4 order rejecting WazirX's restructuring plan, granting permission for a fast-tracked revote that could allow the Indian crypto exchange to reopen and begin reimbursing users within a month. In the latest hearing on July 16, the court accepted new arguments from Zettai— the parent firm of WazirX — after a revised proposal addressed prior regulatory concerns. The restructuring scheme initially faced objections due to the involvement of Panama-based Zensui and concerns over potential violations of Singapore's Financial Services and Markets Act (FSMA).However, under the revised plan, the Singapore High Court has granted Zettai an expedited timeline to conduct a revote on the updated proposal. The presiding judge confirmed that all necessary amendments have been made to the scheme in line with the court's earlier observations. If a majority of creditors vote in favor, WazirX will resume operations immediately, and the distribution of user assets will begin without delay. As part of the restructured plan, all core operations—ranging from trading and withdrawals to user-facing tech—will now be handled by Zanmai Labs, an Indian-incorporated entity, rather than Zensui. This shift toward local control was central to satisfying the court's compliance concerns. 'The crypto-crypto operations will be transferred to Zanmai India... to facilitate the full resumption of operations of the Platform,' Zettai's co-founder Nischal Shetty stated in an affidavit dated July 4 and reviewed by TheStreet. The plan had previously secured overwhelming creditor approval—over 93% by headcount and 94.6% by value—but was struck down due to FSMA concerns. The turning point came when Singapore's Monetary Authority (MAS) clarified that Zettai would not be in breach of digital token service rules as long as distributions occur outside the this regulatory green light, the High Court has now instructed Zettai to organize a revote on an expedited timeline. If approved, the platform will reopen immediately and initiate its long-awaited distribution process—handled by Zanmai—aimed at repaying users affected by the $234 million hack in July 2023. 'Zettai had always contemplated the possibility of the Platform resuming full operations... the Scheme had provided for a sharing of any Platform Profits with Scheme Creditors,' Shetty wrote. Scoop: Singapore High Court clears path for WazirX revote, platform could resume operations within weeks first appeared on TheStreet on Jul 16, 2025 This story was originally reported by TheStreet on Jul 16, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
Zanmai India to take over WazirX operations, MAS clears key compliance hurdle
Zanmai India to take over WazirX operations, MAS clears key compliance hurdle originally appeared on TheStreet. India's top crypto exchange WazirX may finally be on a fast track to unlocking frozen user funds — if a newly filed restructuring plan gets a green light from the Singapore High Court. A fresh affidavit submitted by Nischal Shetty, seen by TheStreet, dated July 4, outlines critical updates that could resolve key objections raised by the Court in early June, particularly around operational clarity and potential regulatory breaches under Singapore's Financial Services and Markets Act (FSMA).The proposal marks a change in strategy following the court's rejection of an earlier plan last month. At the heart of the update is a major shift in operational strategy. The affidavit confirms that all core activities of the exchange, including crypto-to-crypto trading, user withdrawals, and technical operations — will be handed over to the Indian-incorporated affiliate, Zanmai Labs. In Shetty's own words, the intention is to transfer 'crypto-crypto operations to Zanmai India (instead of Zensui) to facilitate the full resumption of operations of the Platform.' Back in June, the Singapore court dismissed Zettai's previous Scheme despite receiving overwhelming creditor approval — 93.1% of voters representing 94.6% of affected assets backed the plan. But the court raised red flags about the involvement of Zensui and questioned whether the proposed crypto payouts complied with Singapore's FSMA. The scheme was initially introduced in response to WazirX's $234 million hack in July 2023, which was linked to a North Korean cybercrime ring. The attack left over 4.4 million users locked out of their funds. The proposed fix promised to pay 85% of assets upfront and the remaining balance over the next three years. The High Court had found 'Zettai will be in contravention of the Financial Services and Markets Act 2022 FSMA for holding the cryptocurrency tokens and thereafter effecting the First Distribution pursuant to the Scheme,' per affidavit submitted by Nishchal Shetty. A key development in the latest affidavit comes from Singapore's financial regulator. The affidavit reveals that 'MAS clarified that, on the assumption that the First Distribution is – and is distributed to creditors outside of Singapore in accordance with the terms of the Scheme that is approved by the Court, Zettai is not carrying on a business of providing a digital token service within the scope of Section 137(3) of the FSMA.' This clarification is expected to significantly bolster Zettai's case in the eyes of the High Court. The pivot to Zanmai India as the operating entity also aims to provide much-needed legal and regulatory clarity. According to the affidavit, all user transactions and interface operations will be handled by Zanmai. Zensui, the Panama-registered entity flagged by the court earlier, is now effectively company is not seeking another creditor vote unless explicitly required by the Court. The affidavit states that the updates 'do not materially change the Scheme' but rather 'clarify aspects that were previously misunderstood or inadequately explained.' If the High Court accepts the clarified proposal, Zanmai India would immediately begin the process of unlocking user balances and restoring exchange functionality. For millions of affected users, this may be the final turn in what has been a long and uncertain road to recovery. As Shetty concludes in the filing: 'Zettai had always contemplated the possibility of the Platform resuming full operations as part of the implementation of the Scheme, hence the Scheme had provided for a sharing of any Platform Profits with Scheme Creditors in the event of such full resumption.' Zanmai India to take over WazirX operations, MAS clears key compliance hurdle first appeared on TheStreet on Jul 10, 2025 This story was originally reported by TheStreet on Jul 10, 2025, where it first appeared. Sign in to access your portfolio
The Star
02-07-2025
- Business
- The Star
Binance to keep remote workers in Singapore
Crypto crackdown: People crossing a street in Singapore's Chinatown district. The MAS imposed a hard deadline of June 30 for crypto firms incorporated in the city-state and offering services offshore to cease activities. — AFP Singapore: The world's largest digital assets exchange Binance plans to keep hundreds of remote workers in Singapore, despite a crackdown on unlicensed crypto outfits in the city-state. The Monetary Authority of Singapore (MAS) recently announced a hard deadline of June 30 for crypto firms incorporated in Singapore and offering services offshore to cease activities, prompting top-10 exchange operators Bitget and Bybit to weigh shifting employees overseas. The new rules are expected to have a negligible impact on Binance's operations in Singapore, according to sources. Hundreds of Singapore-based employees working remotely for the exchange will not need to relocate, the sources said. More than 400 Binance workers label themselves as based in Singapore on LinkedIn, according to a Bloomberg News analysis. Binance had no comment on its operations in the city-state, and did not specify whether it has an office in there when asked by Bloomberg. Crypto exchanges have long posed challenges for would-be regulators by leaving their base of operations ambiguous. Binance has never named a global headquarters. Its chief executive Richard Teng – a former director at MAS – said in 2024 that the company had held talks with a number of jurisdictions on the matter, but in January he described Binance employees as 'remote-first'. In a June 6 clarification to its initial announcement, MAS said digital asset firms offering services 'solely to customers outside of Singapore' will need to be licensed from June 30 or 'cease their regulated activities'. Binance is not licensed in Singapore and has been on an investor alert list there since 2021, meaning it cannot solicit customers from the city-state. Binance employees here are seen as shielded from the recent MAS notice, however, because they mainly focus on back-office activities including compliance, human resources, data analysis and technology, sources said. Working remotely, rather than in a permanent office, also helps to insulate them, the sources added. Individuals or partnerships that operate from a place of business in Singapore or incorporated in the city-state and offering digital token services outside the country will fall under the new rules, MAS said in its May 30 statement. But work done by an individual as part of their employment with a foreign-incorporated company that provides such services outside Singapore 'would not, in itself, attract a licensing requirement' under the Financial Services and Markets Act (FMSA) 2022, MAS said. 'Place of business is a grey area,' said Chris Holland, partner at Singapore consulting firm HM. 'The definition of 'place of business' is broad under the FSMA. While the term will have a boundary, I would not encourage firms to engage people resident in Singapore and then rely exclusively on that definition to work remotely assuming that it's outside the remit of the new rules.' Singapore is one of Asia's foremost crypto hubs, with a licensing regime that global players such as Coinbase Global Inc and OKX have have used to set up regional bases. But the city-state suffered a string of bruising blow-ups during the last industry downturn in 2022. Among those was Three Arrows Capital, a crypto hedge fund that imploded after a series of bad bets. Singapore's status as a fulcrum for the industry is now being called into question, after the June 30 deadline sparked concerns of a crypto exodus. 'There's lots of uncertainty on Singapore's stance on crypto,' said Raagulan Pathy, co-founder of Kast, a stablecoin startup. Cayman Islands-based Kast has hired 100 people in the past 12 months and had planned to shift internal operations employees, trading teams and other executives to Singapore while hiring 30 to 50 people here. Pathy aimed to set up a global office in Dubai instead. He has no plans to move personally but has to 'make hard choices about where to locate offices for Kast'. — Bloomberg
