they're "affiliates" to a major overseeing group, who effectively act as proxies for the FSAs oversight.
Yup. I've been in that situation before.... and its called overzealous compliance, and tends to particularly occur when the overseeing group is a large corporate entity.
One time in that situation, for example, I was told by a Compliance Director that both I and my staff needed to disclose on a regular basis details of all financial transactions (equity market deals etc.) that we took part on our personal accounts...."due to FSA compliance reasons".
Upon taking legal advice on the matter from a partner at an established law firm, I told them where to stick that particular request. It had no negative impact on my relationship with them.
Moral of the story is that the FSA issue guidelines, not laws.... and there is a lot of scope for compliance departments to over-egg the pudding in their interpretations of such guidelines.
But I don't know the ins and outs of your particular circumstance here, so I'll have to take your word for your particular situation... however I would just say don't paint every FSA regulated entity with the same brush that you have been painted with !
