Industry news and views from Panacea and our partners.
Regulation_
RSMR: Assessing suitability: Research and due diligence FCA thematic review TR16/1
This FCA paper was published on 19th February and provides very high-level comments on the findings of their thematic review of the research and due diligence processes carried out by advisory firms, exploring how advisers select funds, products, platforms and DFMs.
Something rotten going on?
Our FOS 2016 survey is showing some alarming results and even more alarming comments.
Technical Deficiencies in FOS practices
We recently had an email through from an adviser detailing how he believes the FOS are failing in the implementation of assumptions and procedures leading to unjust and technically, morally and legally unsafe outcomes. These matters include:-
Yadda Yadda Yadda
A great article in Investment Week noted that The Financial Conduct Authority (FCA) has said it is ready to intervene on the use of language confusing to consumers, if the industry does not develop a credible solution.
Libertatem: All Leads Back to Unaccountability
The FCAs Chairman and Acting CEO appeared in front of the TSC this Wednesday to explain why they had stopped their planned public review into Banking Culture which has been a FCA Board decision.
Who is actually responsible for the RDR mass-market advice mess?
It was Sir Callum McCarthy's infamous Gleneagles speech in September 2006 which laid the groundwork for the overhaul of the UK financial services retail distribution business model, something now referred to as the RDR.
Financial Advice Market Review update
In November, I was asked by Harriet Baldwin MP (who many may remember came to a Panacea Meet the MPs event shortly after her election in 2010) to contribute to the HM Treasury Financial Advice Market Review (FAMR) due to the size, influence and knowledge of the Panacea community.
Quicksand in the sandbox
At a recent Wealth Management conference, FCA chairman John Griffith Jones, observed that the acting FCA ceo, Tracey McDermott , is concerned that regulated businesses are spending too much time on dealing with regulation rather than taking care of the business.
Time for professional regulation
FAMR offers a great opportunity to improve regulation and Libertatem is convinced that it is a time to stop tinkering and exhibit bold thinking and bold ideas. Libitertum initiated the idea of PAR The Professional Advisers Regulator.
The computer says .NO.
Because on the 18th November the Barclays reputation took another battering when New York Department of Financial Services regulator (NYDFS) levied an extra $150m fine on them because of the way they treated their foreign exchange customers. That took the overall Barclays Foreign Exchange NYDFS fine total to $635m. A level of fine the HM Treasury must salivate over.
Aegon: Financial Advice Market Review kick-starts the conversation on the future of financial advice and guidance
HM Treasury and the Financial Conduct Authority (FCA) are putting their heads together to examine the way customers can most effectively access financial advice and guidance.
Money itself isn't lost or made, it's simply transferred from one perception to another.
Economic Secretary to the Treasury, Harriett Baldwin MP, has launched a major new review looking at how financial advice could work better for consumers.
FSCS funding, the third way
The Tory party conference can always be relied upon to deliver some interesting sound bites.
Compliance Consultant: World of Compliance
World of Compliance Is The Only Risk & Compliance Information Portal with All The Regulators Publications Under One Roof With Premium Content Available From Across The Internet For UK Financial Services Risk & Compliance Professionals
RDR learnings
At the beginning of August, the You could not make it up season got well underway with HM Treasury and the FCA launching a review to examine how to plug the advice gap (their own regulatory actions had caused). Well, they missed that last bit out in the announcement.
Is Adviser Representation Guaranteed?
Now people are beginning to notice Libertatem, we are now seeing the development of sales objections to joining one of which is what guarantees can you give me it is going to work? After the last 15 years of supine adviser representation, that is a very fair question.
RHG: Save our Melons
The recent receipt of a 320% increase in the FSCS levy almost led to a chain of events that would see me behind bars for the foreseeable future. Fortunately, my partner was on hand to endure an evening of my ranting in a local hostelry and by morning common sense had prevailed. However, my determination to do something to protest about this was not diminished.
Compliance consultant: How to get the companies to provide client data to a paraplanner service, compliantly
What do advisers need to do in order to make sure that the product providers divulge information to the paraplanner in a compliant manner?
Why am I paying for the supervision of networks?
Advisers, mortgage brokers and insurance firms are set to pay £74.9m towards the costs of the Financial Conduct Authority (FCA) in 2015/16. Of this, £67.7m is paid by small firms, (those with less than £100,000 turnover). Im a one-man adviser firm, whos been directly authorised for the past 4 years. Ive only advised on, standard pensions, ISAs and unit trusts wrappers. All very safe, and its worked successfully for past 15 years.
Fees, its about the Money Money Money
Ms Jessie J may be a singer and not a regulator but she was correct singing, It ain't about the ch-ch-ching ch-ching, it ain't about the bl-bling-bl-bling, its about the money money money.
Where have all the advisers gone?
There has been a lot of coverage in the press recently about the new pension freedoms and the so-called 'obstructions' being put in the way of customers trying to take advantage of those freedoms by providers, often including the requirement for 'expensive' advice from a financial adviser. Understandably there has been concern amongst the adviser community that such coverage damages the public's perception of the value of advice, focussing on its cost rather than the benefits.
Support Libertatem in its mission to protect impartial advice
Earlier this year Action Consulting conducted research amongst adviser firms which both contributed to The Heath Report, and which underlined the case for a new trade body for impartial advisers.
What should be the governing factor in setting regulatory fees
Advisers, mortgage brokers and insurance firms are set to pay £74.9m towards the costs of the Financial Conduct Authority (FCA) in 2015/16. Of this, £67.7m is paid by small firms, (those with less than £100,000 turnover).
APFA's Mission 2015/2016: An accountable regulator and fairer funding
I wanted to write to financial advisers to outline our lobbying priorities for the next Parliamentary year, highlight some of our achievements so far and thank our members for their continued support.
APFA's Mission 2015/2016: An accountable regulator and fairer funding
I wanted to write to financial advisers to outline our lobbying priorities for the next Parliamentary year, highlight some of our achievements so far and thank our members for their continued support.
FSCS levy. We're captive on the carousel of time
Mark Neale the boss of the FSCS is looking for advisers to come up with a cunning plan to better fund the behemoth. A particularly timely comment given that life and pension advisers are being levied for some £100m for the 2015/16 year, up 75% on a prediction some 3 months before and some 3 times the amount levied on them for the previous year.
Foot Anstey LLP: The FCAs rules on secret profits
In addition to the regulatory regime on disclosure, firms paying introducer fees also need to be aware of the law on "secret profits" which can allow clients to reclaim fees paid of which they were not made aware. Terence Dickens looks at the key issues.
If you aint cheating, you aint trying
So Barclays has been hit with the biggest UK bank fine in history. Although top of the league, they join another six banks who between them have been fined some $6bn for a stitch up of the foreign exchange markets.
Scottish Widows Techtalk
Our technical magazine for financial advisers Techtalk is our free online magazine which is written by our technical experts3 and provides technically relevant, up-to-date information. The key rationale of techtalk, and indeed one of the reasons it is so popular amongst financial advisers, is the non-sales, non-promotional approach of the articles. The overall theme is to anticipate, interpret and forecast key industry changes and regulation.
Fair Liability Campaign sees solutions to limit liability for advisers move one step closer APFA consults with advisers in last phase of campaign
The Association of Professional Financial Advisers (APFA), in conjunction with campaign partner Zurich, is consulting with advisers on possible solutions to limit liability for advisers to help inform ongoing discussions with the regulator.
Why I believe the FCA finally gets Social media
When was the last time you made a call from a public telephone box? Or booked a mini break with a travel agent rather than online? New technology has altered the way in which we communicate with each other and impacted on our consumer habits in ways which have driven many household names in to the pages of history.
Regulatory rewards for failure
Some timely observations on the subject from our guest editor, Alan Lakey.
Doomed? Trail removal matters, fears for the few as well as the many
Many readers will be aware, we have been concerned for some while about the impact that the removal of trail will have on businesses. The impact is varied, the threat real, in fact more real than even we realised.
What's French for en-suite facilities?
In an episode of the 1980s TV series Minder, Arthur Daly is seen trying to sell the landlord of the Winchester Club, Dave Harris, a watch. Arthur says, At that price its a steal, to which Dave replies, Thats what worries me Arthur.
FCA positioning statement seen by a community member today, advisers should be very afraid.
There is no such thing as an insistent client. If a client wishes to take a course of action contrary to your recommendations, then a letter signed by him/her to the effect that you will not be held responsible should a bad outcome result will NOT be accepted by the FOS. A complaint will be found against you for having allowed the client to do what you knew to be the wrong thing and took payment for it. Your only option is to decline to act further.
Its a funny old game
I read that despite some 40 years of being told that butter is not good for you the processes that led to this conclusion were flawed, lacking in any solid trial evidence to back it up.
Compliance Managers Guidebook & Reference
The Responsibility of Compliance Directors/Managers Is Increasing And It's Really Vital That They Have Their Finger On The Regulatory Pulse.
FCA fines skim. You can only milk a cow so long before you're left holding the pail.
I had the good fortune to meet former US President Ronald Reagan a good few years ago while walking along the beach in Santa Monica. Although in his declining years he cut an impressive figure and gave me a very snappy salute and a smile. In his prime he had an interesting take on Governments and taxation, saying a Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidise it.
Clive Adamsons FCA departure is costing how much?
As they say, it is always the cover up that causes the problem. Bob Woodward, one of the now very famous journalists that uncovered what was going on in the great political Watergate/ Nixon scandal of 1972 said The fact of the Watergate cover-up is not nearly as interesting as the step into making the cover-up. And when you understand the step .?
What are your views post RDR? Last chance to take our short survey
Do you want to have your voice heard? Panacea Adviser and The Heath Report would appreciate if you could take this short survey, results of which will be issued in early 2015 to all interested parties, including the FCA and Treasury Select Committee.