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Regulation_
Regulatory Landscape (92 minutes)
On this session we discussed the imminent FCA Consumer Duty rules and guidance with three experts, Peter Lovegrove of Grant Thornton, Ricky Nuttall of Simplybiz and Ross Liston of Bankhall.
Time to Rejoice!
The Heath Report 4 Survey shows that the adviser community has increased its sector capacity by 1.2m new clients. This is really good news. The more consumers we handle - the more important we are to the Treasury and Politicians.
FCA at it again
The FCA has proposed to hike, as usual each year, its annual funding requirement for advisers from £82.3mn to £86.5mn.
FCA Laptops
I imagine most advisers and casual observers would agree that the various financial services regulators have been profligate when it comes to spending other peoples money. In fact, as the FCA is fully funded by other peoples money, it enables them to spend whatever amount they wish on whatever they wish in the certain knowledge that the following years budget will be laid before the insurers and regulated bodies who have no option but to cough up the funds to balance it.
What IFAA Has On Offer For Advisers In 2022
Firstly, we will have The Heath Report 4 (THR4) completed at the end of February. I will be getting the first version of the data next week and then we have a big job as the firm we have used to deliver the statistics on active advisers (as opposed to those who are qualified to advise) has stopped producing the ammunition.
Fidelity Adviser Solutions: The FCAs strategy for positive change
Environmental, social and governance (ESG) matters are high on the regulatory agenda. Indeed, the FCA believes the financial sector has an important role to play in helping the economy adapt to a more sustainable long-term future. Here is an overview of how it intends to support the industry drive positive change.
Firstly, we will have The Heath Report 4 (THR4) completed at the end of February. I will be getting the first version of the data next week and then we have a big job as the firm we have used to deliver the statistics on active advisers (as opposed to those who are qualified to advise) has stopped producing the ammunition.
Not an advisers friend.
Some thoughts from Alan Lakey on Paul, Lord Myners death over the weekend. It has brought out the usual gushing tributes about how he did this, accomplished that, and, was an all-round good egg.
IFAA: Panic! MPs discover they can't appeal
I have sent a letter to Mel Stride, the Chairman of the Treasury Select Committee on the Owen Paterson affair. You may note that the arguments surrounding this case was that Mr Paterson had been disciplined without due process or the right of appeal
FCA exploring more impactful alternatives
As reported in Bento 1262 on 7th August, we received tip-off from an FCA mole that the FCA had put into action their Ethnicity Action Plan which focusses on refreshing Unconscious Bias training, exploring more impactful alternatives and rolling out the workshops across the organisation to support the changes they want to see.
FSCS, how long does it take to get to the facts?
More than 5 months. Back in May this year I tried to get some sense of the scale of discretionary payments made by the FSCS to consumers who have long since passed their complain by date.
The Heath Report 4
The Heath Reports are designed to identify the market for professional advice for UK Consumers. It has been very influential particularly with the Treasury Select Committee.
Paraplanners lost in the ether of regulation
The SMCRs (Senior Managers Regime Certification) was created to address risks posed by adviser firms employees, whose role may allow them to do significant harm to the firm or its customers.
FCA launches new ESG and Sustainable Investment Principles
The FCA has launched their new ESG & sustainable investment principles today - which we have been looking forward to since first mentioned by them publicly at the 'SRI Services and Partners Good Money Week conference' last October.
Is It Time For Advisers To Become The Policy Makers Pt. 1?
It is over 2 decades, since our current regulatory empire was created and, in that time, the prime makers of policy have been the regulators, who were, by law, not truly accountable to anyone and who have no commercial skin in the game. So, has this bizarre anti-democratic experiment succeeded? No.
FundsNetwork: The FSCF and EU-domiciled funds
In late 2020, there were some media reports suggesting that FSCS protections for EU-domiciled funds such as those based in Ireland and Luxembourg would be stripped away once the Brexit transition period ended on 31 December 2020.
IFAA: Are the Insurance Companies leading a Scam Against Your Firm?
I have had a long discussion with a handful of member and other firms about a potential scam that they have had visited upon them. We are talking exclusively about protection not investment products.
More Good News from the Front
Just before Easter, the IFAA issued a short survey on the impact of COVID and other issues. This will help us when we design of The Heath Report 4 survey which I hope to issue this June.
FundsNetwork: Ensuring the fair treatment of vulnerable customers
The FCA recently issued Finalised Guidance FG21/1 setting out requirements firms must follow. FundsNetwork short summary provides an overview of the key takeaways, including what makes someone vulnerable, understanding customers' needs and the skills and capability required by firms.
Commission bias, still more perception than reality
The RDR did nothing to enable access to financial advice and the removal of commission on protection policies would result in a similar diminishing of involvement. Not only would many more use the comparison sites, which trade on premium lists, but many, many more would not protect themselves at all.
Prudential: FG (21/2) Key points from the FCAs finalised defined benefit transfer guidance
Remember the Fun Boy Three/Bananarama song it aint what you do its the way that you do it?
Wayman becomes Unsustainable
There is something profoundly wrong with me. Not only have my stars aligned but I am feeling that we are all making progress. No that all my happiness is derived just from potential improvements in advice; I am hugely happy about not being married to Megan Markle for starters.
We dont need no stinking badges 4
Claims management companies have, in the eyes of many in the IFA world, managed to portray a world of plenty to hard pressed consumers in the troubled, distressed worlds of 2020 and 2021.
Nightmare on Compensation Street
I sometimes awake in the middle of the night, bathed in sweat and breathing heavily. For a minute or so Im confused and disoriented and then, after the mental turmoil subsides I realise it was only a nightmare. In my nightmare I had worked at a Claims Management company (CMC).
Increase to the NMPA: a brief examination of the consultation paper
The Government has recently reaffirmed its intention to increase the normal minimum pension age (NMPA) from 55 to 57 from 6 April 2028. Paul Kennedy, FundsNetwork's tax expert, takes a look at some salient points within the consultation paper and makes a few observations.
It is Time for Some Good News
I was looking back at the last few Heaths Hammer and by God were they glum. Perhaps the lockdown was getting to me. So, it is time for some good news.
A Call for Input
The FCA created another document entitled a call for input whatever that means. It appears to be another fishing trip by the FCA for increased powers and an attempt to blame others for its failure. It is important to note that this was not a Consultative Paper rather a call for input. This meant that it was not in the list of Consultative Papers and had a member not alerted us we could have missed it. Maybe it was only sent to favoured creatures who could be trusted to follow the party line!
Back of the net FCA
Firstly, I should make it clear that I, along with a substantial number of others with time served in the financial services industry are often seen to criticise the layers of unfathomable regulation imposed upon regulated firms by the regulator, the latest incarnation being the FCA
Proof, if needed, that politicians do not get regulation impact
I would like to share with you some correspondence that has taken place between an IFAs MP, Crispin Blunt and in turn his letter to Rishi Sunak and the reply from the Chancellors office.
Streamlining the Quango State
I receive several learned papers ever week. The latest is called Streamlining the Quango State and is by Professor Tim Ambler.
Time to do something about the FSCS levy
Some members have seen their FCA invoices rise by 80%. This and the cost of PI is compromising the very future of advice.
IFA needs a steer on an unusual FOS complaint issue
IFA needs a steer on an unusual FOS complaint issue.
FundsNetwork: Ensuring the fair treatment of vulnerable customers
The FCA recently issued Guidance Consultation GC 20/3 setting out requirements firms must follow to protect vulnerable customers and ensure they are treated fairly.
What have the Romans ever done for us?
Switch this to what have the regulators ever done for us? because you could be forgiven for thinking youve woken up on the set of a Monty Python film. Regulation is there to protect the consumer from bad advice but surely not at the price of removing rights and liberties afforded the rest of the population?
Smile let's see Progress
How did you get up this morning? Go to the bathroom? Did you seriously consider squeezing the toothpaste in a different place? No neither did I. Nor did anyone come in from the street and demand I squeezed it into my ear.
The Nucleus census 2020
Remember when we thought 2019 was a challenging year? Our users share their views on the 2019 regulatory environment in our census 2020. Find out what they had to say by downloading a copy today.
Not quite banged to rights
In an update June 11th, the FCA said a leading bank had potentially unfairly treated more than a quarter of a million borrowers in mortgage arrears, including vulnerable customers.