Displaying items by tag: FCA

The FCA, alongside 11 financial regulators and related organisations, has today announced the creation of the Global Financial Innovation Network (GFIN), building on the regulator’s proposal to create a ‘global sandbox’.

The Upper Tribunal has upheld an FCA decision to fine and ban Alistair Burns, chief executive of advice firm TailorMade Independent Limited, as it was confirmed that the FSCS compensation bill for his failed business could hit £106.5m.

At first glance, how the Financial Conduct Authority (FCA) intends to improve retirement outcomes for non-advised consumers may appear of little relevance to advisers. And with no short supply of regulatory changes affecting their businesses’, many advisers might have concluded that the time spent reading CP18/17 was more a luxury than a necessity.

A new report, by the FCA Practitioner Panel, has highlighted that the regulator has room for improvement in international regulation and Brexit.

The FCA’s Brexit head Nausicaa Delfas says the regulator is ready for all potential outcomes of the final Brexit negotiations, including a ‘cliff-edge’ or hard Brexit.

A financial services alliance, with a combined global membership of 200,000, has called on the FCA to “do more to support professionalism in UK financial services.”

The FCA, alongside the Bank of England and Prudential Regulation Authority, has published a joint discussion paper on the resilience of firms in the face of hackers and cyber-attacks.

The Financial Conduct Authority may introduce a cap on drawdown charges as it announces a package of measures to trackle potential 'harm' from the Pension Freedoms. 

The FCA has today published the latest analysis from its Financial Lives study which surveyed nearly 13,000 across the UK and revealed stark financial differences between urban and rural dwellers.

The Personal Finance Society has issued an updated good practice guide covering transfers from defined benefit to defined contribution pension schemes as it warned against bad practice harming the profession.

The guide replaced last year’s update to the original guidance issued in 2016 and followed the FCA’s March policy statement ‘advising on pension transfers.’

PFS chief executive, Keith Richards, said mandated professional advice was a “vital consumer protection component and the updated guide aims to give members clarification around changing advice requirements, as well as ongoing good practice gained from subject matter experts and practitioners from across the sector.”

He added: “Defined benefit pension transfer advice continues to be a key area of focus for the FCA, government and consumer lobbyists, so it is particularly important that firms advising on DB pension transfers ensure their clients fully understand the implications of a proposed transfer before deciding whether to proceed.

“Accordingly, our new guide covers a number of important areas, including risk appetite, the need for holistic advice, qualifications and contingency charging.

“It also features sections on the wider tax issues, cash flow modelling, insistent clients and death benefits.”

Mr Richards said that after a programme of specific supervisory work, the FCA recently concluded that only 47 per cent of the DB to DC transfer advice reviewed could be shown to be
suitable, based on the information in the adviser’s file, which will “inevitably” lead to further scrutiny and supervision.

He continued: “We are particularly alive to the issues surrounding the availability of professional indemnity insurance (PII) for DB transfer advice and have seen evidence of withdrawn cover, or increased cost and excesses, for some advice firms at renewal.

“While this is an overreaction in many instances, it can only be addressed if we establish a clear picture of what good looks like in the pension transfer space and in particular the concerns raised regarding conflicts of interest and insistent client transactions.”

Mr Richards believed it was “critical” that concerns were addressed whether real or perceived, so the profession was not “derailed by the actions of a small number of firms.”