The Government has proposed banning cold calls offering any financial products as part of its plan to tackle fraud and scams.
The UK’s key financial regulators, the FCA, PRA and Treasury have today launched a sweeping review of the Senior Managers and Certification Regime (SM&CR).
Nadhim Zahawi, the former Education Secretary, has become the new Chancellor of The Exchequer following the shock resignation of Rishi Sunak yesterday.
The Treasury has rejected any immediate changes to pensions tax relief, despite MP recommendations for an urgent reform.
The take up of Pension Wise appointments remains stubbornly low and the FCA’s recent paper “The stronger nudge to pensions guidance” is the latest in a line of initiatives designed to increase take-up.
This month we celebrate 15 years since pension simplification was introduced – Happy Crystal Anniversary all!
The Treasury recently released its consultation paper on how the increase in normal minimum pension age (NMPA) is implemented. We have known for several years that the increase from age 55 to 57 was planned to take effect from 6 April 2028, so there is no surprise in the increase itself.
Wealth management and financial advice trade body PIMFA has called on the Government to tighten the rules on the promotion of unregulated financial promotions.
PIMFA called for the approval of unauthorised financial promotions to become a regulated activity in its response to the Treasury’s consultation on the approval of financial promotions.
The trade body has previously raised concerns about the issue and its impact on the industry and consumers alike.
It said that by making the approval of financial promotions a regulated activity, the Government would be empowering the regulator and enabling it to take enforcement action on firms that approved unsuitable investments without the necessary expertise or due diligence.
In its response PIMFA also said that it would encourage firms to consider their own practices, potentially addressing the trade body’s concerns about the standard of regulatory supervision as well as the capacity of the regulator.
It said the issue is particularly salient in the current era of ultra-low interest rates and financial anxiety many are suffering due to the pandemic, as a proportion of consumers will be attracted by investments that purport to offer returns far in excess of the rest of the market.
Consumers are told such investments are low risk, while offering high returns. The products are also not always marketed to sophisticated or high-net-worth investors and are often marketed to those on lower incomes or inexperienced savers.
Simon Harrington, senior policy adviser at PIMFA, said: “Given the potential for harm for consumers, and the cost that then falls onto firms in funding the FSCS, we believe that it is right that a gateway is introduced for the approval of financial promotions.
“However, as a result of the experience of many of PIMFA’s member firms of being regulated, we retain very little confidence that the level of regulatory oversight required in supervising the authorisation of financial promotions will be sufficient to prevent a reproduction of the current regime which, as the Treasury quite rightly notes is not sufficient and conducive to consumer harm.’
“Making the approval of financial promotions a regulated activity would mean the FCA could take enforcement action against those firms that approve unsuitable investments without having the necessary expertise to do so.
"This will improve the market; reduce consumer harm and ultimately reduce calls on the Compensation Scheme where rising levies over the last five years have become unsustainable for PIMFA members. This is an easy win for all parties involved and we are urging them to grasp this opportunity.”
The Government is to include financial advisers in its sweeping review of the tax advice market.
The Government has today launched a consultation which could see its Dormant Assets scheme significantly expanded to include funds and a wide range of other investments held by investors.