 Our Pensions Strategy sets out new joint actions with The Pensions Regulator (TPR) to tackle the risk of people having inadequate retirement incomes. It also addresses our approach to recent fundamental changes in the sector such as the pensions freedoms and auto-enrolment.
We have set out 2 new areas of significant work. First how we will work together to review consumers’ experiences at every stage of their pensions journey. This should improve the information and advice pension holders receive from firms so they can make better informed choices. We will also work with TPR to improve value for money in the sector by developing common principles and standards and hold firms to account if they are not delivering value for money to their customers.
We know that regulation can’t solve all the problems in the pensions sector on its own. That’s why this strategy is part of a wider effort. With action is also required from the pensions industry, by government and its agencies, and by millions of people across the UK taking responsibility for their retirement plans.
The Strategy builds on other work we’re carrying out in the pensions sector. New rules, designed to improve the quality of pension transfer advice, were published earlier this month, and the final report of our Retirement Outcomes Review was published this summer. We will also continue to address issues in the sector through policy, supervision and enforcement work, as well as running our ScamSmart campaign to help people avoid pension scams.
Brexit consultations
We
have published 2 Consultation Papers ahead of the UK’s exit from the EU.
The
first consultation paper proposes changes
required to our Handbook and binding technical
standards,
if the UK leaves the EU in March 2019 without an implementation period. It
also sets out our approach after Brexit to EU non-legislative material. Most
of the changes are consequential to those proposed by the Government under
the European Union (Withdrawal) Act 2018. For example, changes include
removing references to EU institutions, such as the European Commission or
the European Supervisory Authorities, which will be replaced with the relevant
UK equivalent.
Temporary permissions
regime for inbound passporting EEA firms and funds
Currently,
certain EEA firms can provide financial services in or into the UK, and EEA
funds can be marketed in the UK, through a passport. Our second consultation paper sets out how these
firms and funds can continue to carry on regulated business in or into the UK
for a limited period after Brexit while seeking full authorisation in the UK.
The regime will only be available from 29 March 2019 if the UK leaves the EU
without an implementation period.
Find out more about
the regime.
We welcome your feedback on our proposals. The closing date for both
consultations is 7 December 2018.
Read more about how
we are preparing for Brexit.
New resolution data
reporting requirements not applicable to FCA firms
Certain
€730k firms will have new resolution data reporting templates. However, The
Bank of England (BoE), as the UK Resolution Authority, anticipates that all
UK-headquartered firms that have been notified that their preferred resolution
strategy does not involve the use of
stabilisation powers, won’t be affected by these new requirements. Currently,
this is the case for all FCA solo-regulated firms, which are expected to submit
their resolution data as usual.
Firm feedback survey
We
are asking selected authorisation applicants, to complete a short online survey.
If you are selected, it will be sent to you immediately after you receive a
decision from us. Applicants will receive this survey no more than once per
month. We encourage you to complete the survey, as your feedback helps us to
improve the authorisation process.
FCA opens a discussion on
the impact of climate change and green finance on financial services
On Monday, we published a Discussion Paper on Climate
change and green finance.
The effects of climate change and the associated
transition to a low carbon economy may have a major impact on financial markets
and on products that serve those markets. The Discussion Paper sets out how the
impacts of climate change are relevant to the FCA’s statutory objectives of
protecting consumers, protecting market integrity and promoting competition.
Alongside colleagues at the Bank of England, we will also
be establishing a new joint FCA-PRA Climate Risk Forum to help consider
climate-related financial risks, share best practice and provide intellectual
leadership in this emerging field. The Forum will bring together
representatives from industry as well as technical experts and other
stakeholders.
We are now seeking feedback on areas the forum should
focus on and the questions set out in this Discussion Paper. All interested
stakeholders are invited to consider the issues raised in this paper and provide
comments by 31 January 2019.
Digital regulatory reporting
We are continuing our work with the Bank of England (BoE) on a 6-month pilot to build upon the Proof of Concept developed at our November TechSprint on digital regulatory reporting. The pilot is evaluating the feasibility of scaling the work from the TechSprint considering 2 use cases. One is focusing on retail reporting and the other on wholesale reporting. Read the latest update on the progress of the pilot.
We will be holding an open demonstration and Q&A session to give attendees an opportunity to understand the technological, governance and legal decisions made throughout. It is also an opportunity to critique and review the work. The open day is on 9 November. Please email regtech@fca.org.uk if you would like to attend this session.
We have also published a feedback statement on our call for input on smarter regulatory reporting.
Digital regulatory reporting
We are continuing our work with the Bank of England (BoE) on a 6-month pilot to build upon the Proof of Concept developed at our November TechSprint on digital regulatory reporting. The pilot is evaluating the feasibility of scaling the work from the TechSprint considering 2 use cases. One is focusing on retail reporting and the other on wholesale reporting. Read the latest update on the progress of the pilot.
We will be holding an open demonstration and Q&A session to give attendees an opportunity to understand the technological, governance and legal decisions made throughout. It is also an opportunity to critique and review the work. The open day is on 9 November. Please email regtech@fca.org.uk if you would like to attend this session.
We have also published a feedback statement on our call for input on smarter regulatory reporting.
Improving the quality of pension transfer advice
We have published new rules and
guidance on improving the quality of pension transfer advice, primarily for
when customers are considering transferring from a defined benefit scheme to a
defined contribution scheme. This includes:
- new rules on
qualifications
- guidance on
an appropriate triage service
- clarification
on our expectations that advisers should be exploring clients’ attitudes to the
general risks associated with a transfer, in addition to their attitude to
investment risks
The changes come into force at various times from October 2018 – more
information can be found in Policy Statement 18/20.
New Live & Local 2018/19 events
This month, we began the series of UK-wide interactive
workshops for representatives of regulated firms who are qualified to give
Defined Benefit pension transfer advice. The workshops will:
- highlight the key points that firms should
consider when operating in this market
- reiterate our expectations when transacting
this type of business
- highlight our updated rules and guidance
- include an interactive case study to put into
practice our expectations
In addition to previously announced dates and locations
for 2018, we have now added sessions from January to March 2019. For further
details, visit our Live
& Local webpage. Additional sessions will be announced in
the coming months. Sign up to our Live
& Local email updates to be
alerted.
Digital regulatory reporting
We are continuing our work with the Bank of England (BoE) on a 6-month pilot to build upon the Proof of Concept developed at our November TechSprint on digital regulatory reporting. The pilot is evaluating the feasibility of scaling the work from the TechSprint considering 2 use cases. One is focusing on retail reporting and the other on wholesale reporting. Read the latest update on the progress of the pilot.
We will be holding an open demonstration and Q&A session to give attendees an opportunity to understand the technological, governance and legal decisions made throughout. It is also an opportunity to critique and review the work. The open day is on 9 November. Please email regtech@fca.org.uk if you would like to attend this session.
We have also published a feedback statement on our call for input on smarter regulatory reporting.
New Live & Local 2018/19 events
We
have added sessions in January to March 2019 for our series of monthly ‘Ask
the regulator’ Q&A roundtable discussions featuring senior FCA
representatives and industry experts.
Registration
details for UK-wide events taking place to March 2019 can be found on our Live & Local webpage. Additional dates
and locations in 2019 will be announced in the coming months. Sign up to our Live & Local
email updates to be alerted.
Digital regulatory reporting
We are continuing our work with the Bank of England (BoE) on a 6-month pilot to build upon the Proof of Concept developed at our November TechSprint on digital regulatory reporting. The pilot is evaluating the feasibility of scaling the work from the TechSprint considering 2 use cases. One is focusing on retail reporting and the other on wholesale reporting. Read the latest update on the progress of the pilot.
We will be holding an open demonstration and Q&A session to give attendees an opportunity to understand the technological, governance and legal decisions made throughout. It is also an opportunity to critique and review the work. The open day is on 9 November. Please email regtech@fca.org.uk if you would like to attend this session.
We have also published a feedback statement on our call for input on smarter regulatory reporting.
General Insurance value measures
In
March 2018, we published the second set of data in our general insurance value
measures pilot. We are now collecting a third set of value measures data across
3 measures: claims frequency; claims acceptance rates; and average claims
payout. We intend to publish the data in the new year alongside a
consultation on the reporting of GI value measures. To find out more, visit: https://www.fca.org.uk/data/general-insurance-value-measures
Insurance Distribution Directive
The Insurance
Distribution Directive (IDD) now applies to firms. The IDD is
EU legislation which sets regulatory requirements for firms designing and
selling insurance products.
IDD replaces the Insurance Mediation Directive (IMD). It
aims to enhance consumer protection when buying insurance – including general
insurance, life insurance and insurance-based investment products (IBIPs) – and
to support competition between insurance distributors by creating a level
playing field.
IDD has also introduced
requirements in new areas, including product oversight and governance, and
enhanced rules for IBIPs.
New Live & Local 2018/19 events for regulated firms
We have added sessions in January to March 2019 to our
programme of events for general insurance firms:
- Interactive workshop on the extension of the
Senior Managers and Certification Regime (SM&CR) and the Insurance
Distribution Directive (IDD)
- ‘Ask the regulator’ Q&A roundtable
discussions where general insurance firms engage with a panel of FCA and
industry representatives in an open, informal setting.
Registration is open for these events taking place to
March 2019. Visit our Live
& Local webpage for more information. Additional dates and
locations in 2019 will be announced in the coming months. Sign up to our Live
& Local email updates to be
alerted.
Live & Local events for compliance consultants
Earlier this month in London, we held the first of two
interactive workshops designed for compliance consultants on how general
insurance firms can identify and prevent harm. The second will take place on 7
November in Manchester. Following the success of these workshops with our
regulated firms, we are holding these events for compliance consultants. In
these events we will share with you what we have presented to our firms, and
provide you with an opportunity to ask us questions and give feedback.
Registration
details for the 7 November workshop in Manchester can be found
on our website.
Digital regulatory reporting
We are continuing our work with the Bank of England (BoE) on a 6-month pilot to build upon the Proof of Concept developed at our November TechSprint on digital regulatory reporting. The pilot is evaluating the feasibility of scaling the work from the TechSprint considering 2 use cases. One is focusing on retail reporting and the other on wholesale reporting. Read the latest update on the progress of the pilot.
We will be holding an open demonstration and Q&A session to give attendees an opportunity to understand the technological, governance and legal decisions made throughout. It is also an opportunity to critique and review the work. The open day is on 9 November. Please email regtech@fca.org.uk if you would like to attend this session.
We have also published a feedback statement on our call for input on smarter regulatory reporting.
Improving the quality of pension transfer advice
We have published new rules and
guidance on improving the quality of pension transfer advice, primarily for
when customers are considering transferring from a defined benefit scheme to a
defined contribution scheme. This includes:
- new rules on
qualifications
- guidance on
an appropriate triage service
- clarification
on our expectations that advisers should be exploring clients’ attitudes to the
general risks associated with a transfer, in addition to their attitude to
investment risks
The changes come into force at times from October 2018 – more
information can be found in Policy Statement 18/20.
Digital regulatory reporting
We are continuing our work with the Bank of England (BoE) on a 6-month pilot to build upon the Proof of Concept developed at our November TechSprint on digital regulatory reporting. The pilot is evaluating the feasibility of scaling the work from the TechSprint considering 2 use cases. One is focusing on retail reporting and the other on wholesale reporting. Read the latest update on the progress of the pilot.
We will be holding an open demonstration and Q&A session to give attendees an opportunity to understand the technological, governance and legal decisions made throughout. It is also an opportunity to critique and review the work. The open day is on 9 November. Please email regtech@fca.org.uk if you would like to attend this session.
We have also published a feedback statement on our call for input on smarter regulatory reporting.
Digital regulatory reporting
We are continuing our work with the Bank of England (BoE) on a 6-month pilot to build upon the Proof of Concept developed at our November TechSprint on digital regulatory reporting. The pilot is evaluating the feasibility of scaling the work from the TechSprint considering 2 use cases. One is focusing on retail reporting and the other on wholesale reporting. Read the latest update on the progress of the pilot.
We will be holding an open demonstration and Q&A session to give attendees an opportunity to understand the technological, governance and legal decisions made throughout. It is also an opportunity to critique and review the work. The open day is on 9 November. Please email regtech@fca.org.uk if you would like to attend this session.
We have also published a feedback statement on our call for input on smarter regulatory reporting.
Improving the quality of pension transfer advice
We have published new rules and
guidance on improving the quality of pension transfer advice, primarily for when
customers are considering transferring from a defined benefit scheme to a
defined contribution scheme. This includes:
- new rules on
qualifications
- guidance on
an appropriate triage service
- clarification
on our expectations that advisers should be exploring clients’ attitudes to the
general risks associated with a transfer, in addition to their attitude to
investment risks
The changes come into force at various times from October 2018 – more
information can be found in Policy Statement 18/20.
Thematic review: Impact of credit broking remuneration models at the point of sale
On 27 September, we published a thematic review report. This followed a commitment in our 2017 Business
Plan to look at whether payments such as commission between lenders and credit
brokers drive poor outcomes for consumers. We did not look at motor finance
brokers, who are subject to a separate review.
The review did not find evidence that these payments
are generally resulting in significant harm to consumers. This does not mean
harm is not occurring for reasons unrelated to commission. We will continue to
monitor credit broking activity as part of our ongoing supervisory strategy and
address harm in individual firms where we see it. The report includes case
studies and examples of good and poor practice from interviews conducted with
consumers and credit broking firms, and from data on commission arrangements
gathered from firms.
Digital regulatory reporting
We are continuing our work with the Bank of England (BoE) on a 6-month pilot to build upon the Proof of Concept developed at our November TechSprint on digital regulatory reporting. The pilot is evaluating the feasibility of scaling the work from the TechSprint considering 2 use cases. One is focusing on retail reporting and the other on wholesale reporting. Read the latest update on the progress of the pilot.
We will be holding an open demonstration and Q&A session to give attendees an opportunity to understand the technological, governance and legal decisions made throughout. It is also an opportunity to critique and review the work. The open day is on 9 November. Please email regtech@fca.org.uk if you would like to attend this session.
We have also published a feedback statement on our call for input on smarter regulatory reporting.
Digital regulatory reporting
We are continuing our work with the Bank of England (BoE) on a 6-month pilot to build upon the Proof of Concept developed at our November TechSprint on digital regulatory reporting. The pilot is evaluating the feasibility of scaling the work from the TechSprint considering 2 use cases. One is focusing on retail reporting and the other on wholesale reporting. Read the latest update on the progress of the pilot.
We will be holding an open demonstration and Q&A session to give attendees an opportunity to understand the technological, governance and legal decisions made throughout. It is also an opportunity to critique and review the work. The open day is on 9 November. Please email regtech@fca.org.uk if you would like to attend this session.
We have also published a feedback statement on our call for input on smarter regulatory reporting.
Live & Local event in November
As part of the Live & Local 2018/19 programme, we are
holding our second event in London tailored for non-bank payment services
firms. The ‘introduction to FCA Payments Supervision’ event will provide
clarity on our role and expectations, and our supervisory approach. You will
also have the opportunity to ask us questions and meet our Payments Department.
Registration details for the 21 November event are
available on the Live
& Local webpage.
Consultation on proposed
changes to the Handbook and binding technical standards
In
this paper, we publish our proposals on how we will amend our Handbook and EU
derived binding technical standards if the UK leaves the EU without an
implementation period in place. We also set out our proposed approach to EU
non-legislative material such as Level 3 Guidelines and Q&As.
We
want to know about any significant implementation challenges you would face
with the proposed amendments, so that we can work with you to address the
challenges you face. We do not expect firms and others subject to our
proposals to prepare to make any changes now.
Please
send us your comments by 7 December 2018.
Read
the consultation paper
(CP18/28).
Consultation on the
temporary permissions regime for inbound passporting EEA firms and funds
The temporary permissions regime will allow EEA firms and
funds to continue regulated business in the UK, if the UK leaves the EU in
March 2019 without an implementation period in place. This consultation paper
sets out how we expect the regime to work in practice, how firms and funds can
enter it, how long it will operate for, and the rules we propose should apply
to firms and fund marketing activities during the regime.
We want firms and fund managers who may want to enter the
temporary permissions regime to give us feedback on our proposals. Please send
us your comments by 7 December 2018.
Read the consultation
paper (CP18/29)
Find
out more about the regime.
Temporary authorisation
regime for data reporting services providers (DRSPs)
The Treasury will create a temporary authorisation regime
to allow EU DRSPs to provide a data reporting service in the UK for a limited
period after exit day, in the event there is no implementation period from the
end of March 2019.
We have published a statement
setting out how the regime will work.
Registration for credit
rating agencies and trade repositories
When the UK leaves the EU, we will become the UK
regulator of credit rating agencies and trade repositories.
We have published statements outlining how credit
rating agencies and trade
repositories can register with us.
EU securitisation
regulation (DEPP and EG) amendments
implementation Consultation Paper
We are consulting
on proposed amendments to DEPP (Decision Procedure and Penalties Manual) and EG
(Enforcement Guide) due to the new enforcement powers we will
receive as part of the implementation of the EU Securitisation Regulation (EU
2017/2402) (EU SR) which comes into force on 1 January 2019.
To implement the EU SR in the UK, Her Majesty’s Treasury will
lay an implementing statutory instrument (SI) before Parliament. The SI will
give us supervisory, disciplinary and investigatory powers over persons subject
to the EU SR. The CP sets out the draft amendments to DEPP and EG we propose to
make in light of our current understanding of the SI.
Please comment on our
proposals by 2 November 2018. You can use the online response form or email
your responses to cp18-xx@Fca.org.uk.
Proposed guidance on Statements of
Responsibilities and responsibilities maps for FCA firms
We’re consulting on guidance
for FCA solo-regulated firms preparing for the Senior Managers and
Certification Regime (SM&CR).
The purpose of the guidance
is to give firms practical help and information when preparing SoRs and Responsibilities
Maps. It builds on the information in
the Guides to the SM&CR for
solo-regulated firms. The guidance aims to help all
FCA firms clearly set out Senior Managers’ responsibilities. ‘Enhanced’ firms
will also be able to use it to produce Responsibilities Maps which show how their firm is managed
and governed.
To read the guidance
and send us feedback, go to our website.
Thematic Review: Money
laundering and terrorist financing risks in the e-money sector
On
October 3, we published our thematic review on money laundering and terrorist financing risks in the e-money
sector. This gives a generally positive overview of systems and controls across
the firms surveyed. However, the report warns against complacency -
highlighting some weaknesses and poor practice.
Firms
must ensure they have effective systems to mitigate the increased risks posed
by other activities, including money remittance, not covered in the review
which focused on e-money products (prepaid cards and e-wallets). We are
currently investigating some cases regarding suspected breaches of Money
Laundering Regulations by e-money firms for money remittance.
New Live & Local events
announced
In
addition to the previously announced events from September to December 2018, we
have now released dates and locations for UK-wide events taking place from
January to March 2019.
Events
within the 2018-19 Live & Local programme are aimed at general
insurance, retail
investment, mortgage, and non-bank
payment service firms. We are
also holding a general insurance workshop for compliance
consultants.
Dates,
locations, and registration details are available on the Live & Local webpage.
Additional events in 2019 will be announced in the coming months. Sign up to
our Live
& Local email updates to be alerted.
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