 What we need and expect from financial services changes over time. What I may require of the pension market when I come to retire will be different from what my parents did, and from what my children will do. While changing financial needs across generations is nothing new, there is now a wide public and policy debate over the deepening financial differences between generations – and the choices they have to make as a result. That is why, this month we published a discussion paper on Intergenerational Differences.
To pursue our objectives effectively, one of the most important things we can do as a regulator is to understand current and future consumer needs. We should test and challenge assumptions about what consumers need in the context of different intergenerational factors, to ensure our regulation adapts to the changing requirements of the different groups within and between generations.
Others have looked into aspects of these issues in greater depth. But the FCA is trying to start the debate about what it means for consumers, financial services, and firms.
We’re hosting a conference on 2 July to discuss and debate the issues in this paper and the responses we’ve received. You can register your interest for that here. We hope to hear from a wide range of you on this topic over the next few months.
Feedback Statement on Duty of Care
On 23 April, we published a Feedback Statement summarising the responses received to our a duty of care and potential alternative approaches discussion paper.
The Discussion Paper encouraged debate on whether the FCA’s regulatory framework delivers the necessary level of consumer protection and achieves the right balance between firm and consumer responsibilities. We asked, if it doesn’t then how this could be addressed - whether by imposing on financial services firms a formal duty of care or by other means.
Most respondents, from across the range of our stakeholders, consider that levels of harm to consumers are high and there is a need for change to protect them better.
As a result of the feedback received and our early analysis, we have identified options for change that are most likely to address potential deficiencies in consumer protection. These are:
- reviewing how we apply the regulatory framework – in particular, the application of the Principles in our authorisations, supervisory and enforcement functions, and how transparently we communicate with firms about this
- new/revised Principles to strengthen and clarify firms’ duties to consumers, including considering a potential private right of action for Principles breaches
We will do more work to examine these options and will outline next steps in the autumn, seeking detailed views on specific options for change. This will form an important part of our Business Plan priority for 2019/20 to consider the future of regulation following the FCA’s Mission and as the UK leaves the EU.
FCA publishes your feedback on how we supervise and enforce
Last year we published our Approach to Supervision and Enforcement consultation documents. These set out the purpose of, and our approach to, supervision and enforcement for firms and individuals, and the public value that both deliver.
We have taken on board your feedback to the original documents and have now published a revised edition of the Approach to Supervision and Approach to Enforcement documents, including feedback statements. The statements outline the key points made in the consultation responses, and explain what we are doing to address them. We have also published new Investigation Opening Criteria which reflect our current approach to opening investigations.
Preparing for the Senior Managers & Certification Regime
Solo-regulated firms which are authorised under FSMA should be preparing for the Senior Managers & Certification Regime (SM&CR). This comes into effect on 9 December 2019 and will replace the Approved Persons Regime. The SM&CR already applies to banks and insurers.
We are holding a webinar on 3 June. We will explain why the SM&CR is important and how firms should plan for and implement the regime. A Q&A session will follow with the speaker panel answering your questions. For more information and to sign up, go to our events booking website.
The aim of the SM&CR is to support healthy cultures and effective governance in firms by encouraging greater individual accountability and establishing a new standard of personal conduct. Senior Managers will need to take responsibility not just for the decisions they make, but for how they influence others, encouraging a healthy culture from the top.
You can read more about the SM&CR on our website, including guidance we published to give firms practical assistance in preparing.
Digital Regulatory Reporting
Our Digital Regulatory Reporting pilot explores how firms and regulators could introduce machine executable technology to improve the regulatory reporting process. We need to understand the current costs of regulatory reporting across a wide base of firms. So, we’ve developed a short survey to gather this information. This should take no more than 5 minutes to complete but will help improve the accuracy of the assessment.
If your firm is interested in participating further, or you'd like more detail on the pilot, please contact regtech@fca.org.uk.
RDR & FAMR Review Roadshows
Following the publication of our Call for Input, we are holding a series of afternoon events across the UK where we are seeking your input and feedback.
There will be an introductory presentation, followed by an opportunity to discuss issues and offer your comments in small discussion groups. Visit our events booking website for further information and to book your place.
Digital Regulatory Reporting
Our Digital Regulatory Reporting pilot explores how firms and regulators could introduce machine executable technology to improve the regulatory reporting process. We need to understand the current costs of regulatory reporting across a wide base of firms. So, we’ve developed a short survey to gather this information. This should take no more than 5 minutes to complete but will help improve the accuracy of the assessment.
If your firm is interested in participating further, or you'd like more detail on the pilot, please contact regtech@fca.org.uk.
Mortgage advice and selling standards consultation
We are consulting on changes to our mortgage advice and selling standards which aim to give consumers more choice of how to buy a mortgage and firms more flexibility when selling them, including:
- Allowing firms to develop online tools that enable consumers to ‘search and filter’ when looking for a mortgage.
- Preventing consumers being diverted to advice because of interactions that do not influence purchasing decisions.
- Where advisers recommend a mortgage, which isn’t the cheapest suitable one available, they must explain the reasoning to the customer and record the information.
The consultation closes on 7 July 2019.
Buying a mortgage without advice: How we might help customers understand execution-only disclosures
We have published the findings of independent research about whether consumers understand execution-only disclosures. We published this research alongside the mortgage advice and selling standards consultation.
Live & Local 2018/19 events for regulated firms
In June we are concluding our series of monthly ‘Ask the regulator’ Q&A roundtable discussions for mortgage advisers and lenders across the UK. These events give firms an opportunity to pose questions and provide feedback directly to a panel of senior FCA representatives and industry experts. The agenda is determined by attendee questions and comments.
Details for our 11 June event in Leeds are on our Live & Local webpage.
You can also sign up to our Live & Local email updates to receive alerts for upcoming Live & Local events.
Digital Regulatory Reporting
Our Digital Regulatory Reporting pilot explores how firms and regulators could introduce machine executable technology to improve the regulatory reporting process. We need to understand the current costs of regulatory reporting across a wide base of firms. So, we’ve developed a short survey to gather this information. This should take no more than 5 minutes to complete but will help improve the accuracy of the assessment.
If your firm is interested in participating further, or you'd like more detail on the pilot, please contact regtech@fca.org.uk.
RDR & FAMR Review Roadshows
Following the publication of our Call for Input, we are holding a series of afternoon events across the UK where we are seeking your input and feedback.
There will be an introductory presentation, followed by an opportunity to discuss issues and offer your comments in small discussion groups. Visit our events booking website for further information and to book your place.
Live & Local 2018/19 events for regulated firms
We are continuing our UK-wide programme of events aimed at general insurance intermediaries and insurers. Registration is open for remaining sessions in May and June of our interactive workshop on extending the Senior Managers and Certification Regime (SM&CR) and the Insurance Distribution Directive (IDD).
Visit our Live & Local webpage for more information and to register.
The 2018/19 Live & Local programme concludes in June. Sign up to Live & Local email updates to get alerts for upcoming events.
Digital Regulatory Reporting
Our Digital Regulatory Reporting pilot explores how firms and regulators could introduce machine executable technology to improve the regulatory reporting process. We need to understand the current costs of regulatory reporting across a wide base of firms. So, we’ve developed a short survey to gather this information. This should take no more than 5 minutes to complete but will help improve the accuracy of the assessment.
If your firm is interested in participating further, or you'd like more detail on the pilot, please contact regtech@fca.org.uk.
RDR & FAMR Review Roadshows
Following the publication of our Call for Input, we are holding a series of afternoon events across the UK where we are seeking your input and feedback.
There will be an introductory presentation, followed by an opportunity to discuss issues and offer your comments in small discussion groups. Visit our events booking website for further information and to book your place.
Digital Regulatory Reporting
Our Digital Regulatory Reporting pilot explores how firms and regulators could introduce machine executable technology to improve the regulatory reporting process. We need to understand the current costs of regulatory reporting across a wide base of firms. So, we’ve developed a short survey to gather this information. This should take no more than 5 minutes to complete but will help improve the accuracy of the assessment.
If your firm is interested in participating further, or you'd like more detail on the pilot, please contact regtech@fca.org.uk.
RDR & FAMR Review Roadshows
Following the publication of our Call for Input, we are holding a series of afternoon events across the UK where we are seeking your input and feedback.
There will be an introductory presentation, followed by an opportunity to discuss issues and offer your comments in small discussion groups. Visit our events booking website for further information and to book your place.
Material Risk Taker Exclusions
We’ve updated the Material Risk Taker (MRT) exclusions template for IFPRU firms.
If you want to notify, or to seek prior approval to exclude individuals from identification as an MRT in line with Article 4 of Commission Delegated Regulation (EU) 604/2014, you can download the template.
The template now collects information for exclusions where a staff member was awarded total remuneration of EUR 1,000,000 or more in the preceding financial year. Firms need to provide evidence to support the exceptional circumstances which justify excluding an individual from identification as an MRT.
For more information on Remuneration, see our website.
Digital Regulatory Reporting
Our Digital Regulatory Reporting pilot explores how firms and regulators could introduce machine executable technology to improve the regulatory reporting process. We need to understand the current costs of regulatory reporting across a wide base of firms. So, we’ve developed a short survey to gather this information. This should take no more than 5 minutes to complete but will help improve the accuracy of the assessment.
If your firm is interested in participating further, or you'd like more detail on the pilot, please contact regtech@fca.org.uk.
RDR & FAMR Review Roadshows
Following the publication of our Call for Input, we are holding a series of afternoon events across the UK where we are seeking your input and feedback.
There will be an introductory presentation, followed by an opportunity to discuss issues and offer your comments in small discussion groups. Visit our events booking website for further information and to book your place.
Material Risk Taker Exclusions
We’ve updated the Material Risk Taker (MRT) exclusions template for IFPRU firms.
If you want to notify, or to seek prior approval to exclude individuals from identification as an MRT in line with Article 4 of Commission Delegated Regulation (EU) 604/2014, you can download the template.
The template now collects information for exclusions where a staff member was awarded total remuneration of EUR 1,000,000 or more in the preceding financial year. Firms need to provide evidence to support the exceptional circumstances which justify excluding an individual from identification as an MRT.
For more information on Remuneration, see our website.
Digital Regulatory Reporting
Our Digital Regulatory Reporting pilot explores how firms and regulators could introduce machine executable technology to improve the regulatory reporting process. We need to understand the current costs of regulatory reporting across a wide base of firms. So, we’ve developed a short survey to gather this information. This should take no more than 5 minutes to complete but will help improve the accuracy of the assessment.
If your firm is interested in participating further, or you'd like more detail on the pilot, please contact regtech@fca.org.uk.
Consumer credit videos
We recently launched a series of new consumer credit videos. We are committed to ensuring that the consumer credit market works well and meets the needs of consumers. The videos help consumer credit firms understand what they are required to do under our rules and what our expectations are of them. The videos explain some of the key things that we expect firms to do to ensure they are treating customers fairly and providing products that meet customer needs. The videos are supported by new pages on our website giving more detail.
Digital Regulatory Reporting
Our Digital Regulatory Reporting pilot explores how firms and regulators could introduce machine executable technology to improve the regulatory reporting process. We need to understand the current costs of regulatory reporting across a wide base of firms. So, we’ve developed a short survey to gather this information. This should take no more than 5 minutes to complete but will help improve the accuracy of the assessment.
If your firm is interested in participating further, or you'd like more detail on the pilot, please contact regtech@fca.org.uk.
Digital Regulatory Reporting
Our Digital Regulatory Reporting pilot explores how firms and regulators could introduce machine executable technology to improve the regulatory reporting process. We need to understand the current costs of regulatory reporting across a wide base of firms. So, we’ve developed a short survey to gather this information. This should take no more than 5 minutes to complete but will help improve the accuracy of the assessment.
If your firm is interested in participating further, or you'd like more detail on the pilot, please contact regtech@fca.org.uk.
Promoting innovation – progress and next steps
Christopher Woolard, our Executive Director for Strategy and Competition, spoke at the 2019 Innovate Finance Global Summit on 29 April on the impact of our work to promote innovation. This is set out in more detail in our evaluation report assessing the effectiveness of our Innovate services – Innovate has now supported nearly 700 firms.
At the same time, we announced the next steps for the Global Financial Innovation Network cross-border testing pilot, the first set of firms taking part in our Green Fintech Challenge, and the fifth cohort of firms to take part in our regulatory sandbox.
PSD2 reminder
We have published a reminder ahead of PSD2 requirements for strong customer authentication and common and secure communication coming into effect on the 14 September 2019. Technical standards under PSD2 come into effect on 14 September 2019 and some requirements need to be met before that date. Firms should be making changes to meet these requirements now – these changes apply to all payment services providers.
Digital Regulatory Reporting
Our Digital Regulatory Reporting pilot explores how firms and regulators could introduce machine executable technology to improve the regulatory reporting process. We need to understand the current costs of regulatory reporting across a wide base of firms. So, we’ve developed a short survey to gather this information. This should take no more than 5 minutes to complete but will help improve the accuracy of the assessment.
If your firm is interested in participating further, or you'd like more detail on the pilot, please contact regtech@fca.org.uk.
Brexit update
As we have flagged on our updated webpages, the Government has confirmed that if there’s no deal with the EU, the UK is due to leave on 31 October 2019. The Government is looking to pass a deal through Parliament in the next few months, with European Parliament elections taking place on 23 May.
Firms should continue to prepare for a range of scenarios, including one in which the UK leaves without a deal on 31 October 2019. We will provide updates as necessary on our website and through other channels. See our Brexit pages for more information.
First CMC authorisation deadline looms
The first authorisation deadline for claims management companies (CMCs) is fast approaching.
Firms in landing slot 1 have until 31 May to apply for authorisation. CMCs that must apply during this landing slot are those that handle financial services or financial product claims, Section 75 claims and Scottish CMCs.
If they don’t apply before then, their temporary permission will expire 30 days after that deadline. They must cease regulated claims management activities from that point or face potential action.
Firms can apply using our Connect system. Make sure you provide all the information we require to process your application within our statutory deadlines.
Use Power of Attorney Guide to review policies and strategies
The guide aims to help organisations understand what the law requires of them when dealing with powers of attorney. As part of the UK Regulators Network (UKRN), we are encouraging policy makers in financial services and utility companies to use this guide when reviewing how they engage with customers who do not make their own decisions.
The guide helps firms to learn about deputy court orders and different types of power of attorney, including lasting powers of attorney and enduring powers of attorney.
It has been produced by the Office of the Public Guardian in partnership with the UKRN, Ofcom, Ofwat, and Ofgem, as well as us.
Unfair terms – latest undertaking published
We have published an undertaking from James Brearley & Sons Limited regarding a potentially unfair term in its share dealing contract. We were concerned the term allowed the firm to terminate the contract without providing consumers with notice in advance. The firm was fully cooperative in resolving our concerns.
We remind all firms to ensure their contracts comply with requirements for fairness and transparency under the Consumer Rights Act 2015 (CRA) and the Unfair Terms in Consumer Contracts 1999 (UTCCRS). Read further information about our powers and other publications.
Smaller firms survey
We are carrying out a survey of smaller firms - in this case, defined as those with less than 50 Approved Persons - to find out how regulation impacts them. This includes areas such as: administration, data submission, compliance and product regulations.
Kantar Public is carrying out the work on our behalf. Earlier this year, Kantar conducted interviews with a representative sample of 30 smaller FCA-regulated firms. The information and insights gathered is being used to design a questionnaire, which in the coming weeks will be sent to a wider sample of smaller firms. We aim to receive 2,000 responses.
Kantar will be selecting a varied sample of firms to participate and will anonymise all answers.
The results of this work will be used to help ensure FCA cost-benefit analyses and judgements of proportionality take account of the specific circumstances faced by smaller firms.
Inside FCA Podcast: Andrew Bailey on the Business Plan and future of regulation
Listen to our Chief Executive Andrew Bailey discuss the key areas of our recently released Business Plan and his thoughts on the future of financial regulation.
He calls for a ‘thorough debate’ on the type of regulation the UK wants in a post-Brexit world, including the future relationship between the UK and the EU.
‘I am not advocating lighter regulation. I’m not advocating heavier regulation either’, he says, explaining that there are choices to be made on the different ways to regulate.
|
