Industry news and views from Panacea and our partners.
Regulation_
YouGov: Are Consumers Getting Better Outcomes as a Result of the Consumer Duty?
Nearly three years after the introduction of Consumer Duty, are firms delivering the improved outcomes the FCA intended? Drawing on insights from more than 65,000 UK consumer interviews, this on-demand webinar from YouGov explores how perceptions of financial services have evolved since implementation. Discover which sectors and brands are leading the way, where gaps remain, and how different customer groups, including vulnerable consumers and younger generations, view their experiences today. Gain valuable insight into the latest Consumer Duty trends and what they could mean for firms looking to strengthen customer outcomes.
Panacea Conversations - Beyond the Questionnaire: Rethinking Attitude to Risk
Attitude to Risk is one of the foundations of good financial planning, yet its often reduced to a questionnaire and a risk score. In the latest episode of Panacea Conversations, compliance expert Tony Catt explains why the real value lies in the conversations behind the questionnaire. We explore adviser bias, client psychology, capacity for loss, vulnerability, and why risk shouldnt be viewed solely through an investment lens. If you want to strengthen your Attitude to Risk process, this is a conversation worth hearing.
Panacea Conversations - Beyond the Questionnaire: Rethinking Attitude to Risk
In this episode of Panacea Conversations, we explore one of the most fundamental, and often misunderstood, aspects of the advice process: Attitude to Risk.
April 1st - wisdom comes from experience, experience comes from poor past judgement
Many advisers (who are still around: will recall the regulatory failure of the banks during the 2008 financial crisis and the action the UK government took in deciding to restructure financial regulation and abolish the FSA.
Targeted Support - a whole new level of advice
The FCA released a paper at the end of June - The Advice Guidance Boundary Review - which introduces the concept of "Targeted Support".
Spot the Difference: 72,000 Names, But No Paraplanners
The FCA Register lists over 72,000 individuals across advice, mortgage, and compliance roles yet not a single paraplanner in sight. Given the critical part paraplanners play in shaping advice outcomes, from research to report writing, many are questioning whether its time for formal recognition. Could adding paraplanners to the FCA Directory or introducing a competency sign-off process help clarify accountability, or would it add unnecessary cost and complexity especially for outsourced providers?
Should Paraplanners Be More Formally Recognised by the FCA?
Many paraplanners have expressed a desire for their work to be recognised as a profession in its own right, rather than simply a support function. Formal recognition could support that aim, reinforcing standards, career pathways and professional identity. Wed welcome your thoughts whether a paraplanners, advisers or compliance professional on how best to strike the right balance.
We don't need no stinking badges 6
Viewing classic movies can often throw up interesting parallels for the future. One of my favourite retrospectives is the Mel Brooks classic Blazing Saddles.
Complaints - a business opportunity
When adviser firms think of complaints, it is often difficult to think of anything other than negative consequences. Minds immediately stray towards the Financial Ombudsman Service and some painful administration work.
How ready are UK businesses for new ESG rules?
The UKs ESG regulatory landscape is set for a major shake-up in 2025. The government has been ramping up efforts to establish the country as a global leader in sustainable finance, and a big part of that strategy involves the introduction of Sustainability Reporting Standards (SRS).
FCA at it again
In a recent letter sent to ceos the FCA said it would be carrying out supervisory work on mortgage advisers over the next couple of years.
Emerging Trends in FCA Compliance Technology
In an increasingly Regulated Financial Landscape, compliance has become a cornerstone of operational integrity. The Financial Conduct Authority (FCA) mandates strict adherence to guidelines, prompting firms to invest in technology solutions that streamline compliance processes and mitigate risks. This article delves into emerging trends within FCA compliance technology, emphasising the vital role that innovation plays in ensuring robust regulatory adherence.
Regulators to rescue the economy
Yes, you did read that correctly. Prime Minister Keir Starmer recently sent a letter to over ten key regulatory bodies, including the Financial Conduct Authority (FCA), asking them to come up with pro-growth measures by mid-January. That is this week!
Thoughts on 2 Tier Keir and Inducements
I am sure that those financial services professionals with time served will recall that many years ago restrictions were brought in by the FCA regarding inducements given or received in regard to financial advice and portfolio management under an extension of MIFIDII. What is classed as an inducement by the FCA?
How the FCAs views on vulnerable customers can leave advisers vulnerable
Over my time in this industry, from the late 60s until now, I have seen many changes in the world of regulation, often linked to a new regulator or a new head at the regulator of the day. Think Nasdim, FIMBRA, PIA, FSA, FCA. These have included varying attempts at rules-based regulation, principles regulation, RDR, TCF, DEI and now Consumer Duty.
Alan Lakey: How regulation has failed
Financial services regulation is approaching its 36th birthday and it is reasonable to assume that most of todays advisers have never worked in a non-regulated world.
Consumer Duty An Opportunity to Earn Trust
Financial advice professionals have known for years that their professional reputation is everything. As we head toward Q2 2024, they must now embrace Consumer Duty as the catalyst to continue consumer trust.
Consumer Duty Playing Chicken is not an option
During a roundtable discussion on Consumer Duty implementation with fund managers last week, we learned that some fund managers were playing a game of chicken with the regulator. Many firms are postponing their implementation until they know how the FCA will enforce Consumer Duty. Fund managers stand to win if the fine for non-compliance is lower than the cost of implementation!
Update: 'Replacement' of the lifetime allowance
Following an initial Policy Paper and a Draft Finance Bill issued last summer - and a resulting consultation period - further draft legislation was released in November 2023. This has provided more clarity on the new rules and the transitional arrangements. In this postcard, Fidelity's Paul Squirrell summarises some of the announcements made in the draft legislation and analyses what this could mean for financial planning.
Goodnight Irene
We read that the FCAs latest CapAd proposals would require advisers to calculate their potential redress liabilities at an early stage, set aside enough capital to meet them and report potential redress liabilities to the FCA. The idea is that any firm not holding enough capital will be subject to automatic asset retention rules to prevent them from disposing of their assets.???
Alan Lakey: What happened when we met the Ombudsman
The perennial battle between price and value often results in consumers ending up worse off despite the benefit of advice. Recently, Tom Baigrie and myself, on behalf of the PDG, met with the Financial Ombudsman Service to discuss the trade-off between price and value.
You Gov: Has the Coutts debanking Farage-o had an impact?
On 29 June, Nigel Farage posted a six-minute video stating that his bank account had been closed with no explanation speculating that he may have run afoul of politically exposed person rules, or been victimised for campaigning for Brexit. The bank in question, Coutts, responded that the erstwhile UKIP leader had fallen below the financial threshold required to hold an account, and had been offered a standard account at NatWest.
A moment of woke madness?
Over the last couple of weeks it seems that a number of banks are refusing, cancelling or closing bank account. This in turn seems to create difficulty for these affected individuals or organisations to open an account with another bank, with refusals to do so not being accompanied with any particular reason.
Consumer Duty - Did you catch this?
As we know that businesses like yours will be taking the new duty seriously, we recently launched our Handpicked Compliance Director service, to help businesses secure top compliance talent, and to help you navigate your way through the new regulations.
Future proofing your business for a sale - now or in the future (90 minutes)
Everybody exits! Whether you plan to pass on the reins internally or sell on the open market, your eventual exit and succession should always form part of your business planning.
Consumer Duty or just new TCF clothes for the Emperor
The FCA has published the final rules for Consumer Duty - PS22/9: A new Consumer Duty, alongside finalised guidance FG22/5.
What is it now Corporal Jones?
Just got back to work and cleared my 1,000+ emails to discover that the CII and PFS are declaring war on each other. This is hardly a surprise. There has been background skirmish warfare running all of 2022 and debatably for the last 5 years.
The Silent Bill
No, I am not surprised as the coverage has been minimal. This bill should be the best opportunity to reform the UKs FS Regulation in the last 20 years and yet the Treasury is doing everything in its power to make the minimum of change. Hence the study in silence.
Counting down to the Consumer Duty - start getting ready now (60 minutes)
After watching this webinar, youll: Understand the key changes underpinning the Consumer Duty. Understand what the new rules and guidance will mean for protection advisers. Have an awareness of what advisers like you are saying about it - how they see their business adjusting, how prepared they currently feel and whether they have any plans in place to get themselves ready in time. Be more confident using the tools and solutions we offer to help you to start getting ready now.
Huge pressure from FCA on directly authorised advisers
It was highlighted last week that Directly authorised IFAs have questioned the regulatory approach to vulnerability, claiming they themselves are under growing pressure and stress from the Financial Conduct Authority and from the rising cost of living.
Huge pressure from FCA on directly authorised advisers
It was highlighted last week that Directly authorised IFAs have questioned the regulatory approach to vulnerability, claiming they themselves are under growing pressure and stress from the Financial Conduct Authority and from the rising cost of living.
Royal London: Whats next for advisers?
In this podcast, our experts discuss the key findings from our Consumer Duty research. They explore the challenges advisers face to get their business ready in time and where providers can lend support.
Paul Harper Search: Consumer Duty Support
With the Consumer Duty Implementation plan deadline date looming, we have created a few useful documents and tools you may find helpful.
A New Consumer Duty: A New Paradigm
Square Mile have created a guide to the new Consumer Duty, highlighting some of the key areas of focus for adviser businesses and providing a range of tips and suggestions to ensure readiness for August 2023.
Columbia Threadneedle: Adviser Edge: On the Road
Join us at one of 15 locations nationwide in September and November for an interactive and in-depth seminar, accredited for 2.5 hours of structured CPD. The topics covered will be 'Using trusts for estate and inheritance tax planning' and 'FCA Consumer Duty what is that all about?.
Wizard Learning: Maintaining your regulated diploma knowledge through CPD
Our accredited CPD system can be used at any time to refresh knowledge of specific areas and can carry out gap analysis assessments over the year as a part of advisers overall CPD plan. Advisers can also use the assessment results to identify areas of weakness and plan future CPD activities using the online courses.
Fidelity Adviser Solutions: A guide to the new Consumer Duty
The FCA has now published the final rules relating to the Consumer Duty. They mean advice firms will have to implement major changes to how they operate and deal with clients on an ongoing basis. The implementation deadlines are extremely challenging given the ramifications of this regulatory directive. Fidelity Adviser Solutions have created a summary of the rules.
Schroders: What is driving the FCAs sustainability agenda?
The UK is taking a different approach from the EU, following Brexit, in terms of sustainability related regulation. But what does the FCA expect from advisers and asset managers alike?
Customer centric FSCS and discretionary payments
The levy dropping for the coming financial year does not hide the fact that compensation continues to increase and wider reform is needed according to the boss of the FSCS in an interview with FT Adviser last week.
Sustainability and regulation (60 minutes)
Alex Funk, CIO, Schroder Investment Solutions, and Gillian Hepburn, Head of UK Intermediary Solutions, are joined by Sheila Nicoll, Head of Public Policy, to discuss what is driving the sustainability agenda. Our experts will also discuss the current status of the FCA Sustainability Disclosure Requirements consultation, particularly on product labelling and requirements around suitability.