Two key speeches setting out the UK regulator’s approach going forward stand out this week in our roundup of FCA activity. With Consumer Duty looming, 10 key questions you should be considering were set down, and the British Steel pensions case rumbled on.
Enforcement
Adviser Mark Abley of County Capital Wealth Management (CCWM) has been banned from providing any advice on pension transfers after the 53rd claim upheld by the Financial Services Compensation Scheme (FSCS) against the firm. Abley will have to pay £106,100 ($134,797) to the FSCS, and if he fails to pay this the FCA will enforce the amount as a fine.
The ban is another in a series of actions taken in connection with advice given to former members of the British Steel Pension Scheme, a story we have covered at length. Abley was responsible for the advice given to 150 of the 575 people advised to transfer out of the defined benefit scheme, over half of which failed to meet required standards of competence.
The week also saw a ban handed down to Lee Morgan of Pembrokeshire Mortgage Centre Limited (PMC) for lack of competence in oversight of the advice PMC gave members of the BSPS.
Financial Services and Markets Act s1B(3)
Financial Services and Markets Act s1C(1)
Financial Services and Markets Act s56
Financial Services and Markets Act s63
Financial Services and Markets Act s66
Financial Services and Markets Act s66A
Rules and Consultations
New rules giving retail investors and defined contribution pension schemes access to Long Term Asset Funds (LTAFs) were unveiled. The regulator is also consulting on whether protection under the Financial services Compensation Scheme should be made available for these products.
Concerns about the sustainability-linked loans market are behind consultation the FCA is undertaking with stakeholders, and key findings were shared as the regulator bids to “build trust and integrity in these products”.
Publications
Commercial pricing principles for open banking were published by the Joint Regulatory Oversight Committee. The paper set out five high-level principles for banks and registered third parties to follow when. Agreeing premium API commercial models.
Speeches and media
The launch of the ISSB’s first sustainability-related reporting standards was welcomed by the FCA. Sacha Sadan, Director of Environmental, Social & Governance, said the regulator was “hugely supportive of [ISSB’s] mission to create a common, global language for companies around the world to communicate their sustainability stories in a consistent and comparable way”.
Emily Shepperd, Chief Operating Officer and Executive Director of Authorisations, delivered a speech to the Westminster Business Forum setting out the FCA’s stance on culture and conduct.
With one month to go before UK Consumer Duty comes into force, the regulator set out 10 key questions for firms to consider.
As the UK cost-of-living crisis intensified, the FCA joined with the energy regular Ofwat, communications regulator Ofcom, and gas and electricity regulator Ofgem to call on firms to help struggling customers. The FCA said: “We will require the largest banks and building societies to explain the pace and extent of their pass through of interest rates, and how they are proactively supporting customers to switch to high interest rate products that might be suitable.”
Sheldon Mills spoke to an audience at CityUK on the subject of How innovation and regulation in financial services can drive the UK’s economic growth.
