Regulation Updates – British Insurance Brokers' Association https://www.biba.org.uk The British Insurance Brokers' Association is the UK's leading general insurance intermediary organisation Tue, 18 Sep 2018 09:17:38 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.6 Y5207 – Australian Financial Complaints Authority https://www.biba.org.uk/regulation-updates/y5207-australian-financial-complaints-authority/ Tue, 18 Sep 2018 09:09:37 +0000 https://www.biba.org.uk/?p=30859 The post Y5207 – Australian Financial Complaints Authority appeared first on British Insurance Brokers' Association.

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Final interactive version of Insurance Market Core Uses Information Notice now available https://www.biba.org.uk/latest-news/final-interactive-version-of-insurance-market-core-uses-information-notice-now-available/ Fri, 07 Sep 2018 09:25:35 +0000 https://www.biba.org.uk/?p=30827 An interactive version of the joint industry Insurance Market Core Information Uses Notice has now been finalised and published on the London Market Group’s website. 

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An interactive version of the joint industry Insurance Market Core Information Uses Notice has now been finalised and published on the London Market Group’s website.  Changes to the design and functionality of the Notice mean that it is easier to navigate around now and much more user-friendly.

It is hoped that widespread use of the Notice, alongside a firm’s own privacy notice, will assist in educating consumers consistently about how their personal data is used in core processes throughout the insurance lifecycle and thereby support each firm’s own efforts to meet their data protection obligations.

Members may access the document by clicking here.

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

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HM Treasury’s annual Frozen Assets Review launched https://www.biba.org.uk/latest-news/hm-treasurys-annual-frozen-assets-review-launched/ Tue, 04 Sep 2018 10:52:40 +0000 https://www.biba.org.uk/?p=30804 HM Treasury has launched its annual review of frozen assets belonging to individuals who have been targeted under UK, UN, or EU law for financial

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HM Treasury has launched its annual review of frozen assets belonging to individuals who have been targeted under UK, UN, or EU law for financial sanctions.  As in previous years, all individuals, organisations and businesses holding frozen assets will have until Friday 12 October 2018 to report them to the Treasury’s Office of Financial Sanctions Implementation (OFSI).  Members should use the form at the link below to report:

https://www.gov.uk/government/organisations/office-of-financial-sanctions-implementation

Taking part in the exercise will help ensure that HMT has as comprehensive a return as possible of all frozen assets, something that helps them to ensure that financial sanctions remain an effective foreign policy and national security tool.

The annual review also serves as a helpful reminder that members need to comply with financial sanctions in place in the UK and to report frozen assets and other relevant information to OFSI immediately.

Frozen funds cannot be accessed except under the authority of HM Treasury, the competent authority for the implementation and enforcement of financial sanctions in the UK. Where an asset freeze is in place, it is a criminal offence to release the frozen funds or deal with them without a licence from OFSI.

OFSI will only consider licensing the release of frozen funds if the activity falls within the licensing grounds available in the legislation. OFSI’s policy is to preserve the value of misappropriated government assets and it takes this into consideration when applying the EU and UK sanctions regime licensing grounds.

More information on financial sanctions can be found in OFSI’s guide to financial sanctions:

https://www.gov.uk/government/publications/financial-sanctions-faqs

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

 

 

 

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FCA emphasises its expectations around brokers’ due diligence on insurers https://www.biba.org.uk/regulation-updates/fca-emphasises-its-expectations-around-brokers-due-diligence-on-insurers/ Wed, 22 Aug 2018 09:08:50 +0000 https://www.biba.org.uk/?p=30761 The Financial Conduct Authority (FCA) has published a new page on its website about brokers’ due diligence on insurers.  The page sets out the FCA’s

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The Financial Conduct Authority (FCA) has published a new page on its website about brokers’ due diligence on insurers.  The page sets out the FCA’s expectations that brokers are able to demonstrate that they have carefully considered the insurers that they place their customers’ business with.  The move follows in the wake of recent failures at Alpha Insurance A/S, Enterprise and Gable, the collapse of which demonstrated the harm and market disruption caused when around 1 million customers needed to find alternative insurance cover.  Ensuring relevant markets work well and that consumers receive an appropriate degree of protection are key objectives for the FCA.

The FCA noted: ‘Suitable due diligence is a key part of the process that we expect insurance brokers to perform on the insurance companies they use.’  It also added that brokers should be comfortable that they are placing their customers’ business with an insurer where they themselves would be happy to be a policyholder.

Members may access the web page by clicking here.

The new web page is a slimmed down and updated version of the article that the FCA wrote for BIBA’s Compliance Rules publication last year.  Members may access the publication by clicking here.

The page goes on to list examples of due diligence that brokers can undertake when deciding which insurer to place a risk with.  The examples include the BIBA Litmus Test Report which is an online facility for members that will help with their due diligence when considering whether to use unrated non-life insurers. The facility was designed with the analytical support of Litmus Analysis and uses data from AM Best to present a number of key financial ratios for a number of unrated insurers most often used by BIBA members.  Members can access more information about the facility by clicking here.

Members should also be aware of the FCA’s pledge to do further work in this area to verify that insurance brokers are conducting appropriate due diligence on the insurers they use.

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

 

 

 

 

 

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FSCS reports good news for policyholders who had Guaranteed Asset Protection (GAP) cover with Alpha Insurance https://www.biba.org.uk/latest-news/fscs-reports-good-news-for-policyholders-who-had-guaranteed-asset-protection-gap-cover-with-alpha-insurance/ Mon, 20 Aug 2018 09:50:17 +0000 https://www.biba.org.uk/?p=30742 The Financial Services Compensation Scheme (FSCS) has made further progress to assist customers of Alpha Insurance A/S of Denmark which was declared in default on

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The Financial Services Compensation Scheme (FSCS) has made further progress to assist customers of Alpha Insurance A/S of Denmark which was declared in default on 8 May 2018.  The FSCS has been working closely with the liquidator, as well as the Danish Guarantee Fund and Premia Solutions to secure alternative insurance cover for eligible customers, following Alpha’s demise.

FSCS said in a statement that it had worked with Premia Solutions to replace 177,000 guaranteed asset protection (GAP) policies with effect from 12 August 2018.  The new insurer will be a Lloyd’s of London syndicate.

Affected policy holders will receive a letter from Premia Solutions outlining the details of the transfer of their policies.  The transfer comes after Alpha’s liquidator gave notice that these policies will be cancelled on 11 August 2018.

For more specific information about Alpha can be found by clicking here.

The FSCS reiterated the importance of brokers making their return of premium claims via an online form on Alpha Insurance’s website during its discussions with BIBA.  Going via the online portal will allow brokers’ data to be reconciled with insurers’ policy records and improve the efficiency of the claims process.  The online portal can be accessed by clicking here. 

Please go to the link and follow the instructions.

The FSCS is due to visit the Danish Guarantee Fund again next week (w/c 20 August 2018).  Should BIBA members have any comments about their experience (good and bad) of using the online portal they should contact David Sparkes at sparkesd@biba.org.uk as soon as possible so that we may feedback to the FSCS ahead of their visit.

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

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FCA launches tool to aid root cause analysis of complaints process https://www.biba.org.uk/latest-news/fca-launches-tool-to-aid-root-cause-analysis-of-complaints-process/ Mon, 20 Aug 2018 09:45:29 +0000 https://www.biba.org.uk/?p=30740 The Financial Conduct Authority (FCA) has published a hypothetical case study about complaints handling including root cause analysis.  This is a tool to help firms when reviewing

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The Financial Conduct Authority (FCA) has published a hypothetical case study about complaints handling including root cause analysis.  This is a tool to help firms when reviewing and amending their complaint handling policies and procedures, particularly with understanding what good root cause analysis can look like.

The FCA said that although the case study uses a retail lending example, it may be helpful for other firm types to better understand what a good complaints process, including root cause analysis, can look like.

The hypothetical case study follows multi-firm workinto complaints handling where the FCA discovered that some firms did not conduct adequate complaints root cause analysis.

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

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FCA asks firms to keep sharing Brexit contingency plans https://www.biba.org.uk/regulation-updates/fca-brexit-plans-share/ Thu, 09 Aug 2018 07:54:51 +0000 https://www.biba.org.uk/?p=30685 The FCA has written to firms asking them to keep the FCA ‘in the loop’ when it comes to Brexit planning. In a ‘Dear CEO’

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The FCA has written to firms asking them to keep the FCA ‘in the loop’ when it comes to Brexit planning.

In a ‘Dear CEO’ letter, the FCA has stated that it needs to ensure that it can continue to supervise the conduct of firms’ UK businesses effectively, so asks to be consulted before firms takes any decisions on the structures they intend to put in place elsewhere in Europe.

Seemingly aimed predominantly at banks and the how and where they book transactions (called booking models in the letter), there is a read-across to all firms and to which entity’s Profit and Loss (P&L) account a transaction is recorded.

Members can read the FCA letter here.

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

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FCA says its intervention in GAP add-ons market has more than doubled shopping around https://www.biba.org.uk/latest-news/fca-says-its-intervention-in-gap-add-ons-market-has-more-than-doubled-shopping-around/ Tue, 31 Jul 2018 13:47:32 +0000 https://www.biba.org.uk/?p=30610 The Financial Conduct Authority (FCA) has published a paper evaluating its intervention in the add-on guaranteed asset protection (GAP) insurance market which the regulator launched

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The Financial Conduct Authority (FCA) has published a paper evaluating its intervention in the add-on guaranteed asset protection (GAP) insurance market which the regulator launched in September 2015. The FCA introduced two measures relating to the sale of GAP add-ons in order to address harm identified during a wider general insurance add-ons market study. Members may access the document by clicking here.

The measures introduced included vehicle sellers being required to provide better information to consumers and a pause in the sales process. The FCA argued that these measures together (time and information) would enable consumers to better assess whether they need GAP insurance and to shop around if they do.
Evaluation Paper 18/1 sets out the findings of the FCA’s test of the post-intervention effectiveness of its remedies in the GAP insurance market. Overall, the FCA found that its intervention had had a positive impact with more consumers engaging in the decision-making process and shopping around more than doubling.
The FCA said that its intervention had achieved its objectives, although not by as much as it had expected. Due to intervention, the FCA expected that:

• add-on sales would be up to 32.5% lower, they were found to be 16%-23% lower.
• the share of sales of standalone would increase to up to 40%, whereas its market share was found to have increased to 8% from 6%.
• add-on prices would be up to 17% lower, with the price differential between add-on and standalone narrowing. Prices were found to be 2-3% lower.

In particular, the impact on the standalone’s share of total sales and on add-on prices has been much less pronounced than it expected, the FCA noted.
The regulator said that its intervention had helped to reduce ‘considerable harm in the market’. It estimated that there were around £26 million to £28 million of ongoing consumer benefits a year after the intervention. This exceeded firms’ total costs of implementing the intervention, including a one-off cost of £5 million to £8 million and an ongoing cost of £1 million a year.
FCA said it had identified some lessons that it can apply to current and future work.

Views are invited on the evaluation paper. These can be sent to the FCA by email at evaluationpapers@fca.org.uk
or in writing to: Economic and Financial Analysis Department, Strategy & Competition Division, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN.

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

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FCA increases its focus on how firms assess credit worthiness in their customers https://www.biba.org.uk/latest-news/fca-increases-its-focus-on-how-firms-assess-credit-worthiness-in-their-customers/ Tue, 31 Jul 2018 12:15:32 +0000 https://www.biba.org.uk/?p=30608 The Financial Conduct Authority (FCA) has published feedback to Consultation Paper CP17/27: Assessing creditworthiness in consumer credit, along with final rules and guidance for inclusion

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The Financial Conduct Authority (FCA) has published feedback to Consultation Paper CP17/27: Assessing creditworthiness in consumer credit, along with final rules and guidance for inclusion in the Consumer Credit Sourcebook (CONC).  Appendix 1 of Policy Statement 18/19 sets out rules and guidance clarifying the FCA’s expectations in relation to the assessment of creditworthiness in consumer credit.

The FCA said that it wanted to protect consumers from the harm that can arise when they are granted credit that is predictably unaffordable at the point it is taken out.  At the same time, it wanted consumers to be able to access credit where it is affordable.

Members may access PS18/19 by clicking here.

The new rules and guidance will come into effect on 1 November 2018 allowing firms three months to make any necessary changes to their systems and processes.  The changes clarify the FCA’s existing rules and guidance in CONC 5 (Responsible lending) and 6 (Post contractual requirements), and the application of its general requirements on firms in its Senior Management Arrangements, Systems and Controls sourcebook (SYSC). There are also some minor consequential changes to other parts of CONC, and the Handbook Glossary.

Firms need to establish, implement and maintain clear and effective policies and procedures for assessing creditworthiness, including affordability, according to the policy statement.  These should set out the principal factors to be taken into account, and should be approved by the firm’s senior management.

Particularly noteworthy, were the FCA’s comments in the feedback statement about the outcome it was seeking: “We want firms to make a reasonable assessment, not just of whether the customer will repay, but also of their ability to repay affordably and without this significantly affecting their wider financial situation. This should minimise the risk of financial distress to customers.

“At the same time, we want to avoid being too prescriptive, as this could have harmful unintended consequences, including for the cost and availability of credit. We want firms to take a proportionate approach, taking into account the costs and risks of the credit for the individual customer.”

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

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MoJ seeks money laundering crack down with proposed refocusing of suspicious activity reporting system https://www.biba.org.uk/latest-news/moj-seeks-money-laundering-crack-down-with-proposed-refocusing-of-suspicious-activity-reporting-system/ Tue, 24 Jul 2018 12:29:50 +0000 https://www.biba.org.uk/?p=30541 The Ministry of Justice (MoJ) has published a consultation paper aimed at cracking down on money laundering by strengthening the system for suspicious activity reporting

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The Ministry of Justice (MoJ) has published a consultation paper aimed at cracking down on money laundering by strengthening the system for suspicious activity reporting (SAR).  The MoJ said that the current system for SARs was not working as well as it should and that law enforcement agencies were struggling with a ‘significant number of low-quality reports’ which could mean that criminals were escaping detection.

The consultation paper has emerged from a wider review by the Law Commission of the anti-money laundering regime in Part 7 of the Proceeds of Crime Act 2002, and the counter-terrorism financing regime in Part 3 of the Terrorism Act 2000.  The review also aimed to analyse and produce proposals addressing the problems with the anti-money laundering and counter-terrorist finance reporting regimes.

Anti-Money Laundering: The SARS Regime Consultation Paper (CP236),  includes proposals about:

  • statutory guidance on what to look for and a set format for submitting SARs;
  • asking whether new tools could help enforcement like US-style Geographic Targeting Orders;
  • a new power to require additional detail and record keeping requirements targeted at specific transactions;
  • cutting back on low quality reports by focussing on accounts where there are reasonable grounds to suspect property is criminal property;
  • legal protection for banks which choose to lock into an account the suspected criminal funds but leave the rest of the account open to trade thereby minimising the risk of severe financial loss for those who are the subject of a disclosure;
  • providing detail as to what amounts to a defence of ‘reasonable excuse’ for not making a SAR;
  • asking whether commercial organisations, rather than the individual employees, should be liable for failure to prevent a criminal offence when an employee fails to disclose a suspicion.

The consultation closes on 5 October 2018 and comments can be emailed to: anti-money-laundering@lawcommission.gov.uk.

 

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk

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FRC launches sharper Corporate Governance Code fit for the future https://www.biba.org.uk/latest-news/frc-launches-sharper-corporate-governance-code-fit-for-the-future/ Tue, 24 Jul 2018 09:40:57 +0000 https://www.biba.org.uk/?p=30536 The Financial Reporting Council (FRC) has produced a “shorter and sharper” UK Corporate Governance Code for 2018.  The new Code encourages the boards of companies

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The Financial Reporting Council (FRC) has produced a “shorter and sharper” UK Corporate Governance Code for 2018.  The new Code encourages the boards of companies to focus on their wider impact over the longer term and emphasises the importance of four key areas of governance:

  • building a positive relationship between companies, their shareholders and stakeholders, particularly its workforce;
  • aligning the company’s purpose and strategy with a healthy corporate culture;
  • ensuring board membership is of a high quality and focussed on diversity, and
  • remuneration that is proportionate and supports long-term success.

Members may access the revised code by clicking here.

Corporate culture is a new addition to the Code and in some ways aligns with the FCA’s own focus on culture and the ‘tone from the top’.  Its inclusion follows the 2016 report produced by the Culture Coalition, led by the FRC, which called on boards to “assess how effective they are at establishing company culture and practices, and at embedding good corporate behaviour.”  The code also focuses on championing the benefits of diversity in the workplace, board refreshment and lengths of service of directors.

The Code is applicable to all companies with a Premium Listing on a stock exchange, whether incorporated in the UK or elsewhere.  The new Code applies to accounting periods beginning on or after 1 January 2019.

Paul George, Executive Director of Corporate Governance and Reporting, FRC, has produced a blog about the new code.  Members may access the blog by clicking here.

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

 

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FCA urges firms to plan ahead for all Brexit eventualities https://www.biba.org.uk/latest-news/fca-urges-firms-to-plan-ahead-for-all-brexit-eventualities/ Tue, 24 Jul 2018 09:36:30 +0000 https://www.biba.org.uk/?p=30534 The Financial Conduct Authority (FCA), has warned firms to plan for a range of scenarios, including the possibility of a ‘hard’ Brexit, as the UK

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The Financial Conduct Authority (FCA), has warned firms to plan for a range of scenarios, including the possibility of a ‘hard’ Brexit, as the UK prepares to leave the European Union (EU) in March 2019.

Nausicaa Delfas, Executive Director of International, FCA, made the comments in a keynote speech at the Bloomberg/TheCityUK event in London where she set out the regulator’s preparations for the UK’s withdrawal from the EU and a smooth transition to what was hoped would be a continuance of the “close relationship” currently held with EU counterparts in the longer run.  Members may access Ms Delfas’s speech by clicking here.

A smooth transition was the desired outcome, but not a given.  Delfas said: “However, we know that this is part of the overall negotiations and therefore we must prepare for all scenarios, including the possibility of a ‘no-deal’ or ‘hard’ Brexit at March 2019. And that is what we are doing: across the FCA, together with colleagues from the Bank of England and the Government, we have been working to develop a number of safeguards and contingencies, in the event of a hard Brexit, to ensure that ‘day 1’ works smoothly.”

The FCA had undertaken significant work around the EU Withdrawal Act to ensure continuity of the legal and regulatory framework post withdrawal, when EU law ceases to have effect in the UK, Ms Delfas explained.   Now that this Bill has received Royal Assent, existing EU legislation will be converted into UK law after March 2019, and UK laws which implement EU obligations will be preserved.  “The aim is that, as far as possible, to ensure continuity and certainty, the same rules and laws will apply after exit day as they did the day before”, she added.

In addition, the Withdrawal Act also gives Ministers the power to amend retained legislation via Statutory Instrument (SI), ensuring it functions effectively post-Brexit.

Accordingly, the FCA had been working to identify the various aspects that may need amending, and how these might be resolved.  Ms Delfas cited the most obvious examples as being references to the Commission, or European Supervisory Authorities, which will have no jurisdiction in the UK after Brexit; others include functions currently performed by EU bodies which will no longer be appropriate when the UK leaves the EU (eg supervision of credit ratings agencies and trade repositories); or the broader impact of the loss of passporting.  The latter had led to the FCA’s preparatory work on the Temporary Permissions Regime.

Changes in legislation through Statutory Instruments would mean changes to the FCA’s rule book, she explained.  As a consequence the FCA had undertaken a line-by-line review of around 50 pieces of EU financial services legislation, and 185 Binding Technical Standards (the technical detail below the EU Directives and Regulations).

“We aim to consult on these changes in the autumn. This will ensure our Handbook and associated rules are fully operational at the point of exit,” Ms Delfas added.

The FCA also planned to limit any other Handbook changes to those that are in line with its Business Plan, or otherwise essential, in the run up to March 2019.

The FCA has also published a new webpage, Preparing your firm for Brexit, aimed at helping firms to understand whether they will be affected by EU withdrawal, and if so, to:

  • Work out what changes they might have to make to their business, or which additional regulatory permissions they may need to continue to carry it out.
  • Think about any information they will need to give to customers, in a way that is clear, fair and not misleading.
  • Consider the implications of a range of possible scenarios including an implementation period.
  • Discuss implications with the relevant EEA regulator, their trade association, and/or get independent legal advice.

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

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Y5199 – Lloyd’s Coverholder Reporting Standards Version 5.1 https://www.biba.org.uk/regulation-updates/y5199-lloyds-coverholder-reporting-standards-version-5-1/ Tue, 24 Jul 2018 08:50:10 +0000 https://www.biba.org.uk/?p=30532 The post Y5199 – Lloyd’s Coverholder Reporting Standards Version 5.1 appeared first on British Insurance Brokers' Association.

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2018/093 IMR Broker Access Issues https://www.biba.org.uk/regulation-updates/2018-093-imr-broker-access-issues/ Thu, 19 Jul 2018 12:32:27 +0000 https://www.biba.org.uk/?p=30514 The post 2018/093 IMR Broker Access Issues appeared first on British Insurance Brokers' Association.

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FCA shares its Approach to Consumers paper, alongside a Duty of Care consultation and reversion on vulnerable consumers definition https://www.biba.org.uk/regulation-updates/financial-conduct-authority/fca-shares-its-approach-to-consumers-paper-alongside-a-duty-of-care-consultation-and-reversion-on-vulnerable-consumers-definition/ Wed, 18 Jul 2018 09:39:03 +0000 https://www.biba.org.uk/?p=30477 The Financial Conduct Authority (FCA) has outlined the measures it will take to protect consumers and sets out when and how the organisation takes action. 

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The Financial Conduct Authority (FCA) has outlined the measures it will take to protect consumers and sets out when and how the organisation takes action.  The Approach to Consumers document sits alongside a new discussion paper on a Duty of Care and the two combined are intended to ensure there are no gaps in protection for consumers in the financial services industry.

Discussion Paper 18/5 explores whether there is a need for a specific duty of care requirement for financial services firms.  It explores if a new duty of care could enhance good conduct and culture in firms and provide additional protections for consumers.  Members may access DP18/5 by clicking here.

The paper also asks whether changes are required and what those changes could look like and what the impact would be for consumers, firms and the FCA.  It also explores what the possible alternative approaches to a new duty might look like.  The FCA poses a series of specific questions about the introduction of a new duty and asks firms to provide specific examples and evidence to support their answers wherever possible.

The Approach to Consumers sets out the FCA’s expectations, first published for consultation in 6 November 2017, about how consumers should be treated by financial firms and where the regulator will intervene if things are going wrong.

The FCA said that in response to the feedback received in its Approach to Consumers consultation about a revised definition of who is a vulnerable customer it would be reverting to the original definition from Occasional Paper No 8 Consumer Vulnerability.  The regulator will also consult early in 2019 on guidance for firms to help them understand more clearly its expectations and requirements for dealing with vulnerable people.  Members may access Occasional Paper No 8 by clicking here.

The DP18/5 consultation closes on 2 November 2018.  BIBA will be producing an official response to the discussion paper and members who would like their comments considered in this process should send them to David Sparkes, sparkesd@biba.org.uk by Monday 22 October.

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

 

 

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FOS welcomes independent review which finds it in need of better organisation https://www.biba.org.uk/latest-news/fos-welcomes-independent-review-which-finds-it-in-need-of-better-organisation/ Thu, 12 Jul 2018 15:44:54 +0000 https://www.biba.org.uk/?p=30457 The Financial Ombudsman Service (FOS) has published the findings of an independent review of its activities by consumer rights champion, Richard Lloyd.  The Lloyd Report

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The Financial Ombudsman Service (FOS) has published the findings of an independent review of its activities by consumer rights champion, Richard Lloyd.  The Lloyd Report was commissioned by the non-executive board of the FOS to look at where the ombudsman might be able to do things better.

Richard Lloyd has spent time talking to FOS staff, its customers and stakeholders since he was commissioned earlier this year to conduct the review and make recommendations to improve the service.  Members may access the report by clicking here.

Among the matters considered in the review were: service quality; knowledge, the re-organisation of the FOS; culture and morale; governance; resourcing; funding; strategic planning; whistleblowing; and the allegations made by three current and former staff in an edition of Channel 4’s Dispatches programme on 12 March 2018.

The review recommended that the FOS be better organised and review its approach to compensation, training, targets for staff and guidance for complaints handlers.  However, it concluded the FOS ‘provides an effective and essential service for many thousands of people’ and was making ‘continuous improvement’.  No evidence of institutional bias was found by the review.  It was also recommended that the FCA should consider consulting on a new levy to fund the FOS.

The FOS board was urged to lead the development of a new strategic plan, taking into account the conclusions of the review.

Caroline Wayman, Chief ombudsman and chief executive, welcomed the report, saying: “We’re grateful to Richard Lloyd for conducting such a thorough review. We’ll be considering carefully what it means for our service, keen to learn from the past so we can do things even better in the future. We will publish an update on our progress by the end of the year.”

Members’ compliance queries should be sent to compliance@biba.org.uk.

 

 

 

 

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Y5195 – Update On The Market Data Collections Platform Release https://www.biba.org.uk/regulation-updates/y5195-update-on-the-market-data-collections-platform-release/ Tue, 10 Jul 2018 10:19:59 +0000 https://www.biba.org.uk/?p=30427 Title Update On The Market Data Collections Platform Release   Purpose To inform Managing Agents of the deferral in Release 1 of the MDC platform

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Title Update On The Market Data Collections Platform Release   Purpose To inform Managing Agents of the deferral in Release 1 of the MDC platform   Type Scheduled   From MDC Programme Team, mdc@lloyds.com   Date   6 July 2018       Deadline n/a   Related links Market Bulletin Y5172
Market Bulletin Y5194v

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Treasury sets 9 December 2019 date for commencement of SM&CR https://www.biba.org.uk/regulation-updates/treasury-sets-9-december-2019-date-for-commencement-of-smcr/ Wed, 04 Jul 2018 11:52:32 +0000 https://www.biba.org.uk/?p=30381 HM Treasury has confirmed that the Senior Managers and Certification Regime (SM&CR) will come into force for firms regulated by the Financial Conduct Authority (FCA)

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HM Treasury has confirmed that the Senior Managers and Certification Regime (SM&CR) will come into force for firms regulated by the Financial Conduct Authority (FCA) only from 9 December 2019.  John Glen, Economic Secretary to the Treasury, made the announcement in a written ministerial statement to the House of Commons, saying that his department will now make commencement regulations to bring the regime into force for solo-regulated firms. financial services firms regulated by the Financial Conduct Authority only The Senior Managers and Certification Regime (SM&CR) will come into force for financial services firms regulated by the Financial Conduct Authority only (also known as solo-regulated firms).

The Senior Managers and Certification Regime (SM&CR) will come into force for financial services firms regulated by the Financial Conduct Authority only (also known as solo-regulated firms) from 9 December 2019.The FCA published near final rules for the extension of the Senior Managers and Certification Regime (SM&CR) to almost all regulated firms in Policy Statement PS18/14.   The FCA said that as the rules are near-final, and subject to commencement regulations to be made by HM Treasury, it did not expect to make any significant changes to them.  Members may access PS18/14 by clicking here.

The SM&CR will replace the current Approved Persons Regime, changing how individuals working in financial services are regulated.  The FCA said that the aim of the new SM&CR was to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence.  As part of this, the SM&CR aims to:

  • encourage a culture of staff at all levels taking personal responsibility for their actions
  • make sure firms and staff clearly understand and can demonstrate where responsibility lies.

The FCA has produced a guide to its rules in order to assist firms in understanding how to prepare for the implementation of SM&CR.  The guide provides an overview of how the SM&CR works, what firms need to do under the new regime, and how the regulator intends to move firms and individuals from the existing Approved Persons Regime (APR) to the new SM&CR.  The guide brings together what the FCA consulted on in Consultation Paper (CP) 17/25 and CP17/40 with the changes that it made in response to feedback, as set out in PS18/14.  Members may access the guide by clicking here – guide to solo regulated firms

BIBA will be analysing the contents of PS18/14 and how the rules impact general insurance intermediaries which may result in the production of a revised guide for members.

The FCA also proposed in Consultation Paper CP18/19 a new Directory to help consumers and firms check the status and history of individuals working in financial services.  The Directory will include all those who hold Senior Manager positions requiring FCA approval and those whose roles require firms to certify that they are fit and proper.  Both the FS Register and Directory would form part of the record that the FCA is required to maintain under section 347 of Financial Services and Markets Act 2000.

The FCA’s proposals are based on feedback received about what consumers and firms would expect from the Directory.  It includes more information about individuals working in financial services than is currently available and does so in one, user-friendly place.  For example, consumers will be able to search by location to find local advisers.   Members may access CP18/19 by clicking here.

The consultation period for CP18/19 closes on Monday 5 October 2018.  BIBA will be submitting an official response to this paper and members who would like their comments taken into account as part of this process should send them to David Sparkes at sparkesd@biba.org.uk by Friday 28 September.  The FCA will be publishing a prototype version of the Directory user interface for illustrative purposes and member firms will be able to feedback their thoughts about the facility online.

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

 

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The FCA sets out its role in preparing for Brexit https://www.biba.org.uk/regulation-updates/the-fca-sets-out-its-role-in-preparing-for-brexit/ Fri, 29 Jun 2018 07:34:44 +0000 https://www.biba.org.uk/?p=30347 The Financial Conduct Authority (FCA) has published a statement about how it is preparing for the UK leaving the European Union.  The regulator said that

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The Financial Conduct Authority (FCA) has published a statement about how it is preparing for the UK leaving the European Union.  The regulator said that it continues to prepare for a range of scenarios, including one in which the UK leaves the EU on 29 March 2019 without a withdrawal agreement and implementation period having been ratified between the UK Government and the EU.   Members may access the bulletin by clicking here.

https://content.govdelivery.com/accounts/UKFCA/bulletins/1fa530b

The move follows the announcement from HM Treasury about its approach to amending financial services legislation under the European Union (Withdrawal) Act 2018.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/720298/HM_Treasury_s_approach_to_financial_services_legislation_under_the_European_Union__Withdrawal__Act.pdf

The European Union (Withdrawal) Act 2018 received Royal Assent on 26 June 2018.  Members may access the legislation by clicking here.

http://www.legislation.gov.uk/ukpga/2018/16/pdfs/ukpga_20180016_en.pdf

 

BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk.

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2018/084 Lloyd’s Inception Date Allocation (IDA) – Reminder of How to Process Through Xchanging https://www.biba.org.uk/regulation-updates/2018-084-lloyds-inception-date-allocation-ida-reminder-of-how-to-process-through-xchanging/ Wed, 27 Jun 2018 14:18:46 +0000 https://www.biba.org.uk/?p=30314 Click here 2018/084 Lloyd’s Inception Date Allocation (IDA) – Reminder of How to Process Through Xchanging click here Appendix 1

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Click here 2018/084 Lloyd’s Inception Date Allocation (IDA) – Reminder of How to Process Through Xchanging

click here Appendix 1

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