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FCA admits failings over RMAR and issues new guidance

FCA says it failed to give advisers sufficient support.

The FCA has issued additional guidance to advisers on the retail mediation activities return after admitting it failed to give firms sufficient support.

Since 30 June, advisers have had to complete new sections K and L when completing the RMAR, which requires firms to send the FCA additional information on advice charges, and whether advice is independent or restricted.

Money Marketing reported in September adviser trade bodies were pushing for an urgent review of the RMAR after firms raised repeated concerns over the amount of work involved.

This week the FCA issued a technical note on section K of the RMAR which aims to provide further clarity on a number of issues, such as how to report revenue from trail commission which is offset against an adviser charge.

FCA head of savings, investments and distribution David Geale says: “With the benefit of hindsight, the RMAR has not been as easy for firms as we anticipated.

“A lot of firms have struggled to understand exactly what we wanted them to do. We recognise we had not given enough support on this, and have acted quickly to correct it.”

The FCA is also looking at allowing firms who report to HM Revenue & Customs on a cash basis rather than an accruals basis to report to the FCA on a cash basis.

Geale says: “We have heard this creates additional expense for firms so we are looking to streamline things. We hope to say more after Christmas.”

Geale says the change would generally affect smaller firms.

Jacksons Wealth Management managing director Pete Matthew says: “Some of the language used in the RMAR is confusing and it is encouraging to see the FCA recognise this and look to rectify it.”


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