View more on these topics

FCA: Advisers more aware of obligations after British Steel action

FCA logo new 3 620x430The FCA says advisers will “take more care” giving advice following regulatory interventions in light of the British Steel Pension Scheme saga.

Minutes from the regulator’s board meeting held on 6 and 7 December 2017 show the issues with the British Steel scheme were discussed.

Despite criticism from the Work & Pensions Committee on the way the FCA has handed this isssue, the board commended the “proactive intervention” of the supervision team in trying to prevent harm to consumers.

The minutes said these actions meant “advisers were more aware of their obligations and will take more care in giving advice.”

A number of firms have stopped giving financial advice to members of the British Steel Pension Scheme.

British Steel: Could trustees have done more to help advisers?

The board also received an update on the work being conducted by the FCA to prepare for Brexit.  The regulator said it is continuing to monitor the progress of the EU Withdrawal Bill, and associated subordinate legislation.

The FCA is also developing core communication materials related to Brexit, for both internal and external use. The regulator has also completed “preparatory work” in respect to onshoring – which it said would create a good foundation for any further work required.

The FCA is also “embedding a risk management framework into the project” to help the regulator prioritise its work on Brexit, and identify, manage and mitigate associated risks.

FCA’s Bailey pushes for regulator cooperation over Brexit transition

Elsewhere, the board received a summary of the responses to the consultation held earlier in the year on the second phase of the Financial Advice Market Review.

As a result of this, the board agreed to make change to its handbook guidance on insistent clients. The situations where customers would be eligible to approach the FOS with their complaints will also be clarified.

The board also approved the Money Advice Service’s draft plan and budget for 2018/19.

The budget request was £84.3m, compared to this year’s budget of £75m. This comprised of a money guidance levy of £27.6m and a debt advice levy of £56.7m. A further £0.5m would go towards transition costs for the new body, which has been reduced following a challenge receive at the Oversight Committee.

The Board also received the paper setting out the proposed Financial Services Compensation Scheme expenses levy limit of £77.7m for 2018/19. This was approved for consultation.

In addition the Board received the proposed business plan and budget for the Financial Ombudsman service for the same year.

It noted there was “significant uncertainty” around funding needs, particularly in relation to Payment Protection Insurance, as the impact of the ‘time bar’ campaign could not be predicted.

The minutes said: “The Board noted that an operational deficit of £62.4m was forecast for 2018/19 and would be funded by drawing from existing reserves.” This budget was approved for consultation.

Recommended

Financial advice-planning-advice-cashflow-analysis
1

TPR ‘urged’ British Steel trustees talk to members about advice

The Pensions Regulator “urged” trustees at the British Steel Pension Scheme to talk to members about the importance of getting independent financial advice, according to a report published today. The report explains how the regulator viewed financial advice for transfers when it assessed the application from Tata Steel UK for a regulated apportionment arrangement and […]

Andrew Bailey BBA Conference 2012 480
14

FCA ‘wholly rejects’ MP criticisms over British Steel transfers

The FCA has said it “wholly” rejects the conclusion reached by the work and pensions select committee of MPs on its conduct during the British Steel Pension Scheme saga. At the end of last week select committee chairman Frank Field said the FCA risked “sleepwalking into mis-selling scandal” on BSPS in a series of documents criticising […]

10

MPs hammer FCA conduct on British Steel as all transfer advisers to be investigated

The work and pensions select committee has published documents it believes raise serious concerns about how the FCA has handled the British Steel Pension Scheme saga. The documents are responses from the FCA, the financial advice firm Active Wealth and “introducer” firm Celtic Wealth, following evidence on BSPS in parliament in December 2017. The responses […]

3

Steve Bee: Are advisers ready for the real baby boomers?

Contrary to popular belief, we have not yet seen the real wave of post-War babies reach their 60s – and millions have deferred DB pension wealth Something significant is about to happen that will affect all those involved in the giving of advice in the UK from 2020 onwards. In the five decades following the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. The minutes said these actions meant “advisers were more aware of their obligations and will take more care in giving advice.”

    Really, I dont think any adviser isn’t aware of their obligations. What we still dont know is what the FCA class as good and bad practice.

    There is a real opportunity here for the FCA to help the adviser community by publishing anonymised details of each case.

Leave a comment