View more on these topics

FCA board ‘concerned’ over timing of Consumer Panel annuities report

The FCA board has expressed concern over the timing of the Financial Services Consumer Panel’s December report on the annuities market.

The panel published the report on 9 December, which found huge differences in commission payments from non-advised annuity services.

It came two months before the FCA published its thematic review of the annuities market last week. The FCA has been criticised for the speed of its response to the failings in the current market. 

The minutes of the FCA’s December board meeting, held days after the FSCP report was published, reveal the board expressed “some concern” at the timing of the publication in view of the ongoing work the FCA was carrying out in this area.

The minutes say: “It was noted, however, that this work had been commission by the panel some considerable time ago, before it was known that the FCA intended to carry out work on annuities.

“The board noted the executive and panels should work together to co-ordinate publications where appropriate.”

The minutes, published last week, also show that advice firms’ interpretation of independent advice was discussed at the December meeting of the Smaller Business Practitioner Panel.

The minutes say: “The board noted the FCA recognised these concerns and that work was ongoing in this area.”

The minutes also reveal the FCA’s Risk Committee is concerned the regulator needs to better understand consumer credit firms’ business models in order to regulate them effectively when it takes over regulation of the sector in April.

In an update from the Risk Committee’s November meeting, the FCA board was told: “The FCA needed to understand consumer credit firms’ business models in more detail in order for it to be able to target interventions.”

The minutes state the board acknowledged this was a risk and that the FCA would only have information gathering powers for these firms from 1 April.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. I think this augers well. At least now the Regulator may come to realise (if hasn’t already done so) that the majority of those who sit on the FSCP are not really qualified to do so. Indeed what they are qualified to do (apart from being professional critics) seems to be an very much in question question.

    Perhaps the selection criteria for this Quango needs to be looked at. (Not to mention the ridiculously high fees paid to the members).

  2. Aha, the FCA have discovered the destructive power of the beloved Which, an organisation that never tastes the Pierian Spring.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com