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FCA to review handbook and FAMR next year

FCA building FCA feesThe FCA intends to start two major reviews into the advice market next year to assess how its approach to supervision is working a top official says.

At the annual Pimfa conference in London today the watchdog’s acting director of strategy, Richard Monks, gave a speech about the evolving world of regulation.

The first step Monks talked about is a full post-implementation review of RDR and FAMR focused on the quality of outcomes for consumers rather than rules simply being followed.

It will be writing to all wealth managers and investment advisers to get their thoughts early next year.

The second exercise is beginning an open discussion about what a future handbook might look like and what the strategic priorities should be.

Monks said the start of the handbook review depends on the progress of Brexit and needs to be careful it does not get become overly technical.

Both reviews are part of the FCA’s broader aim to ensure its regulatory approach is not just ticking boxes but ensuring consumers get value for money.

Monks also said the regulator is starting to think about how it can deal with rogue advisers and misselling better.

He suggested fully automated reporting, machine learning handbooks and robo regulation are three potential solutions.

Monks added: “In wholesale markets there are now real time transactions so better data allows the FCA to focus on high risk investments. Can the FCA use artificial intelligence and machine learning to use big data to identify advisers more likely to missell? We will set out our views further in our sector documents published next month.”

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Comments

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

  1. If the FCA is genuinely concerned about tackling mis-selling, it should build on the belated inclusion in its GABRIEL/RMA Returns system of a few questions about potentially high risk areas such as DB Transfers and UCIS ~ ESPECIALLY, of course, where those two crop up together. There are also issues such as leads accepted/ bought from unregulated introducers, how much if any influence from said introducer is allowed (should be zero, of course), 100% contingent charging (conflict of interest) and SIPPs ~ e.g. just why has the client got one and what’s he investing in through it, outside the bounds of conventional mainstream collective funds?

    It’s not really very difficult except, it seems, for the FCA.

    • Nicholas Pleasure 31st October 2018 at 6:40 pm

      I think that we all understand the financial services regulation is not run for the benefit of the investing public, or the industry. It is run for the benefit of the regulator.

      Simple solutions do not result in high salaries.

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