View more on these topics

Treasury backs away from approved persons shake-up for advisers

The FCA is reviewing whether to introduce bigger fines, pay whistleblowers and broaden access to the Financial Ombudsman Service.

Advisers have escaped from being caught by an overhaul of the approved persons regime after the Treasury backed away from introducing a new approvals system for the whole financial services industry.

In its final report in July, the parliamentary commission on banking standards recommended a new FCA senior persons and licensing regime for banks and to consider extending this to the wider financial industry.

The Treasury then said it would be easier to scrap the approved persons regime for the wider industry, but has now backed off over concerns scrapping the current approvals regime could delay the introduction of a new approvals systems for banks.

In its response to the PCBS, published this week, the FCA said it would take a different approach with the new regime applying only to deposit-taking institutions such as banks, building societies and credit unions.

Senior persons will require pre-approval by the regulator and senior bankers could face criminal sanctions if they recklessly mismanage a bank.

The FCA has also launched a blitz of consultations and reviews including whether to introduce bigger fines, pay whistleblowers and broaden access to the Financial Ombudsman Service.

Independent financial consultant Richard Hobbs says: “The PCBS recommendations were always half-baked by not looking at the rest of approved persons. It was intellectually weak and left the FCA in an impossible position. Either it would need to point out the flaw in the commission’s position, which they politically didn’t want to do, or try to implement something which is messy. It has chosen the politically savvy option.”

Apfa director-general Chris Hannant says: “The Government has identified a problem in banking and that is where the solution should apply. The FCA is being logical and sensible because if you have a fire you don’t start hosing down the neighbours as well.”

Recommended

Standard Life Graeme Dow 700x450.jpg

Standard Life agrees preferential terms with Old Mutual

Standard Life has secured its latest preferential share class deal with Old Mutual Global Investors. The company announced last month the first group of managers with whom it had agreed terms. These were: Henderson, Investec Asset Management, Neptune, Schroders(including Cazenove funds), Standard Life Investments and Threadneedle Investments. Standard currently receives a 55 per cent rebate on OMGI […]

David-Ingram-seated-with-green-tinted-windows-700.jpg

David Ingram on improving professionalism and encouraging pro bono work

Two watchwords will be at the forefront of David Ingram’s mind as he starts his one-year presidency of the Personal Finance Society – trust and professionalism. This year the PFS launched its Consumer Confidence Campaign to try to improve awareness and trust in finance advice and it is this work that Ingram is keen to […]

Business-People-Silhouette-Leaving-Walking-700x450.jpg

L&G structured products head made redundant after sales decline

Legal & General has made its head of structured solutions James Harrington redundant after conducting a review of structured product sales. Harrington’s responsibilities will be absorbed by the rest of L&G’s structured products team. He has worked for L&G in a number of roles for the past 15 years. His responsibilities will largely fall to head […]

Mortgage-House-Coins-Wallet-House-700x450.jpg
1

Case Study: Getting the right product for equity release

The problem: A client who has been recently widowed is looking at equity release as a way of supplementing their pensions income. What specific issues can arise for single individuals looking to raise money through equity release? The solution: A lot of the advertising and marketing around equity release has traditionally focused on a couple looking […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    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