Compliance Digest - 16th February 2024
This is a summary of some of the regulatory issues that have come from the FCA, PRA, and my various news feeds this week.
FCA requests information from firms about delivery of their ongoing advice services and the Consumer Duty
FCA stops thousands of misleading ads and promotions
FCA Market Watch 77: Newsletter on market conduct and transaction reporting issues
Bank rate maintained at 5.25% - February 2024
The Essentials of Biodiversity Investment
FCA requests information from firms about delivery of their ongoing advice services and the Consumer Duty
The focus on firms’ delivery of the Consumer Duty continues. The FCA has written to a number of financial adviser firms requesting information about their delivery of ongoing services, for which their clients continue to be charged after advice has been given.
This will be one of a number of communications this year asking for evidence as to how firms are confident that they are delivering the Consumer Duty. Bear in mind that the first Consumer Duty Board Reports are due by the end of July.
Where you provide an ongoing service to your clients, it is important to record all interactions with clients on your back-office system. Ongoing service is more than just the annual review.
FCA stops thousands of misleading ads and promotions
In a press release the FCA has confirmed that over 10,000 financial adverts and other promotions were withdrawn or changed in 2023 following its intervention, an increase of 17%, year-on-year.
The FCA also published 2,285 alerts to help prevent consumers from losing their money to scams, up from 1,800 in 2022. After being given new powers by the Government, the regulator has focused on illegal crypto asset promotions to UK consumers, issuing 450 consumer alerts between 8 October 2023 and 31 December 2023.
Remember, financial promotions must be fair, clear, and not misleading. An advertorial in the local newspaper needs to be signed-off as a financial promotion.
FCA Market Watch 77: Newsletter on market conduct and transaction reporting issues
In this edition of Market Watch the FCA shares its observations on trade by organised crime groups (OCGs) and how firms can mitigate the risks of being used to facilitate their trade.
Bank rate maintained at 5.25% - February 2024
The Monetary Policy Committee has published its February 2024 Summary and minutes. At its meeting ending on 31 January 2024, the MPC voted by a majority of 6–3 to maintain Bank Rate at 5.25%. Two members preferred to increase Bank Rate by 0.25 percentage points, to 5.5%. One member preferred to reduce Bank Rate by 0.25 percentage points, to 5%.
The Essentials of Biodiversity Investment
Robeco has produced a useful short course regarding Biodiversity Investing. You can take it in small chunks. There is some useful CPD here.
Ian Ashleigh
