Customer, culture and conduct

Following the financial crisis, stability and doing the right thing for customers and clients is now as equally important as profit. To achieve this difficult balance firms need to address their customer strategies, culture and conduct risk appetite together. Whilst intuitively the link between customer, culture and conduct is clear, in practice responsibility may sit in different parts of the business who are often working to very different objectives. Firms that can demonstrate their people put the interests of the customer at the heart of the decision making process, and are rewarded for doing the right thing, will help rebuild trust with customers, investors and regulators.


Hot topic: Insurance approach to supervision one year on

This Hot Topic describes the updated approach to insurance supervision by Prudential Regulation Authority and Financial Conduct Authority.

[27-06-2014]


Basel III and beyond: Stretched to the limit

Basel III and beyond: Stretched to the limit: Dealing with the implications of the NSFR

[28-05-2014]


Webcast: The FCA's Risk Outlook 2014/15

This webinar considers the issues raised by the FCA Risk Outlook for 2014/15 and how your firm should respond. Chris Woolard, Director of Policy, Risk and Research joined our PwC panel to discuss this further.

[24-04-2014]


Understanding the FCA Business Plan and Risk Outlook 2014/2015: Implications for the Asset Management Industry

This summary details the relevant key points covered in the Business Plan and Risk Outlook for the asset management industry. Click on the PDF above to find out more.

[15-04-2014]


Way forward for mutuals seeking life after with-profits?

The FCA and PRA publishes a policy and supervisory statement allowing with-profits mutuals to apply for a rule modification so they can establish a mutual members’ fund.

[01-04-2014]


Annuity reform, key implications for the insurance industry

One of the biggest changes to the UK pension is that savers are no longer compelled to purchase annuities upon retirement. Find out what these significant changes mean for the industry and what challenges and opportunities lay ahead.

[01-04-2014]


Consumer Credit Thematic Review

The FCA announced the first in-depth thematic review of the consumer credit market on 12 March 2014.

[11-03-2014]


Banking and pay: regulation and Code Staff

Now that UK regulators have issued the final banking regulations around remuneration, Jon Terry and Tom Gosling look at the people working for financial services organisations who are likely to be most affected by the rules, the so-called ‘Code Staff’ or material risk takers.

[02-03-2014]


The Financial Conduct Authority (FCA) publishes results of annuities thematic review

Following a detailed review of the annuities market, the FCA has found that 80% of consumers who purchase their annuity from their existing provider could get a better deal if they shopped around.

[19-02-2014]


Getting to grips with the conduct agenda

In the first of our Conduct Soundbites series, David Taylor, Financial Services Risk and Regulation Partner, talks about the changes following the introduction of the Financial Conduct Authority (FCA) in 2013, what your business is going to look like as a result of this and how can you can come out on top.

[16-02-2014]


Banking and pay: bonus pool outcomes

2013 was an interesting year for banks, with a lot of attention in particular on bankers' pay. Jon Terry and Tom Gosling take a look at what actually happened to bonus pools in 2013 and what we can expect in 2014.

[11-02-2014]


Financial Services Consumer Panel (FSCP) calls for structural reform of the failing annuity market

The Financial Services Consumer Panel (FSCP) released the findings of its research into the consumer experience of purchasing an annuity.

[11-02-2014]


ESMA considers a complex problem

The European Securities and Markets Authority (ESMA) communicated its views on complex investment products in two publications on 7 February 2014; Risks of investing in complex products for consumers, and Opinion – MiFID practices for firms selling complex products for firms.

[06-02-2014]


Behavioural economics: Driving better customer outcomes

This report looks at how the study of behavioural economics can be used by firms to develop strategies, products and information which encourage customers to make better financial decisions.

[05-02-2014]


Consumer Credit

On 1 April 2014, the Financial Conduct Authority will begin regulating all firms that hold existing OFT credit licences.

[03-02-2014]


FCA further restricts inducements

The FCA published FG14/1: Supervising retail investment advice: inducements and conflicts of interest on 16 January 2014. The FCA has tightened the interpretation of existing inducements and conflicts of interest rules , following its 2013 thematic review, which identified failings in firms’ compliance with RDR inducement rules.

[15-01-2014]


Consumer credit catches local authorities

The government laid two statutory instruments relating to the transfer of consumer credit before parliament on 14 January 2014. Treasury updated its website, and the FCA published an FAQ on the aspects relating to local authorities.

[13-01-2014]


The 3 biggest challenges for 2014 and beyond - conduct risk, conduct risk and conduct risk

This webinar considers how the FCAs new competition powers, and more intrusive supervisory approach, is impacting the day-to-day business of our clients.

[20-11-2013]


The Financial Conduct Authority (FCA) and the focus on product governance

This document provides information on how to effectively manage product governance and the product lifecycle.

[21-10-2013]


CRD IV: the impact for remuneration in banking

Jon Terry and Tom Gosling explore the CRD IV regulations and how they will impact remuneration in the banking sector.

[20-10-2013]


Detailed consumer credit rules

The Financial Conduct Authority (FCA) published detailed consumer credit rules on 3 October 2013.

[02-10-2013]


Competition deterrents for payday lenders

The Competition Commission published their consultative Statement of Issues on 16 August 2013. As part of its investigation into the payday lending industry, the Commission collects and analyses information on the market. To provide focus for this analysis it sets out ‘theories of harm’ which could have a negative impact on competition.

[15-08-2013]


Consumer credit scope change

The Financial Conduct Authority (FCA) updated its website with the changes in scope of its consumer credit regulation on 15 August 2013.

[14-08-2013]


No surprises: managing the conduct challenges

Recent article by David Taylor in Thomson Reuters complinet.com on managing conduct risk

[13-08-2013]


First RDR thematic results

The FCA published its first RDR thematic review on 25 July 2013.  TR13/5 focused on the first round of thematic work following 31 December 2012 RDR implementation deadline.

[24-07-2013]


Clarifying MiFID remuneration

ESMA published its final Guidelines on remuneration policies and procedures on 11 June 2013. The guidelines are intended to clarify and strengthen how existing MiFID remuneration rules are applied.

[16-07-2013]


FCA starts consumer credit transfer

The FCA wrote to all consumer credit licence holders in July, asking them to confirm that their details shown on the OFT online register are correct.

[15-07-2013]


Banks adopt same day ‘retry system’

The Financial Conduct Authority (FCA) has secured agreement from seven of the largest UK banks to use the same day ‘retry system’.

[11-07-2013]


FCA Clarifies RDR Rules

In response to various industry questions on RDR, the FCA published CP13/4 Distribution of retail investments: referrals to discretionary investment managers and adviser complaints reporting on 4 July 2013.

[03-07-2013]


New approach for non-disclosure

The Financial Ombudsman Service (FOS) published a technical note on its approach to complaints arising from insurance non-disclosures on 23 May 2013, after the Consumer Insurance (Disclosure and Representations) Act 2012 came into force on 6 April 2013.

[22-05-2013]


New definition of material risk takers leads to a substantial increase in the number of bankers subject to the CRD IV bonus cap

The European Banking Authority's (EBA's) Board of Supervisors approved last week a draft regulatory technical standard (RTS) on the definition of material risk takers (MRTs). The RTS includes a requirement that all employees whose total remuneration is greater than €500,000 should be deemed to be MRTs. Assuming that it is approved, the RTS will come into effect during 2014, ahead of the 2014/15 remuneration round.

[20-05-2013]


FCA wants more mortgage data

The FCA wants mortgage lenders to report more graanular data

[14-05-2013]


Right first time: staying ahead of the conduct risk agenda

The Financial Conduct Authority (FCA) is only just getting going, but it’s already clear that it intends to reach into new areas not touched by the Financial Services Authority (FSA). Building on our recent webcast on conduct, we share our thoughts on how you can stay ahead of the conduct agenda in this publication.

[29-04-2013]


Financial Conduct Authority reports on first field trials

The Financial Conduct Authority (FCA) published its evidence from a field trial, on 10 April 2013. The FCA’s first randomised field trial has generated real world case studies designed to help the FCA develop effective market interventions.

[25-04-2013]


Extending the special resolution regime

HM Treasury issued a statement on its website on 25 April 2013 regarding the special resolution regime under the FS Act 2012. A few provisions of the FS Act have not yet been brought into force, including the extension of the special resolution regime to group companies, investment firms and UK clearing houses.

[25-04-2013]


Assessing a firm’s culture

Clive Adamson, the FCA’s Director of Supervision, spoke on the importance of culture in driving behaviour of firms and how the FCA will assess this on 19 April 2013.

[25-04-2013]


Corporate pension charges attract VAT

HMRC published Revenue and Customs Brief 09/13 on 17 April. Retail Distribution Review prevents corporate pension scheme managers from receiving commission from pension funds. Such commissions had always been exempt from VAT as charges for intermediation services.

[11-04-2013]


Consumer complaints top 3 million

The Financial Conduct Authority published its latest aggregate complaints data on 15 April 2013. During the second half of 2012, consumers made over 3.4 million complaints against regulated firms, an increase of 1% compared to the preceding six month period.

[11-04-2013]


Clarifying mortgage lenders’ obligations

The Financial Conduct Authority published MMR lender roadshow Q&As on 11 April 2013

[11-04-2013]


FCA sets out priorities for the year ahead

FCA sets out priorities for the year ahead

[31-03-2013]


Financial Conduct Authority’s Conduct Risk Outlook

The FCA published its first Conduct Risk Outlook (CRO) on 25 March 2013. The FCA intends to complement its approach to retail conduct with a strong focus on wholesale conduct

[28-03-2013]


Financial Conduct Authority sets focus for next year

The FCA published its first Business Plan on 25 March 2013 setting out how the FCA will work to meet its objectives over the next year.

[28-03-2013]


Self-regulating crowdfunding

The UK Crowd Funding Association (UKCFA), the trade body for the crowdfunding sector, launched a Code of Practice for their members on 15 March 2013.

[21-03-2013]


European Banking Authority reveals 2013 consumer protection plan

The European Banking Authority published a Report on consumer trends on 18 March 2013, following its survey of national regulators to identify current consumer protection issues.

[21-03-2013]


Preparing for the Prudential Regulatory Authority and Financial Conduct Authority

HM Treasury has published amendments to the Bank of England Act 1998, FSMA and the FS Act 2012 in March 2013.

[21-03-2013]


Assessing consumer protection measures

The Financial Services Consumer Panel (FSCP) launched its Four Pillars of Consumer Protection on 15 March 2013. The Four Pillars are a new framework aimed at enabling more effective assessment of EU financial services legislation, standards and supervision.

[14-03-2013]


The conduct agenda

This webinar discusses the challenges and opportunities for the financial services industry managing conduct risk. The conduct agenda at its simplest is about how customers are treated, how firms behave towards each other and how they operate in the market.

[14-03-2013]


Payday lenders must change

The OFT announced on 6 March 2013 that it will take action against 50 payday lenders, unless they change their business practices in the next 12 weeks.

[07-03-2013]


Bankers bonus capping provisions - We analyse and comment on what this means

You will have seen the reports overnight that the Trialogue reached provisional agreement on the bonus capping provisions with the capital requirements directive (CRD) IV. We understand that there is currently no detailed draft text that sets out the proposals and that instead the agreement has been on the key features of the proposed provisions.

[27-02-2013]