Browse all articles across people aspects of regulation and people development within UK financial services
Is the sector being unfairly targeted by an overzealous regulator, or is it just being dragged – kicking and screaming – to a place where the public can be assured that they will get transparency, appropriate products, and high-quality advice, i.e., “good outcomes” as defined by the FCA’s Consumer Duty?
Artificial intelligence (AI) is the simulation of human intelligence processes by machines. It is a burgeoning technology that is seen as either the future or the end of humanity as we know it, depending on who you speak to.
The issue of customer vulnerability is not a new one in financial services. But, the approach to it varied so considerably from firm to firm that the FCA has made it a cornerstone of its Consumer Duty regulation.
Just over a year ago the Chancellor of the Exchequer announced, with much fanfare, a new ‘mortgage charter’ [‘the Charter’]. At the time there was a wide range of industry challenge. At one end of the scale, there were those who suggested that the policy was a political stunt as lenders already offered the ‘agreed’
The old saying “there’s nowt so queer as folk” is even more apt these days than it ever has been. When we look around any conference room in financial services and you will see a lot of more mature around the room. Of course, I am talking about age rather than behaviours.
Many changes to the financial industry have been implemented because of the new Consumer Duty regulations that came into force July 2023. In preparation for the new rules, a focus point for the regulator has been the issue of how much pension and investment firms are charging their customers for ongoing advice.
This has been a question that the financial services industry has been struggling with over the years. What is the difference between advice and guidance? Where does one cross into the other? Do consumers understand the difference? Where do we need to go for one or the other? Does anybody care?
We have heard about the plight of mortgage prisoners for well over a decade now. Much has been written about their woes ever since this cohort of borrowers became locked into their existing mortgage arrangements, without the ability to remortgage, when many types of mortgage products were withdrawn after the global financial crash in 2008/2009.
Last year, Jeff asked me to gaze into the future and share my thoughts about what 2023 held for T&C. For those who missed it, it’s available to read here.1 So, how accurate was I in my predictions and observations?
In a paper published on 7th December, the Bank of England, as well as both the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), have outlined their plans to bring critical third party (CTP) suppliers to the financial services industry under their supervision.
Recent communications from the FCA highlight that the regulator is likely to focus heavily on the value of products in 2024. This rhetoric is getting louder, and it is aimed at the whole distribution chain where it will likely extend significantly towards brokers and agents over the next 12 months.
Now the Consumer Duty (CD) regulation is live and the project teams, so busy for the last year or two, disband, we are left with the realisation that CD is finally in BAU. Cue sighs of relief all around the industry!
