Browse all articles across people aspects of regulation and people development within UK financial services
When the Senior Managers and Certification Regime (SM&CR) was first introduced in the wake of the financial crisis, it wasn’t just another piece of red tape. It was a deliberate, considered response to the deep cultural and accountability failings exposed during the meltdown of 2008.
The financial advisory landscape in the UK has witnessed significant regulatory evolution in recent years. Consumer Duty, with its focus on delivering fair value, transparency, and good outcomes for clients, represents the latest wave of regulatory reform designed to bolster consumer protection.
One of the biggest worries for advisers in client meetings is the possibility of missing something crucial, whether it’s a vulnerability indicator, a new financial risk or a subtle clue about a client’s needs. This is also particularly important with increased regulation such as the FCA’s Consumer Duty.
Financial services firms, especially those operating under the watchful eye of the Financial Conduct Authority (FCA), audits aren’t just an occasional business activity—they’re a crucial part of a strong governance and risk management regime.
In July of this year, the FCA launched a review of how regulated firms treat domestic PEPs. The review assessed how firms conduct proportionate and risk-based due diligence on their clients in accordance with anti-money laundering legislation and its guidance. The review was a requirement of the Financial Services & Markets Act 2023 (FSMA 2023).
In February 2024, the FCA published CP24/2: Our Enforcement Guide and publicising enforcement investigations – a new approach. The FCA intends to use transparency as a regulatory tool and disclose more information about its enforcement activities at an earlier stage in the process.
I previously wrote an article entitled It’s Just Human Nature, with examples I had come across of advisers who had decided it was easier to fast-track any cases they had erred on, by adding their own embellishments, rather than going back to see a client, or contacting the Compliance team, to correct any mistakes.
“Solvency II sets out regulatory requirements for insurance firms and groups, covering financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure.” (source: The Prudential Regulation Authority website).
After many years of making the case for change, we have cautiously welcomed the Government’s announcement of their intention to reform and modernise the now almost fifty-year-old Consumer Credit Act1.
While every day should be an opportunity to think about how we are progressing towards the things that are important to us, it seems particularly pertinent as we start a new year to take time to reflect on what we have achieved so far and what we hope to accomplish in the future.
Conduct risk: “Risk associated to the way organisations, and their staff, relate to customers and the wider financial markets” – Chartered Institute of Internal Auditors, 2018 Conduct risk is a form of business risk that refers to potential misconduct of individuals associated with a firm.
Part of the work that I do now involves reviewing announcements from several regulators around the world, on enforcement action against advisers.
