Emma RadmoreFCA has started proceedings towards a restitution order against two individuals. It alleges that Estate Matters Financial Limited, which is in liquidation, provided unsuitable DB pension transfer advice, which led...
Category - Pensions
UK Government announces expansion of the Dormant Assets Scheme
The UK Government has announced the expansion of the Dormant Assets Scheme, which is a major boost as the UK recovers from the coronavirus pandemic. £800 million is set to be made available to communities across the UK...
Angie Bamboulis
FCA fines firms for unsuitable pensions advice
FCA has fined LJ Financial Planning Ltd £107,200 for recommending that 114 customers transfer their pensions to the value of around £6m into SIPPs over a period of nearly 3 years from March 2010. FCA found the firm...
FCA writes portfolio letters to SIPP operators
FCA’s latest portfolio supervision letter is to SIPP operators. In the letter, FCA notes that, when SIPPs were originally launched, they were designed for higher net worth individuals looking to manage their own...
HM Treasury extends consultation deadlines
Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...
Lucy HadrillABI calls for advice charging overhaul
ABI says that nearly 75% of consumers say they will not pay for financial advice. It says the regulatory environment needs to adapt so that customers can get the advice they want and that is fit for purpose. It carried...
ESRB publishes Recommendation on identifying legal entities
The European Systemic Risk Board (ESRB)’s Recommendation A proposes that: EU legislation incorporates a common EU legal framework governing the identification of legal entities established in the EU that are...
ICO issues £130,000 fine for unauthorised pension cold calls
The Information Commissioner’s Office (ICO) has issued a penalty notice under section 55A of the Data Protection Act 1998 to Swansea based CPS Advisory, fining the company £130,000 for making over 100,000...
EIOPA finalises Pan-European Pension Product
EIOPA has provided the Commission with a set of draft RTS and ITS and its advice on delegated acts needed to implement the Pan-European Personal Pension Product framework. It has already developed the PEPP KID and PEPP...
Consumer Panel mulls digital advertising
The Financial Services Consumer Panel has published a discussion paper on digital advertising in financial services. It is deeply concerned about the use of “adtech” to create detailed profiles of...
FCA gets judgment against unregulated introducers
FCA has won a case in the High Court against Avacade Limited and Alexandra Associates (UK) Limited and their three directors. The companies provided a pension reports service and made misleading statements as a result...
FCA makes new rules
FCA has published a Handbook Notice covering the rules it made at its May and June Board meetings. changes to COBs in relation to pension transfers, introducing a ban on contingent charging in respect of most advice on...
FCA updates on Covid-19 delayed activities
FCA has confirmed some further delays to projects and extensions to proposed deadlines, in light of Covid-19. Various deadlines now postponed until later in 2020-or to 2021 include: The Directory of Certified Persons...
FCA consults on pensions value for money
FCA is consulting on measures that will make it easier for governance committees to compare the value for money of pensions products and services, so the value for workplace pension scheme members can be better assessed...
Treasury consults on BRRD2 implementation
Treasury is consulting on the UK implementation of BRRD2. The implementation date is 28 December 2020, so before the end of the Transitional Period. Treasury proposes to implement all those parts of the Directive that...
Jonny WilliamsFCA sets out new DB measures
FCA has published a package of measures to address weaknesses across the defined benefit transfer market. The key changes will: ban contingent charging in almost all circumstances. This will remove the conflict that an...
Compulsory FCA survey coming to firms
FCA is to send a survey by email with a link to 13,000 solo regulated firms, aimed to helping FCA understand the impact of Covid 19 on regulated firms and their financial resilience, where the greatest impacts are for...
Court clarifies SIPP providers’ DD obligations
A landmark case decision, in Adams v Options SIPP UK LLP has considered the duties SIPP providers owe to investors. In this case, a SIPP provider facilitated an investment on an execution-only basis for an investor who...
FCA updates guidance for pensions firms
The FCA has published an update for financial services firms operating in the pensions market. This represents an attempt to allow both the FCA and those firms to reprioritise resources towards preventing and reducing...
James BorshellFCA Business Plan 20/21
The FCA published its business plan for the coming year this morning. The plan focuses around 5 key priorities for the year. It has been significantly reshaped because of coronavirus as it was intended to show the...
Regulator Covid-19 update 3 April
On 3 April: PRA and FCA updated dual-regulated firms on how their should deal with furloughing and compliance with the SMCR; EBA published guidelines on the criteria for public and private moratoria applied before 30...
FSCS allocation of claims regarding IFAs and SIPP operators
The Financial Services Compensation Scheme (“FSCS“) has issued guidance on compensation payments as a result of failed investments made via a Self-invested Personal Pension scheme (a “SIPP”). The guidance...
Rachael PrestonFCA makes new travel insurance and other rules
FCA has made 3 sets of new rules. changes to COBS 19 to ensure that pension scheme members can properly find the information they need about costs and charges to ensure they get good value for money from their pension...
FCA publishes annual sector views
The FCA has just published its annual sector views report which comprises a state of the nation in terms of the financial services industry. The report sets out the drivers for change in each financial services sector...
ESMA outlines sustainable finance strategy
On 6 February, ESMA published its sustainable finance strategy which sets out how ESMA plans to focus on sustainability. ESMA’s key priorities include: completing the regulatory framework on transparency...
FCA responds on workplace pension costs and charges
The FCA has released its response to its recent consultation on workplace pension charging and the associated rules changes, including its policy statement and final rules. These rules changes are derived from a 2013...
TPR fines FCA Pension Plan
The Pensions Regulator has fined the FCA Pension Plan £2,000 for a non-compliant chair’s statement, the maximum penalty which it can levy for this type of breach. The chair’s statement requires trustees of...
Gavin EllisonFSCS announces Plan and Budget
FSCS has published its full Plan and Budget for 2020/2021. As well as the indicative levy of £635m (£87m more than the current year, mainly because of a rise in SIPP operator claims) and management expenses budget of...
FCA introduces new duties for Independent Governance Committees
The FCA has published a policy statement introducing new duties for Independent Governance Committees (IGCs). Firms which offer workplace personal pension schemes (including life insurers and some SIPP operators) are...
Europe reaches agreement on ‘green taxonomy’ regulation
Negotiations between the European Parliament and Council have reached agreement on environmental objectives for determining the sustainability of an economic activity. The Commission proposal for a ‘taxonomy...
Regulators develop work on Operational Resilience
The BoE, the PRA and the FCA have developed a joint policy summary setting out new requirements for operational resilience for regulated firms and financial market infrastructures (FMI). The work is spearheaded by...
Roseyna JahangirMark Carney named UN’s Special Envoy for Climate Action and Finance
On 1 December 2019 the United Nations Secretary-General António Guterres announced the appointment of the Governor of the Bank of England, Mark Carney, as UN Special Envoy for Climate Action and Finance. Mark Carney...
FCA publishes ‘approving financial promotions’ webpage
In the light of its new temporary restrictions on the financial promotion of ‘mini-bonds’, the FCA has provided guidance for firms approving the financial promotions of unauthorised persons. The new page on...
Changes to retirement “wake-up packs” take effect
The FCA has published feedback to its consultation on a package of amendments to improve the information given to consumers at retirement by their pension providers. The changes relate to ‘wake-up’ packs (which give...
Bills not to progress due to election
Parliament has updated its webpages in respect of the Goods Mortgages Bill, the Pension Schemes Bill and the Financial Services Duty of Care Bill. The 2017-2019 Parliamentary Session was dissolved on 6 November ahead...
FCA makes new rules
FCA’s latest Handbook Notice summarises various instruments made at the end of September and October: the Overdrafts (Information and Tools) Instrument 2019 takes effect on various dates to 6 April 2020, and...
More pressure on fund managers to follow ESG voting instructions?
The push to require pension scheme trustees to develop voting policies on environmental, social and governance (ESG) issues (which are considered to be financially material to their investments) is meeting some...
Consultation on legal entity identifiers for general government entities
The Regulatory Oversight Committee for the legal identity identifier (LEI ROC) has opened a consultation on proposals for LEI Eligibility for General Government Entities. Questions range from whether there is a need...
EBA recommends enhanced online disclosure requirements
The EBA has issued an Opinion directed to the EC, setting out recommendations to revise the scope and consistency of disclosure requirements in EU law to take account of the increasing use of digital marketing channels...
FCA outlines five steps to drive the future of regulation
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, recently spoke about the FCA’s thoughts on how it approaches the future of regulation. He commented that the FCA will be issuing an...
ESMA to examine reporting issues in annual financial reports
ESMA has set out the matters it will prioritise when looking at the 2019 annual financial reports of listed companies. Among the specific areas of focus, ESMA has underlined the importance of the inclusion of...
FCA issues statement for SIPP operators
The FCA has issued a statement following the administration of Berkeley Burke SIPP Administration Ltd (BB) and the administrator’s decision to discontinue BB’s judicial review appeal. BB was involved in...
EU and Japan hold first joint financial regulatory forum
The Joint EU-Japan financial regulatory forum has held its inaugural meeting. Topics covered at the meeting included: the regulatory cooperation framework under the Japan-EU Economic Partnership Agreement, and the...
FCA publishes feedback statement on climate change disclosures
The FCA has published its proposals for its future work on climate change and green finance, following responses to its Discussion Paper in 2018 . In its work, the FCA will be focusing on three outcomes: Issuers provide...
FCA provides Brexit preparations update for firms
The FCA has published an update on the steps firms will be expected to take in the event that there is a hard Brexit. In particular, the FCA reminds EEA passporting firms of the need to notify the FCA by 30 October if...
Prudential appeals annuity transfer judgment
Prudential Plc has confirmed that it has lodged an appeal against the High Court’s refusal to approve the transfer of £11.2 billion worth of annuities from the Prudential Assurance Company to Rothesay Life. The...
FCA fines Pru for non-advised annuity sales failings
FCA has fined the Prudential Insurance Company Limited £23,875,000 (including a 30% discount) for failures in its non-advised annuity sales business. FCA found that, for a 9 year period ending in late 2017, the non...
EC sustainable finance classification system to be developed
The Council of the European Union has agreed a position on the proposed EU-wide sustainable finance taxonomy regulation. This would develop a common language for assessing what economic activities can be considered...
FCA announces next steps for unit-linked funds
FCA has published its findings and next steps on its review of governance practices covering unit-linked funds. It notes that its Asset Management Market Study found asset managers were not good enough at considering...
Barry StimpsonIndustry associations raise concerns about timetable for sustainability disclosures
A group of European industry associations have written to the European Commission raising concerns about the timing for implementation of the Regulation on disclosures relating to sustainable investments and...
FCA updates on Brexit preparations
In a recent speech, Andrew Bailey, the chief executive of the FCA, provided an update on the FCA’s state of preparation for Brexit, and in particular for a no-deal, no-transition Brexit scenario. However, while Mr...
No more ink? Law Commission confirms validity of electronic signatures
A Law Commission report confirms that electronic signatures can be used to execute documents as an alternative to wet ink signatures in most circumstances. There are some important exceptions and the report only relates...
Suzanne GadoFCA publishes quarterly consultation
FCA’s latest quarterly consultation covers a number of minor changes to the rules that will be made only if there is a no-deal Brexit on 31 October, and also other miscellaneous amendments including: minor...
No strong case to merge Ombudsmen
“There is not a strong case to merge TPO and FOS at the present time” is the conclusion of a tailored review of the Pensions Ombudsman (TPO) published by the DWP. A merger between the two Ombudsmen...
EC calls for action with publication of no-deal Brexit checklist
The EC is urging EU businesses and citizens to consider whether they are prepared for the UK leaving the UK on ‘no-deal’ terms on 31 October, reminding them in this scenario there will be no transition...
High Court refuses Prudential’s annuity transfer
The court process is not merely a “rubber stamping” exercise. The High Court has refused to sanction the transfer of £11.2 billion worth of annuities from the Prudential Assurance Company (PAC) to Rothesay...
Regulators launch new ScamSmart campaign
The FCA and the Pensions Regulator are running another media campaign over the summer to warn the public about pension scams. With new research suggesting that 42% of pension savers are potentially at risk (which would...
FCA introduces investment pathways for pensions drawdown
The FCA has published a policy statement introducing ‘investment pathways’ for consumers with pension savings who enter drawdown without taking advice. In 2018, the FCA published the final report of its Retirement...
Publication of AG Opinion on consequence of removing unfair terms in consumer contracts
The European Court of Justice has published the AG’s Opinion in a case concerning the effect of a declaration of unfair terms for the purposes of the Unfair Contract Terms Directive (in UK law as the Consumer...
FCA consultation on contingent charging ban for pension transfers
The FCA is proposing to ban the use of contingent charging for pension transfers, whereby an adviser is only paid if recommending that a member of a pension scheme makes a transfer. Under current pension legislation...
EC sets out position statement on equivalence decisions
The EC has published a communication about equivalence decisions (the timing of which is no doubt entirely unrelated to the ascension of pro-Brexit Boris Johnson to the Prime Ministership of the UK). The communication...
FCA publishes SMCR final rules
FCA has at last published its final rules on extending the SMCR to solo-regulated firms, including CMCs. It has, in the main, implemented the changes it consulted on in its consultation on “optimising” the...
Tribunal refuses suspension application
Sussex Independent Financial Advisers Limited had applied to the Tribunal for a suspension of the FCA’s decision to vary its permission to remove all its permitted activities on the basis that the firm did not...
Audrey KohUpdated FCA and PRA MoU published
The FCA and the PRA have updated the MoU setting out the relationship between the two regulators and the way in which they respectively operate, particularly in common areas. The MoU was first published at the time of...
FCA fines Standard Life for non-advised sales failings
FCA has fined Standard Life Assurance Limited £30,792,500. The fine relates to non-advised sales of annuities, and sales practices over nearly 8 years. Although the sales were non-advised, FCA found that the firm...
FCA discusses AI in financial services
In a recent speech, Christopher Woolard of the FCA considered three lenses through which the FCA views the issues relating to AI: what are new, and what are existing issues; how to ensure that AI creates value for...
FCA invites feedback on Gabriel replacement
The FCA has announced that it is planning a replacement for Gabriel, its data collection system. It has therefore asked current Gabriel users to complete a feedback survey to provide views that can be considered in the...
Insurance broker banned for seven years for pension scheme negligence
An insurance broker has been banned from company directorships after failing to keep adequate records, not providing information to the tax authorities and not providing members of a pension scheme with up to date...
ESA evaluates cross-border supervision of retail financial services
A report published by the Joint Committee of European Supervisory Authorities, ie the EBA, ESMA and EIOPA, has reviewed the current landscape of cross-border supervision, in particular in the light of the regulatory...
UK financial regulators publish climate change Joint Declaration
The FCA, PRA, TPR and FRC have jointly issued a declaration reiterating their commitment to work on the enhancement of climate-related disclosures. The Joint Declaration also welcomes the UK’s Green Finance...
UK government launch Green Finance Strategy
HM Treasury and BEIS have launched a Green Finance Strategy to meet the government’s target of reducing emissions to net zero by 2050, to boost sustainable investment, and to help make the UK a ‘green...
FCA finds numbers of defined benefit transfers “deeply concerning and disappointing”
The FCA is taking further action on defined benefit transfers following published data about the number of recommendations being made to pension scheme members to transfer out of their defined benefit (DB) schemes. The...
Pension plans have to put fiduciary management services out to tender
Pension plan trustees appointing a fiduciary manager for at least 20% of their plan assets will now need to run a competitive tender process. For our more in-depth article, click here. The Investment Consultancy and...
IOSCO publishes recommendations for sustainable finance in emerging markets
The Growth and Emerging Market Committee of IOSCO’s report is directed at securities regulators and makes 10 recommendations for emerging market jurisdictions to consider when issuing regulations or guidance for...
Treasury Committee announces inquiry into decarbonisation of the UK Economy and Green Finance
The Treasury Committee has announced an inquiry that will look at the respective roles of HMT, regulators and financial service firms in supporting the government’s climate change commitment. The terms of...
FCA takes action on pensions advisers lacking integrity
FCA has published decision notices against three firms and five individuals, setting out its decision to find them for acting without integrity in pensions advisory businesses and misleading FCA. The individuals have...
Court upholds fines imposed by Pensions Regulator on master trusts
Appeals by two master trusts against fines imposed by the Pensions Regulator (tPR) for making incomplete annual chair statements have failed. Occupational schemes providing money purchase benefits have to prepare an...
FSCS sets next year’s levy
FSCS has set its 2019/2020 levy. It will be £532m, which is slightly more than its forecast, but still less than the 9 month levy for last year (had it been a 12 month levy). FSCS puts the increase down to an uplift in...
EIOPA reports on 2018 supervisory activity and 2019 priorities
EIOPA has published a report on its 2018 supervisory activities. EIOPA reported that in 2018 it achieved key milestones including: issuing a cross-border insurance technical opinion, developing a common framework to...
Jonathan DrakePension plans must be proactive
We have written an article on how pension plans must be proactive now that the regulator is increasingly taking a tougher regulatory approach.
FCA proposes 2 new duties for IGCs
The FCA is consulting on proposals to extend the remit of Independent Governance Committees (IGCs). The FCA proposes that IGCs, which provide independent oversight of the value for money offered by workplace personal...
The Pensions Regulator’s Stronger Powers
We have written an article on the changes to the powers of the Pensions Regulator in relation to defined benefit schemes, following Government consultation and response.
FCA publishes final no-deal Brexit rules
Perhaps in anticipation of what would follow later in the day, FCA published its final instruments and guidance that would apply in the event of a no-deal, no-implementation period Brexit, on the morning of 29 March...
Will SMCR hold up pension transfers?
Pension scheme members wishing to transfer their benefits from a defined benefit (DB) to a defined contribution (DC) pension arrangement have to take financial advice and trustees of DB schemes are required to check...
FCA looks at life beyond Brexit
In a speech on Brexit delivered by Nausicaa Delfas, Executive Director of International, the FCA reminded firms that the deadline for notifications under the temporary permissions regime is 28 March 2019. Firms that...
Europe reaches political agreement on reforms to EU supervision
The European Parliament and Member States have reached agreement on core elements of the reform of European supervision of financial markets, including strengthening the supervisory framework in the area of anti-money...
What the Spring Statement brings for regulation
In the Chancellor’s Spring Statement, the Chancellor referred to the need to ensure financial regulation can adapt to a no-deal Brexit and then, longer term, to the UK’s new constitutional position.
UK pension plan gets fraud victory in US
We have written an article on the litigation involving a UK pension plan and a US entity in which it had invested. The pension plan alleged securities fraud on the part of the investee company, and succeeded in winning...
FCA proposes new rules on disclosing administration charges and transaction costs for personal pension schemes
The FCA is consulting on new rules to require scheme governance bodies to publish and disclose information about administration charges and transaction costs to members of personal pension schemes. Similar provisions in...
Insurance MoUs agreed between BoE, FCA, EIOPA and EU supervisors
The UK supervisory authorities have agreed memoranda of understanding with European counterparts, to facilitate the coordinated supervision of insurance entities in the event of a no-deal Brexit. The MoUs cover...
EU agrees draft directive to enhance consumer protection
The EU has agreed the terms of a draft directive that, if passed, will amend a number of consumer protection directives, including the consumer rights directive (2011/83/EU), to introduce measures such as: harmonised...
FCA updates rules
FCA has made a number of amendments to various parts of its rulebook, including: amendments to COBS on information relating to pensions savings, taking effect from November 2019 and April 2020; introducing a Devolved...
BoE and FCA update on Brexit approach
BoE and FCA have updated their respective websites with coordinated information on their approach to a hard Brexit. BoE has published a series of materials setting out its updated plans to its supervisory approach to a...
FCA calls for costs and charges disclosure improvements
FCA has issued a set of papers on costs and charges disclosures. its feedback statement on firms’ experiences of the PRIIPs requirements concludes that firms find certain issues, in particular relating to summary...
FCA renews call for firms to prepare for Brexit
The FCA has published sector-specific information to help regulated firms ensure they are prepared for the consequences of Brexit, including a no-deal Brexit. The guidance covers banking and payments, life insurance...
Court rules that Brexit is not frustrating event for a lease
The High Court has ruled that a European agency cannot terminate the lease of their premises at Canary Wharf on the basis of Brexit being a ‘frustrating event’. Our article provides more detail on this case...
FIN. TeamPan-European pension product moves a step closer
On 13 February 2019, a new ‘pan-European pension product’ (PEPP) moved a step closer as EU ambassadors endorsed the agreement on a proposed PEPP reached between EU institutions late last year. As a new class...
Government announces new powers to protect pension schemes
The Government has announced new powers to protect pension schemes. Read our article on recent developments.
Financial Stability Board 2019 work programme published
The Financial Stability Board has published its work programme for the forthcoming year. The areas upon which it intends to focus are: addressing emerging vulnerabilities in the financial system; working with standard...
Government consultation on investment by DC pension scheme
The DWP is consulting on proposals to encourage defined contribution (DC) pension schemes to consider investing in less liquid assets such as smaller and medium-sized unlisted firms, housing, green energy projects and...
Government provides £329 million funding to NEST to meet master trust requirements
The Government has agreed to provide a contingent liability of £329 million to fund the National Employment Savings Trust (NEST) Corporation so that it can continue to operate in the pensions market as a master trust...
ESMA creates Brexit page
ESMA has created a new web-page on Brexit, setting out how it is preparing for it. Its latest agreement is a MoU with BoE for recognition of CCPs and the Central Securities Depository. It aims to recognise all UK CCPs...
Treasury lays Brexit FS SI before Parliament
Treasury has laid before Parliament the Financial Services (Miscellaneous)(Amendment)(EU Exit) Regulations 2019. The wide-ranging instrument amends several pieces of UK and retained EU law relating to financial...