UK Insurance: FCA (21 November 2016)

OAC Digest
FCA, Investments, PRIIPs

21 November 2016

Selected recent news from the UK's conduct regulator: 

On 18 November, the FCA proposed measures to make competition work better in the asset management industry. Findings from their market study included some examples of poor value for money. The FCA is also consulting on the provisional decision to refer investment consultancy services to the CMA. The FCA has recommended bringing the provision of asset allocation advice within their scope. In addition, the FCA will undertake further competition work on the retail distribution of funds, particularly in relation to the impact advisers and platforms have on value for money.

On 17 November, the FCA published November's Regulation round-up which included a statement that the FCA will consider the revised Regulatory Technical Standards for KIDs when they are available and plan to publish a Policy Statement during the first half of 2017 with final rules to take effect from 1 January 2018.   

On 16 November, the FCA consulted on their proposed approach to regulating the promotion and distribution of the Lifetime ISA (LISA). From April 2017, investors under the age of 40 will be able to pay in up to £4,000 each tax year up to age 50 and the Government will add a 25% bonus. Risks noted included investors opting out of a workplace pension in favour of saving in an LISA and failing to save further from age 50.

[Pensions] On 15 November, the FCA announced a 1% and 0% cap on early exit charges for existing and new personal pensions respectively. Firms need to comply from end March 2017. On the same date the government published their response to the consultation, which ran alongside the FCA's consultation, on capping early exit charges for members of occupational pension schemes.    

David Gray

For more information
David Gray
Consultant Actuary

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26 June 2017

UK Insurance: FCA (26 June 2017)

Selected recent news from the UK's prudential regulator: Appointed Representatives follow up, call for input on access to insurance, cyber security guide and money laundering developments.