Financial Services Risk and Regulation Unravelled Podcast

Episode 63: Regulatory update - Regulatory Initiatives Grid 2024

As the eighth edition of the FCA's Regulatory Initiatives Grid was delayed due to the General Election, an interim update to the November 2023 publication has been released for the period October 2024 to March 2025.

In this episode of the podcast, David Morrey and Ben Farmer pull out 10 key takeaways:

1. Diversity and inclusion
2. Basel 3.1 rules
3. Prudential framework
4. FCA's updated enforcement guide
5. Remuneration regime consultation
6. Multi-firm review of vulnerable customers advice
7. Guidance boundary review
8. External redress and remediation rules
9. Capital requirements for financial advice firms
10. Investment advice assessment tool

Episode 63: Regulatory update: FCA's clear verdict – why firms are still missing the mark

David Morrey and Ben Farmer dive into the latest key regulatory updates.

Consumer Duty

The FCA's thematic review 24/2 on product governance and its implications for the market, including the importance of firms adhering to product governance rules and the FCA's expectations around product reviews, fair value assessments, and the need for firms to provide evidence to support their conclusions. There is also similar feedback on Consumer Duty outcomes monitoring.

Audit firms' fines

Recent actions taken by the FCA against audit firms, specifically fines imposed on PwC and McIntyre Hudson for failings in their audits of Wealth Tech and London Capital and Finance plc, respectively. This conversation underscored the regulatory expectations and consequences for audit firms failing to detect or report fraudulent activities.

 

Financial Regulators Complaints Commissioner

A case reviewed by the Financial Regulators Complaints Commissioner involving a firm's complaint about the FCA's handling of a Voluntary Requirement (VREQ). The case highlighted issues with the FCA's communication and process around VREQs, leading to recommendations for the FCA to develop better guidance and processes.

 

Do you need guidance on the Consumer Duty? You can get regular updates from our dedicated hub. Visit our Consumer Duty Hub here. 

 

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Episode 62: Regulatory Update - Consumer Duty; let the rule changes begin

David Morrey and Ben Farmer dive into the latest key regulatory update topics, which include:

• Consumer Duty: discussion of the Consumer Duty one year after its establishment, focusing on the consequential changes and the FCA's call for input on updating the handbook to align with the Consumer Duty principles
• Handbook changes: insights into the Financial Conduct Authority’s (FCA) request for firms to identify areas in the handbook that create complexity or confusion, potentially leading to updates in the handbook
• Commercial insurance: examination of the definition of a consumer in the context of commercial insurance, with a discussion on potential changes to align with the Consumer Duty's scope
• Defined contributions pension schemes: a consultation on changing the rules for value for money assessments in defined contributions pension schemes to align with Consumer Duty standards
• Motor finance complaints: update on the FCA's review of motor finance complaints, including an extension of the pause on handling complaints and the likelihood of a consumer redress scheme
• Enforcement Case: a £250 million enforcement case involving H2O Asset Management, focusing on investment due diligence failures and misleading the FCA

Get the latest insights and guidance for financial services professionals straight to your inbox, subscribe here. 

Do you need guidance on the Consumer Duty? You can get regular updates from our dedicated hub. Visit our Consumer Duty Hub here. 

 

Episode 61: Regulatory update – Diversity to de-banking: The FCA's Roadmap for 2024

David Morrey and Ben Farmer discuss the impact of the general election on the financial services sector, such as the delays to the Regulatory Initiatives Grid, the Finance Act, the alternative investment fund designation bill, and the FCA's proposals on naming and shaming. Other topics discussed include: 

• The FCA's decision to allow four insurers to resume selling GAP insurance after withdrawing it from the market due to concerns over fair value and commission levels
• The speech by the chair of the FCA on the future regulatory framework for asset management, including the potential for simplifying the Alternative Investment Fund Managers Directive (AIFMD), diverging from EU standards, and supporting technology innovation
• The Treasury Select Committee's questioning of the FCA's enforcement proposals, diversity and inclusion proposals, de-banking issues, access to cash, and the motor finance investigation

Episode 60: Motor finance claims - what's next for consumers and firms

In this episode we discuss the latest developments and challenges in the motor finance industry.

Irina Velkova is joined by two of her Grant Thornton colleagues; fellow Director, Darren Castle, and Supriya Manchanda, Partner, as well as Adrian Dally, Motor Finance and Strategy Director at the Finance and Leasing Association.

The podcast looks at the FCA’s investigation into the historical discretionary commission arrangements and potential implications for consumers, lenders, dealers, and brokers.

They also discuss the regulator's actions and timelines for reviewing the DCAs and assessing consumer harm and potential redress. Finally, the panel also explain best practices and preparations that firms should be doing now to deal with the complaints.

Episode 59: Regulatory update - FCA regulation updates and challenges

The controversy over the FCA’s proposal to name and shame firms under investigation and the political and industry opposition to it, PRA Business Plan and its focus on international policy, growth and AI regulation and the FCA’s finalised guidance on anti-greenwashing are just some of the key topics discussed by David Morrey and Ben Farmer in this episode. Other developments discussed include; FCA’s consultations on extending the sustainability disclosure regime to portfolio managers and FCA’s enforcement action against Link Financial Services for its failures in overseeing the Woodford funds.

Episode 58: Regulatory update – FCA Business Plan

The FCA Business Plan 2024/25 landed slightly earlier than usual, but the content and structure are very similar to last year's plan. There's a continuation of familiar regulatory proprieties, but the growing remit and responsibilities of the FCA are clear. David Morrey and Ben Farmer delve into it, and discuss what it means for businesses in the rest of the year and beyond. Other key topics include the FCA’s enforcement consultation paper, Treasury Select Committee’s Sexism in the City report, social media financial promotions guidance, and more.

Episode 57: Insurance challenges and trends for 2024

The insurance industry is undergoing a transformative journey driven by digital innovation, regulatory scrutiny, and enhanced consumer expectations.

In our latest podcast, Head of Financial Services, Alex Ellerton is joined by Rob Benson, Partner, Head of Insurance, and Stuart Riddell, Director, to explore the key themes for the sector in 2024. The conversation covers Consumer Duty, AI, climate and sustainability, data and governance and mergers and acquisitions.

Episode 56: Banking and capital markets challenges and trends for 2024

Volatile interest rates, AI, and technology, regulation, and macroeconomic uncertainties are just some of the challenges the banking and capital markets will continue to face this year. The sector will need to ensure they have the correct processes, governance, and agility to adapt effectively.

In our latest podcast, Head of Financial Services, Alex Ellerton is joined by Paul Garbutt, Partner, Head of Banking Advisory, and Ed Allen, Managing Director of BRS, to explore the key themes for the sector in 2024.

Episode 55: Regulatory update – FCA feedback on Consumer Duty implementation

The FCA has published an insight setting out examples of good and bad practice that it has observed in firms' implementation of the Consumer Duty.

David Morrey and Ben Farmer discuss the FCA’s thematic feedback on the implementation, highlighting good and bad practices. Other developments discussed include: the FCA’s intervention in the GAP insurance market, the PRA’s sector letters for insurance and banking, and a significant consultation on how the FCA Enforcement approach could change.