FCA updates on Consumer Investments Strategy

FCA has published an update on its Consumer Investments Strategy, tracking what has happened in the past year.  Highlights are that FCA has:

  • prevented 1 in 5 applicants wanting to enter the consumer investments market from doing so;
  • placed restrictions on twice as many firms in the investment market compared to last year;
  • stopped 17 firms and 7 individuals from getting a new authorisation where it suspected phoenixing or lifeboating;
  • stopped the UK operations of 16 providers of cfds who were operating under the TPR;
  • increased the number of consumer alerts it issued by 40%;
  • increased visiblity of its ScamSmart and InvestSmart campaigns; and
  • used data to scan 100,000 websites each day for potential scams.

Also, of course, it has strengthened its financial promotion rules, consulted on proposals for a compensation scheme for BSPS members and made the rules for the Consumer Duty.  It intends shortly to consult on a more proportionate regime for investing in stocks and shares ISAs and then conduct the holistic review of the difference between advice and guidance at which it has already hinted.  It is also looking to change the prudential requirements on non-MiFID adviser firms to better enable them to meet their redress liabilities and will look to publish feedback on a review of the compensation scheme.

Emma Radmore