Emma RadmoreThe FCA has published decisions against 3 individuals and fined and banned a fourth in relation to a pension transfer advice model that the FCA consider put guaranteed retirement benefits at risk. Its action relates to...
Category - Pensions
Regulators update on BSPS actions
The FCA, FOS and FSCS have published a report looking at the actions taken and results from the BSPS Redress Scheme exercise, as it comes to an end. Overall: £8.7m has been paid out by firms or the FSCS (significantly...
Harry WellsRegulators publish Wider Implications Framework Annual Report
The 2023/24 Wider Implications Framework Annual Report from the FCA, FOS, FSCS, TPR and MaPS notes that during the period the report covers, the new duty in FSMA 2023 on the FCA, FOS and FSCS to cooperate on issues that...
Tenet firms enter administration
The Tenet Group Limited is winding down its operations, which has now resulted in two of its hosting firms entering administration. The firms closed to new business at the end of March, and most of their advisers either...
FCA bans pensions advisers
The FCA has published Decision Notices against two individuals for acting without integrity in relation to pensions business. The FCA has banned Stephen Burdett and James Goodchild from working in regulated financial...
Court of Appeal dismisses JR application over SIPP challenge
The Court of Appeal has dismissed an application from Options UK Personal Pensions LLP for judicial review of a FOS decision in respect of investments made into an execution only SIPP. The FOS had held that the firm...
NAO reports on pensions dashboard delay
The National Audit Office has published a report that looks at why the pensions dashboard programme introduction suffered delays. One key cause it identified is shortage of digital skills. The final connection deadline...
Government responds further on progress of Edinburgh reforms
The Government has published a second formal response to its December 2023 report on the progress of the Edinburgh reforms. This response is more detailed than the Government’s initial response and includes an...
Lucy HadrillFCA updates on BSPS complaint action
The FCA has provided an update on the complaints it has been receiving about what it is doing, or not doing, in relation to the fallout from BSPS transfer advice. Although it has implemented a redress scheme and taken...
FCA consults further on pensions dashboard services
The FCA has published a further consultation ahead of the introduction of operating a pensions dashboard service as a new regulated activity. It has published new guidance that will be in PERG for relevant firms and is...
FCA calls for improvement in Retirement Income Advice
The FCA has published a Thematic Review and written to CEOs of financial advisers, asking them to assess the compliance of their retirement income advice, and take steps to address any shortcomings they find. It...
FCA speaks on the future of pensions
Nikil Rathi has spoken on pensions freedoms. He noted that, with the increasing flexibility consumers have on accessing their pensions savings, it is ever more important for the individual to be sure they are saving...
FCA fines and bans over pension transfer advice and oversight
It’s been a while since the last published notice, but FCA continues to take action against firms and individuals relating to pension transfer advice. It has fined Inspirational Financial Management (in...
Chancellor announces reforms to pension fund disclosures
The Chancellor has announced reforms to pension funds disclosures in an attempt to increase investment in UK businesses and improve performance for savers. The reforms proposed include that: DC pension funds will be...
Pensions dashboard operation becomes regulated
“Operating a pensions dashboard service” which connects to the MAPS dashboards will become a regulated activity under the RAO with effect from 11 March. For these purposes, any pension in respect of which...
Pensions dashboard operation to become regulated activity
Treasury has published a draft Statutory Instrument that will make operating a pensions dashboard service that connects to the Money and Pensions Service dashboards digital architecture a new regulated activity. This...
EIOPA consults on greenwashing limitation guidance
EIOPA has published a consultation on its draft Opinion on sustainability claims and greenwashing. The aim of the Opinion is to achieve more effective and enhanced supervision of sustainability claims across Europe and...
Vida FatemiFCA demands action on retained interest on customers’ cash balances
FCA has written a ‘Dear CEO’ letter to investment platforms and SIPP operators setting out its concerns on the way they deal with any interest earned on customers’ cash balances. After surveying 42...
FCA consults on proposals for closing the advice gap
The FCA and Treasury have published a joint discussion paper (DP23/5) which outlines proposals to help people make more informed investment and pensions decisions. The proposals form part of the Advice Guidance Boundary...
Autumn Statement: financial regulatory issues
The Government’s Autumn Statement covered several new and ongoing actions relevant to the financial services sector, including: legislation to replace retained EU, mainly in the markets space (securitisations...
FCA speech: next steps for Consumer Duty
Nisha Arora (Director of Cross Cutting Policy and Strategy at the FCA) has delivered a speech on the Consumer Duty and the next steps for firms. The speech highlighted the following examples of good practice identified...
FCA launches webpage on supporting customers with pension transfers
The FCA has published a new webpage which sets out information and guidance for firms on how to support vulnerable customers when providing pension transfer advice. Firms should be alert to potential indicators of...
Financial Lives conclusions make uncomfortable reading
FCA has published the results of its latest Financial Lives survey, which it says serve to highlight the importance of the Consumer Duty. During the year to May 2022: less than half of UK adults had confidence in the UK...
FCA reviews impact of investment pathways on consumer outcomes
The FCA has published its focused post-implementation review on investment pathways. The review focuses on rationale and take-up, value, communications and asset allocation for investment pathways, and how these could...
FIN. TeamFCA bans pensions adviser
FCA has banned Paul Steel of Estate Matters Financial following its finding that he provided unsuitable advice to customers to transfer out of DB pension schemes, including the BSPS scheme. FCA has also brought High...
FCA publishes BSPS adviser fines and information page
FCA has updated its website to include details of its approach to investigations into firms and individuals who provided unsuitable advice in the context of transferring out of the British Steel pension scheme –...
FSMB Report stage in Lords to start on 6 June
The Report stage of the FSM Bill is to start in the Lords on 6 June. As previously reported, 3 days of sittings have been scheduled so far. On the first day, amendments to be debated include those on protecting the...
FCA takes action against 3 more firms for BSPS settlement offers
FCA has taken action against Alpha Financial Services, QED Financial Associates and Harvest Associates, all of whom had made unsolicited offers of between £50 and £300 to over 90% of their clients, who had not yet...
FCA takes further action on BSPS advice and offers
FCA has taken action against a third firm that had made unsolicited offers to clients who had been BSPS members. David Stock & Co offered £50 to clients who had not yet complained. FCA has imposed requirements on...
FCA issues public censure to firm over pension transfer advice failings
FCA has issued a public censure to Lighthouse Advisory Services Limited following a finding of serious failings in relation to defined benefit pension transfer advice, especially in relation to BSPS. It found several...
FCA publishes portfolio letter for SIPP operators
FCA has published a portfolio letter to SIPP operators which sets out its view of the key harms in the SIPP operator portfolio, its expectation as to how firms should mitigate these harms, and how its expectations in...
Laura WilesFCA warns firms on overseas referrals
FCA has warned firms of the risks to consumers when overseas firms refer DB scheme members living overseas to UK firms for pension transfer advice. The overseas adviser is usually wanting the scheme member to transfer...
FCA publishes aggregate complaints data for H2 2022
FCA has published its overview of complaints in the second half of 2022. Overall it found: a decrease of 6% in complaints compared to H1, largely due to decreases in complaints about banking and credit cards, insurance...
FCA updates BSPS redress calculation tools
FCA has updated its website resources for firms needing to calculate redress due to former BSPS members. FCA says its redress calculator will make calculations more consistent, ensure consumers get fair and quicker...
FCA updates on pension transfer redress calculations
FCA has updated its rules and guidance on calculating pension transfer redress, both to correct an error in the CPI stated and to clarify its rules on consequential losses and the valuation date.
FCA publishes anonymous warning notices
FCA has published a “warning notice statement” which discloses that it gave two individuals warning notices in September 2022 of its intention to fine them in respect of conduct between 1 October 2015 and 31...
FCA updates BSPS tools for firms
FCA has updated its website summarising the steps firms involved in advice on BSPS transfers must take to comply with the FCA redress scheme. The page includes links to the DBAAT template and instructions, and notes...
FCA asks for information on concerning pension transfer requests
FCA has asked pension schemes or trustees to report to them instances when they have had concerns about or have refused a pension transfer. It is seeking information on: individuals who provide unauthorised advice on...
FCA warns again about BSPS offers
FCA says it has now identified 15 more firms which have been making unsolicited offers to former BSPS members, in what it believes is a deliberate attempt to exclude them from the redress scheme that takes effect from...
FSMB second day of Lords’ Committee hearing
The second day of debate in the Lords’ Grand Committee consisted of a lively debate on several proposed amendments, none of which have been taken forward. Topics debated were: creating offences for abuse of...
Regulators consult on value for money
FCA, the DWP and the Pensions Regulator are seeking views on proposals to require trustees and managers of DC occupational pension schemes, and the providers and IGCs of workplace personal pension schemes to disclose...
FCA makes BSPS extended asset retention rules
FCA has confirmed its new rules that extend the asset retention requirement for firms who advised British Steel pension scheme members on transferring out. The new rules, effective from 31 January (when the current...
FCA concerned about misleading BSPS redress offers
FCA has become aware that some firms are making unsolicited offers of redress to former BSPS members who have not made complaints. FCA feels this may be a deliberate attempt to exclude former members from the redress...
FCA starts thematic review of retirement income advice
FCA is undertaking some discovery work looking at how financial advisers are delivering advice on retirement income, with a view to assessing the quality of the outcomes consumers are getting. FCA says that since 2015...
FCA British Steel redress scheme challenged
FCA says a legal challenge has been launched to its decision to set up a redress scheme for former BSPS members. It says it will vigorously defend its scheme, which is is confident is appropriate. It says firms should...
FCA makes new rules
FCA’s latest Handbook Update confirms the following new rules: the Non-Workplace Pensions Instrument, which takes effect from 1 December 2023 and puts in place changes designed to help non-workplace pension savers...
BoE publishes December 2022 Financial Stability Report
The Bank of England’s Financial Policy Committee (FPC) has published its December 2022 Financial Stability Report setting out its view on the stability of the UK financial system and what it is doing to remove or...
Duncan ScottFCA and Pensions Regulator update on joint strategy
The FCA and The Pensions Regulator have provided an update on their 2018 joint regulatory strategy for the pensions and retirement income sector. The statement explains the regulators’ progress since 2018 and...
Dear CEO letter outlines strategy for financial advisers
The FCA has published a portfolio letter which sets out its supervisory strategy for financial advisers and intermediaries. The letter confirms that financial advisers are a key priority for the FCA and outlines the...
FCA quarterly consultation clarifies Consumer Duty application
FCA’s Quarterly Consultation proposes minor changes to various parts of its rules, including providing clarification on the Consumer Duty. The paper proposes: amendment to TC to include The London Institute of...
FCA fines adviser for unsuitable BSPS advice
FCA has fined Pembrokeshire Mortgage Centre Limited £2,354,331 for giving unsuitable advice to consumers to transfer out of the BSPS and other DB pension schemes. FCA found the firm, which is in liquidation, had advised...
FCA consults on pension dashboards and makes rules on non-workplace pensions
FCA has published proposals to enable pension dashboard operators to offer additional services that will improve engagement with pensions, provided they meet required standards. The additional services could include...
FOS updates webpage on BSPS complaints
Following the publication of the FCA’s final BSPS redress scheme rules, FOS has published a press release and has updated its webpage on complaints relating to financial advice received in respect of transferring...
FCA publishes BSPS redress rules
FCA has published its final rules setting out how the redress scheme for former members of the BSPS who were given unsuitable advice on transferring out will operate. There have been no significant changes following...
New FSMB Amendments published
The House of Commons has published an amendment paper for the FSM Bill, tabling two new additional clauses. The new clauses relate to stewardship reporting requirements for OPS and for large institutional investors...
FCA updates on DB pension redress calculations
The FCA has received information that a number of firms are not calculating defined benefit pension redress correctly. The information which suggests that these firms are not considering ongoing fund costs and/or fully...
TPT launches ‘gold standard’ for climate transition plans
The Transition Plan Taskforce (TPT) has published its Disclosure Framework and accompanying Implementation Guidance. The Framework makes recommendations for companies and financial institutions to develop gold-standard...
FCA publishes final rules on pensions dashboards
Following its consultation earlier in the year, the FCA has published its final rules and guidance (PS22/12) requiring pension providers to provide and enable information about personal and stakeholder pensions to...
FCA publishes H1 complaints data
FCA has published the complaints data for H1 2022, which shows: a 1% increase in complaints from the previous period (1.88m complaints) the biggest increase was in the decumulation and pensions group (15%) with a 5%...
Emma RadmoreOmbudsman News and new FOS UCIS pages
The latest edition of Ombudsman News highlights the recent complaints data we’ve previously reported on, and gives guidance on complaints relating to UCIS. FOS is seeing increasing complaints about advice to...
FOS publishes latest complaints data
FOS has published its latest quarterly data on complaints in relation to financial products. The data covers the period of April to June 2022, and can be accessed in full as a spreadsheet. Over the period, the average...
Nicola RadfordFCA consults on transfer advice redress
FCA is consulting on updates to how it calculates redress for unsuitable DB pension transfer advice. The consultation: confirms that FCA has carried out a review that shows that the current methodology is appropriate...
FOS publishes annual complaints data for 2021/22
FOS has published its annual complaints data for April 2021 – March 2022. Highlights include: FOS received 165,263 new complaints which is a decrease on the previous year (279,146). Of these, there were 5,369 PPI...
Pensions consumer journey feedback statement
On 7 June 2022, the FCA and the Pensions Regulator published a feedback statement (FS) to their May 2021 joint call for input on the behaviour of consumers at key points in the pension saving journey. The aim was to...
FCA sets up BSPS information page
FCA has published a new page on its website in which it gives answers to requests for further clarification that it has received from respondents to its consultation on the British Steel Pension Scheme redress scheme...
Update: Measuring value for money in DC pension schemes
The FCA and the Pensions Regulator (TPR) have published the feedback they have received following their joint discussion paper on developing a framework for measuring value for money (VFM) in defined contribution (DC)...
FCA speaks on regulating finance in the UK
Charles Randell, FCA and PSR Chair, has delivered a speech on regulating finance for the whole of the UK. Highlights include: Importance of partnerships and policy coherence – the FCA recognises the continued importance...
FCA consults on expanding dormant assets scheme
On 13 May 2022, the FCA published a consultation paper on expanding the dormant assets scheme (the Scheme). The Scheme allows banks and building societies to pay dormant monies to an authorised reclaim fund which then...
TPT launches consultation on climate transition plans
The Transition Plan Taskforce (TPT) has launched a call for evidence on a sector-neutral framework for private sector transition plans. The framework will inform UK regulations for certain financial sector firms and...
FCA bans 5 directors for causing losses to pension customers
The FCA has banned five directors of financial advice firms from working in financial services, after they caused significant losses to pension customers. The bans, and fines of over £1m, follow findings by the Upper...
Harshil PatelFCA uses emergency powers on BSPS advisers
FCA has made rules using its emergency powers to prevent firms taking steps to dispose of their assets to avoid paying compensation in relation to BSPS pension transfer advice. It says it is introducing the rules...
FCA stops further pension adviser from disposing of assets
FCA has imposed a requirement preventing David Stock & Co Limited, a firm which advised on BSPS transfers, from disposing of assets without FCA’s permission. FCA had noted to all relevant firms that they...
Permission to apply for judicial review of 16 FOS decisions refused
In the case of Portal Financial Services LLP v Financial Ombudsman Service Limited [2022] EWHC 710 (Admin) the court has, on appeal, refused Portal permission to apply for Judicial Review of 16 decisions of FOS. The...
PRA updates on capital arbitrage transactions approach
The PRA has issued a statement acknowledging that some PRA-regulated firms have conducted (or may be considering doing so) deficit reduction transactions with their defined benefit pension schemes that are structured to...
FCA publishes BSPS compensation scheme proposals
FCA has published its proposals for a compensation scheme to compensate former members of the British Steel Pension Scheme who received unsuitable advice to transfer out. FCA says that almost half the advice it reviewed...
Pension adviser refused judicial review of FOS decision
A pensions transfer and opt out adviser, Portal Financial Services LLP, had given advice to several clients introduced by a third party advisory firm which was the AR (Cherish) of another firm whose permissions did not...
NAO reports on BSPS
The National Audit Office has published its report on its investigation into the British Steel Pension Scheme. When BSPS was restructured in 2017 44,000 of its members had the opportunity to transfer out of the scheme...
Dormant Assets Act gets Royal Assent
The Dormant Assets Act got Royal Assent on 24 February, The Act expands the scope of “dormant assets” that has encompassed cash in bank and building society accounts since 2008 to include a greater range of...
FCA consults on new rules for pensions providers
FCA is consulting on new rules requiring FCA regulated pension providers to connect and supply information about personal and stakeholder pensions to pensions dashboards. Pensions dashboards are secure digital...
FCA outlines new authorisation fee structure
The FCA has set out the new structure for authorisation application fees which takes effect on 24 January 2022. The current charges are being condensed into 10 simple pricing categories and the following additional...
FCA writes dear CEO letter to BSPS advisers
The FCA has published a dear CEO letter addressed to firms who advised British Steel Pension Scheme (BSPS) members between 1 March 2017 and 31 March 2018. The letter identifies the high levels of unsuitable pension...
Emma BondFCA updates on rule changes
FCA’s latest Handbook Notice confirms, among other things: changes to SUP to clarify what FCA expects to see reported on form FIN-A changes to LIBOR rules (previously reported in FIN) and changes to the value...
ICO fines over pensions cold-calling
ICO has fined EB Associates Group (EBAG) £140,000 for instigating two IARs to make over 100,000 unsolicited direct marketing calls to consumers about occupational or personal pension schemes where the customers had not...
FCA makes pensions “stronger nudge” rules
FCA has made final rules that will require firms to give customers a “stronger nudge” towards Pension Wise when they decide to access their savings. The rules will take effect from 1 June 2022 and will...
Government sets out net zero transition plans
The government has set out its plans for the UK to be the world’s first net zero aligned financial centre and has called for other countries to follow suit. The government has confirmed it will be introducing...
FCA publishes updated complaints data
FCA has published its six-monthly set of data on complaints that firms receive. Its latest findings include: a 7% decrease in complaints from H2 2016, with the 2.04m complaints being the lowest level since late 2016;...
NAO updates on BSPS
The National Audit Office has set a timescale for reporting in Spring 2022 on its investigation into the activities FCA has undertaken to regulate financial advice in relation to the restructure of the British Steel...
FCA writes to more DB customers about compensation
FCA has written to a further tranche of customers who received DB pension transfer advice to tell them they may be entitled to compensation, following findings of past business reviews. It has updated its list of firms...
FCA fines adviser for pension transfer advice failings
The FCA has published a final notice banning Omar Hussein, former director at pension switching firm Consumer Wealth Ltd, from working in financial services. Mr Hussein has also been fined £116,000 for providing...
ESMA seeks stakeholder input on retail consumer protection
The European Securities and Markets Authority (ESMA) today publishes a call for evidence on a number of retail investor protection topics under MiFID II. ESMA is seeking information from stakeholders on three topics:...
FCA makes final rules on value for money in workplace pensions
FCA has made its final rules on how Independent Governance Committees and Governance Advisory Arrangements should work to compare the value of pension products and services to promote the best value for money on...
Measuring value for money in DC pension schemes
The FCA and the Pensions Regulator (TPR) have published a joint discussion paper on developing a framework for measuring value for money in defined contribution (DC) pension schemes. The FCA and TPR are proposing a...
FCA confirms pensions transfer redress guidance review
FCA has confirmed its plans to start a periodic review of its FG17/9 on how firms should calculate redress for unsuitable DB pension transfer advice. It will start the review by the end of 2021, in line with its...
FCA publishes requirements on SIPP operator
FCA has published the second supervisory notice it made in relation to DAC Pensions Limited, a small SIPP operator. The firm had accepted significant business from two EU-based introducers, operating in the UK under...
FCA fines adviser for pension transfer advice failings
The FCA has published a Decision Notice against Geoffrey Edward Armin of Retirement and Pension Planning Services Limited (in liquidation). The FCA has decided to fine Mr Armin £1,284,523 and ban him from performing any...
Final report issued on FCA complaint
The Complaints Commissioner has issued its final report in respect of a complaint made to the FCA – the complainant received what they considered to be an aggressive and threatening email from the FCA’s...
FCA publishes Business Plan
FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...
FCA urges consumers to protect pension savings
Following its response to the Work and Pensions Committee’s report on protecting pension savers from pension scams, the FCA is urging consumers to be wary of pension scams and to protect their savings. The FCA...
Responses to Work and Pensions Committee report on protecting pension savers
On 28 March 2021, the Work and Pensions Committee published its Fifth Report of Session 2019–21, Protecting pension savers–five years on from the pension freedoms: Pension scams. The Government, the FCA and the Pensions...
FCA to make rules on pension schemes
New regulations made under the Financial Guidance and Claims Act 2018 (Act) mean that certain provisions of the Act relating to requirements to refer individuals to pensions guidance will come into force on 5 July 2021...
FCA consults on regulated firm climate disclosures
FCA is consulting on enhancing climate-related disclosures by asset managers, life insurers and regulated pension providers. Following on from the introduction of disclosure rules for the most prominent listed companies...
FCA extends deadline for Pensions Consumer Journey views
FCA has extended the deadline for responses to its call for input on the Pensions Consumer Journey, and now asks for comments by 30 July. The purpose of the exercise is to help FCA understand consumer behaviour at key...
Gavin EllisonOmbudsman News looks at annual complaints data
Following the publication of the FOS complaints data for 2020/21, the latest edition of Ombudsman News looks at key trends FOS has seen in a year impacted by Covid-19. Highlights include: Banking – banks’...