Lucy HadrillFCA 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...
Category - Pensions
Emma Radmore
Jasmine ZacherFCA 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...
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...
FIN. TeamFCA 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...
Scott NodderPRA 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...
Hannah FrostFCA 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’...
Pensions Dashboard call for input
The Pensions Dashboards Programme has called for input on plans for the staged compulsory connection of pension providers to the new ecosystem. The DWP, FCA and TPR have been involved in developing the proposals, which...
FOS publishes Annual Complaints Data
FOS has published its annual complaints data for April 2020 – March 2021. Key highlights include: an overall increase in new complaints of 2% from the previous year – but a 58% increase when PPI complaints...
FCA Call for Input: Pensions Consumer Journey
The FCA has launched a call for input, to better understand consumer behaviour at key points in the pension saving journey. The FCA acknowledged that the pensions and retirement income markets have evolved significantly...
BoE publishes “Productive Finance” statement
The Bank of England (BoE) has published a statement on the progress of the Working Group on Productive Finance (the Working Group) which was set up in November 2020 by BoE, HM Treasury and FCA. The statement provides a...
Dormant Assets Bill introduced in Lords
The Dormant Assets Bill has been introduced into the House of Lords and has had its first reading. The Bill proposes expansions to the current scheme to include not only bank and building society assets, but also long...
FSCS confirms 2021/22 levy forecast
FSCS has confirmed its levy forecast for 2021/22 at £833m. This is slightly lower than the indicative levy announced in January, partly because extensions of government support are likely to mean some firms will...
FCA publishes latest Regulatory Initiatives Grid
FCA has published the third edition of the Financial Services Regulatory Initiatives Forum’s Regulatory Initiatives Grid. This edition marks the end of a successful one-year pilot exercise – the FCA has confirmed that...
FCA consults on Pension Wise referrals
FCA has proposed new rules to require pension providers to ‘nudge’ consumers to Pension Wise in order to benefit from guidance before they access their pension. Currently, take up of Pension Wise guidance...
FCA confirms DB transfer guidance
FCA has confirmed its finalised guidance on DB transfers for advisers. The guidance does not show many changes from the version on which FCA consulted. It confirms FCA’s view that it is normally in the best...
FCA starts restitution application for DB transfer advice
FCA 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...
FCA updates on DB transfer business
FCA has published data collected from firms on the DB pension advice market. The data is already nearly a year old, covering an 18 month period to March 2020. FCA stresses its continued belief that it is not in the...
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...
FCA reminds firms to be prepared for Brexit
With the end of the Brexit transition period in sight, the FCA has issued a press release reminding firms to be prepared. The FCA expects firms to have assessed the impact of the changes that will take effect, on both...
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...
ABI 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...