The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Consultation on amending the definition of financial advice 23 September 2016
Currently, firms are reluctant to offer guidance services to customers, a key reason being the uncertainty around what constitutes regulated advice and what does not.
A consultation has been published which seeks views from the public on amending the UK definition of financial advice.
As announced at Budget 2016 , the government is consulting on amending the UK definition of financial advice. This will give firms the confidence to develop better and more tailored guidance services to help customers make informed financial decisions. Some consumers have relatively straightforward financial needs or small amounts to invest. For such consumers, the cost of full regulated advice may outweigh the benefits, or it may be uneconomic for firms to provide them with regulated advice. Currently, firms are reluctant to offer guidance services to these consumers, increasing the risk of them making poor investment decisions on their own. A key reason for this reluctance is uncertainty around what constitutes regulated advice and what does not. The main reason for the uncertainty is the fact that UK firms face two definitions of financial advice. The UK currently defines regulated financial advice as ‘advising on investments’ which is set out in the Regulated Activities Order (RAO). This definition is broader and less specific than the definition used in the Markets in Financial Instruments Directive (MiFID), which is based upon a firm giving a customer a personal recommendation. FAMR found that the MiFID definition is clearer for firms and consumers and is also much easier for firms to build into their compliance processes.
The consultation proposes to amend the wording in article 53 of the RAO to reflect the text set out in MiFID, so that consumers only receive “regulated advice” when they are offered a personal recommendation for a specific product.
This consultation closes at 15 November 2016 11:45pm.
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The use of agency workers during strike action in Welsh public services 23 September 2016
The Welsh Government has published a consultation seeking views on proposals about the use of temporary agency workers to cover for Welsh public service employees who are on strike or taking other industrial action.
The UK Government has consulted on proposals to remove regulations that prevent the supply of agency workers by employment businesses to cover employees taking industrial action. The Welsh government is consulting on proposals that sustain the principle of the regulation in Welsh public services, should it be removed by the UK government. Background Currently Regulation 7 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 prohibits employment businesses from providing agency workers to cover the duties normally performed by an employee of an organisation who is taking part in a strike or other industrial action, or to cover the work of an employee covering the duties of an employee taking part in a strike or other industrial action.
The UK Government has consulted on a proposal to rescind this regulation.
Removing the regulation from the Conduct Regulations would allow employers, facing industrial action, to hire temporary agency workers from employment businesses who would then be able to perform some of the functions not being carried out due to the industrial action.
The Welsh Government believes that the use of agency workers, in this fashion, would undermine the right to strike by reducing the impact of industrial action, and affect the balance between employer and trade unions.
The Welsh Government also believes that the UK Government’s approach should not override their ability to pursue the Welsh way of delivering relevant public services. With this in mind, the Welsh Government proposes to protect Social Partnership by ensuring that the current position will continue to apply to Welsh public services should the UK Government act to rescind Regulation 7.
This means not allowing public service employers in Wales to use agency workers, in these circumstances, and this would continue to be the case in the event that the UK Government acts to allow recruitment businesses to offer them.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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