Regulation Matters January 2020

2 | Regulation Matters - January 2020

The FCA Directory AT A GLANCE

On 9th December 2019, the FCA Register stopped showing details of advisers and pension transfer specialists at directly authorised (‘DA’) firms. Now, in respect of DA firms, the Register shows only the details of individuals who hold Senior Management Functions. Firms are still able to view historic authorisations by selecting individuals, previous involvement and authorised individuals prior to the 9th December can be viewed. With effect from 9th December 2019, DA firms must populate the new directory with information on ‘Directory Persons’, including Certification Staff and mortgage advisers. The information firms provide must be complete and accurate with effect from 9th December 2019 but firms have until 9th December 2020 to actually upload/input the information. Advisers and Pension Transfer Specialists at appointed representatives will continue to be shown on the Register, although their principals will also have to upload data to the new Directory.

Want to know more? Turn to page 6 for a more detailed summary, including recommended actions.

Preparing for the DB Transfer Proposals


The FCA proposes to introduce its ban on contingent charging (and related proposals) on the 1st of the month after they announce their decision/policy on the proposals, which is expected to be in Q1 2020. That could mean firms have less than a week’s notice to make changes to disclosure documents and suitability report templates; and introduce a process for checking the client’s understanding of the advice. Also, there are limited transitional provisions for charging contingent fees on ‘pipeline business’. Triage - It is very important to ensure that your firm understands the boundary between triage (generic, educational information) and advice. It is also very important to keep records of triage cases in order to reassure the FCA and PI insurers about the proportion of enquiries that do not progress to advice and a recommendation to transfer. Some firms are finding that their PI policy at renewal excludes cover for DB transfer advice or has an excess of more than £5,000. When this happens, firms need to ensure they have in place at least the increased level of capital resources required by the FCA’s rules. Firms with a PI exclusion (or high excess level) also need to consider recent comments by the FCA about PI cover when deciding whether they wish to continue to offer DB transfer advice even where they conclude that they have appropriate levels of capital resources.

Want to know more? Turn to page 7 for a more detailed summary, including recommended actions.

DO YOU NEED FURTHER HELP OR SUPPORT? If you have concerns about being compliant, get in touch with TenetSelect, the directly authorised regulatory experts, by calling 0800 085 0825. We have a wide range of services to help your firm, and we would love to have a chat to tell you more. Regulation Matters is produced by TenetSelect as guidance only and is based on their interpretation, it is not and should not be relied upon as professional or legal advice. TenetSelect does not accept any liability for any losses arising directly or indirectly in connection with any of the information contained within Regulations Matters to the extent it can be excluded by law.

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