1. Stationery
The last date to make the necessary change from FSA to FCA is 30 March. Make sure you update your headed paper (do not forget to dispose of any remaining stock), website, online profiles and any associated marketing material.
2 MMR
Although the mortgage market review will have a relatively small impact on the intermediary sector, there are one or two issues to address. Firstly, get your CPD plan at least outlined so that this can capture your initial plan and update it throughout the year as the objectives are met and new ones emerge, get key exam dates in your diary and build in plenty of time for preparation. And secondly, make sure your records are up-to-date for your annual ‘statement of professional standing’ renewal. I would recommend using one of the available electronic systems to help with this.
3 RMAR
Make sure you are aware of your submission dates and allow sufficient time to gather and check your data regarding the retail mediation activities return. Identify any material changes in your data and be able to explain why they might have arisen.
4 TCF
Treating customers fairly remains a major item on any agenda and the FCA will be driving more customer-centric cultures through its interactions with firms and industry communications. All levels of firms and their staff will come under scrutiny, as the regulator assesses how practices at all stages of the product lifecycle contribute to good customer outcomes.
Merely meeting the rules will not be enough to meet FCA expectations. The FCA has a mandate to promote competition in the interests of customers, so straightforward compliance with the rules will not necessarily be sufficient. If they spot areas of customer detriment, they can be expected to take action.
5 Platforms
When did you last look at your choice of platform? Looking ahead, does it still meet your customers’ needs and if not, is it time for a change? Either way you should create a record of the review, analysis and the conclusion.
6 FCA risk outlook
The next version is expected in the spring and will set out the FCA’s activity for the rest of the year. I think we can expect interest in non-advised and execution-only business and where they identify high fee tariffs from the RMAR data. Given the bodies who can bring ‘super-complaints’ I think we can also expect more complaints-led activity.
7 Auto-enrolment
Many more firms will reach their staging date during this year. There is the potential for the introduction of a cap on fees, but no one knows at what level and a final decision may not be known before April. So this could cause problems for those staging this year especially for those already preparing for this in advance.
8 Annuities review
The FCA is due to report on the annuities market in February and in particular the behaviour of providers. Kick-back schemes and high commission percentages at retirement look certain to come under the microscope, as well as any other instances where customers could potentially be disadvantaged. Providers seem certain to be the focus initially, but there will almost certainly be some impact on the adviser community and I would expect non-advised annuity broking to be under the microscope in particular.
9 MiFID II
The detail of this seems likely to emerge during 2014, but like a lot of European legislation, progress has been slow to say the least and at the time of writing there was uncertainty about what direction it could ultimately take. Thankfully, it is not expected to be a serious concern for the average adviser but it will be necessary to be alert for unintended consequences or surprises in the final directive, which will have to be addressed in the UK regulatory framework.
10 Fees
The FCA acknowledges that advisers have the right to cover costs and make a reasonable contribution to profit – but are you charging the right amount and does the way that you charge clients create any potential conflicts of interest that need to be managed? If so, how do you ensure these have been managed appropriately?
11 Meeting the standards for independence
If you have chosen independent status, are you meeting the standards? And if you have chosen to operate on a restricted basis, are you being entirely clear about the nature of your restrictions? The FCA paper TR13/5 provided valuable examples of good and poor practice and it is well worth investing some time using this as a yardstick to carry out your own assessment unless you choose to get an external consultancy to do this for you.
12 Consumer credit
The FCA takes over responsibility for consumer credit from the OFT on 1 April. Do your activities require a licence, or can you operate safely by amending your proposition to avoid the requirement?
Simon Thomas is head of policy of Tenet Group
