FCA has now published the minutes of the meeting held on 2 November 2020. Topics include: Covid-related consumer credit interventions.

FCA has now published the minutes for its board meeting of 21/22 November 2019. Topics include: new consumer duty consultation; price discrimination in the cash savings market; investment intermediaries’ portfolio strategies; high risk investment policies; update on the evaluation of RDR and FAMR and the Zelmer Report.

FCA's webpage sets out details of some stakeholder feedback following the call for input published in May 2019, particularly in relation to innovation, consumer engagement, the regulatory perimeter and access to appropriate services. FCA notes that as the feedback broadly supports the proposed scope set out in the call for input, it will now proceed with the review in line with that scope. FCA has decided not to include certain issues in the review. These issues include requirements relating to DB pension transfers; changes to the award limits for FOS, including consequential impacts on the PII market and changes to how FSCS is funded.

The FCA has launched a Call for Input asking for feedback on its proposed approach to reviewing the Retail Distribution Review and the Financial Advice Market Review.

Further to the FAMR baseline report published in June 2018, FCA has now published a piece of interim consumer research that provides follow up data on consumer behaviour. The report has found that more people have chosen to obtain regulated financial advice in the last 12 months; those who have obtained regulated financial advice in the last 12 months were generally satisfied with the quality of the service received and the price paid and less than 1% of those who have not obtained financial advice in the last 12 months (and whose circumstances suggest they might have a need for it) reported finding issues with accessing a suitable adviser. FCA notes that a full review of the FAMR baseline indicators will be carried out in 2019 along with the final post RDR implementation review, the results of which will be published early in 2020.

This bulletin focuses on new analysis of the retail intermediary sector based on the data firms have submitted to FCA via the RMAR. It includes information on revenue earned from regulated activities 2013-2017; revenue earned in 2017 by type of firm; capital resource requirements; PII premiums and retail investment advice and adviser charges.

Further to PS17/25, FCA has now confirmed that it will retire FP12/15 and FG14/1 with immediate effect, along with an FCA factsheet entitled “Using platform-based investments and the independence rule”. In response to requests for clarification on certain aspects of the new rules, FCA has highlighted the rules which it considers to be “sufficiently clear” in section 3 of this document.

FCA has published a document covering outstanding questions from the July meeting. Topics include: SMR; FCA and Brexit; the review of retained provisions of the Consumer Credit Act 1974; cyber risk; PPI; the regulation of pensions; asset management; insurance and outsourcing crowdfunding and enforcement.

FCA has published its FAMR Baseline Report, along with two pieces of consumer research (second link below). In the report, FCA identified the three main themes to measure the development of the market (accessibility, affordability and quality of advice). FCA intends to track these on an annual basis. Findings will be used as a benchmark to assess the outcomes of FAMR when conducting the review in 2019 and results are expected to be published in early 2020. In addition, FCA has confirmed that the post-implementation review of RDR, scheduled for 2017, will now be combined with the 2019 FAMR review. In the press release, FCA also sets out the list of firms who are part of the Advice Unit which was set up following a FAMR recommendation to provide regulatory feedback to firms developing automated advice and discretionary investment management models. FCA is now expanding the scope of the Advice Unit to include firms developing automated advice models within the mortgage, GI and debt advice sectors as well as firms that want to provide guidance instead of regulated advice as well as firms not intending to seek authorisation.

FCA has published its findings on its review into the market for pensions and investment advice. FCA found that in 93.1% of cases, the sector provides suitable advice; in 4.3% of cases, the sector provides unsuitable advice and 2.5% of cases, the sector provides unclear advice, concluding that these are positive results for the sector and reflect a successful adoption of the RDR. However, with regard to disclosure, it found that: in 52.9% of cases, the sector provides acceptable disclosure; in 41.7% of cases, the sector provides unacceptable disclosure and in 5.4% of cases, the sector provides uncertain disclosure. FCA intends to begin a communication programme over the course of 2017 and into 2018 - FCA will provide more detail on findings then, including examples of good and poor practice. FCA intends to repeat the review in 2019 which will be based on advice delivered in 2018 and which will allow the regulator to assess how firms have implemented the requirements introduced by MiFID II, PRIIPs and IDD.