FCA issues final report in investment platforms market study

The FCA has published the final report in its investment platforms market study.  

While the FCA found competition generally to be working well, it was concerned that some consumers and financial advisers found it difficult to shop around and switch platforms. The FCA is therefore consulting on rules to allow consumers to switch platforms and remain in the same fund without having to sell their investments. The FCA is also proposing to restrict exit fees. The FCA plans to review later this year the progress being made by industry to improve the switching process. 

The FCA also found that action is being taken by the industry to improve the provision of information about costs and charges. The FCA is not currently proposing any changes to the provision of information about costs and charges, but will review industry progress in 2020/21.

The FCA has also examined competition between adviser platforms, whether consumers are able to make informed investment choices, and any barriers to entry and expansion. It has concluded that no intervention or action is needed in this area at this time.

Read: The final report

Read: The consultation paper

FCA issues guidance on statements of responsibilities under the Senior Managers and Certification Regime (SM&CR)

The FCA has published final guidance to help solo-regulated firms prepare for SM&CR when they are brought within scope on 9 December 2019. Under the SM&CR, all Senior Managers must have a Statement of Responsibilities (SoRs) and all enhanced firms must have a Responsibilities Map. An SoR should be clear for regulators, the Senior Manager and others in the firm to understand – and contain enough information to describe clearly what activities the Senior Manager is responsible and accountable for in the business. 

The purpose of the guidance is to give firms practical assistance and information on preparing the required SoRs and Responsibilities Maps. The guidance, aimed at solo-regulated firms, sets out the purpose of SoR and Responsibilities Maps and outlines examples of good and poor practice. Examples are also given. 

The guidance is designed to be read alongside the Guide for FCA solo-regulated firms.

Read: The FCA guidance

UK Post-Brexit Temporary Permissions Regime (TPR) – notification deadline extended

The TPR will allow EU firms and funds that currently passport into the UK under an EU financial services directive to continue providing services in the UK in the event of a no-deal Brexit, when passporting will cease to be available.

To take advantage of the TPR, relevant EU firms and funds were required to submit a TPR notification to the FCA by 29 March 2019, the date of Brexit under the UK’s original notification under Article 50 of the EU Treaty. 

In light of the recent extension of the Article 50 Brexit date by the European Council and the UK, the FCA  has now extended until 11 April 2019 the deadline for EU firms’ and funds’ TPR notification to the FCA.

Read: The FCA TPR page