The UK’s Personal Investment Management and Financial Advice Association held its first face-to-face compliance conference since 2019 last week in London at the offices of Herbert Smith Freehills.
A new “consumer duty” for private banks and other retail
firms and practitioners was among the key issues put under the
microscope at a recent wealth management industry conference in
London. Other topics included appointed representatives, the
Financial Services Compensation Scheme and the Harlequin Ponzi
scheme.
The Financial Conduct Authority plans to impose this “duty” on
private banks, asset managers and advisors. This will, in due
course, require firms to provide retail customers with good
outcomes. So-called cross-cutting rules are going to require
firms to (i) act in good faith towards retail customers, (ii)
avoid foreseeable harm to retail customers and (iii) enable
retail customers to pursue their financial objectives.
The regulator published its “final” rules and guidelines on
the subject on 27 July. Firms are scheduled to submit
implementation plans on 31 October. Manufacturers of financial
products must complete “reviews to meet the outcome rules” by 30
April next year. On 31 July of that year, rules start to operate
for ‘open’ products and services. Lastly, on 31 July 2024, rules
start to operate for ‘closed’ products and services. At no point
in Policy…
