The FCA chairman Charles Randell says the regulator is moving towards a system of outcomes-based regulation.
I get a sense some advisers may be a little dumbfounded by what this means exactly.
The key quotes, to an audience of lenders, are as follows - I said last year that not only do we at the FCA need to focus on outcomes – we also need to make sure that firms do the same. Not only do we at the FCA need to focus on outcomes – we also need to make sure that firms do the same.
“Firms must identify if consumers are trapped in a cycle of unaffordable debt and take action to break that cycle, such as forbearance, support and referral to appropriate debt advice, rather than extracting further rents from the most vulnerable. If they do not, we must be ready to take strong enforcement action against both the firm and the senior managers who are accountable for product design and consumer outcomes.”
More details are promised soon.
The Government has published plans to compensate LCF investors primarily from a Treasury scheme though a few will be able to claim ex-gratia payments from the FCA.
The scheme will offer 80% of LCF bondholders' initial investment up to a maximum of £68,000 and will be available to all LCF bondholders who have not already received compensation from the FSCS.
Vanguard has rolled out its advice services but raised eyebrows by suggesting 20 reasons investors may not want to use its services. It is clearly caught in something of a bind between assuaging the concerns of its adviser customers and its direct ambitions.
Tenet advisers are having problems moving away from the network and from its IO systems, Money Marketing reports.
Hargreaves Lansdown says clients have increased purchases of sustainable funds 40 fold in the last four years. In the meantime, a fifth of advisers say they have had ESG conversations with their clients in the last six months.
Neil Woodford is setting up in the Cayman Islands following the snub from Jersey. Some may well see that as yet another hit to his reputation although it will be interesting to see how many investors still seek out the fund manager.
BlackRock, Jupiter and Lazard buy into Allfunds Group IPO valuing the firm at €1.88bn.
This is an excellent analysis from Money Marketing. It asks - What does the future hold for vertical integration? The sub-heading rather hits the nail on the head as well.
"Providers running in-house advice arms, platforms and model portfolios seem to have found a formula for success. But are their clients getting the short end of the stick?"