The Financial Conduct Authority has announced that it will undertake a review of the scope and coverage of the Financial Services Compensation Scheme in its business plan.
The FCA says it wants firms to have appropriate capital, liquidity and reserves to cover outstanding redress liabilities and to hold financial resources “proportionate to the potential harm caused” if they do fail.
Over time, the regulator said this will reduce the level of FSCS payouts.
Advisers will be concerned that it implies increased costs in the short term.
It is a rather regulation-heavy news review this week. But this is actually one less thing to worry about – the FCA has cancelled the suitability II review of retirement advice.
Quite a lot of preliminary research had been done already.
The FCA has expressed its concern about poor quality ESG fund applications.
Head of asset management supervision at the FCA Nick Miller has written to asset managers warning that the regulator receives "a high volume" of applications for authorisation of funds with a sustainable focus, "many" of which are "poor quality" and "fall below our expectations".
"We also expect clear and accurate ongoing disclosures to consumers where funds make ESG-related claims."
This surely suggests that there is a lot of bandwagon jumping going on amid fund managers.
LEBC’s public policy director, Kay Ingram, has left the business to pursue a career as a personal finance commentator.