Regulation round-up April 2013

Information for all firms

Our planned timetable for implementing CRDIV

On 16 April the European Parliament adopted the legislative package for CRDIV. Following this announcement we set out our planned timetable for implementation. We intend to undertake two consultations on elements of the framework. The main consultation, which is intended to be published in Summer 2013, will set out the changes to the FCA’s rules to remove current FCA provisions covered in the new Regulation and to implement the Directive and relevant discretions provided in the Regulation.

We also intend to consult on the specific issues related to the procedure for transitioning, as appropriate, existing waivers, which is expected to be conducted before or as part of the main consultation.

Full statement

CRDIV pages

FCA publishes complaints data for the second half of 2012

We have published the latest complaints data showing complaints to financial services firms between July and December 2012. The data is presented in two different formats; aggregate data showing the overall number of complaints made, and firm-specific data showing figures for individual firms reporting over 500 opened complaints.

Press release

FCA Regulated fees and levies: Rates proposals 2013/14

We have published a Consultation Paper which consults on the fee rates to raise the £432.1m Annual Funding Requirement (AFR) we will need to meet our strategic priorities in 2013/14 set out in our recent Business Plan. The combined FCA/PRA AFR for 2013/14 totals £646.3m, representing a 15% increase over the 2013/13 FSA AFR of £559.8m. The main reasons for the 15% increase are due to the costs of increasing front line supervision staff, an increase in Information Technology costs and an increase in central services and support functions.

The overall increase will be borne mainly by larger firms, reflecting the resources applied to the intensive conduct and prudential supervision of high impact firms. Medium sized firms will see a proportionate increase reflecting the type of business they conduct. Currently 42% of the FCA’s authorised firms need only pay the minimum fee and for the fourth year running the gross minimum fee for firms will remain unchanged at £1,000.

Positive Compliance - Pension Switching and Income Drawdown

Following the success of the 2012 sessions, we have now started our second module and this has been well received by delegates. This seminar programme explores the specific product areas mentioned above and uses case studies to help delegates understand our expectations

The seminars are an excellent opportunity to hear directly from the regulator and to share examples of good practice with us and your peers. We believe the content will help you to develop and enhance your own business and also provide clarification of our requirements in the areas discussed.

The sessions are fully booked until the end of June however further dates and locations have been added for later in the year and more information on the sessions and how to book, is available using the link below:

Event: Positive Compliance

Guidance on submission of Non-GABRIEL Paper (NGP) reports

Around this time of year, a large number of firms are required to submit certain NGP reports to us. Here are a few useful points to note before sending your reports to us:

  • Check what you are required to submit and by when - Please check your GABRIEL reporting schedule to see whether you are due to submit an NGP report and by when
  • Use FSA templates – The FSA has reporting templates for Close Links (NGP001) and Controllers Report (NGP002). It is mandatory for firms to submit their Close Links using the appropriate form, and we encourage firms to use the new Controllers Form. Using these forms will make our reporting requirements clear so you know exactly what information we require from you.
  • How to submit? - Please submit your NGP report either by email to [email protected] or to the address in SUP 16.3.10G
  • Make it clear what you are submitting - Please make sure you clearly mark your covering email or letter with your Firm Reference Number, Firm Name, the type of report and the period it covers
  • Submit your report in sufficient time - Please ensure that you submit your report in sufficient time in order for it to reach us by the due date. You may wish to consider obtaining proof of postage to retain evidence of your submission.
  • Group submissions – If submitting on behalf of a group, please provide a list of firms, including Firm Reference Numbers and Firm Names, on whose behalf the report is submitted.

FCA/PRA designation of controlled functions

From 1 April 2013, when the FCA and PRA came into being, the former FSA controlled functions were designated as FCA Designated Controlled Functions and/or PRA Designated Controlled functions. 

PRA Designated Controlled Functions

The PRA Designated Controlled Functions for dual-regulated firms (those firms, which are authorised and prudentially regulated by the PRA, but regulated for conduct purposes by the FCA) are as follows:

  • CF 1 Director function
  • CF 2 Non-executive director function
  • CF 3 Chief executive function
  • CF 4 Partner function
  • CF 5 Directors of an unincorporated association
  • CF 6 Small friendly society function
  • CF 12 Actuarial function
  • CF 12A With-profits actuary function
  • CF 12B Lloyd's Actuary function
  • CF 28 System and controls function

FCA Designated Controlled Functions

All controlled functions are FCA Designated Controlled Functions for FCA solo regulated firms (those firms which are solely regulated by the FCA).  For dual regulated firms, FCA Designated Controlled Functions comprise all controlled functions other than the PRA Designated Controlled Functions, listed above.

Further information

Please see the web pages below, which provide further details of the controlled functions and of the approval process:

Approved Persons Controlled Functions

Approval Process

FCA sets out new rules for the platforms industry

We have published rules to make the way that investors pay for platforms more transparent. In the future, platforms, in both the advised and non-advised market, will not be allowed to be funded by payments (commonly described as ‘rebates’) from product providers. Instead, a platform service must be paid for by a platform charge which is disclosed to and agreed by the investor.

One of the issues that have become apparent is that some platforms are able to give the impression that they are offering a free service, which means that the investor may not understand the true cost of the service provided by the platform and it can be difficult for investors to compare prices and products available on different platforms. 

We are making changes to ensure that investors can make fully informed choices if they wish to use a platform and understand what they are paying for the service the platform provides. These changes include:

  • making the cost of the platform service clear to investors by ensuring that the platform service is paid for by a platform charge which is disclosed to and agreed by the investor
  • banning cash rebates for non-advised platforms to prevent these payments being used to disguise the costs of the platform charge

More details on the new rules and the timescales to be applied

Financial Advisers

FCA bans and censures managing director of SIPP operator

We have banned Kevin Wells, the managing director of Montpelier Pension Administration Services Limited (MPAS), from performing any significant influence function at any regulated firm, and also censured him.

Press release

Mortgage Brokers

Mortgage Market Review (MMR) Implementation Update

The MMR Implementation Team will shortly be undertaking the first round of readiness tracking, which will be achieved through an online survey to all impacted firms in early May 2013.  You will be asked to submit your response within two weeks of receipt.  The results of this first stage of tracking will help determine our future communication strategy.  

Further details on our Implementation Timetable

Page updates

07/02/2022: Link changed fixed broken link