Compliance Newsletter - Spring Edition

SPRING 2019

COMPLIANCE NEWSLETTER

CATCH UP ON THE LATEST REGULATORY NEWS AND GUIDANCE FROM THE RISK AND COMPLIANCE MANAGEMENT TEAM.

JENNY HEMMINGS MEMBER COMPLIANCE HELPDESK: 0344 346 1342 | COMPLIANCE@BROKERNETWORK.CO.UK

The FCA handbook (SUP 12.2.8 & 12.5.7) still contains requirements for Introducer Appointed Representatives (IAR’s), however the Insurance Distribution Directive (IDD) effective 1st October 2018 does now introduce an exemption, referred to as article 33B of the Regulated Activities Order (PERG 5.6.4B) that allows certain IAR’s to be excluded from scope. To read the full article, click here.

Firms should now have robust systems and controls in place to ensure the protection of both customer and staff data following introduction of the General Data Protection Regulations (GDPR).

We felt it important to remind you of your obligations and explore the key areas firms should review in order to protect all personal information. Please click here to read the full article *

Broking loans for your customers will be an everyday occurrence for your firm, so we felt it important to remind you of your obligations both from a regulatory prospective and what your premium finance provider you introduce to may require of you.

It is important to note that this is general guidance only and you should always check your agreements, guides and scripts provided to you by the finance company for individual requirements if in any doubt.

Click here to find out more

One of the biggest talking points of the GDPR is its breach notification requirements. The rules, which include a strict 72-hour deadline for reporting incidents, have caused many firms to question how they could possibly comply.

We take a high level look at the reporting requirements and what you will need to consider if you are unfortunate enough to suffer a data breach. Please click here to read the full article * * The article is for guidance only and you should always check the ICO rules before taking action.

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We offer some Top Tips to mitigate the potential of data protection breaches and also what action to take in the event of a data protection breach:

GDPR BREACHES

* The article is for guidance only and you should always check the ICO rules before taking action.

Apply controls to minimise the risk of a personal data breach, in the first place

Conduct an initial investigation promptly and assess the risk to individuals

Make sure staff understand what constitutes a data breach and that this covers more than just loss of data

Implement a “no blame� culture to ensure incidents are freely reported

Make sure you have robust breach detection and containment procedures

Ensure everybody knows who within the firm to report it to

Inform the individuals if there is a high risk to them and any remedial action being taken

Notify the ICO within 72 hours of the incident occurring if there is a risk to individuals

Make sure you have a data breach policy in place; do not wait until an incident has occurred

If you have Appointed Representatives make sure that they know how to act

Keep a register of all security incidents whether or not reportable to the ICO in order to comply with GDPR accountability rules

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SNIPPETS DRIVING IN THE EEA POST BREXIT All firms will have recently received a ‘Dear CEO’ letter from the FCA reminding them of their responsibilities on the use of financial promotions and marketing activity within their business. We review the letter and the key messages being highlighted by the FCA.

Click here to read the full article

In this article, we look at Cyber Security and guidance from the FCA on what firms can do to prevent cyber-attacks, with details on support measures that can be put in place to mitigate potential threats posed by this increasingly common issue.

No doubt the word ‘Brexit’ is constantly part of daily conversation currently. Here, we give consideration to the potential requirements of UK citizens if driving within the EEA post-Brexit in the event of a ‘no deal’ Brexit.

Click here to read the full article

Our final Snippet article covers the supplementary FSCS levy being placed on Brokers and the reasons for the additional request.

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Click here to find out more 4

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For full details click here

SUPPORT UPDATE >>

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We are currently in the process of producing a Conduct Policies and Procedures Manual which will provide firms with a senior management control framework on which they can evidence adherence to regulatory requirements.

The Manual will work in conjunction with the relevant Guides To Best Practice which can be used to communicate the relevant policies and procedures that apply to staff in a more user friendly, easy to read format.

The Compliance Team recently provided a Webinar on the key requirements of the Senior Managers & Certification Regime (SMCR). In case you missed it, a recording of the session is now available to watch via the Hub HERE. Meanwhile, another recent webinar on Consumer Credit requirements for Credit Brokers covered disclosures, fees, financial promotions and debt administration, and collection permissions.

Watch the recording HERE.

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We will be updating the Customer Terms of Business template in March following an annual review of the document to ensure this remains up to date. However, there are no regulatory changes that will result in any significant changes and this will only include minor wording changes which will be highlighted in the new template on the Hub.

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What is the name of the Government backed scheme set up to support business to tackle the threat of cyber-attacks?

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What does the abbreviation GDPR stand for?

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The FCA recently issued a ‘Dear CEO’ letter on which regulatory topic?

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What document may be required by drivers travelling in a European Economic Area (EEA) country following Brexit?

How quickly should a data security breach incident be reported to the Information Commissioner’s Office (ICO)?

1. Cyber Essentials 2. General Data Protection Regulation 3. Financial Promotions 4. Green Card 5. Within 72 hours COMPLIANCE NEWSLETTER | VISIT HUB.BROKERNETWORK.CO.UK

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Ethos Broking Grimbald Crag Close Knaresborough HG5 8PJ www.ethosbroking.co.uk 19-111 ECUpdatev2