JANUARY 2020
Compliance Newsletter
WINTER COMPLIANCE NEWSLETTER // JANUARY 2020
hello.
and welcome...
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COMPLIANCE NEWSLETTER | VISIT HUB.BROKERNETWORK.CO.UK
The adventures of Emma and the Compliance Computer Part 2 Our Regulatory File Auditor Emma Goodison is back again assisting Members with their file audit queries with the help of the trusty Compliance Computer.
Good question. Fees in TOBAs do present problems when fees are omitted from customer’s invoices and documents without an explanation or are of a differing value. If using ‘fixed fees’ there should be a policy and structure sitting behind the TOBA that documents when and why staff can deviate from the structure.
Incoming query. Emma, a Member asks, “In a TOBA, what should be declared under the ‘fees’ section”?
Is there anything else they need to bear in mind?
Another query, Emma. A Member asks, “I’m new to the team, what do I need to fill in on the compliance checklist on Acturis?”
When Members use ‘Up to’ fees, whilst these cover far more scenarios and offer discretionary wavering, there should still be a fee structure. This is very important to ensure all customers are treated fairly and fees remains ‘reasonable, fair and proportionate’. And all fees must be confirmed with and notified to the customer in advance of agreeing to the terms?
Yes! It’s really important that all the boxes are ticked. I’d always recommend to check, check and double check that it is fully filled in and with the correct dates. If they’re not sure what to fill in, they should ask their manager for guidance.
Another great day of I wonder what queries helping Members, Emma.
we’ll have next time. Good night, Computer!
Goodnight, Emma.
Thanks, Computer! I’m always here to answer any queries they have and provide encouragement. Please send a thank you to all the Members who sent in questions. Goodnight, Computer.
COMPLIANCE NEWSLETTER | VISIT HUB.BROKERNETWORK.CO.UK
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WINTER COMPLIANCE NEWSLETTER // JANUARY 2020
meet the team. SMCR - WHAT SHOULD YOUR BROKERAGE HAVE IN PLACE? The SM&CR came into effect on 9th December 2019 and replaced the Approved Persons Regime, changing how people working in financial services are regulated. The purpose of the SM&CR is to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence.
Click here to check you are on track and currently compliant with the new regime and what steps members should be thinking about next.
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COMPLIANCE NEWSLETTER | VISIT HUB.BROKERNETWORK.CO.UK
don’t forget..
DO YOU HAVE A BUSINESS CONTINUITY PLAN? It is imperative that every firm, regardless of size, has a Business Continuity Plan (BCP). This is an essential tool to help companies to continue to operate in circumstances when things go awry unexpectedly, such as an IT system failure or where key members of staff are suddenly unable to run the firm.
Click here to read more
ARE YOUR STAFF FIT AND PROPER? Under the SM&CR, one of the aims is to reinforce that firms need to take responsibility for their FCA-approved Senior Managers, Certification Employees and Non-Executive Directors and ensure they are ‘Fit and Proper’ to perform their given role prior to approval (where applicable).
Click here to read more
ARE YOU AWARE OF IR35 AND HOW CAN IT AFFECT YOUR BUSINESS? Did you know IR35 is designed to reduce tax avoidance by contractors who the HMRC believe to be “masked employees”? These individuals are people who work in a similar way to full-time employees but charge for their services.
Click here to read more
DO YOU UNDERSTAND THE CHANGES TO NED ROLES? Does your firm have a Non-Executive Director (NED)? Read the below article to discover the changes for this role under the Senior Managers and Certification Regime.
Click here to read more
COMPLIANCE NEWSLETTER | VISIT HUB.BROKERNETWORK.CO.UK
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WINTER COMPLIANCE NEWSLETTER // JANUARY 2020
HAVE YOU
FCA WARNING ON BROKER REMUNERATION
WHAT IS THE PAYMENTS SERVICES DIRECTIVE 2?
The FCA has recently published finalised guidance for insurance product manufacturers and distributors in the general insurance distribution chain. The guidance, FG19/5, provides further clarity on the FCA’s expectations of firms in the GI and pure protection sector. It focuses on concerns about customer detriment specific to distribution chains, with conflicts of interest caused by firms’ remuneration structures being identified as an area of potential harm.
New rules have recently been introduced by the Payments Services Directive 2 (PSD2) that affect the way banks and payment services providers verify, identity or validate a specific payment instruction.
Firms must ensure that the remuneration they receive for their insurance distribution activity does not conflict with their duty to comply with the customer’s best interest rule and consider the impact it has on the overall value of the product to the customer.
FCA ISSUE £15.4M FINE TO BROKER
Click here to read more.
Click here to read more.
Do your Senior Managers understand their responsibilities around Conduct Rules under the new Senior Managers & Certification Regime (SM&CR)? Does your firm have sufficient evidence to support compliance of the existing Principles for Businesses, particularly around the requirement to act with integrity and to be open and cooperative with the regulator? In this article, we highlight a recent fine from the FCA on an investment firm’s failings to have adequate risk management systems and look at why being open and co-operative with the FCA is vital. Click here to read more.
MORE THAN £145K FINE FOR INSURANCE BOSS There has been an article in the trade press recently regarding an insurance boss who has been fined more than £145,000, after allegedly concealing payments to his wife in a bid to reduce his tax bill. Click here to read more.
COMPLIANCE NEWSLETTER | VISIT HUB.BROKERNETWORK.CO.UK
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