PIMFA WEEKLY BULLETIN
PIMFA Launches Benchmark Survey in Partnership with NextWealth
PIMFA, in partnership with NextWealth and the Chartered Institute for Securities & Investment, has launched its Financial Advice Business Benchmarks report. The Financial Advice Business Benchmarks report is an annual market research report which can help firms benchmark their own proposition and stature. It also provides measurement on benchmarking areas such as client growth, advice tech, advice charges and trends.
Last years report can be accessed here.
Firms can access the survey for input into this year’s report here
Whilst we appreciate that feeding into this survey takes some time, this can be completed over multiple sittings and represents an excellent opportunity for firms to both feed in to a broader picture of industry which we use as part of our ongoing advocacy efforts, as well as provide a firm with a picture of where they are relative to the rest of the market.
Please contact Simon Harrington should you have further queries.
PIMFA Market Abuse Microsite
Want to know more about the legal framework relating to Market Abuse? Do you have questions about UK market rules? For useful information and resources, check out the PIMFA Financial Crime Microsite.
PIMFA Responds to the FCA Consultation Paper 24/8: Extending SDR to Portfolio Management
PIMFA has responded to the FCA Consultation Paper 24/8: Extending SDR to Portfolio Management. While we are supportive of the intended purpose and spirit of the proposals contained in the consultation, we consider that they fail to sufficiently take account of the unique requirements of the market for portfolio management and of retail investors and consider the following to be critical for our sector and the success of the policy more broadly:
• Delay the implementation of the SDR rules for portfolio management by 12 months after the publication of final rules.
• Allow for the implementation of the SDR rules for funds before extending the regime to portfolio management.
• Reconsider including bespoke portfolios in the SDR regime as they are not products but services.
Check out the Microsite• Consider lowering the 70% threshold for labels to avoid any unintended consequence of portfolio managers building less diversified portfolios to meet the proposed threshold.
• Provide more clarity around the inclusion of overseas funds as they are currently out of scope of the SDR regime and the role of portfolio managers when including them in portfolios.
• Include in the final rules a carve out that addresses the retail client requirement for non-labelled responsible investments which seem to lack a ‘home’ under the current proposals.
Read the full response here
Financial Ombudsman Service to Retain Proactive Settlement
The Financial Ombudsman Service (FOS) has announced that, following a review of the proactive settlement scheme it will make the proactive settlement outcome an ongoing feature of its reporting.
The scheme:
• allows firms to review their position early on in the process
• means the case is recorded as ‘proactively settled’ in FOS' complaints data, rather than as a ‘change in outcome’
• offers consumers the chance to resolve the complaint promptly FOS has also confirmed the introduction of some changes (as of 24 June 2024) to the scheme criteria relating to offer timescales, communication with customers and internal processes.
The FOS publication outlines the aim of simplifying the scheme to resolve cases more quickly and also sets out how to proactively settle complaints with the Financial Ombudsman (such as the firm must make the offer in writing within 14 calendar days of being notified that the case has moved to investigation).
• Read the full press release here
• Access FOS Scheme criteria here
Interaction with SRA regulated CMCs
We are seeking feedback from firms on their interaction with the Solicitors Regulation Authority (SRA) regulated CMCs. We are aware of specific challenges some firms have been having with Claims Management Companies (CMCs) which sit under the SRA’s regulatory umbrella and continue to feedback to them on poor practice, in particular whilst we await the implementation of their proposals: Protecting consumers from excessive charges in financial service claims.
Could firms who have had experience of SRA regulated CMCs please contact Simon Harrington with any experiences they wish to share.
