FCA DP23/2: Updating and improving the UK regime for asset management
The bulk of DP23/2 is focussed on the rules that apply to institutional fund managers and on whether they need to be reformed as the FCA takes on responsibility for retained EU law. However, the FCA makes clear that the term “asset manager” also covers retail portfolio managers and suggests that, where management of retail portfolios is based on a “standard service” with “limited customisation”, there might be a case for extending fund-based requirements to them. This would clearly have major implications for how discretionary managed business is regulated, effectively resulting in it being treated as a “product” rather than as a service.
DP23/2 is open for comment to 22 May. We will be working with relevant PIMFA committees to determine our response. If you are interested in providing input to this exercise, please email sarahm@pimfa.co.uk
Call of Duty: How putting customers front and centre will help industry innovate
The Financial Conduct Authority’s (FCA) Executive Director, Sheldon Mills (Consumers and Competition) delivered a speech on the Consumer Duty this week.
The speech set out actions firms should take to meet the July deadline such as focusing on the areas that will have the biggest impact on outcomes for customers, and also referred to the recent review of implementation plans, noting good examples as well as areas of concern. Next steps (including a small firm survey) were also outlined.
FSB: Report on the Financial Stability Risks of DeFi
The Financial Stability Board (FSB) has published a report on its assessment of the financial stability risks of decentralised finance (DeFi). The FSB will carry out additional work to consider the regulatory perimeter across jurisdictions to determine which DeFi activities and entities should fall within that perimeter and whether additional prudential and investor protection requirements are needed.
Inside FCA Podcast: What the Consumer Duty means for authorisation
The FCA’s technical specialist, Alex MacDermott, discusses how the Duty affects firms seeking authorisation, inclusive of what firms will need to demonstrate in their application, why the FCA is asking for information in advance of the implementation deadline and the implications for firms who don’t meet the requirements - click here to access the FCA’s podcast.
Latest PIMFA Press Releases
PIMFA calls for Financial Conduct Authority to have greater role in protecting public from fraud
PIMFA delighted to welcome Paul Stockton and Stuart Dodson to its Board of Directors
Consumer Duty a ‘watershed moment’ that firms must take seriously, FCA warns at PIMFA conference
PIMFA welcomes update from FCA on the FSCS levy but continues to argue for a “polluter pays” model
Read more press releases here
PIMFA Press Coverage
Investors Chronicle: A change at the top won't derail this growth play
The Wealth Net: PIMFA calls for guidance not regulation of AI
Mortgage Strategy: FCA review talks of Consumer Duty ‘complacency’
Professional Paraplanner: FCA financial promotions clamp down welcomed but more needed, says PIMFA
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