The FCA and Prudential Regulation Authority (PRA) currently maintain a public Financial Services Register of regulated and approved firms.
In July 2017, the FCA published proposals to extend the senior managers and certification regime (SMCR) to almost all regulated firms.
This would mean that the UK watchdog would only approve the most senior individuals within firms.
Companies would then be responsible for assessing the fitness of their employees and “certify” individuals who are not senior managers, but whose jobs mean that they can still have significant impact on customers, firms and market integrity.
Between July 2017 and January 2018, however, there was little was said about an IFA register, which gave rise to speculation that it would fall by the wayside.
Industry feedback
In response to the SMCR proposals, the FCA said on Monday it has received substantial feedback on the value of a central public record of certified employees and other important individuals in firms regulated by the FCA who would no longer appear on the Financial Services Register.
Non-executive directors, financial advisers, traders and portfolio managers were specifically highlighted.
The FCA said it has listened to the feedback and will consult on policy proposals by summer 2018.
British Steel
The proposals come as the industry is grappling with the events at Port Talbot in Wales, which have seen steel workers become victims of unsavoury practices by some IFAs and introducers.
Given little time to decide the future of their pensions after the British Steel scheme was marked for closure, rogue advisers and introducers have encouraged members to transfer out and put their pension pots in unsuitable investments.
In late January, rumours of the demise of the IFA register fell quiet following the inquiry into the British Steel Pension Scheme transfers.
The Work and Pensions Committee and its chair, veteran Labour MP Frank Field, appeared less than impressed with the FCA approach and the issue of the register’s future, prompted by BSPS members’ concerns, has been raised in correspondence with the FCA.
This correspondence, in conjunction with the public feedback to the SMCR proposals, might very well have prompted a rethink by the FCA.
Maria Madrid says:
Financial product/scheme providers have sometimes failed to conduct due diligence and allowed completely unqualified entities to “introduce” their products to the unsuspecting public.
This can benefit the “product providers” who can transfer blame for their exagerated (or misleading) claims onto their incompetent “introducers”.