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FOS: Annual increases to award limits
The Financial Ombudsman Service (FOS) has published the increases to its award limits, which are adjusted each year in line with inflation, as measured by the Consumer Prices Index (CPI).
From 1 April 2024, the award limits will be as follows:
• £430,000 for complaints referred to the FOS on or after 1 April 2024 about acts or omissions by firms on or after 1 April 2019
• £195,000 for complaints referred to the FOS on or after 1 April 2024 about acts or omissions by firms before 1 April 2019
Current and previous limits are set out on the FOS's website on the understanding compensation page.
The FCA’s policy statement PS19/8 sets out the full background to increasing the award limits. The changes are also set out in the FCA Handbook.
Guidance on the FOS website will be updated to reflect these changes from 1 April 2024.
The symposium is FREE to attend for PIMFA members and associate members and solely funded by our wonderful sponsors, and we encourage individuals at all stages of their career, from Chief Executives to Interns, to join us for two days of motivational talks, regulatory updates, industry panels, personal development roundtables and thought-provoking content related to our industry, and to career development.
The event is open to all! Women and men welcome.
FCA Chief Executive’s Speech: Investing in outcomes: a regulatory approach to deliver for consumers, markets and competitiveness
In a speech on 14 March, Nikhil Rathi noted the Financial Conduct Authority (FCA) are keen to build a deeper, more open relationship with investors, analysts, and the markets. The Chief Executive spoke about Consumer Duty, redress, prudential impacts, and digital and data infrastructure. Firms were advised the FCA does not intend to trip firms up by going after technical breaches of the Duty and that the regulator’s drive to ensure fair value is not a Trojan horse for price regulation.
He said the FCA:
• Will look favourably on firms taking reasonable steps to identify and proactively address concerns
• Be pragmatic and focus on the greatest harms
• Do not intend to regulate prices or restrain profits for well-run businesses
• Aim to mitigate the risk of unintended consequences
The speech also recognises firms approaching the Duty “in the right spirit” by using simpler and more accessible language, reviewing fair value by removing or restructuring fees, and making investment in technology to improve customer insights and service.
Access the full speech here
Under 40 Leadership Committee
Each year PIMFA works with a cohort of rising talent across our industry, called the Under 40 Leadership Committee, and as part of the most recent round of research the committee have investigated some great ways to help firms better engage with clients who are having discussions around inheritance, find out more here and as below…
PIMFA is leading an industry initiative following expectations raised by the Financial Conduct Authority (FCA) on the low number of clients being identified as vulnerable.
This industry initiative will review and update existing PIMFA guidance on vulnerable customers based on new developments and insights and will provide specific and helpful support for firms and the industry. We will work with the FCA as we develop this project to ensure the guidance aligns with the FCA’s expectations.
In conjunction with this initiative, we expect that the FCA will continue to interact with firms on this topic individually.
PIMFA leading vulnerable clients’ initiative in partnership with the Financial Conduct Authority
If member firms would like to find out more about this initiative, please contact PIMFA’s Head of Regulatory Policy & Compliance, Alexandra Roberts.
The FCA publishes second tranche of draft listing rules
The Financial Conduct Authority (FCA) has published a second tranche of the new draft UK Listing Rules (UKLR) with reforms aiming to make the UK's listing regime more accessible, effective and competitive.
The publication supersedes Appendix 1 of CP23/31 and should be taken as the full and complete draft UKLRs for consultation purposes.
The FCA has also published proposed consequential changes to other FCA Handbook sourcebooks in a separate instrument.
The CP23/31 closing date of 22 March 2024 remains unchanged with responses in relation to the additional tranche 2 draft instrument material and the consequential changes instrument due by 2 April 2024
The FCA is expected to consult on updating Technical and Procedural Notes in April and June 2024.
HM Treasury Consultation: Improving the effectiveness of the Money Laundering Regulations
As set out in the Economic Crime Plan 2023-26, HM Treasury committed to consulting on changes to the Money Laundering Regulations (MLRs).
This consultation addresses issues already identified by HM Treasury (for example in the 2022 Review of the UK’s anti-money laundering and counter-terrorist financing regulatory and supervisory regime) and considers technical changes that could be made to increase effectiveness and ensure proportionality for both regulated firms and customers.
The consultation covers four key themes:, 1. Making customer due diligence more proportionate and effective
2. Strengthening system coordination
3. Providing clarity on scope of the MLRs
4. Reforming registration requirements for the Trust Registration Service
The deadline for responses is 9 June 2024. PIMFA will be responding to the consultation and welcome firm views and comments – please contact Alexandra Roberts.
Access the consultation paper here
HM Treasury MLRs Cost of Compliance Survey
HM Treasury is also running a survey on the cost of compliance with the Money Laundering Regulations (MLRs) and are keen to receive responses from a wide range of regulated businesses, including large firms, SMEs and sole traders.
Firms who would like to respond to the cost of compliance survey can access it here.
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