Regulatory Updates

March 2025

7 March 2025: Firms' treatment of customers in vulnerable circumstances – review. Read more.

The FCA has reviewed how firms are supporting customers in vulnerable circumstances and whether its guidance is still appropriate.

As part of the review, stakeholders consulted were clear that published guidance (FG 21/1) remains useful and important and so the FCA is not revising this guidance or introducing new requirements for firms.

The FCA has published case study examples of good practice and areas for improvement. These areas included;

Ineffective outcomes monitoring
Failure to support staff appropriately
Failure to communicate clearly
Lack of tailored training and embedding consumers’ needs into product and service design

Thistle Initiatives can assist firms by:

Reviewing how they support clients in vulnerable circumstances
Assessing how they ensure good outcomes for these clients
Advising them on the implementation of the Consumer Duty as it relates to vulnerable customers
Assisting them in implementing appropriate compliance monitoring for vulnerable customers
Advising on staff training in this area

For more information, get in touch.

February 2025

26 February 2025: Asset Management & Alternatives - Supervisory Strategy. Read more.

The FCA has written to asset management and alternative investment firms to explain its supervisory strategy for them. In 2025 the FCA intends to focus its supervision on:

supporting confident investing in private markets,
building firm and financial system resilience against market disruption, and
securing positive outcomes for consumers

It will also undertake targeted work to support trust in the market for sustainable investment and to reduce financial crime and market abuse.

Thistle Initiatives can assist asset management firms by:

Reviewing their Model Portfolio Service (MPS) and Consumer Duty arrangements ahead of the FCA review of this area this year
Reviewing their AIFMD arrangements ahead of the FCA review of this area this year.
Reviewing their private asset valuation practices and conflicts of interest arrangements ahead of the FCA reviews of these areas this year.
Reviewing their arrangements for tackling financial crime and market abuse in their private asset operations.
Reviewing their market disruption resilience in the light of the findings of the Bank of England’s System Wide Exploratory Scenario (SWES).
Reviewing their arrangements (labelling, naming and marketing) for sustainability-related products
Assessing the adequacy of their governance, assignment of accountability and management information arrangements.

For more information, get in touch.

7 February 2025: FCA steps up action against misleading financial adverts. Read more.

Nearly 20,000 financial promotions were withdrawn or amended in 2024 following intervention from the FCA, which is nearly double the amount in 2023. The FCA has highlighted concerns with cryptoasset, debt solutions, and claims management company promotions. 9,197 CMC promotions were withdrawn in 2024. Many of these promotions were related to housing disrepair and motor finance claims targeted at vulnerable consumers.

The FCA continues to urge social media platforms to do more to proactively identify and prevent illegal financial promotions. Last year, the FCA launched targeted action against ‘finfluencers’, resulting in 20 people being interviewed under caution.

Thistle Initiatives can assist firms by:

Reviewing your financial promotions for compliance with COBS or other FCA rules as required
Advising on improving your review process
Advising on considerations when firms’ Appointed Representatives issue financial promotions
Advising on compliance monitoring arrangements for financial promotions
Advising on the requirements for section 21 approver firms

For more information, get in touch.

January 2025

30 January 2025: The FCA and Practitioner Panel joint survey for 2025 launches. Read more.

The new FCA and Practitioner Panel survey is being sent to all regulated firms so they can share their feedback on how the FCA regulates the industry. The FCA will use the survey results to better understand issues affecting firms and to assess any changes it should consider making so it can operate more efficiently and effectively. The survey is one of several sources of feedback used to evaluate FCA performance against key areas of its three-year strategy.

The results are presented to the Practitioner Panel and the FCA Board and will be published in summer 2025.

Thistle Initiatives can assist firms by:

Reviewing responses to the survey that they may wish to submit
Drafting responses on firms’ behalf, if required

For more information, get in touch.

10 January 2025: FCA strategy for Credit Reference Agencies and Credit Information Service Providers. Read more.

The FCA has issued a letter outlining its strategy for credit reference agencies and credit information service providers. The purpose of this letter is to set out its priority areas of focus for the next two years. These areas are: firms’ embedding of the Consumer Duty; Operational resilience; Cyber resilience; Financial resilience; and the December 2023 Credit Information Market Study.

Firms’ CEOs are not required to respond to this letter; however, they should consider how it applies to their business and act as necessary, including discussing the letter with fellow directors and/or board members and agreeing actions to be taken.

Thistle Initiatives can assist firms by:

Reviewing and assessing firms’ Consumer Duty arrangements, with a particular focus on consumer support and understanding and price and fair value
Assessing firms’ compliance with the FCA’s Operational Resilience Policy, which is set out in PS21/3
Assessing firms’ cyber resilience capabilities
Reviewing firms’ reviews of the adequacy of their capital and liquidity
Reviewing and assessing firms’ wind-down policies
Assessing firms’ responses to the Credit Information Market Study

For more information, get in touch.

December 2024

17 December 2024: FCA consults on new private stock market. Read more.

The FCA has consulted in its CP 24/29 on proposals for a new platform - the Private Intermittent Securities and Capital Exchange System (PISCES) - on which shares in private companies will be traded.

PISCES will be a new type of trading platform that will enable the intermittent trading of private company shares using market infrastructure. The proposed regulatory framework for PISCES will be established under a Financial Market Infrastructure (FMI) sandbox.

The Treasury has confirmed that it will give the FCA powers to implement and oversee the operation of the PISCES sandbox, expected to run for five years.

Thistle Initiatives can assist firms by:

Helping them to understand the progress of this consultation
Advising them on the development of the regulatory framework for PISCES
The application to PISCES of the Market Abuse Regime and the transaction reporting requirements
Helping them to understand the FCA’s draft PISCES sourcebook (PS)
Advising them on how to apply to the sandbox should they wish to do so – for more information, get in touch.

13 December 2024: FCA Contracts for Difference (CFD) strategy. Read more.

The FCA has issued a new portfolio letter setting out its views on the key risks arising from CFD providers and what drives those risks and summarising the FCA’s intended areas of supervisory focus over the next two-year cycle.

The FCA’s strategy for this period aims to build on previous work and further reduce the potential harm CFDs present when marketed inappropriately or with inadequate controls.

Areas of focus include: The Consumer Duty; Market abuse; Capital and liquidity; CASS arrangements; Inappropriate use of the FCA “halo” effect; Product diversification; Controls over firms’ distributors and Appointed Representatives; Operational resilience and outsourcing.

Thistle Initiatives can assist firms by:

Helping them to develop a CFD business strategy in line with the FCA’s expectations
Advising them on implementing a compliance monitoring strategy for their CFD business
Reviewing their compliance with the Consumer Duty
Reviewing their ICARAs and liquidity management frameworks
Reviewing their CASS and TTCA arrangements
Reviewing arrangements made by CFD firms that are not carrying on regulated business or that are subject to change in control applications
Reviewing governance over distributor and AR firms
Assessing the adequacy of due diligence and oversight of outsourced operations, including wind-down planning - for more information, get in touch.

11 December 2024: Consumer Duty Board Reports: good practice and areas for improvement. Read more.

The FCA has released its findings following its thematic review on the first Consumer Duty board reports and has referred to five areas that it considers either good or less good based on the sample of reports it reviewed.

The five key aspects of good reports were: clear outcomes focus; good quality data; analysis of different customer types; clear processes for production of the report; and a focus on culture throughout the firm.

The five identified areas for improvement were: better data quality needed; comprehensive view across distribution chains needed; analysis of different customer types needed; challenge from the board needed; and taking effective action.

The key takeaway from the FCA’s review was that the best reports are structured in a way that makes it easy for boards to scrutinise the key elements that the rules and guidance suggest they should cover.

Thistle has experience with assisting firms in both creating and implementing their annual Consumer Duty board reports. We can also work alongside our clients to implement the suggested enhancements from the FCA whilst ensuring that good practice areas remain intact – for more information, get in touch.

11 December 2024: FCA sets out proposals for extra support for millions of UK savers to help them make better decisions about their pensions. Read more.

The FCA has released a set of proposals which it expects firms to implement to ensure that consumers can make informed decisions about their investments as it looks to bridge the gap between bespoke financial advice and free available guidance.

The regulator is proposing the provision of free targeted support, whereby firms that have already provided bespoke advice to clients on a specific scenario can provide the suggestion to wider groups of consumers who are in the same situation, on a no-cost basis.

Thistle can assist your firm with navigating the proposed reforms to the advice framework. We stay up-to-date with the ever-changing regulatory obligations placed on firms and will be well placed to guide our clients when the new regulatory framework is put in place – for more information, get in touch.

9 December 2024: Our Consumer Duty focus areas. Read more.

The FCA has set out its priorities under the Consumer Duty for the remainder of 2024/25. There are four focus areas, namely;

Embedding the Consumer Duty and raising standards, with cross-cutting projects involving review of board/governing body reports and complaints and root cause analysis, review of treatment of customers in vulnerable circumstances and review of consumer support outcomes and supporting informed decision-making.
Enhancing firms’ understanding of the price and value outcome.
Sector-specific priorities in retail banking, consumer finance and investments, payments and digital assets, general and life insurance and sustainable finance.
The Call for Input covering wider requirements on retail firms and asking where the FCA can use the Duty to simplify them.

Thistle Initiatives can assist Consumer Duty firms by helping them to evidence that Consumer Duty is embedded in their operations; Assessing their Consumer Duty arrangements; Advising them on the necessary data gathering and reporting; Reviewing fair price and value assessments; Providing or reviewing Consumer Duty policy documentation; and Ongoing compliance support, ensuring firms’ questions are always answered – for more information, get in touch.

November 2024

7 November 2024: PS24/15: Regulatory framework for pensions dashboard service firms. Read more.

The FCA have released a Policy Statement which outlines the regulatory framework that will be applicable to firms that operate pensions dashboards services. The policy statement contains a description of the core framework, the conduct standards the FCA expects firms to adhere to and the FCA processes that the regulator will follow in its supervision of regulated firms. The gateway for applying for authorisation in this space is not yet open, and will not do so until the Government and the Pensions Dashboard Programme have produced all the information necessary for a firm to design and build a pensions dashboard service.

Thistle Initiatives are experts in FCA Authorisation applications, and have extensive knowledge in the pensions space should you wish for assistance in preparing your application to show the FCA that you are ready, willing and organised to undertake this new activity – for more information, get in touch.

7 November 2024: Market Watch 81. Read more.

The FCA’s latest edition of Market Watch discusses their recent observations of the UK MiFID transaction reporting regime for all firms for which it is applicable as well as firms subject to trade reporting requirements under UK EMIR and SFTR. The FCA continues to identify weaknesses in firms’ transaction reports, and believes that the main drivers for incomplete or inaccurate reports are:

change management
reporting processes and logic design,
data governance,
control frameworks and governance,
oversight and resourcing.

The FCA have published further findings and details for each of these drivers, and may continue to investigate the remedial actions taken by firms should the quality of transaction reports not improve. Thistle has recent published a joint article with LSEG on the process of Transaction Reporting (MiFIR Transaction Reporting Six Years On Whitepaper, in collaboration with LSEG) and are experts in this space should you require assistance – for more information, get in touch.

4 November 2024: Portfolio Letter: FCA's expectations for Self-Invested Personal Pension (SIPP) Operators. Read more.

The FCA have issued a new Dear CEO letter to businesses whose primary activity is that of a Self-Invested Personal Pension (SIPP) Operator. The purpose of the letter is to highlight any new and additional areas of focus to the FCA in this space, and should go hand in hand with the previous Dear CEO letter released in May 2023.

Following completion of the 2024 SIPP data request, the FCA have confirmed that the key areas they are paying attention to are redress payments to consumers, the handling of pension scheme money and assets, the accuracy of firms’ books and records and the implementation of Consumer Duty (particularly in respect of obligations as a product distributor). As always, the FCA expect firms to be able to demonstrate how the concerns raised within the letter have been incorporated into their activities should this be requested.

Thistle Initiatives can assist your firm with understanding the expectations of the FCA and identifying any potential remedial action required following the latest portfolio letter – for more information, get in touch.

October 2024

24 October 2024: FCA strategy for lifetime mortgage providers in 2025 . Read more.

The FCA has written a portfolio letter to lifetime mortgage providers (LMPs), including firms that provide lifetime mortgages, home reversion and later life lending products, to set out its key concerns and priorities in 2025. The FCA expects firms’ boards and senior management committees to discuss this letter, consider their business in the light of the risks highlighted, and review their approaches to mitigating these and driving improved borrower outcomes. Key areas identified by the FCA include the Consumer Duty, financial resilience, wind-down arrangements, operational resilience, financial crime and fraud and sustainable finance.

Thistle Initiatives can assist lifetime mortgage firms by reviewing: their implementation of the Consumer Duty; vulnerable customer arrangements; product governance arrangements; risk management arrangements; and financial resilience arrangements and in particular compliance with the Prudential sourcebook for Mortgage and Home Finance Firms and Insurance intermediaries (MIPRU) – for more information, get in touch.

23 October 2024: Multi-firm review of consumer credit firms and non-bank mortgage lenders. Read more.

The FCA has issued its observations from the multi-firm review (MFR), carried out in late 2023 and early 2024, of the financial resilience and risk management of consumer credit firms and non-bank mortgage lenders and highlights some good practice and areas for improvement. The overall review finding is that the majority of firms sampled could improve their approach to risk governance and risk management. All firms operating in the consumer credit and non-bank mortgage lending market are asked to review these observations and to assess their own approaches and procedures in light of these findings.

Thistle Initiatives can assist consumer credit and lending firms by advising on identifying risks relevant to the business; setting risk appetite and establishing appropriate systems and controls; setting financial metrics for their capital and liquidity management; undertaking stress testing and wind down planning; and developing methodologies to assess the risks posed by their Appointed Representatives – for more information, get in touch.

21 October 2024: FCA fines Volkswagen Finance £5.4m over treatment of customers in financial difficulty. Read more.

The FCA has fined Volkswagen Financial Services (UK) Limited £5,397,600 for failing to treat its customers in financial difficulty fairly; the firm has agreed to pay over £21.5m in redress to around 110,000 customers who may have suffered harm because of its failings. Between 2017 and 2023, Volkswagen Finance failed to understand customers’ individual circumstances or to provide support tailored to their needs. The FCA’s work resulted in Volkswagen Finance setting up a redress scheme to compensate affected customers; the firm has made improvements to its training for customer service staff and communications.

Thistle Initiatives can assist motor finance firms by reviewing firm’s vulnerable customers arrangements; compliance monitoring programme to ensure full coverage of the CONC requirements for customers in financial difficulty; arrears management arrangements; complaints management arrangements; and customer communications for collections activity – for more information, get in touch.

17 October 2024: FCA welcomes buy now pay later consultation. Read more.

The Government is consulting on draft legislation to bring Buy Now Pay Later (BNPL) products into regulation. The consultation closes on 29 November 2024. The FCA will consult shortly after legislation is finalised on the regulatory regime for BNPL. This will include its proposed rules and approach to authorising firms. Firms will be given a short period to prepare for these rules before they come into effect; the FCA expects to take on regulation of the sector twelve months after legislation is made. Once legislation and rules are finalised, all BNPL firms not currently authorised will need to apply for authorisation.

Thistle Initiatives can assist BNPL firms by advising on the implications of BNPL legislation; FCA authorisation; the implications of the future Temporary Permissions Regime; assisting with the implementation of their Consumer Duty arrangements; and reviewing financial promotions – for more information, get in touch.

16 October 2024: FCA launches premium finance market study alongside new Government insurance taskforce. Read more.

The FCA has announced a package of work in the insurance market that will run parallel to the launch of the Government motor insurance taskforce. It has launched a competition market study intended to establish whether customers who borrow, via premium finance, to pay for motor and home insurance are receiving fair, competitive deals. As part of this market study, the FCA will review whether these products represent fair value, how well customers are made aware of their financing options, the role of commission, and other potential barriers to effective competition in the motor and home premium finance market.

Thistle Initiatives can assist firms by reviewing fair value assessments under the Consumer Duty; customer communications under the Consumer Duty; and reporting on the findings of the market study – for more information, get in touch.

10 October 2024: FCA fines TSB £10.9m over treatment of customers in financial difficulty. Read more.

The FCA has fined TSB Bank plc £10,910,500 for failing to ensure customers who were in arrears were treated fairly. TSB also lacked suitable systems and controls to secure fair customer outcomes. TSB has paid £99.9m in redress to the 232,849 mortgage, overdraft, credit card and loan customers affected. Between June 2014 and March 2020, TSB’s inadequate processes created a real risk that repayment plans were not realistic. As a result of its failings, TSB risked agreeing unaffordable payment arrangements with customers in difficulty or charging them inappropriate fees. This risked increased customer uncertainty and stress, including for vulnerable customers.

Thistle Initiatives can assist firms by reviewing their Treating Customers Fairly and Consumer Duty arrangements; their vulnerable customer arrangements; and their arrangements for agreeing payment arrangements or fees with customers in difficulty – for more information, get in touch.

7 October 2024: Portfolio Letter: FCA’s expectations for financial advisers and investment intermediaries. Read more.

The FCA has this week issued a portfolio letter to firms whose primary business is financial advice or investment intermediation; it provides a summary of the FCA’s priorities, its expectations of firms in this sector and the work the FCA intends to do. Read our blog for more information.

Our team of experts can assist firms by reviewing the implications of the FCA letter for firms operating in specific areas; the quality of firms’ retirement income advice and their ongoing advice arrangements; and firms’ Consumer Duty arrangements. We can also advise firms on the implications of consolidation and on the FCA’s intentions to review this area – for more information, get in touch.

September 2024

27 September 2024: CP24/8: Extending the SDR regime to Portfolio Management. Read more.

The FCA is consulting, in its Consultation Paper 24/8, on extending the Sustainability Disclosure Requirements (SDR) and investment labels regime to portfolio management using a broadly similar approach to the SDR rules in the fund management industry. It had consulted on including portfolio management in its earlier consultation, CP22/20 and received detailed, supportive feedback, which has helped it to refine the proposals for this sector. Whilst this consultation has now closed, based on feedback received from the industry, the FCA has extended the release of the Policy Statement and further information about implementation of the regime to Q2 2025. Thistle Initiatives can assist firms by advising on the implications for them of the SDR and investment labels regime; analysing the details of the regimes’ implementation; and advising on how the FCA intends to follow up on implementation – for more information, get in touch.

24 September 2024: Extension to motor finance complaint handling pause confirmed. Read more.

The FCA has extended the pause to the deadline for motor finance firms to provide a final response to customer complaints regarding their discretionary commission arrangements (DCAs) until 4 December 2025. On 30 July 2024, the FCA consulted on a proposal to extend the DCA complaint handling pause. Barclays Partner Finance has also launched a judicial review of the Financial Ombudsman Service’s decision to uphold a complaint relating to a DCA. The FCA will set out next steps in its review into the past use of DCAs in May 2025. Thistle Initiatives can assist firms by reviewing their treatment of DCA-related complaints, and assessing the implications of the FCA’s progress with the DCA review – for more information, get in touch.

19 September 2024: Reforms to financial services retail-disclosure requirements. Read more.

The Government and the FCA have announced plans to reform the UK retail disclosure rules and will temporarily exempt investment trusts from assimilated EU law requirements. The Treasury consulted on replacing the EU-inherited Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation with a new framework for Consumer Composite Investments (CCIs). The new CCI retail disclosure regime is expected to be in place in the first half of 2025, subject to Parliamentary approval and the FCA consultation process. The FCA intends to consult on proposed rules for the CCI regime this autumn. Thistle Initiatives can assist firms by analysing and explaining the new CCI regime; and recommending how firms can design their approvals and compliance monitoring for their CCI disclosures – for more information, get in touch.

18 September 2024: FCA publishes update on cash savings market and fair value. Read more.

The FCA has published an update on the actions taken since its July 2023 cash savings market review and the work done with the largest nine firms on the value they provide. It has also published an update on how firms have assessed their products and services against the price and value outcome of the Consumer Duty, highlighting good and poor practice in cash savings, GAP (vehicle) insurance and cash on investment platforms. The FCA found room for improvement in firms’ assessment of the value offered by their savings products and it expects them to improve these assessments. Thistle Initiatives can assist firms by reviewing their price and value assessments, and Consumer Duty board reports; as well as advising on the best ways to analyse and follow up FCA market reviews – for more information, get in touch.

12 September 2024: CP24/19: Consumer Credit Regulatory Returns: Credit Broking, Debt Adjusting, Debt Counselling and Providing Credit Information Services. Read more.

The FCA is consulting, in its newly issued CP 24/19, on its proposal to issue a new regulatory reporting return for consumer credit firms that engage in one or more of the regulated activities of Credit Broking, Debt Adjusting, Debt Counselling and Providing Credit Information Services. The FCA wants to improve the information collected from firms to better understand their consumer credit activities and proactively supervise them. It will be sharing a prototype of the return with firms in scope, the link for which will be emailed directly to them before the end of September. Thistle Initiatives can assist consumer credit firms by advising them on the completion of their returns; reviewing firms’ returns prior to submission; and advising firms on the FCA’s intentions to replace further returns for firms undertaking other consumer credit activities; the FCA will gradually replace all existing consumer credit reporting returns – for more information, get in touch.

11 September 2024: Firms encouraged to explore new approaches to increase pension engagement. Read more.

The FCA has published new research it has conducted on how firms can improve communications with clients to allow them to make more informed decisions about their retirement savings. The research focused specifically on the outreach methods conducted by firms, and the engagement of clients based on different strategies such as behavioral messages and invitations to free financial guidance. The FCA are hoping that by innovating their communication techniques, firms can increase consumer engagement with their pensions. Thistle Initiatives can help your firm to review its client communications, to ensure that they are conducted in a compliant manner whilst maximizing client engagement – for more information, get in touch.

9 September 2024: FCA sets out temporary measures for firms on ‘naming and marketing’ sustainability rules. Read more.

The Sustainability Disclosure Requirements (SDR) and investment labels regime (PS23/16) were published on 28 November 2023. Firms should now be taking all reasonable steps to ensure compliance with the ‘naming and marketing’ and disclosure rules, which will come into force from 2 December 2024. The FCA is now offering, in certain exceptional circumstances, limited temporary flexibility, until 5pm on 2 April 2025, for firms to comply with the ‘naming and marketing’ rules in ESG 4.3.2R to ESG 4.3.8R of the ESG sourcebook in relation to a sustainability product which is a UK authorised investment fund. Thistle Initiatives can assist firms by advising on the availability of this temporary flexibility and the application of the naming and marketing rules generally – for more information, get in touch.

6 September 2024: Oversight of ARs improving but more to do, says FCA. Read more.

The FCA has set out good practice and areas for improvement to help principal firms effectively monitor their Appointed Representatives (ARs). The findings follow a review of how principals are meeting its enhanced AR rules, introduced in December 2022. The analysis involved a telephone survey with 251 principals and in-depth assessments of documentation from 23 firms. The FCA found that some firms were taking a tick-box approach to complying with its rules in this area, relying on basic information such as website checks, or using self-declarations from their ARs, to demonstrate effective oversight.

Thistle Initiatives can assist principal firms by advising on how to monitor ARs effectively; advising on complying with the Consumer Duty in ARs’ operations; reviewing compliance monitoring plans for ARs; and reviewing annual self-assessment documents – for more information, get in touch.

August 2024

28 August 2024: FCA announces work into pure protection market. Read more.

The FCA intends to launch a market study into how pure protection insurance products are sold in view of concerns that competition is not working well in the market. The study will be launched later in 2024/25. The FCA has concerns that the design of commission arrangements may not allow firms to deliver good outcomes to policyholders and that some products may be providing poor value.
This is linked to the FCA’s Thematic Review findings published last week (TR24/2), as well as Consumer Duty and the work the Regulator is conducting there. The FCA will focus primarily on the sale of four specific types of products – term assurance, critical illness cover, income protection insurance and whole of life insurance.

Thistle Initiatives can assist firms by reviewing the commission arrangements that your firm has for pure protection products; reviewing your assessments of value for these products; assessing your degree of Consumer Duty compliance in this area – for more information, get in touch.

15 August 2024: FCA censures auditor for failings in client asset reports. Read more.

The FCA has censured auditor Macintyre Hudson LLP (MHA) for failing to prepare client assets reports to the required standard. MHA failed to notify the FCA of rule breaches by two firms it had audited, which could have put customers’ money at risk. This is the first time that an audit firm has been censured in this way. Thistle Initiatives can assist CASS firms by reviewing their auditors’ CASS reports to ensure completeness and accuracy; and by carrying out or advising on firms’ due diligence reviews of their CASS auditors – for more information, get in touch.

14 August 2024: FCA fines FXTB for unfair customer treatment practices. Read more.

The FCA has fined Cypriot contracts for differences (CFD) firm Forex TB Limited (FXTB) £276,100 for failing to treat its customers fairly and for providing investment advice without being authorised to do so. FXTB pressured its customers to put their money at risk through CFD trading, even encouraging them to borrow money from friends or family in some cases. Compounding these failings, the firm frequently provided its customers with investment advice, despite not being authorised to do so. Thistle Initiatives can assist CFD firms by reviewing their Consumer Duty arrangements and firms’ adherence to their available permissions – for more information, get in touch.

14 August 2024: FCA fines and bans Martin Sarl for dishonest and reckless conduct. Read more.

The FCA has banned Martin Sarl from working in the industry and fined him £5,021. Between November 2017 and October 2019, Mr Sarl, the sole director at Perry Prowse (Insurance Consultants) Ltd, failed to pass clients’ premiums to insurers, meaning that some customers were left uninsured. The FCA's investigation uncovered that Mr Sarl had used money from the firm’s client account to pay his personal debt, and that of the firm, which is not allowed under the FCA’s CASS 5 Client Money rules
Thistle Initiatives can assist insurance firms by reviewing their CASS 5 client money controls and anti-fraud controls – for more information, get in touch.

8 August 2024: FCA progresses framework to drive long-term value for workplace pension savers. Read more.

The FCA, DWP and TPR are implementing a joint framework for workplace defined contribution schemes to provide greater transparency over how schemes are performing. The framework intends to publicly RAG rate firms based on a scheme’s costs and charges, investment performance, and service quality. Schemes performing badly could be expected to transfer clients to other schemes. The framework is being consulted upon in CP24/16, with feedback due by 17 October 2024. Thistle Initiatives can help firms put in place effective systems and controls ahead of any changes that come from the consultation – for more information, get in touch.

July 2024

30 July 2024: Update on motor finance work. Read more.

The FCA are proposing to extend the current pause to the time firms have to respond to consumers about motor finance complaints. Under the FCA proposals, firms will not have to issue a final response to DCA complaints until after 4 December 2025 at the earliest. Thistle Initiatives can assist firms in response to the motor finance complaints by: Reviewing complaints handling processes in relation to past commission payments; Advising on dealing with Financial Ombudsman Service cases; and Advising firms involved in the FCA’s review of historic motor finance commission arrangements and sales – for more information, get in touch.

29 July 2024: Review of FCA requirements following the introduction of the Consumer Duty. Read more.

The FCA is seeking views on whether, where and how it can refine its retail conduct rules while continuing to support and protect consumers. Views on possible amendments to the Consumer Duty are not being sought. The FCA is inviting industry comments on issues including: which rules or guidance could be simplified to allow reliance on high-level rules, or have interactions with other rules which could be clarified; how any steps to simplify rules and guidance affect the FCA’s statutory objectives; the appropriate balance between high-level and more detailed rules; and the potential benefits and costs from simplification.

Thistle Initiatives can assist firms by updating them on any developments on the FCA’s review of its retail conduct rules and reviewing retail conduct compliance monitoring to ensure that it is accurately focused – for more information, get in touch.

29 July 2024: DP24/1: Regulation of commercial and bespoke insurance business. Read more.

The FCA is seeking firms’ views on whether its rules appropriately balance customer protection and competitiveness. It wants to ensure that customers in the commercial insurance market are protected appropriately, while also not placing unnecessary regulatory costs on firms or affecting market innovation. The FCA is considering whether there are changes which can be made to better achieve this balance. Thistle Initiatives has supported insurance firms for over 10 years as a trusted compliance and regulatory adviser – for more information, get in touch.

26 July 2024: FCA sets out rules and proposals to build up UK wholesale markets. Read more.

The FCA has provided measures which it believes will help strengthen and increase interest in the UK’s capital markets. One key new measure is the proposition to replace the existing UK Prospectus Regulation with the new Public Offers and Admissions to Trading Regime (POATRs), which provides more leniency to companies on when they must issue prospectuses (reducing the costs to companies associated with further capital raises). The FCA have also announced new rules for Asset Managers regarding how they pay for investment research. Thistle Initiatives can assist with the drafting of prospectuses, investment research frameworks, and further understanding of what the regulator expects of your firm – for more information, get in touch.

11 July 2024: FCA overhauls listing rules to boost growth and innovation on UK stock markets. Read more.

Sectors

Insights

Services

About

Contact

FAQs

Legal

Follow us