TECHNICAL TALK

DOWNLOAD THE HORIZON SCANNER

Kris Armstrong , Compliance Policy Manager , SimplyBiz

The FCA used the last few weeks of 2023 to put foundations in place for 2024 with a number of updates and announcements , so we ’ ve updated our Regulatory Horizon scanner – available at our member and client websites ( see below ) - accordingly . The initiatives should not blindside as we have been discussing with firms how the regulator is focused on outcomes .

The thematic retirement income advice review , where many firms were asked to provide data for their retirement income model and which will assess the quality of outcomes and how advisers determine and communicate sustainable income levels to their clients , was postponed until the start of 2024 . We have subsequently adjusted the regulatory timeline to reflect this , the first step for the FCA in 2024 will be issuing their findings . Firms should definitely be looking for the communication when delivered .

Adjacent to the retirement income review sits the advice guidance boundary review , with the discussion paper DP23 / 5 , issued late 2023 , outlining proposals for closing the advice gap . The aim again is to address the challenges faced by consumers in accessing suitable financial advice and guidance . Again , this will be a piece by the FCA that could form the framework of financial advice going forward .

Mid-year the focus of many firms will be the first annual review of the Consumer Duty . This is an area where firms need to make sure and be able to show the FCA they ’ re delivering good consumer outcomes . This will include data and monitoring , and internal assessments . Firms should be going back and checking they ’ ve made the changes they set out to make and preparing for the first annual consumer duty review . SimplyBiz of course will be on hand to support .

The end of 2024 should see the report on treatment of vulnerable customers . With the recent FCA Consumer Duty : The Next Steps webinar having a focus on those with vulnerabilities it would be expected there will be a review of how firms deal with vulnerable customers being issued late November .

As you can see from the opposite comparison snapshot of how 2024 looked on the scanner back in November and how it looks today , quite a lot has changed . Many of the additions will not come as a surprise and have been on our and firm ’ s radars for a while , the most important thing is that we believe that with our support , firms will be prepared to implement any initiatives .

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