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This week’s featured highlights include the FCA’s dismissal of complaints regarding the handling of the British Steel scandal, as well as Tenet’s appointment of a new CEO to succeed Helen Ball. Read more below:
FCA dismisses complaints over handling of British Steel scandal
After a year-long investigation, the Financial Conduct Authority (FCA) has addressed complaints regarding its handling of the British Steel Pension Scheme (BSPS) scandal. The FCA stated it has not upheld the complaints following careful consideration of the issues raised.
These complaints were lodged by BSPS members, alleging the FCA’s failure to sufficiently safeguard them from “unscrupulous financial advisers” and the delays in providing redress.
Tenet appoints new CEO to replace Helen Ball
After 13 years with the company, Helen Ball, CEO of Tenet Group, will be stepping down from her position. Stephen Vickers, the current group’s programme director, will succeed her.
Tenet has stated that Ball and the Board mutually agreed that it’s the appropriate time for her to step down, particularly in light of the sale of its wealth and investment network to The Openwork Partnership and its mortgage and protection advisory network to LSL Property Services.
FCA extends SDR rules to portfolio managers
The FCA has revealed plans to expand its Sustainability Disclosure Requirements (SDR) rules to include portfolio managers. This move aims to safeguard consumers by ensuring accurate descriptions of sustainable products and services they are offered.
The extension will cover model portfolios, customised portfolios and/or bespoke portfolio management services.
FCA names Big Tech as ‘priority’ and looks to incentivise data sharing
The FCA sees Big Tech as a “priority” and plans to promote data sharing with financial firms through Open Banking and wider Open Finance efforts. Nikhil Rathi, FCA’s CEO and DRCF chair, announced this at a recent event.
Currently, Big Tech can access financial data via Open Banking, but isn’t obliged to share its own data.
Loyal North completes acquisition of Surrey-based IFA
Loyal North has finalised the acquisition of Surrey-based independent financial adviser firm Whitman Fry Wealth Management, boosting the group with £60m in client funds. Whitman Fry will integrate into Loyal North’s regional hub, Gerald Pepper Financial Management (GPFM), located in Hertford.
As part of the deal, Whitman Fry shareholder and adviser Alison Fry will transition to GPFM as a senior financial planner.
Schroders Group CEO Peter Harrison to stand down
Schroders Group CEO Peter Harrison has announced his retirement effective next year. Harrison, who joined Schroders in March 2013, assumed the position of Group CEO in April 2016.
Before his current role, he served as the global head of investment. Prior to joining Schroders, Harrison held the positions of chairman and CEO at investment boutique RWC Partners.
FCA revokes British Steel advice firm’s authorisation
The Financial Conduct Authority (FCA) has revoked the authorisation of British Steel advice firm KBFS Financial Limited. This decision follows the firm’s failure to engage with the regulator in an open and cooperative manner.
Additionally, KBFS Financial Limited did not fulfill its obligation to pay redress awarded to former members of the British Steel Pension Scheme (BSPS) by the Financial Ombudsman Service (FOS). As a result, the firm is no longer permitted to provide any financial services.
Calls for urgent reform of LoA process after report reveals wasted cost
A recent report suggests that £442 million is lost annually due to inefficient Letters of Authority (LoA) processes. The #LogYourLoAPain Campaign uncovered that a total of 3.9 million LoAs are dispatched yearly, averaging 6.5 per financial adviser. Among these, 10% necessitate wet signatures.
The findings from the white paper, released by The Pension Lab, indicate that the LoA procedure consumes an average of 130 minutes per processing, amounting to an estimated cost of £111 each.
Why your firm’s approach to staff benefits could be all wrong
Amanda Newman Smith explores the significance of tailored employee benefits in retaining staff. She emphasises the need for benefits that resonate with employees’ needs and are effectively communicated.
Smith discusses the potential waste of benefits, challenges in encouraging annual leave uptake and the importance of financial wellbeing initiatives. She suggests that, while offering benefits is essential, ensuring their utilisation and relevance to employees is equally crucial.
ARC: Lies, damned lies and performance statistics
Graham Harrison examines the pervasive claim of top-quartile performance among investment managers. Through analysis of data from the ARC PCI Sterling Steady Growth risk category, Harrison reveals that while only 25% of managers consistently achieve top-quartile status, 42% can claim this performance over at least one period.
Further investigation into portfolio dispersion and risk equivalence uncovers potential discrepancies in reported performance. Harrison advises caution when interpreting performance data and provides key questions to ensure accurate context.
