Round Up Spring 2019

regulatory matters

The SM&CR is to be extended to all FCA authorised firms from 9 December 2019. It will affect all threesixty clients. Most of the detail of the implementation has already been confirmed in previous policy statements and guidance documents issued by the FCA, but a new consultation: CP19/4 - Optimising the SM&CR, proposes minor changes to some of the provisions in the previous policy statements. The issues most likely to affect threesixty clients are: • Clarification as to the scope of the client dealing function in the certification regime, to exclude administrative staff who may be involved in processes to place deals or transmit orders in investments. • A requirement for certain firms who fall within the enhanced regime definition to notify the FCA prior to the implementation of the regime and on an annual basis. The consultation closes on 23 April and a policy statement is expected in the third quarter of 2019. Further details are available on the threesixty website within the Regulatory developments / Consultations section of our website. Senior Managers and Certification Regime - Minor changes proposed The FCA is increasing the current FOS award limit to: • £350K for complaints concerning acts or omissions by firms which take place on or after 1 April 2019. • £160K for complaints concerning acts of omissions by firms which take place before 1 April 2019 and which are referred to the FOS on or after 1 April 2019. It also confirmed: • From 1 April 2019 onwards, both of the above award limits will be automatically adjusted each year in line with inflation, using the Consumer Prices Index for the preceding January. • The award limit of £150K will continue to apply to any complaint referred to the FOS before 1 April 2019. What does this mean for you? Before these new requirements come into force on 1 April 2019, you should: • Update any consumer facing information about complaint handling procedures. • Refer to the most recent version of the ombudsman service’s standard explanatory leaflet. • Ensure your staff are made aware of the increased limits. FCA confirms increase to FOS award limit

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