FCA Customer Investments Data Review

Alongside the release of its Customer Investments Data Review on January 18 2021, the Financial Conduct Authority also issued data on its interventions in the defined benefit (final salary) pension transfer market. The common theme of both reports is the prevention of consumer harm and the FCA says that the pension transfer market is “particularly susceptible to consumer harm.”


See Scott Robert’s regulatory roundup for the latter half of January

  1. CMC proposed Fee Cap Consultation CP21/1 paper: The FCA has released a consultation paper which proposes fee caps on claims management companies (CMC) who assist consumers whose claims fall within a statutory redress scheme (such as the Financial Ombudsman Service, Financial Services Compensation Scheme and Pension Ombudsman). Broadly, this means any CMC specialising in financial mis-selling (with the exception of PPI and Plevin) claims will have maximum fee caps to adhere to. The fee cap amount is dependent on the amount of compensation the complainant is awarded. For example, if a complainant is compensated between £1 to £1499 the CMC firm can only collect a maximum of 30% as a service fee, whereas, if a complainant receives more than £50,000 the service fee cap is at 15% to the limit of a maximum of £10,000. The FCA have sorted the fee caps into 5 redress bands which can be viewed within their consultation paper here. In addition, the FCA proposes further rule changes for CMCs, one notable change is CMCOB 4.2.2 R where firms must seek confirmation (rather than state as a disclosure) from complainants they do not wish to progress the claim individually themselves with the relevant redress scheme. The FCA is asking for responses to the consultation, then link can be found here Restricting CMC charges for financial products and services claims with the consultation period lasting until the 21st of April 2021.

FCA highlights the other actions it took during 2020, when it fined only 10 firms

In 2020, the Financial Conduct Authority fined only 10 firms, which was the lowest number of monetary penalties imposed since the organisation’s foundation. However, the FCA was keen to highlight the other action it has taken against firms when it recently published the Customer Investments Data Review. The information in the Review was taken from the first ten months of last year.


Scott Robert Newsletter

Happy New Year from Scott Robert Compliance Limited! We have identified the following information for our first newsletter of 2021. The news we will circulate will primarily be on relevant and interesting regulatory updates for FCA regulated firms.

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