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"THE FCA's DUTY OF CARE DISCUSSION PAPER"
If you haven't been to a Transparency Symposium before you can use the link below to read some testimonials:
When and where is the event?
What has inspired this symposium?
The Financial Conduct Authority has a single strategic objective which is to ensure that relevant markets function well. It also has 3 operational objectives, one of which is securing appropriate protection for consumers.
The FCA has issued Discussion Document 18/5 on a duty of care and potential alternative approaches. The context is that some stakeholders have voiced concerns that the FCA’s regulatory framework, including their Principles, may not be sufficient or being applied effectively to protect consumers.
Some stakeholders have said that the introduction of a duty of care could reduce harm by requiring firms to avoid conflicts of interest, as well as supporting longer-term cultural change within firms.
Other stakeholders have suggested that existing FCA rules already provide sufficient protections for consumers and impose the same requirements on firms that a duty of care would.
Given these differing views and the strength of the concerns expressed, the FCA see it as important that there is an open discussion and debate about the potential merits of a duty of care; and to ensure they understand the consequences of any changes made.
The FCA have a responsibility to consider, and be open to, alternative approaches that might address stakeholders’ concerns. They use the term ‘New Duty’ in the Discussion Paper to encompass a duty of care and alternative approaches.
The purpose of the FCA’s Discussion Paper has been to:
The overall purpose of this symposium is to create an opportunity for all stakeholders to be able to converse with senior FCA executives directly involved with the Discussion Paper.
We hope to shine a very bright light onto the potential for profound progress to be made in financial regulation as a direct consequence of the FCA's New Duty Discussion Paper.
There will be a presentation by the FCA, talks by highly interested stakeholders, a panel session and ample scope for all delegates to participate in the discussion and debate.
It is the view of the Transparency Task Force that this FCA initiative has the potential to initiate widespread positive reform of financial regulation in the UK; and if a new approach was successful in better protecting consumers here in the UK from harm, it could go on to influence other regulators around the world to move in a similar direction.
Here’s an overview of the Transparency Task Force’s formal written response to the Discussion Paper:
Our current regulatory framework does not provide adequate protection for consumers because current regulation has not yet delivered the change required.
The extent and longstanding nature of consumer detriment indicates that cultural change is required within firms and the market as a whole. The existing Principles do not remove conflicts of interest and do little to deter firms from mis-selling products and services.
Furthermore, once poor conduct is found, consumers have to face a lengthy battle to obtain redress. If firms had a legal duty of care to customers, it would help achieve better outcomes in the first instance.
There has been persistent widespread malpractice in financial services for many decades; the Global Financial Crisis has been the most extreme manifestation of that malpractice. Given the severity of the consequences of malpractice we wish the Regulator(s) to have as much power as necessary to ensure malpractice is minimised moving forward.
Given that the FCA has a responsibility to consider and be open to alternative approaches that might address stakeholders’ concerns we believe the FCA should now move forward with introducing a New Duty and we propose that the New Duty should be a Fiduciary Duty as that would provide the consumer with the greatest protection from a sector that has been predisposed to malpractice and a profit before principle mindset for decades.
Where firms have an institutional structure that encourages rent-seeking and there is weak buyer power, abuse will continuously reoccur in new forms as markets innovate. We believe there is ample evidence suggesting that the pursuit of a micro rules-based approach is always likely to leave the FCA one step behind the problem. The term “regulatory whack-a-mole” comes to mind.
In contrast, a principles-based approach has the potential to change the way the sector operates systemically.
We therefore want the FCA to introduce an over-arching principle that mandates for the behaviour we want the market to default to i.e. to care for its customers’ interests.
We believe that the best way for this over-arching principle to be deployed should be through a New Duty.
We believe a Fiduciary Duty would be the best iteration of that New Duty as it would be the most potent protector of the consumer’s interests due to its weight in law.
The introduction of a Fiduciary Duty would enable the FCA to confidently enforce its pro-consumer objectives.
The successful introduction and application of a Fiduciary Duty could enable the FCA to drive a paradigm shift in financial regulation around the world.
The event is going to be a great opportunity to hear the views of the FCA and others; as well as to have the chance to get your thoughts across to.
There are going to be many important questions and talking points such as:
More specifically, could a New Duty:
Clearly, there is going to be a great deal to discuss!
What's the programme?
What's the format going to be?
To provide the maximum opportunity for all delegates to get fully involved we have structured the event around presentations with Q&A which will help create a useful forum for sharing thought leadership and exploring ideas to help improve the way we think about regulation moving forward.
There will be a presentation by the FCA, talks by highly interested stakeholders and ample scope for all delegates to participate in the discussion and debate.
Who shouldn't miss this symposium?
This symposium is going to bravely attempt to deal with questions of immense importance to everybody interested in the costs and charges debate. We're expecting it to be a very stimulating, engaging and thought-provoking session of very special importance to
Consumer groups and individual consumers
Policy-makers and regulatory bodies
Asset Managers and Investment Consultants
Members of the Financial Conduct Authority
Members of the Competition & Markets Authority
Members of the Work and Pensions Committee
Financial Services Trade Bodies and Professional Associations
Key participants thus far
(Several others being added soon)
Head of Consumer Strategy & Policy,
Financial Conduct Authority.
Sarah’s responsibilities include ensuring the FCA has a good understanding of consumers in financial services - their needs, behaviours and the harm they may face - and supporting the wider FCA in fulfilling its consumer protection objective.
Sarah has over 15 years’ regulatory experience across various disciplines including supervision, projects, policy and market-focused work in retail and wholesale competition.
Sarah’s work has had a consistent focus on identifying harm and delivering significantly better outcomes for consumers. Recent priorities have included implementing remedies to tackle the issues identified in the asset management market study and a period leading the FCA’s flagship Innovate team which aims to encourage beneficial innovation in financial services.
Sarah started her career at Lloyds TSB, firstly as a graduate trainee before moving into management roles.
Head of Industry Liaison,
The Pensions Regulator
Neil and his team are responsible for engaging with employers, pension providers, payroll providers and other suppliers of pension related products, services and advice. Our aim is to help them fully understand the rules around workplace pensions, including their own or their client’s duty to automatically enrol eligible workers into a pension scheme - and the duties of pension scheme managers / trustees, in both public and private sector.
Neil has over 30 years’ experience in dealing with large companies in the private and public sectors.
Neil has previously worked as a client director for BT and Siemens, and as a management consultant for PriceWaterhouseCoopers.
Neil has a technology background in computer software engineering, gained after graduating from Exeter University with a Maths & Physics BSc.
Iain Pickard co-founded Strategia Worldwide in 2016. Iain is a former COO of Marsh’s UK domestic business, COO of a leading Lloyds of London broker, Change Director for AON’s wholesale/specialty division, Operations Director of Aspen Re, Head of Financial Services at RSM – the global advisory firm – and a UK Financial Conduct Authority authorised ‘Skilled Person’ for Risk and Governance.
He has advised a wide variety of FS firms on managing regulatory risk and, latterly, was COO/CRO of a London based Fintech firm.
Iain focuses on all aspects of the operations of Strategia Worldwide enabling its strategic growth and also managing complex projects and service delivery for our clients. He fuses 20 years of military experience of campaign planning with relevant financial, insurance and commercial risk management experience.
Head of Pensions Policy,
B and CE, Provider of The People's Pension
Tim Gosling is head of pensions policy at B and CE, provider of The People’s Pension.
Tim has spent much of the last decade working on pension policy, with a particular focus on automatic enrolment. Before joining B and CE Tim was the policy lead for DC pensions at the Pensions and Lifetime Savings Association.
Prior to that Tim worked in the strategy team at NEST Corporation and as a researcher at the Personal Accounts Delivery Authority.
Tim began his career in policy analysis at the Institute for Public Policy Research looking at pension policy and public service reform. He has degrees from the University of York and the London School of Economics.
David is a Lead on the Market Integrity Team (MIT) of the Transparency Taskforce. He has project managed the MIT’s 18 month project on Codes of Conduct & Codes of Ethics in Financial Services which has resulted in their White Paper released in July 2018.
With a background in pensions & benefits David spent over twenty years with Marsh and Mercer managing the SW region of Mercer Employee Benefits, and latterly in a proposition development and project & change management role.
Since 2011 David has worked with leading banks, insurance companies and national IFA firms developing propositions that have focused on aspects of governance and bringing change to the delivery of financial services. Projects managed have included developing and bringing to market a new workplace pension offering for SME clients of Mercer; building a product governance framework for a leading insurance company; defining an Operational Risk Management model for a national IFA firm; developing a governance proposition for Auto Enrolment clients of Barclays Corporate & Employer Solutions; developing a DB to DC proposition for a leading IFA firm; and developing a benefit package to sit alongside Auto Enrolment.
David also acted as Co-Chair of the Friends of Auto Enrolment Governance Task Force, playing a large part in the drafting of their Guide to AE.
Managing Director and Co-Owner,
ARC Benefits Ltd
ARC Benefits is a UK- based firm providing independent pensions management and governance services. ARC have developed a leading edge pensions management and governance system for workplace pensions.
Dr. Kara Tan Bhala,
President and Founder,
Seven Pillars Institute for Global Finance and Ethics
Dr. Kara Tan Bhala is President and founder of Seven Pillars Institute for Global Finance and Ethics, the world’s only independent think tank for research, education, and promotion of financial ethics. The Institute was shortlisted in the Prospect Think Tank Awards 2016.
Kara has over twenty-three years in global finance and is lead author of International Investment Management: Theory, Ethics and Practice, one of the first books to provide a comprehensive understanding of investment principles, synthesize three theories of finance, and apply ethics in financial practice focusing on Asian cases. She was named by Ingram's as one of the "50 Kansans You Should Know".
Kara has five degrees across three disciplines and has lived in London, Oxford, Singapore, Hong Kong, New York, and Washington, D.C.
Association of Professional Fund Investors,
JB is a veteran fund selector and strategist. He is a Fund Gatekeeper for Scottish Widows, a large UK insurer and pension provider.
He is a recognised thought leader in the fields of fund analysis, research and governance and author of the controversial book ‘#NEWFUNDORDER’. JB is a columnist, lecturer and global presenter on a variety of fund management and digitalisation topics.
The Association of Professional Fund Investors (APFI) is dedicated to the pursuit of professionalism in fund investing. In addition to his role at the APFI, JB's senior portfolio includes: consulting CIO, Chartered Member, Author and Senior Reviewer for the Chartered Institute for Securities and Investments, and member of the Z/Yen Long Finance think-tank.
JB is a member of several Transparency Task Force Teams, most recently Team PISCES.
Bob is an avid pension member champion with over 35 years’ experience in operations and management of corporate pensions for DB and DC and wider protections and investment operations across Financial Services.
With a grasp of IT processes, he has initiated improvements and innovative solutions. He has been at the forefront of major innovations in the financial services sector, covering real-time point of sale transactions, latest payroll to pension API, RTI and design of auto enrolment administration through the creation of a Master Trust. He brings together the knowledge of a qualified IFA, Project management, Trusteeship and IT end user engagement to enhance the standards and member experience.
Through his participation of the Friends of Auto Enrolment and Pension Playpen, plus a recent contract with the FCA on IGC and GAA governance, Bob strives to improve member outcomes affected by scams and tax relief inequalities and encourages trustees and scheme managers to seek better solutions.
Andy Agathangelou FRSA,
Transparency Task Force
Andy will be Chairing the Symposium. His overall objective is to galvanise support for the idea that greater transparency in financial services can drive positive, transformational change for the benefit of all.
Andy formed the Transparency Task Force following a meeting he led at Senate House, University of London on 6th May 2015. The meeting was the about the trust deficit that is impacting financial services and how harnessing the transformational power of transparency can drive the change that is needed.
That meeting set off a chain of events that led directly to the creation of our collaborative, campaigning community which is built on the idea that 'Sunlight is the Best Disinfectant'.
Since 6th May 2015 he has recruited, organised and mobilised over 300 volunteers around the world into 13 Teams:
- The Banking Team
- The Foreign Exchange Team
- The Market Integrity Team
- The Costs & Charges Team
- The Scams & Scandals Team
- Team PAM (Progressive Asset Managers)
- Team PISCES (Purpose; Impact Investing; Sustainability; Corporate Social Responsibility; Environment, Social & Governance; Socially-Responsible Investing)
- The Financial Stability Team
- Team APAC
- Team EMEA
- Team Americas
- Team GTI (Global Transparency Index)
- The AE Team
Our 13 Teams are the 'engine room' of the Transparency Task Force's work. Each Team is focused on a particular set of opacity-related challenges whereby subject-matter experts work together on a completely voluntary basis to develop and implement strategies to overcome those challenges.
Andy is also:
Please click on the PDF icon below to download the slides that were used at the event.