FCA Announces that IFAs are to Disclose Esoteric Investment Recommendations


The FCA has recently announced that IFAs are to disclose more risky investment strategies which they have recommended to their clients

The FCA’s reforms follows its review of the Financial Services Compensation Scheme (FSCS); from 2013-2016 around a third of FSCS claims were linked to the sale of esoteric investment plans by Advisers.

During the consultation The FCA did not address the proposal that Advisers selling higher-risk products were to pay more towards the money pooled in the Scheme.

However, The FCA has agreed to such reforms as adding a new section to their online reporting system, GABRIEL, for calculating risky future levies. This will come into force on 1 April 2018. Other confirmed reforms include ordering Llyod’s of London to contribute to the funding that comes from retail firms.

A full list of the reforms will be accessible when The FCA publishes its papers….

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Pensions uncertainty

Almost half of business owners without a workplace pension scheme are still unclear about their responsibilities, with a quarter not confident their business can cope. and FSB pole has found…


The proportion of small firms that say they would recommend their bank to others – up from 23% in 2014.


The amount owed by British small firms in late payment according to insurance firm Zurich.

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The Week in Numbers – 13th Oct

The Week in Numbers – 13th Oct 2015Website Photos 059

6 – Number of former brokers standing trial at Southwark Crown Court facing charges of Libor rigging

80% – Proportion of cash lump-sum withdrawals since pension freedoms made by savers under 65, according to the ABI

£35K – Funds pledged by the CISI to promote financial planning following its merger with the IFP

£3.5m – Cash injection secured by adviser reviews website VouchedFor. The fundra
ising was led by Octopus Investments and supported by private equity group Samos Investments

£296m – Positive inflows achieved by Standard Life Investments’ Global Absolute Return Strategies OEIC in August

1,340 – Whistleblowing disclosures received by the FCA in 2014/15. The regulator this week unveiled details of a new whistleblowing regime to be introduced in September 2016

£2bn – Value of shares in Lloyds Banking Group the Treasury plans to offer to retail investors

Original Figures Published by MoneyMarketing Magazine 8th Oct 2015
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The Week in Numbers – 30th July

The Week in Numbers – 30th July

186 – Visits made to Barclays by the FCA during 2014, according to a Freedom of Information request – the most of any British bankblue news

145% – Jump in compensation paid relating to investment advisers in 2014/15, totalling £183m, according to the FSCS annual report

£20bn – Savings Chancellor George Osborne is demanding of Government departments over the life of the new parliament

2020 – Date to which the long term care cap has been pushed back. It was meant to be in place by April 2016

6 Months – Length of outgoing FCA chief executive Martin Wheatley’s gardening leave

2 – Number of auto-enrolment providers on The Pensions Regulator’s list of schemes that will accept any employer and meet governance standards

£8,100 – The drawdown charges someone with a £50,000 pot will pay over a decade with The Share Centre according to Which?

104,950 – Number of residential property transactions in June, marking a 16-month high


Figures originally published in Money Marketing Magazine, 23rd July 2015
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Snap Shot Headlines 7th May

Snap Shot News Headlines

“Advisers seek end to ‘galling’ FSCS levy hikes”blue news

The Financial Services Compensation Scheme has announced a shock increase to the levy required of Pensions Advisers. Originally expected to be £57m, it has now risen to £100m. The Life and Pensions advisers have attacked these increase charges amid concerns that firms could be forced out of business.

A further concern is that the increase hike designed to protect consumers if the firms were to fail, could mean an increased cost will be passed onto consumers in the future.

The FSCS cited complaints against the advisers over pension transfers as the main cause for the rise in the levy and it is charged for all firms with permissions to act as life and pensions intermediaries.

“Basi & Basi Financial Planning managing director Michale Basi adds: ‘There is something fundamentally wrong with the way the system works and it’s unreasonable to keep disrupting a market economy by introducing bills from a body that has little or no accountability”


“St James’s Place sales leap 13% on back of Pension Freedoms”

“Wealth management giant St James’s Place saw sales rocket 13% in the first three months of the year, from £205.4m to £232.2m as funds under management hit £55.8bn.

New Investment business surged from £132.7m to £140.8m during the period, while pension sales were up 26% from £72.2m to £90.0m.”


“IFS Slams Tory and Labour tax relief proposals”

This year, both Tory and Labour have pledged to limit pension contribution ceilings.

The Tories:

  • plan to gradually decrease annual allowances for people earning more than £150,000
  • Those earning £210,000, would have capped annual contributions at just £10,000


  • Plans to restrict tax relief for top rate taxpayers down to the basic taxpayer rate
  • The relief reducing from £150,000, tapering down to £180,000 where the relief would be 20%

“But the Institute for Fiscal Studies calls the plans ‘misguided’ offering Labour the most criticism: ‘If Labour’s reforms are implemented, then – like many reforms to pensions taxation by the fovernment and those proposed by the Conservatives and the Liberal Democrats – tney would add further undesirable complexity and be a missed opportunity to rationalise parts of the pensions tax system that are overly generous.’”



Original articles by Tom Selby and Mark Sands, originally published in Money Marketing Magazine 30th April 2015

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The Week in Numbers

The Week in Numbers

open notebook

12% – Drop in mortgage lending reported by Santander in its Q1 results

0.3% – GDP growth in the UK in Q1 2015, according to the ONS

£100m – FSCS levy for life and pensions advisers in 2015/16, up from £24m in 2014/15

£80m – value of 40% stake in a property joint venture sold by Henderson to TIAA-CREF

£85m – Estimated market capitalisation of SIPP provider Curtise Banks, which plains an AIM flotation next month

£55.8bn – funds under management held by St. James’s Place at the end of Q1

£227m – FCA fine for Deutsche Bank for rigging Libor. The Conservatives say they will use the money to create 50,000 apprenticeships

66% of Money Marketing Readers do not see the value in Adviser Trade bodies.


Figures originally published in Money Marketing Magazine, 30th April 2015

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