Consumer Duty Archives - Complyportal https://complyportal.uk/category/consumer-duty/ Fri, 02 May 2025 07:33:29 +0000 en-GB hourly 1 https://wordpress.org/?v=6.9.1 https://complyportal.uk/wp-content/uploads/2025/02/1cb60d6a-4d86-422b-ae02-1eb3f14631bc_b-100x100.png Consumer Duty Archives - Complyportal https://complyportal.uk/category/consumer-duty/ 32 32 Manage Compliance Workloads During Busy Periods https://complyportal.uk/manage-compliance-workloads-during-busy-periods/ Thu, 24 Apr 2025 12:34:18 +0000 https://complyportal.uk/?p=18824 How to manage compliance workloads during busy periods Compliance roles within financial services are critical for ensuring firms adhere to regulatory requirements, maintain ethical standards, and mitigate risks. However, managing workloads in these roles can be particularly challenging, especially during peak periods such as the end of the financial year in April. Mismanagement of these workloads can lead to inefficiencies, errors, and regulatory breaches, which can have significant consequences for firms. The Challenges of Compliance Workload Management Compliance officers are tasked with a wide range of responsibilities, including monitoring regulatory changes, conducting internal audits, reporting to regulators, and ensuring staff training on compliance matters as well as sharing updated policies. The complexity of these tasks is compounded by several factors: Regulatory Complexity and Volume: The financial services sector is heavily regulated, with ongoing updates to rules and guidelines from bodies such as the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Keeping up with these changes requires significant time and resources. Seasonal Peaks: The end of the financial year in April is a particularly challenging time. Firms must prepare annual reports, conduct audits, and ensure compliance with tax and financial reporting obligations. This period often coincides with deadlines for regulatory submissions, such as those related to operational resilience and liquidity risk management. Resource Constraints: Many compliance teams operate with limited resources, making it difficult to manage workloads effectively during peak periods. Human Error: Overburdened teams are more likely to make mistakes, which can lead to regulatory breaches and reputational damage. The Impact of Poor Workload Management When compliance workloads are not managed effectively, the consequences can be severe: Regulatory Breaches: Failure to meet regulatory deadlines or adhere to standards can result in fines and enforcement actions. Reputational Damage: Non-compliance can harm a firm’s reputation, leading to loss of client trust and business opportunities. Employee Burnout: Overworked compliance professionals are at risk of burnout, which can lead to high staff turnover and loss of institutional knowledge. The Role of Digital Compliance Management Tools Digital tools like ComplyPortal can play a crucial role in addressing these challenges by automating and streamlining compliance processes. Here’s how: Centralised Compliance Management: ComplyPortal provides a single platform for managing all compliance activities, including policy updates, training, and reporting. This reduces the need for manual tracking and ensures all tasks are completed on time as all employees have access, managed by the compliance team. Regulatory Updates: The tool contains a template library for regulatory reporting expectations developed by our expert regulatory consultants to provide updates on changes to rules and guidelines. This ensures compliance teams are always informed and can act proactively. Task Automation: Routine tasks such as data collection, reporting, and monitoring can be scheduled and automated, freeing up time for compliance officers to focus on strategic activities and meaning that when busy periods do come around, a manageable schedule has been set and all tasks are completed on time with minimal stress. Enhanced Collaboration: ComplyPortal facilitates collaboration across teams by providing shared access to compliance documents and workflows. This is particularly useful during peak periods when multiple departments need to coordinate their efforts. Audit Trails and Reporting: The platform maintains detailed records of all compliance activities, making it easier to prepare for audits and demonstrate compliance to regulators, especially when required to provide information spanning over longer time periods. Case Study: Managing April Workloads with ComplyPortal Consider a mid-sized financial firm preparing for the end of the financial year. Without a digital tool, the compliance team would need to manually track regulatory deadlines, compile reports, and ensure all staff are trained on updated policies. This process is time-consuming and prone to errors, such as data being lost in spreadsheets and colleagues misreading emails. By implementing ComplyPortal, the firm can automate these tasks, ensuring all deadlines are met and reducing the risk of errors, with the information all in one place and employees being sent automated reminders. The platform’s regulatory template updates also help the team stay ahead of regulatory changes, while its collaboration features enable seamless coordination with other departments. Conclusion Effective workload management is essential for compliance teams to navigate the complexities of the financial services sector, particularly during peak periods like the end of the financial year. Digital tools such as ComplyPortal, offer a practical solution by automating tasks, providing regulatory updates, and enhancing collaboration. By leveraging such tools, firms can not only improve compliance efficiency, but also reduce risks, protect their reputation, and support the well-being of their compliance professionals. For more information on how ComplyPortal can transform your compliance processes, Book a Demo.

The post Manage Compliance Workloads During Busy Periods appeared first on Complyportal.

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How to manage compliance workloads during busy periods

Compliance roles within financial services are critical for ensuring firms adhere to regulatory requirements, maintain ethical standards, and mitigate risks. However, managing workloads in these roles can be particularly challenging, especially during peak periods such as the end of the financial year in April. Mismanagement of these workloads can lead to inefficiencies, errors, and regulatory breaches, which can have significant consequences for firms.

The Challenges of Compliance Workload Management

Compliance officers are tasked with a wide range of responsibilities, including monitoring regulatory changes, conducting internal audits, reporting to regulators, and ensuring staff training on compliance matters as well as sharing updated policies. The complexity of these tasks is compounded by several factors:

  1. Regulatory Complexity and Volume: The financial services sector is heavily regulated, with ongoing updates to rules and guidelines from bodies such as the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Keeping up with these changes requires significant time and resources.
  2. Seasonal Peaks: The end of the financial year in April is a particularly challenging time. Firms must prepare annual reports, conduct audits, and ensure compliance with tax and financial reporting obligations. This period often coincides with deadlines for regulatory submissions, such as those related to operational resilience and liquidity risk management.
  3. Resource Constraints: Many compliance teams operate with limited resources, making it difficult to manage workloads effectively during peak periods.
  4. Human Error: Overburdened teams are more likely to make mistakes, which can lead to regulatory breaches and reputational damage.

The Impact of Poor Workload Management

When compliance workloads are not managed effectively, the consequences can be severe:

  • Regulatory Breaches: Failure to meet regulatory deadlines or adhere to standards can result in fines and enforcement actions.
  • Reputational Damage: Non-compliance can harm a firm’s reputation, leading to loss of client trust and business opportunities.
  • Employee Burnout: Overworked compliance professionals are at risk of burnout, which can lead to high staff turnover and loss of institutional knowledge.

The Role of Digital Compliance Management Tools

Digital tools like ComplyPortal can play a crucial role in addressing these challenges by automating and streamlining compliance processes. Here’s how:

  1. Centralised Compliance Management:
    • ComplyPortal provides a single platform for managing all compliance activities, including policy updates, training, and reporting. This reduces the need for manual tracking and ensures all tasks are completed on time as all employees have access, managed by the compliance team.
  2. Regulatory Updates:
    • The tool contains a template library for regulatory reporting expectations developed by our expert regulatory consultants to provide updates on changes to rules and guidelines. This ensures compliance teams are always informed and can act proactively.
  3. Task Automation:
    • Routine tasks such as data collection, reporting, and monitoring can be scheduled and automated, freeing up time for compliance officers to focus on strategic activities and meaning that when busy periods do come around, a manageable schedule has been set and all tasks are completed on time with minimal stress.
  4. Enhanced Collaboration:
    • ComplyPortal facilitates collaboration across teams by providing shared access to compliance documents and workflows. This is particularly useful during peak periods when multiple departments need to coordinate their efforts.
  5. Audit Trails and Reporting:
    • The platform maintains detailed records of all compliance activities, making it easier to prepare for audits and demonstrate compliance to regulators, especially when required to provide information spanning over longer time periods.

Case Study: Managing April Workloads with ComplyPortal

Consider a mid-sized financial firm preparing for the end of the financial year. Without a digital tool, the compliance team would need to manually track regulatory deadlines, compile reports, and ensure all staff are trained on updated policies. This process is time-consuming and prone to errors, such as data being lost in spreadsheets and colleagues misreading emails.

By implementing ComplyPortal, the firm can automate these tasks, ensuring all deadlines are met and reducing the risk of errors, with the information all in one place and employees being sent automated reminders. The platform’s regulatory template updates also help the team stay ahead of regulatory changes, while its collaboration features enable seamless coordination with other departments.

Conclusion

Effective workload management is essential for compliance teams to navigate the complexities of the financial services sector, particularly during peak periods like the end of the financial year. Digital tools such as ComplyPortal, offer a practical solution by automating tasks, providing regulatory updates, and enhancing collaboration. By leveraging such tools, firms can not only improve compliance efficiency, but also reduce risks, protect their reputation, and support the well-being of their compliance professionals.

For more information on how ComplyPortal can transform your compliance processes, Book a Demo.

The post Manage Compliance Workloads During Busy Periods appeared first on Complyportal.

]]> Staying Ahead: How a Compliance Management System Can Facilitate FCA Compliance with the 2025 Consumer Duty Updates https://complyportal.uk/staying-ahead-how-a-compliance-management-system-can-facilitate-fca-compliance-with-the-2025-consumer-duty-updates-2/ Mon, 07 Apr 2025 09:10:28 +0000 https://complyportal.uk/?p=18802 Book a demo In the ever-evolving financial services landscape, the Financial Conduct Authority (FCA) continues to champion consumer protection through its regulatory framework. The 2025 updates to the Consumer Duty mark a pivotal shift, urging firms to place consumer outcomes at the forefront of their operations. As firms navigate these changes, integrating compliance into their core operations is a strategic imperative. Understanding the 2025 Consumer Duty Updates The FCA’s 2025 updates to the Consumer Duty emphasise a higher standard of care for consumers, focusing on delivering good outcomes across all aspects of financial services. Key areas include enhancing the understanding of price and value, addressing sector-specific priorities, and promoting sustainable finance. The updates also highlight the importance of supporting informed decision-making and catering to the needs of vulnerable customers. Why Prioritise Consumer Outcomes? Regulatory Compliance and Risk Mitigation: The FCA’s Consumer Duty requires firms to demonstrate that they are acting in the best interests of their customers. By prioritising consumer outcomes, firms can ensure compliance with regulatory expectations, reducing the risk of enforcement actions and penalties. This proactive approach to compliance also helps mitigate reputational risks associated with consumer harm. Building Consumer Trust and Loyalty: In an era where consumers are increasingly discerning, trust is a valuable currency. By focusing on delivering good outcomes, firms can build stronger relationships with their customers, fostering loyalty and long-term engagement. Satisfied customers are more likely to recommend a firm’s services, driving growth and competitive advantage. Enhancing Business Performance: Integrating compliance into core operations can lead to improved business performance. By aligning products and services with consumer needs, firms can enhance customer satisfaction and retention. This alignment also encourages innovation, as firms seek to develop offerings that meet evolving consumer expectations while adhering to regulatory standards. Supporting Vulnerable Customers: The 2025 updates place significant emphasis on addressing the needs of vulnerable customers. By prioritising consumer outcomes, firms can ensure that their products and services are accessible and fair to all customer segments. This not only fulfils regulatory obligations but also demonstrates a commitment to social responsibility and ethical business practices. Adapting to Market Changes: The financial services industry is characterised by rapid change, driven by technological advancements and shifting consumer preferences. By embedding compliance into their operations, firms can remain agile and responsive to market developments. This adaptability is crucial in maintaining relevance and competitiveness in a dynamic environment. Integrating Compliance into Core Operations To effectively prioritise consumer outcomes, firms must integrate compliance into their core operations. This involves: Embedding a Compliance Culture: Cultivating a culture of compliance across the organisation ensures that all employees understand the importance of consumer outcomes and their role in achieving them. This cultural shift requires leadership commitment, ongoing training, and effective systems and controls. Leveraging Technology and Data: Utilising technology and data analytics can enhance compliance efforts by ensuring all staff are completing expected duties in a timely manner as well as highlighting potential weaknesses in the current compliance program. This data-driven approach supports informed decision-making and continuous improvement. Strengthening Governance and Oversight: Robust governance structures are essential for monitoring compliance and ensuring accountability. Firms should establish clear roles and responsibilities, with this information readily available. Conclusion The FCA’s 2025 Consumer Duty updates present an opportunity for firms to redefine their approach to consumer protection. By prioritising consumer outcomes and integrating compliance into their core operations, firms can meet regulatory expectations and drive business success. In doing so, they contribute to a fairer, more transparent financial services industry that benefits consumers and firms alike.  Our Approach Embedding compliance into business operations is most effectively done through the utilisation of technology. A digital compliance platform connects compliance processes to all staff with ease, meaning timely reports and seamless internal communications. Here are just a few ways in which ComplyPortal can support your firm’s compliance journey: Centralised Documentation & Reporting– Our secure, cloud-based platform provides simple and safe access to all business and compliance data, with the capacity to manage access control internally across teams. Automated Monitoring & Alerts– Stay ahead with automated alerts and scheduled compliance tasks, as you set your compliance tasks across the year, email notifications are automatically sent when action is required. Custom Reports & Audit Trails– Generate and export custom reports by task type, individual or group, and date. Risk Assessment – Map and control risk areas to effectively identify and manage risk for your firm, using our Risk module. Get Started Managing compliance doesn’t have to be a hassle. With ComplyPortal, you can streamline your processes and focus on what truly matters to your business.

The post Staying Ahead: How a Compliance Management System Can Facilitate FCA Compliance with the 2025 Consumer Duty Updates appeared first on Complyportal.

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Book a demo

In the ever-evolving financial services landscape, the Financial Conduct Authority (FCA) continues to champion consumer protection through its regulatory framework. The 2025 updates to the Consumer Duty mark a pivotal shift, urging firms to place consumer outcomes at the forefront of their operations. As firms navigate these changes, integrating compliance into their core operations is a strategic imperative.

Understanding the 2025 Consumer Duty Updates

The FCA’s 2025 updates to the Consumer Duty emphasise a higher standard of care for consumers, focusing on delivering good outcomes across all aspects of financial services. Key areas include enhancing the understanding of price and value, addressing sector-specific priorities, and promoting sustainable finance. The updates also highlight the importance of supporting informed decision-making and catering to the needs of vulnerable customers.

Why Prioritise Consumer Outcomes?

  1. Regulatory Compliance and Risk Mitigation: The FCA’s Consumer Duty requires firms to demonstrate that they are acting in the best interests of their customers. By prioritising consumer outcomes, firms can ensure compliance with regulatory expectations, reducing the risk of enforcement actions and penalties. This proactive approach to compliance also helps mitigate reputational risks associated with consumer harm.
  2. Building Consumer Trust and Loyalty: In an era where consumers are increasingly discerning, trust is a valuable currency. By focusing on delivering good outcomes, firms can build stronger relationships with their customers, fostering loyalty and long-term engagement. Satisfied customers are more likely to recommend a firm’s services, driving growth and competitive advantage.
  3. Enhancing Business Performance: Integrating compliance into core operations can lead to improved business performance. By aligning products and services with consumer needs, firms can enhance customer satisfaction and retention. This alignment also encourages innovation, as firms seek to develop offerings that meet evolving consumer expectations while adhering to regulatory standards.
  4. Supporting Vulnerable Customers: The 2025 updates place significant emphasis on addressing the needs of vulnerable customers. By prioritising consumer outcomes, firms can ensure that their products and services are accessible and fair to all customer segments. This not only fulfils regulatory obligations but also demonstrates a commitment to social responsibility and ethical business practices.
  5. Adapting to Market Changes: The financial services industry is characterised by rapid change, driven by technological advancements and shifting consumer preferences. By embedding compliance into their operations, firms can remain agile and responsive to market developments. This adaptability is crucial in maintaining relevance and competitiveness in a dynamic environment.

Integrating Compliance into Core Operations

To effectively prioritise consumer outcomes, firms must integrate compliance into their core operations. This involves:

  • Embedding a Compliance Culture: Cultivating a culture of compliance across the organisation ensures that all employees understand the importance of consumer outcomes and their role in achieving them. This cultural shift requires leadership commitment, ongoing training, and effective systems and controls.
  • Leveraging Technology and Data: Utilising technology and data analytics can enhance compliance efforts by ensuring all staff are completing expected duties in a timely manner as well as highlighting potential weaknesses in the current compliance program. This data-driven approach supports informed decision-making and continuous improvement.
  • Strengthening Governance and Oversight: Robust governance structures are essential for monitoring compliance and ensuring accountability. Firms should establish clear roles and responsibilities, with this information readily available.

Conclusion

The FCA’s 2025 Consumer Duty updates present an opportunity for firms to redefine their approach to consumer protection. By prioritising consumer outcomes and integrating compliance into their core operations, firms can meet regulatory expectations and drive business success. In doing so, they contribute to a fairer, more transparent financial services industry that benefits consumers and firms alike.

 Our Approach

Embedding compliance into business operations is most effectively done through the utilisation of technology. A digital compliance platform connects compliance processes to all staff with ease, meaning timely reports and seamless internal communications.

Here are just a few ways in which ComplyPortal can support your firm’s compliance journey:

  • Centralised Documentation & Reporting– Our secure, cloud-based platform provides simple and safe access to all business and compliance data, with the capacity to manage access control internally across teams.
  • Automated Monitoring & Alerts– Stay ahead with automated alerts and scheduled compliance tasks, as you set your compliance tasks across the year, email notifications are automatically sent when action is required.
  • Custom Reports & Audit Trails– Generate and export custom reports by task type, individual or group, and date.
  • Risk Assessment – Map and control risk areas to effectively identify and manage risk for your firm, using our Risk module.

Get Started

Managing compliance doesn’t have to be a hassle. With ComplyPortal, you can
streamline your processes and focus on what truly matters to your business.

The post Staying Ahead: How a Compliance Management System Can Facilitate FCA Compliance with the 2025 Consumer Duty Updates appeared first on Complyportal.

]]> The Importance of Financial Promotions and the Risks of Non-Compliance https://complyportal.uk/the-importance-of-financial-promotions-and-the-risks-of-non-compliance/ Tue, 13 Aug 2024 17:40:00 +0000 https://stage.complyportal.uk/?p=16646 The Importance of Financial Promotions and the Risks of Non-Compliance Transparent, Efficient, Consistent: Financial Promotions with ComplyPortal Financial promotions are a critical aspect of the financial services industry, serving as the primary means through which firms communicate their products and services to existing and potential customers. These promotions encompass a wide range of communications, including advertisements, social media posts and direct marketing materials. Given their significant influence on consumer decisions, regulated firms must ensure their financial promotions are clear, fair, and not misleading as set out by the Financial Conduct Authority’s (FCA’s) standards. This article explores the importance of financial promotions and the risks associated with non-compliance with financial promotions regulations.   The Importance of Financial Promotions Consumer Protection: A compliant Financial promotion plays a vital role in protecting consumers by ensuring they receive accurate and transparent information. This helps consumers make informed decisions about financial products and services, reducing the risk of financial harm. Market Integrity: Clear and fair financial promotions contribute to the overall integrity of the financial market. They help maintain trust between consumers and financial institutions, which is essential for the smooth functioning and integrity of the UK financial services ecosystem. Regulatory Compliance: Adhering to financial promotions regulations, such as those outlined in the FCA’s Conduct of Business Sourcebook (COBS) and the Consumer Credit Sourcebook (CONC), ensures that firms operate within the legal framework. Compliance to the regulatory rules on financial promotions is crucial for avoiding legal repercussions and maintaining a firm’s reputation. Competitive Advantage: Firms that consistently produce compliant and high-quality financial promotions can gain a competitive edge as a result of their ability to bring promotions to market quicker. Transparent and trustworthy communications can attract and retain customers due to their consistent and accurate messaging positioning them as a reliable provider, enhancing the firm’s market position.     Risks of Non-Compliance Regulatory Sanctions: Non-compliance with financial promotions regulations can lead to severe regulatory actions. The FCA has the authority under section 137S of the Financial Services and Markets Act 2000 (FSMA) to direct firms to withdraw non-compliant advertisements or prevent them from being used. Firms may also face fines, withdrawal of permissions, and other enforcement actions. Reputational Damage: Non-compliant financial promotions can significantly damage a firm’s reputation. Misleading or unclear promotions can erode consumer trust, leading to a loss of business and long-term reputational harm. Financial Penalties: Firms found in breach of financial promotions regulations may incur substantial financial penalties. These fines can be costly and impact the firm’s financial stability. Consumer Harm: Misleading financial promotions can result in consumer harm, such as financial losses or increased indebtedness. This not only affects individual consumers but can also lead to broader market instability. Legal Consequences: In severe cases, non-compliance with financial promotions regulations can result in legal consequences, including criminal charges. For example, unauthorised firms promoting financial products without proper approval may commit a criminal offence under the Financial Services and Markets Act.   Examples of Non-Compliant Financial Promotions Misleading Claims: Promotions that include phrases like “no credit check loans” or “loan guaranteed” can mislead consumers into believing that no creditworthiness assessment will be conducted, which is a breach of CONC 3.3.3R. Omission of Risk Warnings: High-cost short-term credit promotions that fail to include the required risk warning “Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk” or which do so but in smaller print than the main promotion are non-compliant with CONC 3.4.1R. Lack of Representative APR: Promotions which include an incentive to apply for credit or to enter into an agreement under which credit is provided, without including the Representative APR (RAPR) as required by CONC 3.5.7R(1)(c) are non-compliant. Book a Demo   Financial Promotions: The Industry Perspective: Common struggles for Financial Services Firms with internal Financial Promotions processes: Transparency – Where there is a lack of clear protocols and effective communication channels, firms can struggle to keep on top of progress. Consistency – Variation in interpretations of rules within an organisation can lead to inconsistencies of output. Time – With ineffective comms and processes accompanied by internal inconsistencies many financial promotion materials can take a significant amount of time to make it through the marketing compliance chain.   Barriers to change: Ongoing other business issues – With other operational and compliance issues existing, taking time to focus on completing financial promotions can be pushed back. Budget constraints – A tight budget can limit a firm’s resources and act as a barrier to investment into tools to help improve efficiency. Capacity for change – This can be the scope within the firm regarding human resources, as well as the attitude to change by decision-makers. ComplyPortal provides the opportunity to improve Financial Promotions processes by addressing 3 main pain points: Transparency, Efficiency, Consistency. Transparency is increased with a clear custom workflow creating established responsibilities and opening lines of communication. Efficiency is improved through use of a robust system and custom rule set leading to less human error and resulting faster turnaround times. Consistency is achieved through the combination of clear protocols, valuable tools and effective communication, leading to a consistent delivery of consistent output.   ComplyPortal’s Solutions: Financial Promotions Workflow – Custom automated workflow and notifications to individuals or groups at each stage of the review process. Financial Promotions Questionnaires – Our compliance experts update and provide questionnaires identifying all relevant elements of Financial Promotions regulation for firms to consider. Document Scanning AI – Custom and specific preset rules rapidly identify potential marketing breaches and recommend corrections and alternatives.   How it works: Advanced logic capabilities ensure online content compliance to FCA Financial Promotion requirements. The platform takes the hard work out of compliance, highlighting only the content that’s potentially risky, and flagging it for expert review and attention. Documents are quickly marked up saving valuable time and effort over traditional manual processes. Features: Risk detection Approvals routing AI suggested changes Risk identification Summary Built in workflow Full Audit Trail Risk Detection Capabilities: Find missing text Proximity of elements Copy suggestions Numbers and currencies Dates Prominence & Proximity Attempted Disclosures Tone of Voice Semantic Similarity   How Does This Help?: Automated first-line review to streamline marketing-compliance communication. Standardisation & centralisation of legal and compliance requirements

The post The Importance of Financial Promotions and the Risks of Non-Compliance appeared first on Complyportal.

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The Importance of Financial Promotions and the Risks of Non-Compliance

Transparent, Efficient, Consistent: Financial Promotions with ComplyPortal

Financial promotions are a critical aspect of the financial services industry, serving as the primary means through which firms communicate their products and services to existing and potential customers. These promotions encompass a wide range of communications, including advertisements, social media posts and direct marketing materials. Given their significant influence on consumer decisions, regulated firms must ensure their financial promotions are clear, fair, and not misleading as set out by the Financial Conduct Authority’s (FCA’s) standards. This article explores the importance of financial promotions and the risks associated with non-compliance with financial promotions regulations.

 

The Importance of Financial Promotions

Consumer Protection: A compliant Financial promotion plays a vital role in protecting consumers by ensuring they receive accurate and transparent information. This helps consumers make informed decisions about financial products and services, reducing the risk of financial harm.

Market Integrity: Clear and fair financial promotions contribute to the overall integrity of the financial market. They help maintain trust between consumers and financial institutions, which is essential for the smooth functioning and integrity of the UK financial services ecosystem.

Regulatory Compliance: Adhering to financial promotions regulations, such as those outlined in the FCA’s Conduct of Business Sourcebook (COBS) and the Consumer Credit Sourcebook (CONC), ensures that firms operate within the legal framework. Compliance to the regulatory rules on financial promotions is crucial for avoiding legal repercussions and maintaining a firm’s reputation.

Competitive Advantage: Firms that consistently produce compliant and high-quality financial promotions can gain a competitive edge as a result of their ability to bring promotions to market quicker. Transparent and trustworthy communications can attract and retain customers due to their consistent and accurate messaging positioning them as a reliable provider, enhancing the firm’s market position.

 

 
Risks of Non-Compliance

Regulatory Sanctions: Non-compliance with financial promotions regulations can lead to severe regulatory actions. The FCA has the authority under section 137S of the Financial Services and Markets Act 2000 (FSMA) to direct firms to withdraw non-compliant advertisements or prevent them from being used. Firms may also face fines, withdrawal of permissions, and other enforcement actions.

Reputational Damage: Non-compliant financial promotions can significantly damage a firm’s reputation. Misleading or unclear promotions can erode consumer trust, leading to a loss of business and long-term reputational harm.

Financial Penalties: Firms found in breach of financial promotions regulations may incur substantial financial penalties. These fines can be costly and impact the firm’s financial stability.

Consumer Harm: Misleading financial promotions can result in consumer harm, such as financial losses or increased indebtedness. This not only affects individual consumers but can also lead to broader market instability.

Legal Consequences: In severe cases, non-compliance with financial promotions regulations can result in legal consequences, including criminal charges. For example, unauthorised firms promoting financial products without proper approval may commit a criminal offence under the Financial Services and Markets Act.

 
Examples of Non-Compliant Financial Promotions

Misleading Claims: Promotions that include phrases like “no credit check loans” or “loan guaranteed” can mislead consumers into believing that no creditworthiness assessment will be conducted, which is a breach of CONC 3.3.3R.

Omission of Risk Warnings: High-cost short-term credit promotions that fail to include the required risk warning “Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk” or which do so but in smaller print than the main promotion are non-compliant with CONC 3.4.1R.

Lack of Representative APR: Promotions which include an incentive to apply for credit or to enter into an agreement under which credit is provided, without including the Representative APR (RAPR) as required by CONC 3.5.7R(1)(c) are non-compliant.


 
Financial Promotions: The Industry Perspective:

Common struggles for Financial Services Firms with internal Financial Promotions processes:

Transparency – Where there is a lack of clear protocols and effective communication channels, firms can struggle to keep on top of progress.

Consistency – Variation in interpretations of rules within an organisation can lead to inconsistencies of output.

Time – With ineffective comms and processes accompanied by internal inconsistencies many financial promotion materials can take a significant amount of time to make it through the marketing compliance chain.

 
Barriers to change:

Ongoing other business issues – With other operational and compliance issues existing, taking time to focus on completing financial promotions can be pushed back.

Budget constraints – A tight budget can limit a firm’s resources and act as a barrier to investment into tools to help improve efficiency.

Capacity for change – This can be the scope within the firm regarding human resources, as well as the attitude to change by decision-makers.

ComplyPortal provides the opportunity to improve Financial Promotions processes by addressing 3 main pain points: Transparency, Efficiency, Consistency. Transparency is increased with a clear custom workflow creating established responsibilities and opening lines of communication. Efficiency is improved through use of a robust system and custom rule set leading to less human error and resulting faster turnaround times. Consistency is achieved through the combination of clear protocols, valuable tools and effective communication, leading to a consistent delivery of consistent output.

 
ComplyPortal’s Solutions:

Financial Promotions Workflow – Custom automated workflow and notifications to individuals or groups at each stage of the review process.

Financial Promotions Questionnaires – Our compliance experts update and provide questionnaires identifying all relevant elements of Financial Promotions regulation for firms to consider.

Document Scanning AI – Custom and specific preset rules rapidly identify potential marketing breaches and recommend corrections and alternatives.

 
How it works:

Advanced logic capabilities ensure online content compliance to FCA Financial Promotion requirements.

The platform takes the hard work out of compliance, highlighting only the content that’s potentially risky, and flagging it for expert review and attention.

Documents are quickly marked up saving valuable time and effort over traditional manual processes.

Features:

  • Risk detection
  • Approvals routing
  • AI suggested changes
  • Risk identification Summary
  • Built in workflow
  • Full Audit Trail

Risk Detection Capabilities:

  • Find missing text
  • Proximity of elements
  • Copy suggestions
  • Numbers and currencies
  • Dates
  • Prominence & Proximity
  • Attempted Disclosures
  • Tone of Voice
  • Semantic Similarity

 

How Does This Help?:
  1. Automated first-line review to streamline marketing-compliance communication.
  2. Standardisation & centralisation of legal and compliance requirements
  3. Reduction of human bias & errors through consistent reviews
  4. Instant & consistent feedback on content risks
  5. Suggested edits for compliant content
  6. Faster turnaround times & improved creative-to-market speed

To find out how ComplyPortal can improve your Financial Promotions processes, book a demo with us:

 BOOK A DEMO

 

Find out more about how the ComplyPortal platform can help firms adapt to new regulatory expectations at: https://complyportal.uk/modules/

 
 

About ComplyPortal:

First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring. 

ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others: 

  • Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes.
  • Approvals: authorise request and keep track of workflows
  • Registers: lists controlled by the Compliance officer, but easy for staff to view.
  • Risk: map and control risk areas to effectively identify and manage risk for your firm.
  • Training: access our LMS platform for all Compliance and Governance Training
 
CLICK HERE TO GET STARTED!

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]]> Consumer Duty – tools to help meet your regulatory obligations https://complyportal.uk/consumer-duty-tools-to-help-meet-your-regulatory-obligations/ Tue, 16 Jul 2024 08:13:24 +0000 https://stage.complyportal.uk/?p=14404 Consumer Duty – tools to help meet your regulatory obligations Consumer Duty is a significant regulatory requirement for UK financial services firms and their day-to-day operations. It is coming up to one year since the Consumer duty deadline for open products and fast approaching is the closed products deadline on 31st July 2024. Whilst deadlines often represent the end of something, this is not the case. Consumer Duty requirements are here to stay and need to be adhered to for the foreseeable future. ComplyPortal has made available several tools to help clients meet key requirements and support your firms ongoing compliance with both open and closed products: Consumer Duty Policies and Papers: Consumer Duty Diagnostic Assessment Consumer Duty Annual Report Consumer Duty Monitoring Fair Value Assessment Policy (Open Products) Product Assessment Policy ( Open Products)   Consumer Duty Readiness Assessment (Open Products): If your firm still needs to identify gaps in your Consumer Duty, then take ComplyPortal’s Consumer Duty Readiness Assessment where our regulatory consultants have prepared questions and scoring to guide you through assessing your readiness. Our assessment is broken up into 7 scoring questionnaires covering the following: Corporate Governance Customer Identification Existing Products and Services New Products and Services Price and Value Consumer Understanding and Support Staff Training   New Consumer Duty Questionnaire (Open & Closed Products): Detailed, relevant and specific regulatory information available via Monitoring module within ComplyPortal Software. This questionnaire covers the following topics: Manufacturing, Distribution, Fair Value, Communications with Retail Customers, Delivering good outcomes, Sale and purchase of Product books. Ongoing Monitoring & Reporting Capacity (Open & Closed Products): ComplyPortal provides a full suite of Compliance support modules all in one platform, aiding the pursuit of more efficient and complete compliance processes. Monitoring questionnaires are created by our in house expert consultants however, custom questionnaires can also be integrated. Tasks can be assigned to individuals or groups with custom schedules and email reminders to ensure responsibilities and kept up with and on time. Monitoring Approvals Registers Attestations Documents Prompt Risk SM&CR To see how these tools can support your Consumer Duty compliance, or how our full suite of modules can assist your wider compliance needs, Book a Demo. Book your complimentary demo today!    About ComplyPortal: First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring.  ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others:  Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes. Approvals: authorise request and keep track of workflows Registers: lists controlled by the Compliance officer, but easy for staff to view. Risk: map and control risk areas to effectively identify and manage risk for your firm. Training: access our LMS platform for all Compliance and Governance Training  CLICK HERE TO GET STARTED!

The post Consumer Duty – tools to help meet your regulatory obligations appeared first on Complyportal.

]]>

Consumer Duty – tools to help meet your regulatory obligations

Consumer Duty is a significant regulatory requirement for UK financial services firms and their day-to-day operations. It is coming up to one year since the Consumer duty deadline for open products and fast approaching is the closed products deadline on 31st July 2024. Whilst deadlines often represent the end of something, this is not the case. Consumer Duty requirements are here to stay and need to be adhered to for the foreseeable future.

ComplyPortal has made available several tools to help clients meet key requirements and support your firms ongoing compliance with both open and closed products:

  1. Consumer Duty Policies and Papers:
    • Consumer Duty Diagnostic Assessment
    • Consumer Duty Annual Report
    • Consumer Duty Monitoring
    • Fair Value Assessment Policy (Open Products)
    • Product Assessment Policy ( Open Products)

 

  1. Consumer Duty Readiness Assessment (Open Products):

If your firm still needs to identify gaps in your Consumer Duty, then take ComplyPortal’s Consumer Duty Readiness Assessment where our regulatory consultants have prepared questions and scoring to guide you through assessing your readiness.

Our assessment is broken up into 7 scoring questionnaires covering the following:

  1. Corporate Governance
  2. Customer Identification
  3. Existing Products and Services
  4. New Products and Services
  5. Price and Value
  6. Consumer Understanding and Support
  7. Staff Training

 

  1. New Consumer Duty Questionnaire (Open & Closed Products):

Detailed, relevant and specific regulatory information available via Monitoring module within ComplyPortal Software.

This questionnaire covers the following topics: Manufacturing, Distribution, Fair Value, Communications with Retail Customers, Delivering good outcomes, Sale and purchase of Product books.

  1. Ongoing Monitoring & Reporting Capacity (Open & Closed Products):

ComplyPortal provides a full suite of Compliance support modules all in one platform, aiding the pursuit of more efficient and complete compliance processes.

Monitoring questionnaires are created by our in house expert consultants however, custom questionnaires can also be integrated.

Tasks can be assigned to individuals or groups with custom schedules and email reminders to ensure responsibilities and kept up with and on time.

  • Monitoring
  • Approvals
  • Registers
  • Attestations
  • Documents
  • Prompt
  • Risk
  • SM&CR

To see how these tools can support your Consumer Duty compliance, or how our full suite of modules can assist your wider compliance needs, Book a Demo.

 
 
 

About ComplyPortal:

First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring. 

ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others: 

  • Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes.
  • Approvals: authorise request and keep track of workflows
  • Registers: lists controlled by the Compliance officer, but easy for staff to view.
  • Risk: map and control risk areas to effectively identify and manage risk for your firm.
  • Training: access our LMS platform for all Compliance and Governance Training
 
CLICK HERE TO GET STARTED!

The post Consumer Duty – tools to help meet your regulatory obligations appeared first on Complyportal.

]]> Consumer Duty – Closed Products deadline https://complyportal.uk/consumer-duty-closed-products-deadline/ Thu, 04 Jul 2024 08:15:19 +0000 https://stage.complyportal.uk/?p=14413 Consumer Duty – Closed Products deadline The Consumer Duty has been and is a significant regulatory requirement for UK financial services firms and their day-to-day operations. Here are the key points to be aware of:  Closed Products Implementation Deadline: 31st July 2024 Key Requirements Outcomes-Based Regulation: The Duty is outcomes-based, meaning firms must focus on delivering good outcomes for consumers. This includes ensuring products and services meet consumer needs, offer fair value, and provide appropriate support. Fair Value: Firms must ensure that the fees and charges associated with their products and services are fair and transparent. This includes considering the overall benefits and quality of the product or service. Consumer Understanding: Firms must provide clear and understandable communications to consumers, ensuring they can make informed decisions. Consumer Support: Adequate support must be provided to consumers, especially those in vulnerable circumstances.   Monitoring and Evidence Data and Technology: Firms are encouraged to use data and technology to monitor and evidence the outcomes they achieve for their customers. Annual Board Report: At least once a year, the board or equivalent governing body must review and approve an assessment of whether the firm is delivering good outcomes for its customers. This assessment should include monitoring results and any evidence of poor outcomes. FCA’s Supervisory Approach The FCA will take a proportionate approach to supervision and enforcement, prioritizing the most serious breaches and acting swiftly where there is evidence of harm or risk of harm to consumers. The FCA will work closely with the Financial Ombudsman Service and other regulatory bodies to ensure a joined-up approach to the Duty’s implementation and enforcement. The FCA has made it clear that they want to see firms making best efforts to comply, and that firms have a credible plan to identify and address any shortcomings in regard to the Duty.   Exemptions and Exceptions The Duty does not apply retrospectively to past actions by firms. It will apply on a forward-looking basis to existing products and services. Regarding closed products, firms are not expected to consider the target market and distribution strategy. However, they must still ensure that these products do not lead to foreseeable harm or frustrate customers’ financial objectives.   Next Steps for Firms Review Implementation Plans: Firms should review their implementation plans to ensure they have made the necessary changes and that these changes are effective in delivering good consumer outcomes. Focus on Data and Monitoring: Firms should harness data to improve their products and services and to evidence the outcomes they are achieving for their customers. Prepare for Closed Products Deadline: Firms should start preparing for the 31 July 2024 deadline for closed products and services, prioritizing areas where there is the greatest risk of consumer harm. Conclusion The Consumer Duty represents a significant shift in regulatory expectations, focusing on delivering good outcomes for consumers. Firms must ensure they are compliant by the relevant deadlines and continuously monitor and improve their practices to meet the Duty’s requirements. The FCA has published comments related to Consumer Duty Implementation: Good Practice and Areas for Improvement. The FCA will be closely monitoring firms’ compliance and will act where necessary to protect consumers. Take the next step ComplyPortal offers the ability to tackle all 3 of the recommended next steps for firms. Review your implementation plans with our Consumer Duty Readiness Assessment & Consumer Duty Policies and Papers Focus on data making full use of our suite of modules to assist in Monitoring and Reporting, accompanied by our expertly crafted New Consumer Duty Questionnaire. With the deadline passed, Consumer Duty remains an important compliance consideration. Book a Demo, to see how ComplyPortal can help you take your next steps toward compliance. Or alternatively click below to view our full range of services: Modules Tools Simplify, monitor and control your regulatory compliance management. Book a Complimentary Demo Sources FCA Speech: Consumer Duty – the art of the possible in a year (Delivered by Sheldon Mills, Executive Director, Consumers and Competition, February 2024) https://www.fca.org.uk/news/speeches/consumer-duty-art-possible-year FCA Speech: Countdown to the Consumer Duty (Delivered by Sheldon Mills, Executive Director, Consumers and Competition, on 10 May 2023 at EY) https://www.fca.org.uk/news/speeches/countdown-consumer-duty FCA Policy Statement PS22/9: A new Consumer Duty (Published in July 2022) https://www.fca.org.uk/publications/policy-statements/ps22-9-new-consumer-duty FCA Speech: Consumer Duty – Not once and done (Delivered by Nisha Arora, Director of Cross Cutting Policy and Strategy, on 1 November 2023 at Deloitte) https://www.fca.org.uk/news/speeches/consumer-duty-not-once-and-done FCA Speech: Consumer Duty (Delivered by Sheldon Mills, Executive Director, Consumers and Competition, on 11 June 2024) FCA Policy Statement PS23/6: Financial promotion rules for cryptoassets (Published in 2023) https://www.fca.org.uk/publications/policy-statements/ps23-6-financial-promotion-rules-cryptoassets FCA Dear CEO Newsletters – Closed products and services, https://www.fca.org.uk/firms/consumer-duty/resources Book your complimentary demo today!  To out more about how the ComplyPortal platform can help firms adapt to new regulatory expectations at: https://complyportal.uk/modules/    About ComplyPortal: First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring.  ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others:  Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes. Approvals: authorise request and keep track of workflows Registers: lists controlled by the Compliance officer, but easy for staff to view. Risk: map and control risk areas to effectively identify and manage risk for your firm. Training: access our LMS platform for all Compliance and Governance Training  CLICK HERE TO GET STARTED!

The post Consumer Duty – Closed Products deadline appeared first on Complyportal.

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Consumer Duty – Closed Products deadline

The Consumer Duty has been and is a significant regulatory requirement for UK financial services firms and their day-to-day operations. Here are the key points to be aware of:

 Closed Products Implementation Deadline: 31st July 2024

Key Requirements

  1. Outcomes-Based Regulation: The Duty is outcomes-based, meaning firms must focus on delivering good outcomes for consumers. This includes ensuring products and services meet consumer needs, offer fair value, and provide appropriate support.
  2. Fair Value: Firms must ensure that the fees and charges associated with their products and services are fair and transparent. This includes considering the overall benefits and quality of the product or service.
  3. Consumer Understanding: Firms must provide clear and understandable communications to consumers, ensuring they can make informed decisions.
  4. Consumer Support: Adequate support must be provided to consumers, especially those in vulnerable circumstances.

 

Monitoring and Evidence

  1. Data and Technology: Firms are encouraged to use data and technology to monitor and evidence the outcomes they achieve for their customers.
  2. Annual Board Report: At least once a year, the board or equivalent governing body must review and approve an assessment of whether the firm is delivering good outcomes for its customers. This assessment should include monitoring results and any evidence of poor outcomes.

FCA’s Supervisory Approach

The FCA will take a proportionate approach to supervision and enforcement, prioritizing the most serious breaches and acting swiftly where there is evidence of harm or risk of harm to consumers. The FCA will work closely with the Financial Ombudsman Service and other regulatory bodies to ensure a joined-up approach to the Duty’s implementation and enforcement. The FCA has made it clear that they want to see firms making best efforts to comply, and that firms have a credible plan to identify and address any shortcomings in regard to the Duty.

 

Exemptions and Exceptions

The Duty does not apply retrospectively to past actions by firms. It will apply on a forward-looking basis to existing products and services. Regarding closed products, firms are not expected to consider the target market and distribution strategy. However, they must still ensure that these products do not lead to foreseeable harm or frustrate customers’ financial objectives.

 

Next Steps for Firms

  1. Review Implementation Plans: Firms should review their implementation plans to ensure they have made the necessary changes and that these changes are effective in delivering good consumer outcomes.
  2. Focus on Data and Monitoring: Firms should harness data to improve their products and services and to evidence the outcomes they are achieving for their customers.
  3. Prepare for Closed Products Deadline: Firms should start preparing for the 31 July 2024 deadline for closed products and services, prioritizing areas where there is the greatest risk of consumer harm.

Conclusion

The Consumer Duty represents a significant shift in regulatory expectations, focusing on delivering good outcomes for consumers. Firms must ensure they are compliant by the relevant deadlines and continuously monitor and improve their practices to meet the Duty’s requirements. The FCA has published comments related to Consumer Duty Implementation: Good Practice and Areas for Improvement. The FCA will be closely monitoring firms’ compliance and will act where necessary to protect consumers.

Take the next step

ComplyPortal offers the ability to tackle all 3 of the recommended next steps for firms.

  1. Review your implementation plans with our Consumer Duty Readiness Assessment & Consumer Duty Policies and Papers
  2. Focus on data making full use of our suite of modules to assist in Monitoring and Reporting, accompanied by our expertly crafted New Consumer Duty Questionnaire.
  3. With the deadline passed, Consumer Duty remains an important compliance consideration. Book a Demo, to see how ComplyPortal can help you take your next steps toward compliance. Or alternatively click below to view our full range of services:

Sources

  1. FCA Speech: Consumer Duty – the art of the possible in a year (Delivered by Sheldon Mills, Executive Director, Consumers and Competition, February 2024) https://www.fca.org.uk/news/speeches/consumer-duty-art-possible-year
  2. FCA Speech: Countdown to the Consumer Duty (Delivered by Sheldon Mills, Executive Director, Consumers and Competition, on 10 May 2023 at EY) https://www.fca.org.uk/news/speeches/countdown-consumer-duty
  3. FCA Policy Statement PS22/9: A new Consumer Duty (Published in July 2022) https://www.fca.org.uk/publications/policy-statements/ps22-9-new-consumer-duty
  4. FCA Speech: Consumer Duty – Not once and done (Delivered by Nisha Arora, Director of Cross Cutting Policy and Strategy, on 1 November 2023 at Deloitte) https://www.fca.org.uk/news/speeches/consumer-duty-not-once-and-done
  5. FCA Speech: Consumer Duty (Delivered by Sheldon Mills, Executive Director, Consumers and Competition, on 11 June 2024)
  6. FCA Policy Statement PS23/6: Financial promotion rules for cryptoassets (Published in 2023) https://www.fca.org.uk/publications/policy-statements/ps23-6-financial-promotion-rules-cryptoassets
  7. FCA Dear CEO Newsletters – Closed products and services, https://www.fca.org.uk/firms/consumer-duty/resources
 

To out more about how the ComplyPortal platform can help firms adapt to new regulatory expectations at: https://complyportal.uk/modules/

 
 

About ComplyPortal:

First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring. 

ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others: 

  • Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes.
  • Approvals: authorise request and keep track of workflows
  • Registers: lists controlled by the Compliance officer, but easy for staff to view.
  • Risk: map and control risk areas to effectively identify and manage risk for your firm.
  • Training: access our LMS platform for all Compliance and Governance Training
 
CLICK HERE TO GET STARTED!

The post Consumer Duty – Closed Products deadline appeared first on Complyportal.

]]> Navigating the Financial Promotions Gateway Ahead of the FCA Deadline with ComplyPortal’s Approvals Module https://complyportal.uk/navigating-the-financial-promotions-gateway-ahead-of-the-fca-deadline-with-complyportals-approvals-module/ Thu, 01 Feb 2024 08:17:17 +0000 https://stage.complyportal.uk/?p=14423 Navigating the Financial Promotions Gateway Ahead of the FCA Deadline with ComplyPortal’s Approvals Module From 7th February 2024, the Financial Promotions Gateway regime  came into force and applies for FCA regulated firms that need to approve Financial Promotions. Any firms that previously approved financial promotions for unauthorised persons now must also be Section 21 approved or cease approving financial promotions for unauthorised persons until approval is granted.  Why did the change occur?  In the FCA’s initial consultation document, it said that it had seen clear evidence of consumers investing in high-risk products, that are simply not in line with their individual risk tolerance, due to poor quality approved financial promotions.  It claimed that in the worst cases, the performance of investments was drastically different from the claims made in promotions or the product had failed, therefore leading to significant and unexpected losses for retail investors. The data released by FCA on 2022 financial promotions showed substantial increased intervention activity further substantiating this claim and the need for greater compliance.  Under the new rules, firms are required to report back to the FCA on financial promotions they have approved in the last 3, 6 and 12 months, which the regulator said will help to crack down on rogue adverts and promotions.  Sarah Pritchard, Executive Director, Markets said:  “Social media and online advertising means that consumers are taking less time between seeing a promotion and making a financial decision. It is therefore essential that they are equipped with the right information at the right time so that they can make good financial decisions. This is especially important as we face the rising cost of living.”  What Does This Mean for Firms?  Firms which approve financial promotions for unauthorised persons must ensure the approvals process is as compliant and efficient as possible.   ComplyPortal’s Approvals Module offers simple, easy-to-use workflows providing speedy response and a robust audit trail for approvals requested by firms you approve financial promotions for.​   The Approvals Module comes with registers designed for functions such as logging and managing Financial Promotions and requests. Bespoke registers can be added, or selections made from our growing library of additional register templates with a full reporting function included within the tool to help you quickly and easily provide solid, audit driven records of all of your financial promotions that have been logged and approved.  Contact us today to book a free demo.   CLICK HERE TO GET STARTED!     About ComplyPortal:  First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring.  ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others:  Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes  Registers: lists controlled by the Compliance officer, but easy for staff to view  Risk: map and control risk areas to effectively identify and manage risk for your firm  Training: access our CMLS platform for all Compliance and Governance Training  Book a demo today.   

The post Navigating the Financial Promotions Gateway Ahead of the FCA Deadline with ComplyPortal’s Approvals Module appeared first on Complyportal.

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Navigating the Financial Promotions Gateway Ahead of the FCA Deadline with ComplyPortal’s Approvals Module

From 7th February 2024, the Financial Promotions Gateway regime  came into force and applies for FCA regulated firms that need to approve Financial Promotions. Any firms that previously approved financial promotions for unauthorised persons now must also be Section 21 approved or cease approving financial promotions for unauthorised persons until approval is granted. 

Why did the change occur? 

In the FCA’s initial consultation document, it said that it had seen clear evidence of consumers investing in high-risk products, that are simply not in line with their individual risk tolerance, due to poor quality approved financial promotions. 

It claimed that in the worst cases, the performance of investments was drastically different from the claims made in promotions or the product had failed, therefore leading to significant and unexpected losses for retail investors. The data released by FCA on 2022 financial promotions showed substantial increased intervention activity further substantiating this claim and the need for greater compliance. 

Under the new rules, firms are required to report back to the FCA on financial promotions they have approved in the last 3, 6 and 12 months, which the regulator said will help to crack down on rogue adverts and promotions. 

Sarah Pritchard, Executive Director, Markets said: 

“Social media and online advertising means that consumers are taking less time between seeing a promotion and making a financial decision. It is therefore essential that they are equipped with the right information at the right time so that they can make good financial decisions. This is especially important as we face the rising cost of living.” 

What Does This Mean for Firms? 

Firms which approve financial promotions for unauthorised persons must ensure the approvals process is as compliant and efficient as possible.  

ComplyPortal’s Approvals Module offers simple, easy-to-use workflows providing speedy response and a robust audit trail for approvals requested by firms you approve financial promotions for.​  

The Approvals Module comes with registers designed for functions such as logging and managing Financial Promotions and requests. Bespoke registers can be added, or selections made from our growing library of additional register templates with a full reporting function included within the tool to help you quickly and easily provide solid, audit driven records of all of your financial promotions that have been logged and approved. 

Contact us today to book a free demo.  

CLICK HERE TO GET STARTED! 

  

About ComplyPortal: 

First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring. 

ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others: 

  • Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes 
  • Registers: lists controlled by the Compliance officer, but easy for staff to view 
  • Risk: map and control risk areas to effectively identify and manage risk for your firm 
  • Training: access our CMLS platform for all Compliance and Governance Training 

Book a demo today. 

 

The post Navigating the Financial Promotions Gateway Ahead of the FCA Deadline with ComplyPortal’s Approvals Module appeared first on Complyportal.

]]> The New Consumer Duty started July 2023 – Assessment https://complyportal.uk/the-new-consumer-duty-started-july-2023-assessment/ Mon, 03 Jul 2023 08:38:16 +0000 https://stage.complyportal.uk/?p=14501 The New Consumer Duty started July 2023 – Assessment July 2023 marked the coming of the New Consumer Duty coming into force for all new and existing products and services available. The FCA has stated their approach will be to prioritise the most serious of breaches, and act swiftly and assertively where it finds evidence of harm, or risk of harm to consumers, so it is imperative to act accordingly. An FCA survey showed that a lot of the firms in the sections covered believed they were on track to fully implement the new Consumer Duty on time. However, there was still work to be done for 23% of the firms surveyed. The results also showed that retail finance providers and debt advice firms scored significantly lower than other firms on engagement, understanding, and implementation progress. Due to these findings, the FCA have issued further direct communications to these firms and is working with industry bodies to help amplify messages. The FCA has also stated that Firms that have not been taking the Duty seriously and are a long way from meeting its requirements must make strenuous efforts in the next month to accelerate their implementation work. These firms must prioritise work that is likely to have the greatest impact on consumer outcomes. If your firm still needs to identify gaps in your Consumer Duty, then take ComplyPortal’s Consumer Duty Readiness Assessment where our regulatory consultants have prepared questions and scoring to guide you through assessing your readiness. Our assessment is broken up into 7 scoring questionnaires covering the following: Corporate Governance Customer Identification Existing Products and Services New Products and Services Price and Value Consumer Understanding and Support Staff Training Our readiness assessment is just the start though. Our expert consultants at Complyport are helping to make sure that firms are compliant with the Consumer Duty, with support including: High-level Consumer Duty Assessment Report- Using our online assessment tool, Complyport will undertake a review of your firm and provide a report of where it is with its Vulnerable Customer Management (“VCM”) and Consumer Duty implementation. Ongoing support- Complyport can also provide firms with support now, and on an ongoing basis, to ensure full compliance with PS22/9. Our ongoing support services including Policy review and authoring, SM&CR advice, reviews of product offerings and Financial Promotions and more Find out more by visiting our website or book a demo today. Buy Now

The post The New Consumer Duty started July 2023 – Assessment appeared first on Complyportal.

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The New Consumer Duty started July 2023 – Assessment

July 2023 marked the coming of the New Consumer Duty coming into force for all new and existing products and services available.

The FCA has stated their approach will be to prioritise the most serious of breaches, and act swiftly and assertively where it finds evidence of harm, or risk of harm to consumers, so it is imperative to act accordingly.

An FCA survey showed that a lot of the firms in the sections covered believed they were on track to fully implement the new Consumer Duty on time. However, there was still work to be done for 23% of the firms surveyed.

The results also showed that retail finance providers and debt advice firms scored significantly lower than other firms on engagement, understanding, and implementation progress. Due to these findings, the FCA have issued further direct communications to these firms and is working with industry bodies to help amplify messages.

The FCA has also stated that Firms that have not been taking the Duty seriously and are a long way from meeting its requirements must make strenuous efforts in the next month to accelerate their implementation work. These firms must prioritise work that is likely to have the greatest impact on consumer outcomes.

If your firm still needs to identify gaps in your Consumer Duty, then take ComplyPortal’s Consumer Duty Readiness Assessment where our regulatory consultants have prepared questions and scoring to guide you through assessing your readiness. Our assessment is broken up into 7 scoring questionnaires covering the following:

  1. Corporate Governance
  2. Customer Identification
  3. Existing Products and Services
  4. New Products and Services
  5. Price and Value
  6. Consumer Understanding and Support
  7. Staff Training

Our readiness assessment is just the start though. Our expert consultants at Complyport are helping to make sure that firms are compliant with the Consumer Duty, with support including:

  • High-level Consumer Duty Assessment Report- Using our online assessment tool, Complyport will undertake a review of your firm and provide a report of where it is with its Vulnerable Customer Management (“VCM”) and Consumer Duty implementation.
  • Ongoing support- Complyport can also provide firms with support now, and on an ongoing basis, to ensure full compliance with PS22/9. Our ongoing support services including Policy review and authoring, SM&CR advice, reviews of product offerings and Financial Promotions and more

Find out more by visiting our website or book a demo today.

The post The New Consumer Duty started July 2023 – Assessment appeared first on Complyportal.

]]> The FCA Proposes Stronger Rules on Financial Promotions to Help Protect Consumers https://complyportal.uk/fca-rules-financial-promotions/ Tue, 07 Feb 2023 08:45:38 +0000 https://stage.complyportal.uk/?p=14535 The FCA Proposes Stronger Rules on Financial Promotions to Help Protect Consumers What does this mean for regulated firms? On 3rd of February 2023, the Financial Conduct Authority posted data on 2022 financial promotions, which shows a significant increase in FCA intervention activity. This follows the Consultation Paper (CP22/27) which proposed measures to strengthen controls for firms who want to approve financial promotions. The FCA is committed to set higher standards across financial services and to protect consumers. The proposed changes introduced to Parliament by HM Treasury seek to require regulated firms to go through new screening checks before they are allowed to review and approve financial promotions, giving the FCA far greater oversight and the ability to clamp down on illegal, misleading or unfair financial marketing. The FCA is expected to publish a Policy Statement with the final rules in the first half of 2023. Why is this happening? In the FCA’s consultation document, it said that it had seen clear evidence of consumers investing in high-risk products, that are simply not in line with their individual risk tolerance, due to poor quality approved financial promotions. It claimed that in the worst cases, the performance of investments was drastically different from the claims made in promotions or the product had failed, therefore leading to significant and unexpected losses for retail investors. The data released by FCA on 2022 financial promotions showed substantial increased intervention activity further substantiating this claim and the need for greater compliance. Under the new rules, firms will also be required to report back to the FCA regularly on financial promotions they have approved, which the regulator said will help to crackdown on rogue adverts and promotions. Sarah Pritchard, Executive Director, Markets said: ‘Social media and online advertising means that consumers are taking less time between seeing a promotion and making a financial decision. It is therefore essential that they are equipped with the right information at the right time so that they can make good financial decisions. This is especially important as we face the rising cost of living. ‘These proposals will ensure those approving ads have the appropriate expertise and are held accountable for the promotions they sign off.’ Which Firms will need to consider the new standard? When final rules are published, the financial promotions gateway will be relevant to UK firms that approve the promotions and marketing materials of others in the market. Overseas firms who wish to promote financial products or services to UK retail clients will also be affected. Unless a financial promotion made by an overseas firm is exempt, under the new proposed rules, it must be made through or approved by a UK, FCA regulated firm. How ComplyPortal can help? ComplyPortal is leading RegTech Software, which is designed by compliance professionals to help regulated firms simplify and digitise their regulatory compliance management in an easy to use cloud based platform, including the management and approval of Financial promotions in ComplyPortal’s approval module. With the FCA’s proposal for stronger rules, it is imperative for all firms effected to create a robust and transparent process for the filing and approval of Financial Promotions. ComplyPortal helps many regulated firms to: Configure and automate detailed workflows for the requesting and approval of Financial Promotions Create a robust audit trail for any Financial Promotion requested by your firm Provide full and detailed reporting of all Financial Promotions requested, approved or rejected by your firm Show total transparency to the regulators that you as a firm are remaining compliant regarding the filing and approval of Financial Promotions Simplify your firm’s workflow and reduce the risk of human error CLICK HERE TO GET STARTED! About ComplyPortal: First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, and several modules to help firms with control and regulatory compliance monitoring. ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows.

The post The FCA Proposes Stronger Rules on Financial Promotions to Help Protect Consumers appeared first on Complyportal.

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The FCA Proposes Stronger Rules on Financial Promotions to Help Protect Consumers

What does this mean for regulated firms?

On 3rd of February 2023, the Financial Conduct Authority posted data on 2022 financial promotions, which shows a significant increase in FCA intervention activity. This follows the Consultation Paper (CP22/27) which proposed measures to strengthen controls for firms who want to approve financial promotions. The FCA is committed to set higher standards across financial services and to protect consumers.

The proposed changes introduced to Parliament by HM Treasury seek to require regulated firms to go through new screening checks before they are allowed to review and approve financial promotions, giving the FCA far greater oversight and the ability to clamp down on illegal, misleading or unfair financial marketing. The FCA is expected to publish a Policy Statement with the final rules in the first half of 2023.

Why is this happening?

In the FCA’s consultation document, it said that it had seen clear evidence of consumers investing in high-risk products, that are simply not in line with their individual risk tolerance, due to poor quality approved financial promotions.

It claimed that in the worst cases, the performance of investments was drastically different from the claims made in promotions or the product had failed, therefore leading to significant and unexpected losses for retail investors. The data released by FCA on 2022 financial promotions showed substantial increased intervention activity further substantiating this claim and the need for greater compliance.

Under the new rules, firms will also be required to report back to the FCA regularly on financial promotions they have approved, which the regulator said will help to crackdown on rogue adverts and promotions.

Sarah Pritchard, Executive Director, Markets said:

‘Social media and online advertising means that consumers are taking less time between seeing a promotion and making a financial decision. It is therefore essential that they are equipped with the right information at the right time so that they can make good financial decisions. This is especially important as we face the rising cost of living.

‘These proposals will ensure those approving ads have the appropriate expertise and are held accountable for the promotions they sign off.’

Which Firms will need to consider the new standard?

When final rules are published, the financial promotions gateway will be relevant to UK firms that approve the promotions and marketing materials of others in the market. Overseas firms who wish to promote financial products or services to UK retail clients will also be affected. Unless a financial promotion made by an overseas firm is exempt, under the new proposed rules, it must be made through or approved by a UK, FCA regulated firm.

How ComplyPortal can help?

ComplyPortal is leading RegTech Software, which is designed by compliance professionals to help regulated firms simplify and digitise their regulatory compliance management in an easy to use cloud based platform, including the management and approval of Financial promotions in ComplyPortal’s approval module.

With the FCA’s proposal for stronger rules, it is imperative for all firms effected to create a robust and transparent process for the filing and approval of Financial Promotions. ComplyPortal helps many regulated firms to:

  • Configure and automate detailed workflows for the requesting and approval of Financial Promotions
  • Create a robust audit trail for any Financial Promotion requested by your firm
  • Provide full and detailed reporting of all Financial Promotions requested, approved or rejected by your firm
  • Show total transparency to the regulators that you as a firm are remaining compliant regarding the filing and approval of Financial Promotions
  • Simplify your firm’s workflow and reduce the risk of human error

CLICK HERE TO GET STARTED!

About ComplyPortal:

First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, and several modules to help firms with control and regulatory compliance monitoring.

ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows.

The post The FCA Proposes Stronger Rules on Financial Promotions to Help Protect Consumers appeared first on Complyportal.

]]> Consumer Duty: FCA Expected to Produce Final Rules https://complyportal.uk/consumer-duty-fca-expected-to-produce-final-rules/ Wed, 13 Jul 2022 08:53:39 +0000 https://stage.complyportal.uk/?p=14570 Consumer Duty: FCA Expected to Produce Final Rules What will the FCA’s proposed new Consumer Duty mean for you?  The FCA has now completed its consultation period for its new ‘Consumer Duty’ for financial services firms and is expected to produce its final rules by the end of July 2022. The aim of the Consumer Duty, which was first proposed in May 2021, is to improve the standard of care firms provide for its consumers. The FCA says firms need to move from a reactive response to regulatory requirements to being more proactive and take all reasonable steps to ensure their products and services actually meet the needs of those they are sold to. The FCA’s proposed new Consumer Duty will mean: A new consumer Principle that will replace Principles 6 (Customers’ best interests) and 7 (Communications with clients) for retail businesses and require firms to act to deliver good outcomes for retail customers. With the new Principle, the FCA confirms “A firm must act to deliver good outcomes for retail clients”. Cross-cutting rules that set out how firms should act to deliver good outcomes and provide greater clarity on the FCA’s expectations under the new Principle. Rules relating to the four outcomes that the FCA wants to see under the consumer duty. These represent key elements of the firm-consumer relationship that are instrumental in helping to drive good outcomes for customers. The Consumer Duty could potentially be a radical change in how some firms operate, with significant time and resources needed to be implemented. Every step of the customer journey throughout the product life cycle will have to be considered and assessed, including design, communications, and customer service which may cause harm to the customer. Internal governance procedures will need to be reviewed and amended. Customer outcomes will need to be monitored. Customer service may need to be re-thought, and firms should review their complaints handling processes to ensure any potential problems are identified. Following the FCA’s second consultation, final rules are expected by 29 July, with full implementation proposed by 30 April 2023. The FCA acknowledges that many firms are already delivering good outcomes for consumers. However, others will require significant focus in order to meet the deadline. The path to compliance will require all firms to undertake detailed documentation and monitoring of all decisions made together with recommended actions. Management should also give careful consideration to the increased costs involved with compliance and potential impact on profitability. How ComplyPortal can help Ensure all staff are aware and acknowledge changes in your policies and procedures. Put in place approval processes for registers, such as Complaint management. Document your monitoring activities and provide an auditable record of your compliance. Long term, this is not the only change that will occur. ComplyPortal is a centralised platform that can grow with changes to help you manage your monitoring processes and better meet your compliance monitoring obligations. “The FCA clearly has an expectation that firms will take a robust approach to ensuring they are meeting clients needs across the board. Our services will ensure firms are in a good position to document and track how you are meeting the new regulatory requirements.” Luis Parra, Managing Director – ComplyPortal   Find out more about how the ComplyPortal platform can help firms adapt to new regulatory expectations at: https://complyportal.uk/modules    About ComplyPortal: First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring. ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others: Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes. Registers: lists controlled by the Compliance officer, but easy for staff to view. Risk: map and control risk areas to effectively identify and manage risk for your firm. eKYC solution: perform comprehensive searches, including client identity verification, document authenticity, and more for a comprehensive KYC and AML approach

The post Consumer Duty: FCA Expected to Produce Final Rules appeared first on Complyportal.

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Consumer Duty: FCA Expected to Produce Final Rules

What will the FCA’s proposed new Consumer Duty mean for you? 

The FCA has now completed its consultation period for its new ‘Consumer Duty’ for financial services firms and is expected to produce its final rules by the end of July 2022.

The aim of the Consumer Duty, which was first proposed in May 2021, is to improve the standard of care firms provide for its consumers. The FCA says firms need to move from a reactive response to regulatory requirements to being more proactive and take all reasonable steps to ensure their products and services actually meet the needs of those they are sold to.

The FCA’s proposed new Consumer Duty will mean:

  • A new consumer Principle that will replace Principles 6 (Customers’ best interests) and 7 (Communications with clients) for retail businesses and require firms to act to deliver good outcomes for retail customers. With the new Principle, the FCA confirms “A firm must act to deliver good outcomes for retail clients”.
  • Cross-cutting rules that set out how firms should act to deliver good outcomes and provide greater clarity on the FCA’s expectations under the new Principle.
  • Rules relating to the four outcomes that the FCA wants to see under the consumer duty. These represent key elements of the firm-consumer relationship that are instrumental in helping to drive good outcomes for customers.

The Consumer Duty could potentially be a radical change in how some firms operate, with significant time and resources needed to be implemented. Every step of the customer journey throughout the product life cycle will have to be considered and assessed, including design, communications, and customer service which may cause harm to the customer.

Internal governance procedures will need to be reviewed and amended. Customer outcomes will need to be monitored. Customer service may need to be re-thought, and firms should review their complaints handling processes to ensure any potential problems are identified.

Following the FCA’s second consultation, final rules are expected by 29 July, with full implementation proposed by 30 April 2023. The FCA acknowledges that many firms are already delivering good outcomes for consumers. However, others will require significant focus in order to meet the deadline. The path to compliance will require all firms to undertake detailed documentation and monitoring of all decisions made together with recommended actions. Management should also give careful consideration to the increased costs involved with compliance and potential impact on profitability.

How ComplyPortal can help

  • Ensure all staff are aware and acknowledge changes in your policies and procedures.
  • Put in place approval processes for registers, such as Complaint management.
  • Document your monitoring activities and provide an auditable record of your compliance.
  • Long term, this is not the only change that will occur. ComplyPortal is a centralised platform that can grow with changes to help you manage your monitoring processes and better meet your compliance monitoring obligations.

“The FCA clearly has an expectation that firms will take a robust approach to ensuring they are meeting clients needs across the board. Our services will ensure firms are in a good position to document and track how you are meeting the new regulatory requirements.”

Luis Parra, Managing Director – ComplyPortal

 

Find out more about how the ComplyPortal platform can help firms adapt to new regulatory expectations at: https://complyportal.uk/modules

 
 

About ComplyPortal:

First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring.

ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others:

  • Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes.
  • Registers: lists controlled by the Compliance officer, but easy for staff to view.
  • Risk: map and control risk areas to effectively identify and manage risk for your firm.
  • eKYC solution: perform comprehensive searches, including client identity verification, document authenticity, and more for a comprehensive KYC and AML approach

The post Consumer Duty: FCA Expected to Produce Final Rules appeared first on Complyportal.

]]> The Kalifa Review https://complyportal.uk/the-kalifa-review/ Tue, 08 Mar 2022 09:42:39 +0000 https://stage.complyportal.uk/?p=14611 The Kalifa Review After the first anniversary of the landmark review into UK fintech, what has changed in the industry—and what do firms need to know now? According to Ron Kalifa OBE, fintech is “a permanent, technological revolution”.  This, contained in his preface to the Kalifa Review of UK Fintech, explains in a nutshell why so much attention is being paid to this area of financial services. Financial services is often seen as a crown jewel in the UK economy, so it’s no wonder that one year ago we saw the results of a government-commissioned independent review into how to grow and develop the fast-growing fintech landscape. The Kalifa Review: Key Points The review recommends a 5-point delivery and action plan in the following areas:   Policy and Regulation: “dynamic leadership that protects consumers yet nurtures fintech activity and encourages competition” Skills: “ensuring fintech has a sufficient supply of domestic and international talent and the means to train and upskill our current and future workforce” Investment: “completing the funding ladder from start-ups right through to IPO” International: “a targeted approach to exports and inward investment” National Connectivity: “leveraging the output of fintechs across the UK and facilitating connectivity amongst them”    Each of these is expanded upon with action and policy recommendations laid out in the executive summary and full report, from shaking up the way the Competition and Markets Authority (CMA) works to creating a Centre for Finance, Innovation and Technology (CFIT) and examining the implications AI has on regulations. From point to point, the message is clear: the UK wants to encourage growth, innovation, and access to hold onto its crown as a global leader in fintech. While much of the report focuses on growing businesses through access to things like talent and funding, Supervisory technology (‘suptech’) is a new subset of fintech that regulated firms should be aware of regardless of their area of activity. On the other side of the technological development that the review aims to encourage are increased abilities and expectations on the part of regulators and supervisory bodies. Where other areas of fintech help individual consumers and businesses to conduct financial-related business and regulated activities more efficiently, suptech offers similar functions for regulators. Technological developments mean that regulators can be more powerful and efficient than ever in their oversight of regulated firms—and compliance professionals are increasingly turning to regulatory technology solutions so that they can keep up. With the triple threats of the covid-19 pandemic, a murky post-Brexit regulatory future, looming international competition, and ongoing developments in the cryptoasset space, industry leaders are keen to act swiftly in order to protect and develop the strength of fintech in the UK. In fact, Innovate Finance recently published an open letter signed by over 70 leading UK fintech companies calling for updated regulations to help progress the industry. It looks like while the Kalifa review is a detailed starting point, more needs to be done to advance UK fintech—and regulated firms must take care to evolve in tandem to stay on top of their compliance obligations.   Discover how ComplyPortal can help you adapt to new and future challenges at: https://complyportal.uk/modules    About ComplyPortal: First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring. ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others: Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes. Registers: lists controlled by the Compliance officer, but easy for staff to view. Risk: map and control risk areas to effectively identify and manage risk for your firm. eKYC solution: perform comprehensive searches, including client identity verification, document authenticity, and more for a comprehensive KYC and AML approach  CLICK HERE TO GET STARTED! 

The post The Kalifa Review appeared first on Complyportal.

]]>

The Kalifa Review

After the first anniversary of the landmark review into UK fintech, what has changed in the industry—and what do firms need to know now?

According to Ron Kalifa OBE, fintech is “a permanent, technological revolution”.  This, contained in his preface to the Kalifa Review of UK Fintech, explains in a nutshell why so much attention is being paid to this area of financial services. Financial services is often seen as a crown jewel in the UK economy, so it’s no wonder that one year ago we saw the results of a government-commissioned independent review into how to grow and develop the fast-growing fintech landscape.

The Kalifa Review: Key Points

The review recommends a 5-point delivery and action plan in the following areas:

 
  • Policy and Regulation: “dynamic leadership that protects consumers yet nurtures fintech activity and encourages competition”
  • Skills: “ensuring fintech has a sufficient supply of domestic and international talent and the means to train and upskill our current and future workforce”
  • Investment: “completing the funding ladder from start-ups right through to IPO”
  • International: “a targeted approach to exports and inward investment”
  • National Connectivity: “leveraging the output of fintechs across the UK and facilitating connectivity amongst them”
 
 

Each of these is expanded upon with action and policy recommendations laid out in the executive summary and full report, from shaking up the way the Competition and Markets Authority (CMA) works to creating a Centre for Finance, Innovation and Technology (CFIT) and examining the implications AI has on regulations. From point to point, the message is clear: the UK wants to encourage growth, innovation, and access to hold onto its crown as a global leader in fintech.

While much of the report focuses on growing businesses through access to things like talent and funding, Supervisory technology (‘suptech’) is a new subset of fintech that regulated firms should be aware of regardless of their area of activity. On the other side of the technological development that the review aims to encourage are increased abilities and expectations on the part of regulators and supervisory bodies.

Where other areas of fintech help individual consumers and businesses to conduct financial-related business and regulated activities more efficiently, suptech offers similar functions for regulators. Technological developments mean that regulators can be more powerful and efficient than ever in their oversight of regulated firms—and compliance professionals are increasingly turning to regulatory technology solutions so that they can keep up.

With the triple threats of the covid-19 pandemic, a murky post-Brexit regulatory future, looming international competition, and ongoing developments in the cryptoasset space, industry leaders are keen to act swiftly in order to protect and develop the strength of fintech in the UK. In fact, Innovate Finance recently published an open letter signed by over 70 leading UK fintech companies calling for updated regulations to help progress the industry. It looks like while the Kalifa review is a detailed starting point, more needs to be done to advance UK fintech—and regulated firms must take care to evolve in tandem to stay on top of their compliance obligations.

 

Discover how ComplyPortal can help you adapt to new and future challenges at: https://complyportal.uk/modules

 
 

About ComplyPortal:

First developed in 2011 by compliance professionals for compliance officers, ComplyPortal offers workflow, automation, and several modules to help firms with control and regulatory compliance monitoring.

ComplyPortal simplifies financial services regulatory compliance management on an easy-to-use cloud-based comprehensive compliance platform. It enables compliance officers, risk officers and senior management to keep track of their firm’s regulatory responsibilities and workflows. Our platform includes the following modules, among others:

  • Monitoring: a year-round schedule pre-populated with monitoring questionnaires to ease compliance processes.
  • Registers: lists controlled by the Compliance officer, but easy for staff to view.
  • Risk: map and control risk areas to effectively identify and manage risk for your firm.
  • eKYC solution: perform comprehensive searches, including client identity verification, document authenticity, and more for a comprehensive KYC and AML approach
 
CLICK HERE TO GET STARTED!
 

The post The Kalifa Review appeared first on Complyportal.

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