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November Regulation Roundup: Key Updates from the FCA

By
Team We Complement

Welcome to the November edition of our regulatory roundup, covering the latest in enforcement actions, industry developments, and updates essential for financial conduct and compliance. This month’s focus is on the administration of PSG SIPP, fines related to customer treatment issues, insights on workplace culture, and new FCA action against “finfluencers” on social media. These updates signal crucial areas of regulatory focus and offer pointers for firms aiming to stay aligned with the latest standards.

PSG SIPP Limited Enters Administration

PSG SIPP Limited, an FCA-authorised provider of self-invested personal pensions (SIPPs), has entered administration. All SIPP schemes managed by PSG, except for Unity SIPP, have been transferred to Alltrust Services Limited (Alltrust), a regulated operator. PSG has also exchanged contracts with another regulated SIPP operator, London and Colonial Services (LCS), for the transfer of Unity SIPP. During this transition, Unity SIPP customers will be supported by Alltrust for a limited period, maintaining their ability to contribute, withdraw, and make investment decisions as usual. LCS and Evelyn Partners will later contact customers to explain next steps for their pension funds, ensuring continuity and security of service.

FCA Fines TSB £10.9 Million for Failing Customers in Financial Difficulty

The FCA has fined TSB Bank plc £10.9 million for failing to adequately support customers in arrears, which led to the risk of unaffordable repayment plans. TSB’s incentive schemes and inadequate training for staff created a risk of prioritising targets over truly understanding individual customer circumstances, a situation particularly harmful to vulnerable customers. Following an independent review ordered by the FCA in 2020, TSB implemented a corrective programme costing £105 million and worked with the FCA to address these shortcomings.

Read the key findings here

FCA Workplace Culture Survey Highlights

The FCA’s recent workplace culture survey, which reviewed over 1,000 firms, revealed an increase in reports of non-financial misconduct, particularly in areas such as bullying (26%) and discrimination (23%). Notably, a significant portion of concerns fell under the “other” category, illustrating the broad spectrum of conduct issues affecting workplaces. While a higher number of reports may indicate a culture where employees feel encouraged to speak up, the FCA stresses the importance of firms benchmarking their reporting and investigative processes to foster a more transparent culture. Trade associations will play a key role in helping to coordinate industry-wide improvements.

 

FCA Targets Unregulated “Finfluencers”

The FCA has begun a crackdown on social media “finfluencers” – influencers promoting financial products without proper regulatory oversight. The FCA is investigating twenty individuals under caution and has issued 38 alerts against accounts potentially promoting unlawful services. With many young people following and trusting finfluencers, the FCA stresses that they must verify that any products they endorse meet legal standards, ensuring they don’t inadvertently put their followers’ finances at risk. The FCA’s InvestSmart page provides practical resources to help consumers make informed financial decisions.

FCA probes 20 ‘finfluencers’ over illegal financial product promotion

 

As these updates highlight, firms need to remain vigilant and proactive in managing transitions, supporting customers fairly, and fostering a healthy workplace culture. With the ever-increasing presence of social media in financial decision-making, there’s a clear call to action to maintain robust practices and safeguard consumer interests. Look out for our upcoming editions as we continue to track the latest developments in financial conduct and compliance.

 

 

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