UK Newsletter | February 2023

UK Newsletter

NEWSLETTER: As we head into spring, we have seen a flurry of activity from the FCA. Notably, CEOs across a number of sectors have been on the receiving end of “Dear CEO” letters this month, bringing Consumer Duty preparations into sharp focus.

Asset management, alternatives portfolios, custody and funds services, retail banks and building societies, mortgage lenders, consumer credit, credit reference, life and general insurance clients have all been targeted, unambiguously making Consumer Duty the top priority. We flagged the first of these letters – to consumer investment firms – earlier this month.

Reading the Dear CEO letters did give me flashbacks from my earlier consulting career, when trying to untangle ‘who is responsible for TCF’ along complex distribution chains to retail customers. But the Duty brings a new focus, and higher standards that firms must get on top of.

Last week, firms in the payments sector received their own Dear CEO Letter, which points out that the Duty remains crucial, even with the backdrop of the current cost-of-living crisis. What is clear for all impacted firms is that there will be no “soft launch” when the Duty comes into force in July, and the regulator now expects firms to move from planning towards implementation and embedding.

We also highlight below how regulatory focus remains on the crypto sector, with clampdowns on unlawful crypto ATMs and top tips for getting through current 5MLD registration. There’s an insight into the danger of overlooking the importance of your annual fee tariff data reports, reflections on the SDR consultation, learnings for lenders from a recent Final Notice and a deep dive for manufacturers on Consumer Duty.

Finally, our View from the Chair gives us some thought-provoking predictions about the future of UK regulation as the post-Brexit dust begins to settle.

Rebecca Thorpe
Chief Executive Officer

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