Financial Services Risk and Regulation Unravelled Podcast

The Financial Conduct Authority (FCA) has published its 5-Year Strategy (2025 – 2030). In this episode David Morrey, Partner, Head of Investment Management, and Ben Farmer, Senior Manager, review its core focus areas: Reducing and preventing serious harm Setting and testing higher standards Promoting competition and positive change      In addition to the strategy, they also discuss the FCA's other priorities, and explain what they mean for businesses in the future. Read our insight to uncover that the FCA's business strategy for 2025 - 20230 means for firms - A new strategy for 2025 - 2030   Note: The FCA’s Regulatory Initiatives Grid 2025 was released after the recording of this podcast.

Join David Morrey and Ben Farmer as they explore the latest regulatory developments and their impact on the financial services industry.   In this episode, they discuss: Regulatory Changes & Updates: The FCA’s decision not to proceed with certain proposals, including diversity and inclusion rules, enforcement disclosure changes, and the sustainability disclosure regime for delegated portfolio managers. Consumer Support & Vulnerability: Insights into good and poor practices in consumer support and vulnerability. Ongoing Advice & Remediation: A deep dive into the FCA’s guidance on ongoing advice. Motor Finance Redress: Updates on the potential industry-wide redress scheme for motor finance, pending the Supreme Court decision. Consultation Papers & Policy Statements: A look at recent FCA consultation papers and policy statements.   Listen now for expert insights and practical takeaways on these key regulatory developments.

In this insightful discussion, Paul Garbutt, Rob Benson, and David Morrey from Grant Thornton delve into the future of financial services leading up to 2025. They explore the evolving regulatory landscape and the impact of technology and innovation, particularly in AI and insurtech. The trio also addresses the challenges faced by the insurance sector amidst geopolitical tensions and climate risks. Furthermore, they analyze the implications of rising interest rates and the importance of effective governance in navigating macroeconomic uncertainties.

David Morrey and Ben Farmer discuss the responses from the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) on adapting to the Treasury's prioritisation of growth.  They also discuss the FCA's thematic review of wholesale brokers' anti-money laundering initiatives and the implications of its controversial email retention policy, as well as the ongoing Supreme Court case involving finance providers, the FCA and Markos Markou, and more.

David Morrey and Ben Farmer delve into key regulatory trends set to impact financial services by 2025. They highlight a decrease in FCA fines and explore the implications of future changes in the FCA Handbook. The discussion includes challenges in motor finance remediation and ongoing issues for financial advisors. They analyze the balance between simplifying regulations and effective oversight, especially regarding vulnerable customers. Finally, they consider the importance of transparency and competition in shaping the upcoming landscape.

This discussion dives into the ongoing motor finance saga, focusing on a Supreme Court appeal involving Close Brothers and the FCA's push for resolution. There’s also a look at Consumer Duty feedback and evolving reporting requirements for life insurers. Key regulatory insights include the 'name and shame' consultation and MiFID updates aimed at streamlining compliance. Additionally, they touch on the implications of Barclays’ fine in relation to investment disclosures, showcasing the ever-changing landscape of financial regulation.

In the latest episode David Morrey and Ben Farmer discuss a bumper list of current regulatory issues as previewed in Rachel Reeves's Mansion House speech, aimed at unlocking innovation and growth: Modernising the Financial Ombudsman Service The Government's desire to modernise the Financial Ombudsman Service framework, including the previously issued call for inputs.  Certification regime consultation An upcoming consultation on replacing the certification regime with a more proportionate system to reduce costs. National payments The Government's plan to publish a national payments vision and launch a pilot to deliver a digital gilt instrument using distributed-ledger technology. ESG and green finance The ongoing focus on ESG and green finance, with several upcoming consultations on various related items. Financial services growth and competitiveness strategy The Government's plans to publish a financial services growth and competitiveness strategy in spring 2025, alongside a call for evidence to gather industry input on the direction it should take. FCA consultation on financial decision making An upcoming FCA consultation aimed at helping households make better-informed financial decisions as part of the advice guidance boundary review. Captive-insurance companies framework The Government's consultation on a new framework for UK-based captive-insurance companies to make the country a more attractive hub for them. Pension system reforms The Chancellor's plans to reform the pension system to allow for greater investment. Modernising the redress system A call for input on modernising the redress system, focusing on improving the process for handling mass redress-events and addressing perceived misalignments between the FCA and the Financial Ombudsman Service.   Other recent developments discussed include: FCA market study on premium finance New FCA market study on premium finance in home and motor insurance. The study aims to understand the reasons behind rising premiums and assess whether premium finance arrangements represent fair value for customers. Court of Appeal decision on motor finance The recent Court of Appeal decision related to motor finance claims, which could potentially open the door for challenges to finance-related contracts with undisclosed commissions.  

In this episode, we delve into the key aspects of motor insurance total loss claims. Blandine Arzur-Kean, Managing Director, Grant Thornton is joined by colleague Philip Tregurtha, Director, Grant Thornton and Kate Pender, CEO, Fair4All Finance, to discuss: best practices for vehicle valuation and settlement processes fair and standardised processes for settling claims supporting vulnerable customers building trust with policy holders valuation challenges and claim frequencies associated with electric vehicles.

David Morrey, Head of Financial Services Regulatory Advisory, and Paul Garbutt, Head of Banking, discuss the recent Court of Appeal decision regarding motor finance complaints, which requires greater disclosure of commissions paid to brokers and explicit consent from borrowers. This decision has significant implications for the industry, extending beyond regulatory requirements to contract law. During the episode we cover judgement overview, disclosure requirements, industry impact, implications for lending contracts and industry reaction, and risk mitigation.

It’s been over a year since the financial services industry began embedding the Consumer Duty for existing products. The FCA’s relentless focus on good consumer outcomes is reshaping the landscape.  In our latest podcast episode Blandine Arzur-Kean is joined by regulatory experts David Morrey, Peter Lovegrove, and Supriya Manchanda to discuss:  the impact of the Consumer Duty  challenges firms are facing around management information, data, outcomes testing, and ensuring good results for customers  product governance and fair value assessments  future of conduct regulation  opportunities with AI  Do you need guidance on the Consumer Duty? You can get regular updates from our dedicated hub. Visit our Consumer Duty Hub here.