1. CHO AGM Compliance Update Iain Stephen Jt. CEO Compliancy Services
24th November 2016
@compliancysrvcs

2. Todays topics FCA Business plan 2016/2017 2016 updates Complaints
Appointed Representatives

3. FCA Business Plan 2017 Recognise a changing population
1.1 million increase in over 65s by 2020
85+ fastest growing age group in UK
7% of UK workforce self employed
26% of first time buyers took a 35 year mortgage in 2015

4. The FCA at work
Regulate over 56,000 firms and 125,000 Approved Persons
Determined 30,000 applications from CC firms in 2015
1004 New firms authorised in 2015
134,000 consumers helped by contact centre 2015
£250m paid in redress by payday lenders
200,000 people visited FCS ScamSmart hub

5. FCA priorities 2017 Constructive Deterrence
Risk outlook central to business plan:
Constructive Deterrence
Top 2 themes prioritised
Wholesale markets
Provision of advice
Pension freedoms created new possibilities and also risks
More choice/ownership of retirement income
Critical decisions require best advice/guidance
Technology
Drive down costs/increase quality of service
Challenges: resilience, cyber crime/financial exclusion

6. Constructive Deterrence
Challenge poor conduct
Culture & Governance 2 key priorities closely related
Committed to making markets work effectively and fairly
Enforcement powers to reinforce policy objectives

7. Cornerstones of risk
Governance
Culture
Controls

8. FCA regulated activities
Insurance mediation
Assisting with the administration and performance
of insurance contracts (FNOL and claims against insurers)
Arranging / advising on insurance contracts
BTE/ATE
Insurance backed excess cover
Acting as agents of insurers
Consumer Credit
Credit broking
Consumer Hire
Debt adjusting / counselling/ administration

9. Complaints Eligible complainants New rules from June 2016
Informal complaints

10. Eligible Complainants
A consumer
A micro business enterprise
- less than 10 employees
- annual T/O <€2m
- Charity with income <£1m
- Trustee of a trust with net asset value of £1m

11. Internal Complaints Handling
Procedure must meet the following requirements:
A firm must:
Publicise it is subject to the Financial Ombudsman Service.
Publish its own internal complaint handling procedures and, at the point of sale, or
when it first provides customers with documentation, refer to their availability.
Normally achieved by including reference to the complaints procedures
in the following documents:
Terms of Business Letter
Initial Disclosure Document or Combined Initial Disclosure Document

12. Time limits
If resolved by close of business within 3 days represents an ‘Informal’ complaint:
On resolution issue ‘Summary Resolution Communication’
offer internal escalation and FOS details
Not resolved within 3 days becomes Formal Complaint subject to DISP rules
promptly send a written acknowledgement of the complaint (within 5 days)
include the name or job title of the relevant contact point within the firm
details of its internal complaint procedures
If made orally, a firm should try to confirm it's understanding
of the complaint when it sends an acknowledgement
A complaint may be acknowledged by if received by
A firm should aim to resolve complaints at the earliest possible stage

13. Access to FOS
Within 8 weeks of the receipt of a complaint, or after it sends the complainant
a final response (if this is earlier) a firm must;
inform the eligible complainant that he may refer the complaint to the
Financial Ombudsman Service (FOS) if he remains dissatisfied;
inform the eligible complainant he is allowed to refer his complaint immediately to the FOS
or within six months; and
send the eligible complainant an explanatory leaflet about the FOS
If still unable to respond within 8 weeks (all the above), plus
give reasons for the further delay, indicating when it will provide a final response
Complaints are indicators of areas of a firm's business that may not be operating satisfactorily
for customers. Senior Management should ensure that the firm has a philosophy that sits
alongside the principles of TCF and recognises that effective complaint handling is an integral part of TCF.

14. Appointed Representatives
Not directly authorised by FCA
Use permissions of their Principal to conduct regulated activities
Recent FCA thematic review findings
Significant shortcomings found in Principal firms understanding
of regulatory obligations
control and oversight of ARs regulated activities
Over half Principal firms in sample unable to demonstrate effective
risk management
Action taken against 5 Principal firms
Principals now high on FCA radar screen

16. Title
Writing