Backstage with Keith Richards – March 2020

In these exceptionally challenging times, I’d like to outline how the Personal Finance Society is addressing some of the key issues facing our profession.

The impact of COVID-19 will make it virtually impossible for financial advisers to talk to clients face-to-face. We know many of you have prioritised providing reassurance to clients and helping them with their needs over the telephone or internet.

Over the coming months, the focus for all stakeholders must be on maximising the amount of time advisers can spend dealing with client needs, especially those in desperate need of the profession’s help.

Last week we wrote to the Financial Conduct Authority and HM Treasury outlining actions they could take which would help our members and their clients – who now more than ever require quality financial advice.

Our communication requests:

• The FCA pushes back the 1 October 2020 deadline for Pensions Transfer specialists to achieve Retail Distribution Review required qualifications
• The FCA issues communications to the public about the importance of not over-reacting to investment market behaviours during the coronavirus outbreak and seeks guidance or advice from qualified individuals

• A lighter touch is taken to Senior Managers Certification Regime implementation
• The relaxing of MiFID II 1o% regulatory financial returns requirements

Professional Indemnity Insurance

Many of our members have told me about the increasing challenges around securing Professional indemnity insurance. We have seen clear evidence that the government’s lockdown procedures to slowdown the spread of the coronavirus has contributed to a reduction in available cover with renewals being seriously impacted.

We are calling for the introduction of a four-month waiver for advice firms searching for professional indemnity insurance, in tandem with confirmation that government business loans won’t breach a firm’s capital adequacy requirements.

We have also asked HM Treasury to consider acting as reinsurer of last resort for professional indemnity insurance ahead of a wider PII/Financial Services Compensation Scheme funding review.

My blog will continue to address critical issues and communicate how we are supporting our network of advisers across the country. Your thoughts and suggestions on future priorities are welcome.  Please forward your suggestions to pfsnews@thepfs.org

Keith Richards
Chief Executive Officer – Personal Finance Society