The SimplyBiz Group chairman Ken Davy said the Financial Conduct Authority’s (FCA) recent ‘Dear CEO’ letters to advisers and assets managers should “not be underestimated.”
On 20 January, the regulator sent a ‘Dear chief executive’ letter to asset managers, outlining its view on the key risks of harm asset managers pose to their customers. The letter, which was written by FCA director of wholesale supervision Marc Teasdale, said asset managers must act in the best interests of their clients.
Then, on 21 January the FCA published a ‘Dear CEO’ letter, which said firms’ inability to compensate consumers via their professional indemnity insurance was “unfair.” FCA director of life insurance and financial advice supervision Debbie Gupta said the transfer of compensation costs to other market participants via the Financial Services Compensation Scheme (FSCS) levy placed an unnecessary burden on other firms.
SimplyBiz Group PLC (LON:SBIZ) provides compliance support and business consultancy services to financial services, legal and workplace benefits professionals in the United Kingdom.
