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The UK Financial Conduct Authority (FCA) has today proposed a new Directory to help consumers and firms check the status and history of individuals working in financial services.
Mark Turner, Managing Director at regulatory consultancy Duff & Phelps, comments:
On the context:
- “The introduction of the Directory is a positive development for both firms and customers and it’s good to see that the FCA has listened to the concerns raised through the consultation process.
- “It fills the problematic void that would have otherwise existed where most currently registered individuals would no longer be visible on a public register.
On the benefits:
- It’s a two-way street – firms have the benefit of checking information on individuals across the market which will be useful for references, market monitoring and analysis, and for due diligence when dealing with individuals at other firms.
- “Meanwhile customers get the confidence of knowing they can check the reputability of their local financial advisers before doing business.”
On the potential drawbacks:
- “That said, it’s going to be yet another administrative burden on firms, and reporting timescales are tight.
- “For instance, reporting on new individuals in relevant roles must be undertaken by the end of first business day - or no later than one business day after a person has moved or left – by industry standards, this is a very quick turnaround.”
