What is the new NHS Pension Scheme proposed employer contribution rate from 1 April 2019?
a) 20.6 percent
b) 16.2 percent
c) 26.6 percent
d) 22.2 percent
answer at base
The enthusiasm of EEA countries to blackball the UK from their club is astonishing. A Norwegian friend asked me last week, why the UK was making such a fuss about Brexit. Works fine for us, she said!
While the FCA is busy telling us how to trade in the EEA, Ireland seems more focused on telling us how not to trade in their countries, rather than helping their own brokers trade in the UK! Here is what the Central Bank of Ireland put out this week: and note the complete absence of any guidance for Irish firms trading abroad.
â€œAfter the withdrawal date of 29 March 2019, the UK will become a third country (non-EU) â€¦
In the event of a â€œhardâ€ or â€œno dealâ€ Brexit, UK insurance intermediaries must put in place the necessary registration in order to continue operating in Ireland. Where the required registration is not in place by 29 March 2019, those firms must cease providing services into Ireland on a Freedom of Establishment and/or Freedom of Services basis. â€œ article here
You can sense their glee!
The Irish will also allow UK brokers and underwriters to continue to administer ongoing insurance contracts â€“ ie ongoing claims and those with late renewals. This will be for a period of three years after the date of the withdrawal of the UK from the EU.
The Bloodstock insurance industry is reeling as local agents in Ireland now are being contracted to attend as observers UK brokers meeting stud managers to renew their routine insurances.
If you pay attention to IFAC audits, follow what IFAC say and implement changes IFAC recommend, you hardly need to worry about these missives from FCA. IFAC have you covered!
However, on a â€œneed to knowâ€ basis of managementâ€¦..â€you need to know.â€
So here is your two minute guide to the FCA Mifid Disclosure review.
FCA looked at the costs and charges disclosures of a sample of 50 firms in the retail investment sector. They wanted to understand if firms were complying with the new rules.
FCA found firms fell short when disclosing third-party costs and charges. That means not enough disclosure of underlying UCITS and DFM transaction costs â€“ ie the costs of buying and selling. For instance, while most OEICs will churn up to 100% of their book annually at, say Â½ per cent bid offer spread for each stock, this adds the same Â½ per cent to the annual management costs â€“ but is rarely disclosed. But you need to disclose it!
MiFID II came into effect on 3 January 2018. Since then, firms have had to change costs and charges disclosure in annual suitability reviews. See the IFA templates on the doc library - searchâ€œguide to mifid chargesâ€
FCA looked at IFAs, DFMs, direct-to-customer investment platforms and other investment managers (who donâ€™t actively advise themselves). They looked at websites (a particular favourite of theirs) and your communications to your clients in SRs and statements.
As a reminder, firms must give clients information on all costs in good time before arranging the deal.
This is the â€˜ex-anteâ€™ (before the event) disclosures.
And then again â€˜ex-postâ€™ (after the event) disclosures must be made annually.
As usual, there was confusion in the market and no consistent interpretation of the rules. But it was clear that â€œmost of them had given this serious consideration and were trying to comply with the rules.â€
Since one of the key worries the FCA have is that the market is not price sensitive, and there is almost no competition among IFAs, it follows that these fails are really just own-goals!
Now that the PPI scandal is coming to a close more and more attention is being devoted to other claims. We have written before about Pure Legal claims against interest only mortgages, and more is to follow from other sources.
Finance agreements for vehicles is an emerging issueâ€“ in particular the contentious calculation of the â€˜balloonâ€™ payments at the end of agreements. This could spread into agreements for office equipment.
For this reason IFAC believe that IFAs should apply to upgrade their FCA licences from April 1st onwards, to enable them to act as claims management firms â€“ in effect managing claims for individuals. This also allows you to take a cut. Put in your request by reply. IFAC do not charge members for that service.