This issue’s Regulatory Radar looks at news from the FCA and more…
FCA Consultation on intergenerational differences
In August, the Financial Conduct Authority’s (FCA) consulted on how socioeconomic changes impact both markets and individuals, with a specific focus on how unique challenges are faced by individuals from different generational groupings.
As part of a wider Chartered Insurance Institute submission to the consultation, the PFS contributed its own views on these challenges, particularly on the difference in the level of access to financial services seen between younger and older generations; the role of new financial technology in bridging some of these divides; and the compounding factors of gender or infirmity across age groups.
This submission will assist the FCA in understanding areas in which either it or the market needs to collaborate on, to change generational and socioeconomic challenges into opportunities and increase overall access to
As we continue to weather the political storm at the heart of Westminster, the Brexit train continues to move, albeit at a rather disjointed pace.
Earlier this month, MPs met to address the chance of a no-deal exit from the European Union (EU), resulting in a series of defeats for the government and the end of its overall majority of MPs in the House, with the loss of 23 Conservative MPs who rebelled against the whip.
As this publication went to press, the country remained on the precipice of leaving without a deal on 31 October, but an extension of its membership of the EU to January 2020 or beyond was made more likely due to Opposition legislation laid in front of the Houses of Parliament.
The Opposition Bill has been voted through in the Commons and the Lords, with the express purpose of binding the government to its will in seeking an extension of our membership from the EU.
This extension is sought on the premise of the UK either negotiating a new deal; voting through the old Withdrawal Bill (as an unexpectedly successful amendment forces MPs to re-debate this option); voting for a new referendum on the matter of leaving; or even unilaterally deciding to revoke Article 50. Simply put, the options continue to be the same, although with varying chances of success.
At the time of writing, the Prime Minister said he will refuse to ask for an extension and has instead called for a general election - initially refused by Opposition parties and rebellious Conservatives alike. They want to ensure we do not crash out of the EU at the end of October, although their position could change now their Bill has gained Royal Assent and has officially entered law.
We may now expect a new deadline to be reached with the EU, and again this opens the possibility of a deal being reached with EU, including an implementation/transition period and the certainty this can bring to the financial services sector.
Guidance on preparing for no deal can be found on the government website, and we will continue to monitor the situation and update you on the likely outcomes once the situation becomes clearer.
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PFS online policy content
Please be sure to visit our policy and research online content. Briefings, updates, research papers and much more are available for download at: www.thepfs.org/insight