2 June 2020
As members of the APCC, we’ve been briefed on a new study about to be undertaken by the FCA, which requires immediate attention.
Participation in the process is mandatory for IFAs and wealth management firms selected to take part…
The research is aimed at helping the FCA understand the impact of Covid-19 on regulated firms and where the greatest impacts are for firms and consumers.
The results will be used to inform and shape the direction of future policy.
So, who will receive the survey?
13,000 solo regulated firms from 15 key portfolios will be issued with the new ‘Financial Resilience’ survey which will arrive via email.
Specifically, these regulated firms include:
- E-money issuers
- High cost lenders
- Payment services firms
- Peer to peer lending platforms
- SIPP operators
- Advisers and Intermediaries
- Contracts for Differences (CFD) providers
- Credit reference agencies and providers of credit information services
- Crowd funders
- Custody services
- Debt purchasers, debt collectors and debt administrators
- Mainstream consumer credit lenders
- Personal and Commercial Lines insurance intermediaries
- Wealth management firms
What’s in the survey?
The survey will consist of ten questions and the hope and expectation is that it will not take longer than one hour to complete.
The survey seeks very specific answers to some key questions. It’s worth having a good handle on the following information before sitting down and completing it:
- Cash and other liquid assets held and what costs those assets need to cover in the new few months, including extensions with creditors.
- Recent financial performance with regards to P&L and the impact of Covid-19, in the previous 3 months, and if this has affected business models.
- Scale of business activity and income and for e-money and GI, around safeguarded and client money.
- Information around firms accessing Government schemes, loans or furlough schemes.
When is the deadline for completion?
The first batch of emails containing a link to the survey will be issued on 4th June 2020 for a response by the 12th June.
A second batch will be issued on 8th June for a response by the 16th June.
It is likely that you will soon receive (or have just received) a ‘heads up’ email alerting you to the survey which provides you with assurances surrounding confidentiality and data protection.
We are reminding our clients that participation in this survey is mandatory, and we are encouraging everyone who receives it to deal with it promptly and co-operate fully with the regulator.
If you fail to respond in time (or at all) it is highly likely that you will receive a reminder and then, possibly having to engage directly with the FCA. It is firmly in your interests to look out for this email landing in your inbox – and deal with it promptly and accurately.
Please remember, you’ve got just 7 working days to complete and submit the survey. If, for whatever reason, this is impractical you must contact the FCA with the reasons why you can’t complete it within the timescale offered – and you should then await a response.