Global Trustee and Fiduciary Services Bite-Sized Issue 8 2023

Global Trustee and Fiduciary Services Bite-Sized | Issue 8 | 2023 19 QUICK LINKS ANTI-MONEY LAUNDERING CBDC COSTS & CHARGES CRYPTOASSETS CULTURE & CONDUCT CYBERSECURITY EMIR FINTECH FSB FUND LIQUIDITY MIFID II/MIFIR SUSTAINABLE FINANCE/ ESG AUSTRALIA ASIA IRELAND NORTH AMERICA UNITED KINGDOM – In the 12 months to May 2022, 84% of those who used customer support services in the last 12 months agreed that it helped them achieve what they wanted to do, but 16% said it did not help at all. Adults with one or more characteristics of vulnerability were more likely to report that customer support services did not help them at all. – Whilst over two-thirds (68%) of adults said they always or usually shop around for insurance products, far fewer (44%) reported doing the same for other financial products. When they shopped around, most found comparing products straightforward. – For an estimated 4.9 million adults who had used provider communications to make a decision in the year to May 2022 the communications did not help at all. This was particularly the case for consumers with characteristics of vulnerability. • Consumer trends from 2017 to 2022. The FCA states that the data tables it has published as part of the survey results will allow firms to look at each survey result by whether adults have any characteristics of vulnerability or by specific characteristics, such as low financial capability. The FCA believes that this is helpful, for example, in identifying how people with specific characteristics are struggling to interact with financial services, or to assess howmuch poorer different outcomes are for adults in vulnerable circumstances. The Consumer Duty requires firms to consider the range of needs in their target market, including characteristics of vulnerability, and to factor this in to how they design and sell products and services to their customers. Link to Survey here FCA Consultation on Financial Promotions on Social Media On 17 July 2023 the FCA published consultation GC23/2 detailing proposed guidance on how financial promotion requirements apply to promotions on social media. The proposed guidance aims to ensure firms understand how the FCA’s rules apply and the FCA’s expectations for financial promotions on social media. GC23/2 highlights that the Consumer Duty will strengthen the FCA’s expectations of firms communicating or approving financial promotions. The FCA wants firms to consider this guidance alongside their obligations under the Consumer Duty to help them deliver good outcomes for retail customers. The FCA states that unauthorised persons, such as social media influencers, who promote a regulated financial product or service without approval of an FCA authorised person may be committing a criminal offence. The FCA therefore includes guidance to provide additional clarity on when a communication might constitute a financial promotion. The consultation period ends on 11 September 2023. Link to GC23/2 here FCA Draft Rule Review Framework On 14 July 2023 the FCA published a draft version of its Rule Review Framework (Framework) to invite comments and input from all stakeholders before it is finalised. The draft Framework sets out the FCA’s intention that, for many rules implemented after it is in place, it will collect and monitor data to assess the effects of a rule change. The FCA may choose not to actively monitor new rules where it is not feasible to do so, where it is not an effective use of its resources or where the rules relate to minor policy or rule changes with minimal impact. The draft Framework sets out the three main types of review that the FCA may undertake, their purpose and when the FCA may use them. The FCA will decide whether to do a review based on its plans, existing commitments and resources. • Evidence assessment – where the FCA aims to collate and analyse data which indicates whether the key intended outcomes of a rule or policy intervention are being, or are on course to be, met. • Post implementation review – where the FCA aims to establish whether a rule or policy intervention has met its intended outcomes while also identifying implementation issues and