Agenda 13.30 13.40Welcome and introduction Kevin Parkinson,
Chairman of the APCC 13.40 14.25Mark Neale, CEO of the FSCS A
valuable insight into the day to day challenges that face the FSCS
with an overview of how they dove-tail with Regulator and the FOS
14.25 15.15Mel De Noronha, Outreach Officer, Financial Ombudsman
Service Following on from the annual conference, Mel will provide
further understanding of the work undertaken by the FOS, and look
at case studies on how outcomes and decision are made. 15.15
15.30Break 15.30 16.15Gordon Findlay, FCA Communications Department
An overview of forthcoming FCA communications with firms and what
their future focus and vision will be, and an opportunity to ask
the regulator those burning questions! 16.15 17.00Open Forum A
chance for an informal discussion on any hot topics either between
consultancy firms, or for further discussion with the FOS, FSCS
& FCA. 17.00Close
Slide 3
Mark Neale - CEO The Financial Services Compensation
Scheme
Slide 4
ab FSCS and the Challenges Ahead June 2, 2015 Mark Neale, Chief
Executive
Slide 5
ab Our History 5 The Financial Services and Markets Act 2000
required FSA to set up a Compensation Scheme: To compensate persons
in cases where relevant persons (firms) are unable, or likely to be
unable, to satisfy claims against them (the Financial Ombudsman in
contrast, deals with cases relating to firms that are still
trading) FSCS was set up in December 2001 Replaced 8 existing
schemes covering investment business, deposits and insurance.
Protection extended to cover mortgage and general insurance
mediation in 2004/2005 Set up as an independent, separate company
with its own Board, Chairman and Chief Executive The service is
free to consumers And is funded by the industry through levies
Slide 6
ab Our Governance since 1 April, 2013 one Scheme, two Masters 6
FSCS Financial Conduct Authority
Slide 7
ab Our Mission and Aims In delivering this mission FSCS aims
to: Respond quickly, efficiently, and accurately to claims for
compensation (Consumers) Raise awareness of the protection provided
by FSCS (The public) Ensure FSCS operates as efficiently as
possible and maximises recoveries from estates of failed providers
(Levy payers) Be ready to respond to defaults in the financial
services industry to protect consumers and financial stability
(Government and regulators) Enhance the capability of the FSCS by
enabling the people who work for us to develop their skills,
knowledge, and professionalism (Our own people) 7 The FSCS mission
is: To provide a responsive, well-understood and efficient
compensation service for financial services which raises public
confidence in the industry
Slide 8
ab Our Environment: Uncertainty, Volatility and Rising
Expectations Extreme volatility and unpredictability of demand -
Legislative requirements to pay-out the majority of depositors in a
failed bank or building society in 7 days and everyone in 20 days
Low public awareness of FSCS protection = risk of unnecessary panic
in response to failure Need to prepare for range of eventualities,
including the failure of a life company where continuity of cover
would be crucial to public confidence Ability to develop and
participate effectively in resolutions which do not involve pay-
outs, including potential bailing in of deposit insurer Increasing
complexity and cost of recovering assets from estates of failed
providers, including failed banks of 2008 and investment companies
like Keydata 8 Claims 2008/09: Over 4 million Claims 2008/09: Over
4 million Compensation payments 2007/08: 82m Compensation payments
2008/09: 20bn Compensation payments 2008/09: 20bn Claims 2002/03:
8,000 Claims 2002/03: 8,000
Slide 9
ab Our Vision and Strategy for the Future To achieve our aims
and meet the challenges of the next five years we have seven
imperatives to shape our strategy: Modernising our service to
consumers; providing a responsive and reliable service at
reasonable cost; overcoming complexity Diversifying compensation
routes so we find new ways of resolving claims and industry
failures Raising awareness of the protection we provide Improving
our value for money, transparency and accountability; retain
industry confidence and support; can we work together to reduce the
cost of regulation? Achieving excellence as a creditor Deepening
contingency planning with key stakeholders to ensure we respond
effectively to crises and play a positive part in resolving
failures; retain support of Government and the Regulators Engaging
our people to make FSCS more agile and professional; will require
continued change and adaption 9
Slide 10
ab Our Opportunities, Risks and Challenges 10 Within FSCS
Implementation of Connect- our new internal process and operating
system; will deliver a more efficient, effective and
customer-focused claims handling process to benefit industry and
consumers Deposits Preparing for the changes brought in by DGSD
(Deposit Guarantee Scheme Directive) on July 3rd- includes work on
SCV (Single Customer View) and data verification Investments
Increasing number of SIPPs claims- investors being negligently
advised to switch from conventional pensions. Quantifying
investment and pension losses. Claims relating to advice to invest
into Unregulated Collective Investment Scheme (UCIS) investments,
with complicated valuation and causation considerations. Insurance
Changes to policyholder protection limits on July 3 rd - increased
cover for consumers Increasing numbers and rise in cost of deafness
and asbestos-related claims
Slide 11
ab Thank You ANY QUESTIONS? FSCS protects deposits, insurance
and investments as well as mortgage advice. Since 2001, it has
protected more than 4.5m people and paid out 26bn in compensation
when firms went bust. FSCS is independent and does not charge
consumers to use its services. It is funded by financial services
firms. www.fscs.org.uk FSCS, 10th Floor Beaufort House, 15 St
Botolph Street, London, EC3A 7QU
Slide 12
Mel De Noronha The Financial Ombudsman Service Fair and
Reasonable
Slide 13
what is fair and reasonable? Mel De Noronha outreach officer
APCC Regional Forum
Slide 14
www.financial-ombudsman.org.uk Financial Ombudsman Service
@financialombuds meettheomb what Ill be covering what were seeing
about fair and reasonable and how it works in practice the support
available to you and your clients
Slide 15
www.financial-ombudsman.org.uk Financial Ombudsman Service
@financialombuds meettheomb our annual review
Slide 16
www.financial-ombudsman.org.uk Financial Ombudsman Service
@financialombuds meettheomb 2014-15 the headlines work coming in
around 1.8 million initial enquiries around 1 in 5 became cases
almost 200,000 about the sale of PPI work coming in around 1.8
million initial enquiries around 1 in 5 became cases almost 200,000
about the sale of PPI cases closed nearly 450,000 resolved 63%
about PPI sales around 43,000 needed an ombudsmans final decision
cases closed nearly 450,000 resolved 63% about PPI sales around
43,000 needed an ombudsmans final decision
Slide 17
www.financial-ombudsman.org.uk Financial Ombudsman Service
@financialombuds meettheomb fair and reasonable
Slide 18
www.financial-ombudsman.org.uk Financial Ombudsman Service
@financialombuds meettheomb fair & reasonable case law
regulations codes of practice rules contract law good industry
practice both sides of the story not black & white based on
facts terms & conditions best practice balance of probabilities
how we look at things
Slide 19
www.financial-ombudsman.org.uk Financial Ombudsman Service
@financialombuds meettheomb fair & reasonable in practice
Slide 20
www.financial-ombudsman.org.uk Financial Ombudsman Service
@financialombuds meettheomb need a hand? 020 7964 1400 (9am - 5pm,
Mon to Fri) [email protected] !
www.financial-ombudsman.org.uk online technical resource
publication of final decisions complaint data about individual
named businesses ombudsman news
Slide 21
www.financial-ombudsman.org.uk Financial Ombudsman Service
@financialombuds meettheomb meet the ombudsman roadshow Birmingham,
9 June Durham, 23 June York, 24 June Blackpool, 7 July Bradford, 8
July Crewe, 28 July and more to come
Slide 22
www.financial-ombudsman.org.uk Financial Ombudsman Service
@financialombuds meettheomb time limits frivolous & vexatious
claims companies staff training consistency case fees your
questions 8% interest whats next what matters to you?
compensation
Slide 23
www.financial-ombudsman.org.uk Financial Ombudsman Service
@financialombuds #meettheomb
Slide 24
Gordon Findlay The Financial Conduct Authority
Slide 25
Communication & Education programme Gordon Findlay
Slide 26
Tracey McDermott: For smaller firms specifically, one of our
key aims is to ensure that we increase our focus on engagement and
education, building on the success of work such as our Positive
Compliance workshops. We will also be looking to improve our
website to make it easier to find the information you need, and we
will also look to make more creative use of technology, such as
webinars, to assist us in reaching large numbers of firms. 26
Slide 27
Background Working with supervision Regional focus Two way
communication Different engagement opportunities Making best use of
resources and technology Adapting to new preferences of our
audience Remaining Braw workshops/reviews? FCA website 27
Slide 28
Proposed pilot North West Expanded Positive Compliance sessions
Positive Compliance mortgage sessions One to one surgery
opportunities Smaller discussion sessions - Breakfast meetings -
Lunches - Panel discussions Other sector engagement opportunities
28
Slide 29
Questions? Burning or otherwise.. 29
Slide 30
Open Forum
Slide 31
For details on how to join or for any general communications
please contact; Mrs Beverley Robertson The Association of
Professional Compliance Consultants Kemp House 152-160 City Road
London EC1V 2NX Tel; 0203 693 3805 www.apcc.org.uk