Good morning and welcome to your Morning Briefing for Friday 22 November 2024. To get this in your inbox every morning click here.
FCA charges four individuals with fraud offences
The Financial Conduct Authority has started criminal proceedings against four individuals for conspiracy to commit false accounting.
Terry Dodd, John Riley and Brian Flanagan were charged for fraudulently abusing their positions as directors of the Dial-A-Cab Credit Union for their own personal gain.
Terry MacPherson, 53, was accused of using his position as an auditor to submit false returns to the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).
The FCA alleged that the four individuals transferred funds out of the credit union for the benefit of themselves and their families.
Where’s all the soft-skills training?
The industry offers a wealth of training on products, investments and regulations, but soft skills often take a back seat.
Presumably this is due to the belief that new advisers will learn on the job, or else a lack of regulatory necessity. Yet these skills are vital for fostering trust, delivering impactful advice and improving overall client experience.
Communicating clearly, building rapport and implementing behavioural coaching are all areas where I see my room for growth, writes Samuel Allen, a chartered paraplanner at Finura.
Quote Of The Day
While this set of figures predates the chancellor’s tax-raising Budget, the numbers raise big questions about whether the measures announced at the end of October will be enough to balance the books
– Danni Hewson, AJ Bell head of financial analysis, comments on the latest public-sector finances
Stat Attack
The latest Wiley Workplace Intelligence report suggests managers and employees are struggling to understand how and when to integrate generative artificial intelligence (AI) technology into their work.
96%
of employees who responded to the survey say are experiencing some degree of stress about change at work, with
40%
saying they are struggling to understand how to integrate AI into their work, and nearly twice that number
75%
saying they lack confidence in how to utilise AI. And their bosses appear to agree.
34%
of the people managers surveyed say they feel equipped to support AI integration.
80%
feel their manager is supportive of their efforts to integrate AI into their workflows, while just
60%
think their manager is knowledgeable about how to effectively accomplish this integration.
Source: Wiley
In Other News
Life-insurance broker Reassured has announced the appointment of Philip Byrne as chief risk and compliance officer.
Byrne will be responsible for enhancing and evolving Reassured’s approach to governance and risk management.
He will also be influential in supporting the continued delivery of good customer outcomes as the firm continues to invest in technology to improve its products and digital experiences via its multi-channel approach.
Byrne, who brings extensive experience to the role, will join the senior leadership team. He will report to chief executive Mark Townsend.
Previously, he served as head of compliance at Markerstudy Group, as well as director risk and compliance at BGL Insurance.
The number of prosecutions for tax crimes has hit a three-year high of 300 in the year to September 30, 2024, up 19% from 252 in the previous year as extra funding for HMRC likely helps to drive a surge in tax investigations, says international law firm Pinsent Masons.
In recent Budgets, the Government has repeatedly given HMRC extra resources to hire more tax investigations staff.
Ian Robotham, legal director at Pinsent Masons, says these extra resources are now likely seeing HMRC deliver more investigations and more prosecutions.
The number of new tax investigations opened by HMRC during the third quarter of 2024 was 93,000, the highest figure registered in a quarter for three and a half years. The number of investigations opened has averaged 78,000 a quarter for the last three years.
From Elsewhere
Gold surges over broader Ukraine war fears (Reuters)
Britain’s household energy price cap to rise from January (Financial Times)
Gary Gensler to leave role as SEC chairman (BBC News)
Did You See?
The Consumer Duty requires firms to act in good faith, avoid foreseeable harm and support clients in pursuing their financial objectives, writes Sandy Scally, business risk consultant at Threesixty.
Consequently, firms must place greater emphasis on client interactions when relationships are ending.
Client relationships typically end for a few common reasons. On the client side, these include relocating, switching to a different adviser, no longer needing services or passing away.
On the firm’s side, disengagement may occur due to changes in client segmentation that alter or withdraw services, adjustments to regulatory permissions or professional indemnity coverage, difficulty in contacting the client to deliver services or an inability to meet a client’s needs.
Read the full article here.
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