Backstage with Keith Richards – 6 April 2020

New Coronavirus Business Interruption Loan Scheme (CBILS)

The Personal Finance Society – has produced a new guide for members explaining the forms of financial support available to business as a result of the coronavirus outbreak.

Our guide details the full list of financial support being made available by government, as well as how to access the different support schemes, advice on how to apply for support, and a breakdown of the eligibility criteria for applicants.

It also includes an extensive list of useful government and third-party links to provide information for firms facing financial hardship caused by the measures which have been made necessary by the pandemic.

Read our Government COVID-19 support packages for businesses guide.

MiFID II 10 per cent rule

The Personal Finance Society was one of the first organisations to call for a temporary suspension to this rule in the interests of both clients and advisers. We therefore welcome the FCA’s pragmatic decision to temporarily remove the requirement to report a drop of 10 per cent or more of a client’s portfolio more than once, provided they have an alternative, more general communication in place.

Clients will already be aware of the turbulence in the markets and repeated information about their investment falling, without the proper context, has in many cases only served to increase their anxiety during these unprecedented times.

We also welcome the clarification on the flexibility within the rules on client identification requirements. Members have raised this with us as an issue, and we encourage all firms to explore the flexibility highlighted by the FCA in order to deliver the best possible service to clients in a secure way.

This action from the FCA will also ease the unnecessary additional administrative burden on firms who found themselves issuing two notifications in the same week when restrictions were announced. This will allow them to spend more time serving their clients productively.

Mortgage market support is welcome

The FCA’s announcement (on 2 April) about temporary relief available to clients impacted financially by the coronavirus should be warmly welcomed.

Our members have told us that ensuring clients do not have their credit ratings negatively impacted by using the temporary reliefs available if they are financially impacted by the coronavirus will be a key component in ensuring a swift recovery for the mortgage market.

While it may be too soon to anticipate when we will see a return to normality, this announcement helps position individuals and firms to rebuild their financial position quickly once the initial crisis is over.

It is also crucial that the sector takes a unified approach to this guidance: all lenders should adhere to this to ensure the best possible outcome.

Other issues

RMAR – we have also called on the FCA to suspend Gabriel reporting which impacts a lot of firms over the next two months, with many staff having to visit offices to fully complete and submit.

PII – we continue to raise concerns regarding the availability of PII and the impact this may have on the renewal process during the next few weeks requiring a breach waiver and the government to underwrite the temporary financial exposure.

PII/FSCS – a proposed solution has been resubmitted to HMT, FCA and FSCS for consideration.

My blog will continue to address critical issues and communicate how we are supporting our network of advisers across the country. Your thoughts and suggestions on future priorities are welcome.  Please forward your suggestions to pfsnews@thepfs.org

Keith Richards
Chief Executive Officer – Personal Finance Society