HMRC Notifications

HMRC are tightening their grip on Financial Advisers and those clients with offshore assets.  

Firms have until 31 August 2017 to issue the following to any UK tax resident that has received advice about offshore income or assets. This would include :

• A source of relevant foreign income
• A source of employment income
• An Asset
• A Financial Account

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/557296/client-notification-letter.pdf

Should HMRC identify any client that has undeclared offshore assets and they have not been provided with a copy of the circular then the fine will be £3000 per incident for the Firm

Might be an idea to issue these circulars via email and keep a record 

Guidance to sending out the client notification letter may be found at 

https://www.gov.uk/government/publications/client-notification-income-or-assets-abroad/notes-on-how-and-when-to-send-the-client-notification-letter

How to handle an FCA Regulated Complaint - part one

The Financial Conduct Authority has issued detailed rules on how businesses should handle complaints and these may be found in the DISP section of the FCA handbook.

The DISP rules apply to all FCA Regulated businesses and include details of the Financial Ombudsman Service (FOS).

Complaints come in all shapes and sizes - and Firms need to be able to identify and respond promptly - staff need to be aware of their responsibilities and the correct escalation process within the Firm.

The FCA glossary defines a complaint as :

"any oral or written expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a financial service or a redress determination, which :

• alleges that the complainant has suffered (or may suffer) financial loss, material distress or material inconvenience; and

• relates to an activity of that respondent, or any other respondent with whom that respondent has some connection in marketing or providing financial services or products, which comes under the jurisdiction of the Financial Ombudsman Scheme."

All regulated businesses are required to have an effective complaints handling procedure  - and staff trained appropriately. The Procedure will need to take into account

• The time limits for dealing with a complaint
• The review process including "independence" of review where possible
• For eligible complainants - details of their right to refer the matter to the Financial Ombudsman Service.

Details of the Firms procedure should be published and made available to complainants - most Firms will include this in their Terms of Business Letters / Initial Disclosure Documents at the initial point of contact.

A further copy of the complaints procedure should also be made available when the complaint is acknowledged.

So you have received a complaint what to do next I hear you ask?

Collect the full facts of the case - is it "our" complaint?

If it is our complaint then are you required to notify your PI Insurer immediately?

Is the matter something that can be resolved quickly?  Where the "issue" can be resolved within three working days then a "Summary Response Communication" needs to be issued and details of the FOS scheme provided.  For Lloyds of London Insurance Complaints then details of the Lloyds scheme need to be provided.

Where the complaint relates to a Third Party then the case should be sent on to the Third Party and a response sent back to the Complainant - explaining that the matter has been referred to [name] at [Firm].  Records should be kept of the complaint - and included with other data as part of a root cause analysis review.




Compliant Solutions Limited - experts in helping Financial Services Businesses deal with the business challenges of Financial Conduct Authority Compliance - for help contact ian@compliantsolutions.co.uk

Staying safe - a few suggestions

FCA Regulated business owners are acutely aware of the need to protect the personal data of clients.

Firms will hold confidential customer information about finances / wealth / medical details and the like.  Such information would be of great interest to those with a criminal intent - and as a result Regulated Firms need to be able to reassure customers that their personal data is safe.


Here are a few questions that may be of use:


Does your Firm have a designated person responsible for the maintenance, storage and destruction of customer data?

Does your Firm have written procedures for the storage and destruction of both hard copy and electronic customer data including its secure disposal?

Does your Firm have arrangements to shred obsolete paper records?

If using laptops, does your Firm employ any additional controls around their use?  Are files encrypted to ensure that they cannot be accessed by people outside of your Firm should the laptop be lost or stolen?

When disposing of obsolete equipment do you ensure that any data on the device has been removed?

Does the Firm have up to date anti virus & firewall software on all devices?

Does the Firm have a policy of regularly updating all security updates on all software and devices?

Do you require passwords to be a minimum of eight characters / symbols and changed regularly?

Do you reuse the same password for different platforms / areas?

If the Firm has a  wireless network (wifi) have you implemented a password protocol ?

If a member of staff leaves do you remove their access authorizations promptly?

Are all staff reminded of their personal responsibilities to keep data confidential and not to make unnecessary copies ?

Does the Firm have procedures in place to test that back-up systems operate correctly?

Does the Firm have a Disaster Recovery Plan ? When was it last tested?

Does the Firm use third parties to provide support ?  Were the vetting procedures (Due Diligence) adhered to?

Does the Firm permit remote access by third parties / staff ?

Compliant Solutions Limited - experts in helping Financial Services Businesses deal with the business challenges of Financial Conduct Authority Compliance - for help contact ian@compliantsolutions.co.uk