Within the training and competence rules within the FCA handbook, records of training must be kept for 3 years for investment advisers from when they leave the firm for non MIFID firms, 5 years for MIFID firms and indefinitely for a pension transfer specialist. 

The FCA defines a ‘personal recommendation’ as advice on investments, conversion or transfer of pension benefits or on a home finance transaction that is presented as suitable for the client. Advice involves a recommendation to take a course of action based on an analysis of the clients circumstances, needs and goals. The advice has been influenced by the adviser. Generic advice provides generic information only and/or options to narrow down the consumers’ choices, without making an explicit recommendation, so is treated as unregulated.

Fiscal policy involves the actions taken by the government to either stimulate or calm the economy using a combination of taxation, spending and borrowing. When the government implements an inflationary budget they are trying to expand (inflate) the economy with lower taxes and increased government.

If the borrower/s enters a part reversion and down sizes, then they must pay the Home Reversion provider the same proportion of the ownership based on the money released through downsizing. 

The FCA has four objectives; to remove all risk from financial markets is not one of them. The FCA cannot remove all risks, but they can protect consumers so that they can make informed decisions.

Deposit based investments are considered low risk as the capital remains secure. Any asset backed investment is considered more risky as the investor may get back less than what they invested.

The Money laundering rules require that all authorised firms must establish accountabilities and procedures to prevent money laundering.  Firms must obtain evidence of identification in the case of new clients or where there is suspicion of money laundering. All staff must be trained to report suspicious circumstances and staff must refrain from alerting persons. Record keeping requirements for money laundering state that firms must keep ID records for 5 years after the relationship with the customer has ended, also supporting evidence of transactions must be retained after the transaction has been executed for 5 years. 

As the customer ended the relationship 2 years ago, then the records must be kept for a further 3 years (36 months).

Tip: Do not confuse money laundering record keeping requirements with FCA record keeping requirements that are 3 years (non MIFID), 5 years (MiFID, pensions and long term insurance) and indefinitely for pension transfers.

The Senior Managers and Certification Regime was implemented due to the lack of redress for those in charge when things go wrong, highlighted as a result of the credit crisis.  The new framework will help identify individual accountability if things go wrong and will regulate individual conduct and standards in the financial services industry. Senior managers in Enhanced firms will have a Responsibilities Map that identifies which manager is responsible for each area. This will assist the regulators in identifying who is responsible if problems arise.

As a building society is a mutual organisation it is legally constrained from raising any more that 50% of it's liabilities from the wholesale money markets.

Shared ownership is aimed at low income earners and key workers to enable them to buy a property in stages. The scheme involves part ownership and rent, allowing the borrower a more affordable option to buy their own home.