The FCA does acknowledge, however, that some interim LIBOR milestones may not be met as a result of the pandemic, and it will continue to monitor the impact on such timelines carefully. In particular, it has clarified that the following workers should not be expected to travel into work in order to provide their services:[7]. The guidance states that a 'key financial worker' is one who fulfils a role which is necessary for the firm to continue to provide essential daily financial services to consumers, or to ensure the continued functioning of the markets. Key workers, which the FCA says it expects to be only a “limited number of people”, are those whose role is “necessary for the firm to continue to provide essential daily financial services to consumers, or to ensure the continued functioning of markets”. This also features key staff in the civil nuclear, chemicals, telecommunications, postal services and delivery, payments providers and waste disposal sectors. The FCA states that firms themselves are best placed to decide which staff are essential for the provision of financial services. Staff required to keep … Key public services. This includes those essential to the running of the justice system, religious staff, charities and workers delivering key frontline services, those responsible for the management of the deceased, and journalists and broadcasters who are providing public service broadcasting. Analysis by Hannah Richardson, BBC Education reporter General insurance firms should have plans to deal with the operational challenges of the situation, including having a Senior Manager responsible for business continuity. Click here to read more about how we use cookies. However, where these are involved in customer provision of financial services, our view is that they would be. For further details, please see our client note, “COVID-19: Bank of England Announces Policy Measures for Financial Market Participants.”, [10] See https://www.fca.org.uk/news/statements/joint-statement-fca-frc-pra. However, key workers are expressly permitted to continue working and travelling to work and are allowed to continue to send their children to school. Weiner Financial Group, LLC offers comprehensive financial planning services, including retirement and investment planning, tax planning, estate preservation, and disability and long-term care planning. Staff needed for “essential financial services provision”, such as bank workers, key telecommunications staff and postal services and delivery workers … Plans to deal with staff absences should be put in place and the FCA should be notified of gaps in firms’ strategies that may cause harm to customers. Key public services The Covid-19 outbreak will also require the services of workers in certain other sectors to keep the response moving. The Financial Conduct Authority (FCA) has released guidance on steps financial services firms should take to help identify 'key workers'. The FCA advises firms to consider issuing a letter to all individuals they identify as key workers that clearly identifies them as such and that can be presented to schools on request. Key Workers in Financial Services. In our previous client notes, “Planning in a Time of Pandemic: Considerations for Regulated Financial Institutions in the US, EU and UK” and “Short Sale Bans in Response to the COVID-19 Pandemic,” we have addressed general issues that arise for regulated firms and certain specific measures in areas such as short selling,[1] consultation papers[2] and telephone recordings.[3]. The government has asked parents to keep their children at home and schools to remain open only for those children who absolutely need to attend, ie, the children of employees whose careers falls under the key workers’ list. “Key workers” in financial services firms are described by the Government as staff “needed for essential financial services provision (including but not limited to workers in banks, building societies and financial market infrastructure).” The FCA has clarified which people working in regulated financial services firms will meet the definition of a “key worker”. [9], On 26 March 2020, the FCA, Financial Reporting Council (FRC) and Prudential Regulation Authority (PRA) published a joint announcement on their measures to support the capital markets through COVID-19. For motor insurance, the government’s 6 month moratorium on the annual MOT (vehicle testing requirement) should be taken into account in assessing whether cars are properly licensed. Key employees in internal legal departments will likely qualify, for example, where they support key functions or are related to the compliance or general counsel’s office. Local and national government When considering enforcement proceedings against firms operating in breach of the guidance, the FCA will take into account relevant sections of the FCA Handbook on firms’ duties to have regard to the interests of customers and to act honestly, fairly and professionally in customers’ best interests. Financial services were identified as being among the critical sectors for the Government’s purposes. “Key workers” in financial services firms are described by the Government as staff “needed for essential financial services provision (including but not limited to workers in banks, building societies and financial market infrastructure).” We understand by this that firms are being asked to ensure that key services such as those available in bank branches or via online banking and exchanges, clearing houses and central securities depositories should continue to operate as normal. [4] See https://www.gov.uk/government/publications/coronavirus-covid-19-maintaining-educational-provision/guidance-for-schools-colleges-and-local-authorities-on-maintaining-educational-provision. Claims management companies and sellers of non-essential goods and credit. Only these workers are able to continue working in their typical work environments as their roles are considered too important not to do so. On 24 September 2020, the FCA updated its web page on ‘Key workers in financial services’.The web page reminds financial services firms that it remains important for them to continue to identify and monitor key workers to ensure that firms respond effectively in … The government has imposed restrictions such as closing schools, restricting travel and enforcing social distancing. Key external service providers of support, such as law firms and accountancy firms, may also fall within “support functions”, depending on the circumstances. Firms should then identify the individuals that are essential to support these functions. Financial services were identified as being among the critical sectors for the Government’s purposes. Graeme Trudgill, executive director of the British Insurance Brokers’ Association (Biba), stated that the announcement covers various areas relevant to insurance brokers. One of the industries identified as critical is financial services. The FCA and Bank of England are reviewing firms’ contingency plans and expect firms to take all reasonable steps to ensure they continue to comply with their regulatory obligations, notwithstanding any adjustments made to their usual practices in the context of COVID-19. [7] See https://www.fca.org.uk/news/statements/work-travel-responsibilities-senior-managers. A key financial worker at a dual regulated or FCA solo-regulated firm, or operators of financial market infrastructure, fulfils a role which is necessary for the firm to continue to provide essential daily financial services to consumers, or to ensure the continued functioning of markets. Submission of data for trade reporting purposes should continue as normal to the extent possible. those that fall within the Senior Managers Regime); operation of trading venues and other critical elements of market infrastructure; running of online services and processing; running of branches, and provision of essential customer services (e.g. Reading Time: 2 minutes The FCA has issued a communication for firms to help identify who the key workers are. The FCA has confirmed that firms are not expected to appoint a senior manager to take responsibility for COVID-19 and should instead allocate responsibility appropriately among existing Senior Manager Functions. For the latest on the LIBOR transition, see our LIBOR Transition Financial Regulatory Developments updates: https://finreg.shearman.com/focus?categoryID=1551&yearmonth=0. On 20 March 2020, the Financial Conduct Authority ("FCA") subsequently provided further guidance to parents who work in financial services and who are needed for the provision of essential financial services (“key financial workers”). A key financial worker at a dual-regulated, FCA solo-regulated firm or PSR-regulated firm, or operators of financial market infrastructure, fulfils a role which is necessary for the firm to continue to provide essential daily financial services to consumers, or to ensure the continued functioning of markets. A key financial worker is defined as someone who provides a service which is necessary to ensure the continued functioning of financial markets. The guidance requires firms to grant three-month “payment holidays” to customers experiencing difficulties in meeting mortgage payments (except where it is reasonable and in the customer’s best interests not to do so), and prohibits repossessions other than in exceptional circumstances. Coronavirus: Key Workers - Essential Financial Services provision This included a list of Key Workers deemed to be providing essential public services at a time of unprecedented need, in order that the children of Key Workers can still attend childcare and school facilities, enabling Key Workers to continue working. The term has been used [when?] The starting point for deciding which staff constitute Key FS Workers is to. 2019 Income Tax Checklist Read more here. Firms, particularly insurers and mortgage providers, have been reminded of their obligation to treat consumers fairly. [9] The BOE and European Securities and Markets Authority have announced similar extensions to their respective consultation deadlines. [17], On 25 March 2020, the FCA confirmed that COVID-19 is not expected to affect LIBOR preparations and the target date for LIBOR cessation of the end of 2021 still stands. Build a Morning News Brief: Easy, No Clutter, Free. On 20 March 2020, the FCA published a new web page in which it set out the steps firms should take to help identify key workers in financial services. This document creates a letter which can be issued to employees to inform them of their status as a Key Worker during the 2019 Coronavirus Pandemic/COVID-19. Specific guidance has been given with respect to travel, motor, home and private medical insurance, product suspensions, renewals and mid-term adjustments. [16] The FCA’s support for this approach within the financial services sector means firms’ efforts to combat the fallout from the global pandemic would not be restricted by competition enforcement, although behavior that is deemed to be exploitative of the situation will not be tolerated. The FCA has provided a series of industry updates, announcements and guidance on its “FCA information for firms on coronavirus (Covid-19) response” page. Other key financial workers could include those essential to the functioning of payments processing and of cash distribution services, individuals who are essential in facilitating corporate and retail lending and administrating the repayment of debt, in the processing of claims and renewal of insurance, or in the operation of trading venues and other critical elements of market infrastructure. A Behavioral Financial Advisor ™ certification trains, develops and improves competencies necessary to help financial professionals and clients make better decisions throughout the financial planning process. The Financial Conduct Authority (FCA) has set out steps to help firms identify key workers in financial services. Fax 315-449-3030. Bookkeeping and Tax Preparation Consultation Click here for more information. Following the government advice dated 19 March 2020 on maintaining educational provision, schools have continued to provide care for a limited number of children whose parents are critical to the coronavirus (Covid-19) response and cannot be safely cared for at home. On 19 March 2020, linked to Mr. Johnson’s announcement, the U.K. Government published guidance advising that schools should close to … Local and national government 4 key financial services trends in the new age of work. Financial services providers globally are starting to realize how much digital disruption impacts work culture.
This Web site is designed to help our clients achieve their financial goals through a long-term relationship with a trusted and knowledgeable financial advisor with Brennan Investment Services. . identify the activities, services or operations which, if interrupted, are likely to lead to the disruption of essential services to the real economy or financial stability. Details of recent measures taken by the BOE in response to the crisis can be found in our client note “COVID-19: Bank of England Announces Policy Measures for Financial Market Participants.” The FCA will provide ongoing updates, guidance and information for firms in the coming weeks as the COVID-19 situation develops.
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