Remarkably we seem to be approaching the end of another year. 2024 has seen further geopolitical turmoil with the rise of populism yet to enter abeyance. A year when wars in Europe and the Middle East have also shown no sign of concluding. The year of Rodri – his presence allowing Spain to dominate the Euros and Manchester City, the Premier League and his absence bringing the latter to a shuddering halt. We have a faltering new government in the UK and a regulator coming to terms with its new competitiveness objective.
So, where has all that left the London market broking community? Let’s start with that regulator: the Financial Conduct Authority (FCA). It has had a bit of a kicking recently from the All-Party Parliamentary Group on Investment Fraud and Fairer Financial Services. But our experience over the last 18 months has been rather different. FCA has shown to us positive desire to react to the competitiveness objective constructively.
Around this time last year, we gave them a list of three things they could do to meet the new challenge. They were to provide clarity as to whether your conduct rules apply to overseas business; develop a single definition of “consumer” and consider treating firms that don’t deal with them a little differently. Oh, and come and see us earlier in the consultation process so you don’t get too far down the track of developing crazy ideas. This year, they have done the first (FCA conduct rules do not apply to distribution services delivered outside UK); started on the second with a discussion paper we broadly welcomed; and, while the third has gone a bit awry, the proposal to “name and shame” firms under investigation was a regulatory step too far – at least they have taken onboard industry feedback and produced a redraft of the consultation. I cannot remember them doing that before.
All very promising. And that means FCA needs a new list! Never fear, we’re already working on it, looking at the way the senior manager’s regime functions; how FCA can approve its performance around M&A activity; and, potentially, looking to reopen debate over the burdensome client money rules. A way to go, but this year has certainly felt like progress towards the proportionate regulatory regime our industry needs.
We have also made strides towards a more inclusive marketplace. In September, our work with social mobility charity upReach and The Prince’s Trust was named Diversity, Equity and Inclusion Initiative of the Year. And rightly so, even if I do say so myself. We now have getting on for 40 people from under-privileged backgrounds working in the market who are ‘graduates’ of our schemes. My colleagues Jackie Girow and Amy Simmons are designing an alumni network to continue our support as these young professionals develop their careers – and I am delighted to say Aon Reinsurance Solution’s Dominic Christian has agreed to help. We are doubling our investment in this area in 2025, looking to forge new partnerships with Futures First and Inspiration for All. Any LIIBA member who would like to get involved in this work, please give us a call.
We should not forget Blueprint Two. This year, it has had its trials but it remains vital that we get this work done. The systems at the heart of carriers’ common processing are ancient and must be replaced. Our community remains committed to playing its part in the testing and adoption that will get underway in the New Year. Anything else isn’t an option.
In what will feel like no time at all 2025 will be with us and behind us. We will see how some of that geopolitical turmoil – and certainly the return to populism in our largest market – affects our business. I’m conscious that a world of heightened risk should be seen as an opportunity for the purveyors of risk management products.
2024 has been not bad, not bad at all, as Ronald Reagan might have put it. I hope to be saying at least as much in 12 months’ time.
