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FCA prepared to act if transfer times are lacking

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FCA highlights its expectations and plans to link STAR and Consumer Duty.

STAR participants should be applauded for their efforts to improve transfer efficiencies. By taking part in the STAR initiative, firms are showcasing their eagerness to deliver good outcomes for their customers and taking positive steps in reducing delays.

STAR has now been accrediting for two years and last month we wrote to the Financial Conduct Authority (FCA) to provide them with an update on STAR’s progress, and to highlight the challenges of recruiting new firms to join the initiative. The FCA reiterated its full support of STAR and has shared their plans to link STAR with the Consumer Duty rules, which were introduced in July 2023.

Some of the key points in its communication:

“We remain fully supportive of the STAR initiative and its goals and share your concerns with the under representation of certain areas of the retail investment and pensions market in STAR’s membership, whilst noting that not all potential members fall within the FCA’s remit.”

FCA

“It is clear that service improvements will require greater collaboration between firms and we recognise the importance STAR has to play in facilitating that and the challenges you have faced in increasing STAR membership. To address these concerns, we are currently devising a communication programme to make explicit our expectations in relation to transfer times; and to underline that all firms involved in the transfer process should ensure transfer times are consistently prompt under the Consumer Duty.”

FCA

“It is our intention to use this programme to reiterate to firms the importance of STAR membership and accreditation.”

FCA

In addition to this, the FCA has also contacted CEOs and firms as  part of its Platform Supervision Strategy. Transfer times continue to be a concern for the FCA, especially in light of the higher standards mandated by the Consumer Duty. Prompt and efficient transfers are crucial for ensuring positive outcomes for consumers.

The FCA has outlined its expectations for firms:

  • Firms are expected to engage with STAR and support the principles and actions endorsed by the FCA in connection with the STAR initiative.
  • Firms reporting poor transfer times compared to peers, and not already engaged with STAR, will face inquiries about their reasons for non-engagement. The FCA is prepared to act if progress on transfer times is lacking.

“As a vehicle to standardise and demonstrate reasonable industry transfer times, we expect firms to engage with, (if not already) and continue to, support the principles and FCA Public actions endorsed by STAR initiative. Where firms are reporting poor transfer times in comparison with peers and do not already engage with STAR, we will be enquiring about their justification for non-engagement and will act in the absence of progress on transfer times.”

FCA

With the FCA’s on-going support and a focus on firms evidencing that they’re acting to improve transfer times, the STAR initiative is poised to make even greater strides in enhancing consumers experience of transfers.

To speak to a STAR representative, please email enquiries@joinstar.co.uk.

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SERVICING AGREEMENT

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1. APPLICANT COVERED BY THIS REGISTRATION.
Please note this registration will not be processed if Step 1 has not been completed.
If your organisation is acting only as an affiliate, you do not need to complete Step 2.
2a. CHOOSE YOUR BRAND
STAR manages the administration of third-party access to the portal, rather than the member firm. This allows for a smoother transition for the member firm and allowing immediate access to the supplier to submit MI on their behalf. STAR will hold an approved list of users per supplier, which will be allocated to your account at the point of registration. This ensures each ‘external’ user has the same access across all their client accounts. Supplier access is restricted and they do not have any ability to see any company information for any client other than what they submit on your behalf. You as the member control access for any other users within your organisation. We will include a more detailed description about the user access on your welcome email and it is clearly defined as part of the User Guide.
STAR RELATIONSHIP MANAGER FOR FIRST BRAND
This person will be the main contact for all notices and other formal communications under this agreement and will be responsible for the administration of the members portal access (including without limitation the providing, updating and removing of authorised User access to the portal during the Term).
2b.
STAR RELATIONSHIP MANAGER FOR THE SECOND BRAND
This person will be the main contact for all notices and other formal communications under this agreement and will be responsible for the administration of the members portal access (including without limitation the providing, updating and removing of authorised User access to the portal during the Term).
2c.
STAR RELATIONSHIP MANAGER FOR THE THIRD BRAND
This person will be the main contact for all notices and other formal communications under this agreement and will be responsible for the administration of the members portal access (including without limitation the providing, updating and removing of authorised User access to the portal during the Term).
2d.
STAR RELATIONSHIP MANAGER FOR THE FOURTH BRAND
This person will be the main contact for all notices and other formal communications under this agreement and will be responsible for the administration of the members portal access (including without limitation the providing, updating and removing of authorised User access to the portal during the Term).
3. INVOICE INFORMATION
Invoices are sent by email as standard, if a printed invoice is required please note the address and your requirements in the additional information section.
4. DECLARATION
Before we can process your Brand Registration a STAR Servicing Agreement needs to be signed. Your signatory must be duly authorised for and on behalf of the organisation named in this application.
We only require one signed STAR Servicing Agreement which will cover all brands that you wish to register. Upon completion of this form we will check our records to ensure an agreement hasn't already been signed, if so a new contract will not be sent to your signatory.
STAR will email the servicing contract to the signatory email address (provided below) through our electronic platform Yoti. This declaration must be signed in order for your application to complete, once we receive the signed agreement we will instruct our finance department to issue your invoice.

Application submitted successfully

Thank you for applying to join the STAR accreditation scheme. We will endeavour to respond as soon as possible using the contact information you’ve provided to us.