UK Fintech News Roundup: The Latest Stories 18/01

Every Wednesday we delve into the latest fintech updates from across the UK. This week brings updates from the FCA, CMC Markets, SmartSearch, HMRC and more.

Increasing number of whistleblowers, FCA reveals

The UK regulator Financial Conduct Authority (FCA) has revealed that it received 291 reports from whistleblowers in the third quarter of 2022. Most of the complaints registered were related to compliance issues.

Most whistleblowers who reported provided contact information, while 37 percent chose to do so completely anonymously. The most common method of reporting was the electronic complaint form.

Dr Henry Balanihead of industry and regulatory matters at Encompass Corporation, commented on the news: “Whistleblowing allows organizations such as the FCA to receive and investigate allegations of wrongdoing. From data breaches to anti-money laundering and compliance issues, it remains important that employees can report misconduct anonymously. The latest data shows an increase in reports and this is likely only a snapshot of the real picture. Yet organizations too often lack the robust processes or infrastructure to manage compliance effectively.”

Cambridge offers the most entry-level finance jobs

Cambridge is the city with the most entry-level finance job vacancies per capita, the financial services provider has revealed CMC Markets.

The city beat London to the title with 13.5 jobs per 100,000 people. London had the second highest, with 7.2 entry-level finance jobs per 100,000 people. Behind the capital sat Oxford with 5.55, beating Norwich’s 5.44 entry-level finance positions per 100,000 people.

The CMC Markets data also assessed the cost of living, with particular attention paid to rental costs. Birmingham scored 3.15 entry-level jobs per 100,000 people, but had the lowest cost of living on the list. Birmingham’s average monthly cost was £1,269.89, including rent for a flat outside the city centre.

SmartSearch is officially a “Great Place to Work”

Provider of digital compliance solutions SmartSearch has been certified as a “Great Place To Work”. Based in Ilkley, West Yorkshire, the company employs more than 160 staff to support the anti-money laundering (AML) and compliance needs of 5,700 clients.

SmartSearch offers leisure facilities such as an on-site gym, pool table, table tennis and games area to all employees. SmartSearch also looks to encourage continued professional development, with a company-wide mentoring program.

Collette Allen, CEO of SmartSearch, commented on the news. She said: “We are so proud to receive this prestigious accreditation and to see our ethos and approach to business recognized by both our employees and the global authority on workplace culture. As we grow, we will continue to explore ways to support and nurture our employees and create opportunities for them to develop and reach their full potential.”

Increasing wages to increase the pension tax relief

Rising wages look set to increase tax relief on pension contributions in the coming year, according to data published by the HMRC.

The government expects pension income tax relief to rise to £27 billion in the coming tax year as wages. The main reasons for the increase in pension tax relief in recent years were found to be auto-enrolment and wage growth.

Becky O’Connordirector of public affairs at PensionBeecommented: “The government’s assessment of pension tax relief as a benefit people are largely unaware of suggests the system could be due for change, particularly as it is expected to cost the government more as a result of wage growth this year.”
Although there would be a greater incentive to save more for retirement if people understood it better, the tax cut continues, quietly providing a significant and needed boost to workplace pension contributions – especially as the minimum auto-enrolment requirement of 8 per cent is not . as loud as it should be.”

British banks criticized for not solving problems with risk management system

The adjustment arm to Bank of Englandit Prudential Regulation Authority (PRA), has criticized UK banks for failing to tackle problems with risk management systems.

The PRA stated that these problems have continued, despite regular announcements to address the risks arising from the collapse of a major hedge fund in 2021.

Dr Henry Balani also commented on the news. Dr Balani said: “In uncertain economic times, it is more important than ever that regulators work closely with banks and financial services organizations to improve risk management. Too often, manual systems remain in place to deal with complex and time-consuming anti-money laundering tasks , risk and compliance This approach is no longer fit for purpose.

“It is time to wake up to the crucial role that innovative technology, and automation in particular, can play in improving and modernizing risk management, enabling UK banks to be assured effective and efficient compliance. Doing so will not only save time and money, but will also help protect banks and their customers in increasingly challenging times.”