Quality Over Quantity in Compliance Updates

Unknown Speaker

Welcome back to the B-Compliant Podcast! It's Vicky here, and I've got Rachel with me as always.

Rachel MacRae

Hello, hello! Thanks for joining us, whether you’re on the school run, in the office, or just grabbing a quick cuppa. Alright, this week might be a quieter one for headlines, but the topics are definitely not dull, Vicky! Shall we start with the FCA’s deep dive into synthetic data?

Unknown Speaker

Absolutely. Now, for anyone who didn’t see it, the FCA released a paper from their Synthetic Data Expert Group. And if you’re sitting there thinking, “What on earth is synthetic data?”—well, you’re in good company! Basically, it’s data that’s been created artificially but has all the features of real client information, just minus all the private details.

Rachel MacRae

Exactly! I mean, synthetic data’s been a big deal in the banking world and with AI, but there’s so much potential on our side of the fence too. Advice firms could use it for testing things like risk profiling, or running all sorts of pretend scenarios for training, and you don’t have to worry about blowing client confidentiality. You know, no GDPR panic—just clean, safe data for playing about with, really.

Unknown Speaker

Yeah, and it’s not just about fun for the techies! Integrating synthetic data can actually lift governance. You can model out those “what if” situations, check due diligence for new tools, make sure your compliance checks are solid—without risking actual client data. Even for MI oversight, it offers a safer way to trial improvements, especially if you can’t get your hands on enough real-life examples.

Rachel MacRae

And I do wonder, Vicky, as more firms rely on digital systems, if this could be a bit of a game-changer—making oversight so much easier? But, let’s not get ahead of ourselves. The FCA’s only at the research phase and it’s definitely not gospel—yet! Still, if you’re one of those firms who’s obsessed with tightening up your controls—and let’s be honest, we all should be—it’s worth a read.

Unknown Speaker

Completely agree. Even if you just take a few ideas back to your next MI review or risk meeting. Now, speaking of data and oversight, what’s caught our eye on the financial crime radar this week, Rachel?

Rachel MacRae

Oh, this is a good one! So the Investment Association is talking about SuperSARs. Have you heard that term before, Vicky?

Unknown Speaker

I have, but I’ll admit, the name always makes me laugh a little—sounds like a superhero’s paperwork. But it’s actually pretty serious, isn’t it?

Rachel MacRae

It’s got a bit more drama than your bog-standard suspicious activity report! Right, so, SuperSARs pop up when complex, potentially dodgy patterns cross multiple firms. We're talking money moving around through different professionals, sometimes hopping borders, and just begging for a closer look. And the IA is really pushing for stronger governance. They’re telling senior managers, “You need to know what’s coming across your desk.”

Unknown Speaker

Yeah, and that’s key—because SARs aren’t just tick-boxes to keep the regulator happy. If you only treat it like admin, you’re probably missing some big risks. Especially if you notice patterns that involve advisers or those tricky trust structures—it might need a little escalation internally. You don’t want to be the one who looks back later and thinks, “Oh, we really should've flagged that.”

Rachel MacRae

I think that’s spot on. And you know, it’s not just about making a report and ticking it off. The IA is nudging firms to enhance their MI here too. Look at your SAR volumes, spot the trends and typologies over time—then you’re actually in a better place to find systemic problems. No surprises, right? And this complements what we hammered home a few episodes ago: compliance isn’t just a back-office thing, it absolutely needs top-down engagement.

Unknown Speaker

Exactly. We saw that with whistleblowing last episode, didn’t we? Where leadership culture sets the tone for the whole shop. Now, with more focus on SuperSARs, senior managers can’t just delegate and forget. It’s got to be part of your broader oversight strategy, or the FCA will spot that box-ticking a mile off!

Rachel MacRae

If you need a nudge to freshen up your systems for SARs and MI, let this be it. As always, if you’re not sure where to start, give us a shout. Right—should we dip into the Budget rumour mill before we wrap up?

Unknown Speaker

Let’s do it. Now, if you’ve not been able to switch on the telly or read the press without seeing “IHT” and “ISA reforms” flying about, you’re not alone! With the Autumn Budget looming, everyone seems to have an opinion—will Chancellor Rachel Reeves change IHT, will thresholds go up, will rates go down, or even will we see a totally new wealth tax?

Rachel MacRae

It’s everywhere! But here’s the thing: there’s a real risk for advisers and clients getting swept up in the what-ifs. You’ve got to remember—advice can only be given on what’s actually in law today, not what might (or might not) come next week. I get the urge to try and time things or get ahead, but if you act on speculation, you can end up doing more harm than good, right?

Unknown Speaker

Definitely. Look, it’s smart to be prepared and to have a plan for possible changes, but making decisions on policy rumours is a recipe for disaster. Especially for clients—imagine telling them to make a change and then the Budget comes and… nothing happens. Ouch! You must stick to current rules until anything new is actually announced.

Rachel MacRae

And while we’re on the topic of things that aren’t always what they seem, St. James’s Place is in the spotlight again. Six-year exit fees even after the Consumer Duty kicked in! It’s got a lot of flak in the press, and you know, rightly so, because the whole point of Consumer Duty is fairness and value—across the board. Price and Value outcome isn’t just about technical compliance, it’s about genuinely doing right by clients.

Unknown Speaker

Yeah, and this isn’t just a “watch and laugh” situation. If you’re at a firm with old-school fees or lots of hurdles to leave, this is a reminder that Value Assessments matter. They’re not just tick-box paperwork for the file—you really have to look at whether your products and fees stack up, otherwise you could be the next one being questioned under the Duty.

Rachel MacRae

Quick plug—if anyone needs help building or improving a Value Assessment, we’ve got templates and walkthroughs in our Consumer Duty toolkit, or just give us a bell and we’ll help bring it to life. But before we sign off, a little compliance housekeeping: don’t let that S165 deadline sneak up! I’ve been helping quite a few firms with this and, honestly, it always takes longer than people expect, even though the content isn’t groundbreaking.

Unknown Speaker

That’s such a classic, isn’t it? “Oh, we’ll just pull the data together next week.” And then it’s chaos. If you haven’t started, get your skates on—don’t leave it to the last minute. A firm told me yesterday it had taken them 30 hours to pull together the required data! So whilst resource-intensive chores are never fun, don’t let them catch you out and run you out of time.

Rachel MacRae

Absolutely. And on that note, I think that’s a neat place to leave things for this week. Even on a quieter week, there’s always plenty bubbling under the surface in compliance!

Unknown Speaker

There sure is. Thanks as always for joining us. Rachel, thanks for your insights—and everyone listening, we’ll catch you on the next episode. Take care!

Rachel MacRae

Bye Vicky, bye everyone! Don’t forget to subscribe and send us your questions. See you next time!