The FCA has provided updates on the following 4 workstreams:
- Assessing Suitability Review (ASR 2) – ASR 2 was placed on hold in April 2020. The FCA has decided not to continue planned work on ASR 2 in 2021/22. This will allow the regulator to focus on other priority areas, including defined benefit pension transfer work and the issues raised in the 2020 consumer investments Call for Input.
- Diagnostic review of business models – in late 2020, the FCA resumed its work in this area and identified indicators of business models that may benefit from consumers not repaying debts. The FCA says the success of its analysis has meant it has embedded its methodology and findings into wider business model analysis and so it is not undertaking further work on this theme.
- Review of rules extending SME access to the FOS – the FCA is delaying the start of this review to allow it to include upcoming developments with SME complaints within the scope of its review. The FCA will assess this position by April 2023.
- De-anchoring remedy for credit cards – the FCA’s work on mandating removal of the minimum repayment anchor remains on hold. However, the FCA still intends to review the effectiveness of the credit card market study remedies in 2022 after they have been fully implemented by firms and in operation for long enough to asses consumer outcomes. The FCA has begun its planning for this post implementation review.