The regulatory regime for Buy Now Pay Later (deferred payment credit) agreements took effect on 15 July. Both Treasury and the FCA heralded the regime, which among other things requires third party lenders to carry out...
Author - Stephen Wilson
Stephen Wilson
Enforcement Watch looks at Consumer Duty
The second edition of FCA’s Enforcement Watch looks at its approach to supervising and enforcing the Consumer Duty. The FCA recognised that firms needed time to embed the Duty, and now, three years in, it has 11...
FCA responds to Treasury Committee on MVF scheme
The FCA has published a letter on the motor finance compensation scheme, responding to the Treasury Committee’s request that it provide an update on the consequences of the legal challenges scheme. In terms of...
Consumer Panel responds on Crypto Perimeter Guidance
This week, the Consumer Panel responded to the FCA’s consultation on Perimeter Guidance for the forthcoming cryptoasset regulatory regime. The Panel has welcomed and broadly supports the proposed guidance, noting...
FCA updates on BNPL TPR register
As of 2 June, 8 firms that currently provide BNPL products that will be regulated as deferred payment credit from 15 July have registered with the FCA’s temporary permissions regime, meaning they can continue...
Government confirms CCA reform plans
The Government has finally published its policy statement on the final approach to reform of the Consumer Credit Act and its response to its consultation on Phase 1 reform. It has confirmed: it will be repealing most of...
FCA updates on BNPL registrations
The FCA has updated its website resources on the upcoming changes to buy now pay later (deferred payment credit) regulation. The window for unregulated firms currently providing services that will require regulation...
Government announces payment regulation overhaul
As part of the UK’s Fintech week, the government has announced how it plans to modernise payment services regulation. There is no consultation yet, but the government will publish that soon. Its plans include:...
FCA consults on crypto perimeter guidance
The FCA is consulting on draft perimeter guidance aimed at helping firms understand what crypto-related activities will fall within the UK regulatory perimeter from October 2027. The guidance sets out how the FCA...
FCA updates on motor finance compensation scheme decision timings
The FCA has confirmed that it is still considering the responses it received to its consultation on a motor finance compensation scheme. It says that if it proceeds with the scheme, it will make changes from what it...
FCA publishes crypto permission gateway dates
The FCA has made a direction setting out the window within firms wanting to become authorised will need to complete their applications. The period will start on 30 September 2026 and end on 28 February 2027. As a...
FCA announces stablecoin sandbox cohort
The FCA has selected Monee Financial Technologies, ReStabilise, Revolut and VVTX as the companies that will test how their stablecoin services work within its sandbox. It received 20 applications, and has chosen the 4...
FCA makes final BNPL rules
The FCA has made its final rules that will apply to firms offering Buy Now Pay Later (Deferred Payment Credit) products that fall newly within the scope of the RAO from 15 July. The rules are effectively a tailored...
FCA consults further on crypto regulation
The FCA has today published the latest consultation paper setting out its proposals for the regulatory regime around cryptoassets. This paper follows six previous consultations, as well as numerous discussion papers...
FCA confirms motor commission complaint response deadlines
The FCA has confirmed the new complaint handling deadline limits for motor finance-related complaints. The current pause on all motor finance complaints expires imminently, and the FCA has now confirmed that: there will...
FCA consults on rules for Deferred Payment Credit lending
The FCA has published CP 25/23 to consult on its approach to regulated Deferred Payment Credit lending, which is now in FCA’s regulatory perimeter following legislative change. The consultation, which closes on 26...
Court looks at “business test” when loans are refinanced
In a repossession case brought by an unregulated lender, Principal Bridging Limited (PBL), the County Court found that where a loan is used to refinance previous borrowing, it is the purpose for which the original loan is taken out which determines whether it is “wholly or predominantly for the purposes of a business” for the purposes of Articles 60C and 60O of the Financial Services and Markets Act 2000 (Regulated Activities Order) 2001 (the RAO).
In this case, the borrower, Mr Lewis took out a bridging loan with PBL (secured as a second charge loan against his primary residence) which was used to refinance an earlier loan (with a different lender) which in turn had been use to refinance an original loan (from a third lender). It was taken as a matter of fact that Mr Lewis had used a maximum of 50% of the original for business purposes and, therefore, it had not been used “wholly or predominantly for the purposes of a business” carried on by him (and, therefore, was as a matter of fact a regulated mortgage contract as the exemption under Article 61A(1)(c) of the RAO. However, the Court found that PBL had no way of knowing this and that Mr Lewis had made repeated representations that he would use the loan PBL made for business purposes and, therefore, the loan was unregulated and not a regulated mortgage contract.
In the alternative, the Court also found that if the PBL loan�was a regulated mortgage contract, it would still have been just and equitable for PBL to enforce the loan due to the repeated representations made by Mr Lewis.
Following on from these findings, and taking into account Mr Lewis history of defaulting on previous lending the interest rate charged by PBL was not an unenforceable penalty.
Lastly, it followed that the relationship between PBL and Mr Lewis could not be said to be unfair for the purposes of Sections 140A-C of the Consumer Credit Act 1974.
PRA consults on rule changes allowing Credit Unions to invest in service organisations
The PRA has published a consultation paper setting out proposals for changes to make it clear that Credit Unions can invest in Credit Union Service Organisations, subject to guard rails. In support of the...
PRA publishes Fees and Levies rates proposals for 2025/26
The PRA today published its CP 8/25, setting out its proposals for fees and levies for the current year.
The Annual Funding Requirement, to cover the PRA’s ongoing regulatory activities, is �328.7m, down �2.6m from last year; similarly, the Total Funding Requirement, which comprises the AFR and other levies, is down by �10.5m from last year, to �342.5m.
Points of interest from the consultation include an outline of how the PRA will be funding work on Future Banking Data, which will build on the Banking Data Review and the ongoing collaboration with the FCA around Transforming Data Collection.
Deletion of underused or duplicative templates will be consulted on, and a firm-facing portal will be developed, facilitating interaction with the PRA, presumably along the same lines as the recently-launched MyFCA.
FCA publishes its proposal for annual fees and levies rates for 2025/2026
Today the FCA published consultation paper CP 25/7, setting out its proposals for the fees and levies to be imposed on the financial services industry to fund the FCA and FOS for the coming financial year.
Key points of interest are:
This year’s Annual Funding Requirement is �783.5m, an increase 2.5% from last year – this is to cover ongoing regulatory activities and exceptional projects;
The FOS budget for this year is �285.1m, up from �264.9m last year;
The FCA will start to recover costs for two exceptional projects, namely the ESG ratings providers work, and the motor finance complaints pieces;
The FEES manual is being amended to bring it in line with the MLRs and to allow FCA to recover costs arising from the appointment of skilled persons to firms supervised under the MLRs.
ICO review of firms’ use of children’s data
The ICO has published a report of its findings of a review which took place over six months last year of over 40 participant financial services firms’ use of children’s’ data. Providers of products...
PSR consults on scheme and processing fees
Following the report it prepared into the scheme and processing fees charged by Visa and Mastercard, PSR has set out a number of proposed remedies on which it is consulting: requiring Mastercard and Visa to provide more...
FCA updates on motor finance complaints
FCA has further updated its page containing guidance on the handling of motor finance complaints to include the link to its submission to the Supreme Court. It had previously updated its guidance in the light of the...
FCA publishes final motor finance Supreme Court submissions
As the appeal against the Court of Appeal Decision in Johnson v FirstRand Bank Limited, Wrench v FirstRand Bank Limited and Hopcraft v Close Brothers has begun in the Supreme Court, FCA has published its final...
BoE speech on innovation in wholesale payments
The BoE’s Executive Director of Payments, Victoria Cleland, has given a speech at the Pay360 event highlighting the Bank’s recent efforts to further innovation in the wholesale payments field. In particular...
FCA updates on motor finance review next steps
The FCA has said that it no longer plans its proposed announcement during May on its planned next steps in its motor finance commission review. Instead, it will confirm within 6 weeks of the decision of the Supreme...
Court of Appeal rules motor finance commission cases can be dealt with using omnibus claim forms
The Court of Appeal (CoA) in Angel & Ors v Black Horse Ltd [2025] EWHC 490 (KB) has overturned the case management decision taken at first instance that the eight claim forms covering 5,800 claimants could not be...
CoA clarifies regulated ‘sale and rent back’ agreement features
On 5 February 2025 the case of Priti Odhavji v Caroline Tighe, Suranjan (Joseph) Cooray, K & C Properties Limited [2025] EWHC 372 (Ch), 2025 WL 00581905 came before the Court of Appeal, Chancery division. In the...
FCA proposes changes to listing and public offer rules
The FCA has issued two consultation papers proposing changes to the listing and public offer rules. The first paper sets out changes intended to align disclosure requirements for low denomination bonds with those for...
FCA Chief Executive responds to House of Lords motor finance commission questions
In a letter dated 17 January 2025, Nikhil Rathi (Chief Executive of the FCA) responded in detail to questions raised by the Rt. Hon Lord Forsyth of Drumlean in his capacity as Chair of the Financial Services Regulation...
High Court backs FOS on DCA complaint
The High Court has dismissed all 3 grounds of appeal brought by a lender under a discretionary commission arrangement (DCA) for motor finance, following a FOS decision to uphold a customer complaint. The grounds of...
FCA writes to Supreme Court on motor finance
The FCA has written to the Supreme Court supporting the application of the lenders in the Hopcraft, Wrench and Johnson motor finance commission cases for expedition of the court’s decision on the application to...
PRA writes to Credit Unions on annual assessment
Helen Ainsworth, Senior Manager of the PRA’s Credit Unions team has written separately to credit unions (CUs) with total assets of up to £10 million and to CUs with total assets of £10 million to £40 million. The...
FCA updates AI webpages
FCA has published a new webpage introducing its ‘AI Input Zone’ a component of its AI Lab. The input zone is designed to be a means by which FCA can canvass a wide range of market participants views so as to...
Bank of England outlines approach to innovation in money and payments
The Bank of England (BoE) has issued a discussion paper inviting views on its approach to innovation in money and payments. In the paper, the BoE notes that to date it has: enhanced its capability to supply wholesale...
PRA publishes solvent exit planning statement
PRA has published Policy Statement PS5/24 – Solvent exit planning for non-systemic banks and building societies providing feedback to consultation paper (CP) 10/23 – Solvent exit planning for non-systemic banks...
FCA commits to personal guarantee investigation
FCA has committed to conducting an investigation into the use of personal guarantees by lenders as security for loans made to small business customers. FCA is acting in response to a super complaint brought by the...
FCA issues interim update to Asset Management & Alternatives Supervisory Strategy
FCA has published a Dear CEO letter updating its portfolio letters issued in August 2022 and February 2023 setting out its Asset Management & Alternatives Supervisory Strategy. The letter sets out certain areas of...
ECJ rules on whether funds retained in a payment account constitute e-money
The European Court of Justice has ruled that for the purposes of the Payments Services Directives and the E-money Directive the activity of a payment institution which consists of the receiving of funds from a user of a...
FATF consults on payments transparency recommendations
The Financial Action Taskforce (FATF) has published a consultation, and explanatory memorandum, on proposed changes to its recommendation 16 (the Recommendation) and the associated interpretive note and glossary terms. ...
Illegal money lender jailed for failing to pay confiscation order
FCA has issued a press release highlighting the nearly 8 year prison sentence handed down to Dharam Prakash Gopee by the City of London Magistrates’ Court for wilfully refusing to adhere to a confiscation order...
LSB publishes lending standards consultation responses
The Lending Standards Board (LSB) has published its response to the views received on its consultation on a review of the Standards of Lending Practice (the Standards) for business customers. The review itself was...
FCA welcomes call for input on ‘Big Tech’ competition issues
FCA has issued a letter welcoming the Competition Division’s call for input on the potential competition impacts from data asymmetry between Big Tech and firms in financial services. In particular, FCA notes that...
FCA publishes blockchain research
FCA has published a research note entitled ‘Review of Maximal Extractable value (MEV) and Blockchain Oracles’ in collaboration with Futuresight Business Intelligence Ltd, the Financial Industry Regulatory...
Treasury consults on enhancements to the Special Resolution Regime
HM Treasury has issued a consultation on proposals for enhancing the Special Resolution Regime (SRR). Specifically, the consultation seeks views on plans to introduce a new mechanism to facilitate the use of certain...
FCA takes action on motor finance complaints
FCA is unhappy that motor finance firms are rejecting high numbers of consumer complaints about commission arrangements. After FCA banned discretionary commission arrangements in 2021, many consumers complained and...
Supreme Court Justice speaks on law and AI
Lord Hodge, Deputy President of the Supreme Court gave a speech at De Montfort University, Leicester entitled ‘Law and AI: Where are we going?’ In it, he first considered the risks in the use of...
FCA updates on cash savings
FCA has provided an update on progress made in implementing its cash savings action plan. In its update FCA notes that it has seen progress in the speed and size of interest rate changes for savers and improvements in...
FCA proposes credit information changes
FCA has announced proposals which will: require FCA-regulated data contributors, such as lenders, to share credit information with credit reference agencies (CRAs); introduce a common data reporting format to enhance...
Treasury Select Committee comments on plans for a ‘digital pound’
The Treasury Select Committee (the Committee) has commented on Bank of England (BoE) and HM Treasury proposals for a retail ‘Central Bank Digital Currency’ (CBDC) or ‘digital pound’. Such a...
Digital Markets, Competition and Consumers Bill to be debated
The Digital Markets, Competition and Consumers bill is being debated by members of the House of Lords during a second reading on Tuesday 4 December. The bill will create a regime to empower the Competition and Markets...
EU adopts new consumer credit directive
The EU has adopted the new Directive on Consumer Credits (CCD), repealing and replacing the 2008 Consumer Credit Directive in order to take account of the significant changes that have taken place in the consumer credit...
FCA speaks on AI risks and opportunities
Jessica Rusu, FCA Chief Data, Information and Intelligence Officer, has spoken at the City and Financial Global AI Regulation Summit on the risks and opportunities presented by artificial intelligence (“AI“)...
Tribunal overturns FCA redress scheme imposed on Bluecrest Capital Management
The Upper Tribunal (Tax and Chancery Chamber) (the “Tribunal“) has upheld an application by Bluecrest Capital Management (UK) LLP (“Bluecrest“), an investment manager, to summarily strike out a...
BoE publishes policy statement on model risk management principles for banks
The Prudential Regulation Authority (PRA) has published a policy statement on its model risk management principles for banks (the Principles) following an earlier consultation paper (CP6/22) on the same subject. The PRA...
HSBC breaches retail banking order
The Competition and Markets Authority (“CMA“) has written to HSBK UK Bank Plc concerning its breaches of Part 2 of the Retail Banking Market Investigation Order 2017 (the “Order“). Part 2 of the...
Treasury publishes AML and CFT supervision report
HM Treasury has published its “Anti-money laundering and countering the financing of terrorism: Supervision Report 2020-22“. The report addresses the performance of anti-money laundering (“AML“)...
Government raises POCA ‘exemption’ threshold
The Government has published the Proceeds of Crime (Money Laundering) (Threshold Amount) Order 2022 and an accompanying explanatory memorandum. The Order will amend section 339A of the Proceeds of Crime Act 2002...
BoE publishes December 2022 Financial Stability Report
The Bank of England’s Financial Policy Committee (FPC) has published its December 2022 Financial Stability Report setting out its view on the stability of the UK financial system and what it is doing to remove or...
PRA speaks on implementation of Basel 3.1
Phil Evans of the PRA has given a speech at UK Finance entitled “Implementing Basel 3.1 in the UK” providing an overview of the approach in PRA’s consultation paper CP 16/22. In it he notes the momentousness...
EBA consults on guidelines to address de-risking
EBA has opened a consultation on two new sets of guidelines which look to address the effective management of money laundering and terrorist financing risks when providing access to financial services. The aim of the...
Treasury and BoE consult on Basel 3.1 implementation
Both HM Treasury and the BoE/PRA have published consultation papers on the implementation of the Basel 3.1 standards. These are expected to be the final elements of the Basel reforms to be implemented following the 2008...
PRA confirms decision to freeze O-SII buffer rates
PRA has issued a statement confirming its decision to maintain firms’ Other Systemically Important Institutions (O-SII) buffer rates for 2022. This means that the O-SII buffer rates will thus be maintained at 2019...
PRA amends approach to identifying O-SIIs
PRA has published a policy statement setting out amendments it will be making to its approach to identifying other systemically important institutions (O-SIIs). The statement also contains PRA’s feedback to the...
FCA to develop Code of Conduct for ESG data and ratings providers
FCA has announced that it will be setting up a group to develop a voluntary Code of Conduct for Environmental Social and Governance (“ESG“) data and ratings providers. This decision has arisen out of...
Claimant permitted to apply for judicial review of FOS ‘fairness’ decision
The High Court have granted a Claimant permission to make an application for judicial review in respect of a decision of the Financial Ombudsman Service (FOS) against the Claimant in respect of the provision of credit...
PSR issues direction expanding ‘confirmation of payee’
The Payment Services Regulator (PSR) has issued ‘Specific Direction 17: Expanding Confirmation of Payee‘ (CoP) which is intended to ensure that more of those who make use of CHAPS or Faster Payments benefit...
PSR publishes response to Digital Payments Initiative report
The Payment Services Regulator (PSR) has published its response to the PSR Panel’s Digital Payments Initiative report. In response to last year’s Access to Cash Working Group’s recommendations, Dr Ruth Wandhöfer...
European Parliament proposes new online credit suitability rules
MEPs have proposed legislation designed to protect consumers online from credit card debt, overdrafts and loans that are unsuitable for their financial situation. The proposed new rules would require that: consumers are...
ESMA announces consultation on MiFID II product governance guidelines
ESMA has announced a consultation on reviewed MiFID II product governance guidelines following the outcome of its 2021 common supervisory action (CSA) on the same theme. The results of the CSA revealed that: firms...
FCA consults on improvements to equity secondary markets
FCA has published a consultation paper outlining its proposals to improve the functioning of UK equity secondary markets. The changes form part of the Wholesale Markets Review and would be designed to: improve the...
Government commits to Consumer Credit Act reform
The Government has announced its commitment to seeking reform of the rules contained in the Consumer Credit Act 1974 (the CCA) in an effort to modernise them, cut costs for business and ensure the rules are easier for...
Council adopts new rules on EU regulation of consumer credit
The Council has published its agreed position on the revision of the Consumer Credit Directive (Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers and...
EU Commission consults public on impact of PSD2 and open finance
The Commission has launched a public consultation seeking views on the impact that the Second Payment Services Directive (PSD2) has had on: innovation and competition in the market for payment services; the way in which...
PRA outlines progress on its ‘Operational Resilience Roadmap’
David Bailey, PRA’s Executive Director responsible for Deposit Takers Supervision, has given a speech at the UK Finance Webinar “Operational Resilience and Beyond”. In his introduction, Mr Bailey noted...
FCA speaks on credit regulation in tough times
Brian Corr, Interim Director of Retail Lending at FCA delivered a speech on 23 March 2022 to the Credit Summit addressing the impact credit will have on consumers as the economic situation continues to deteriorate and...
High Court rules on application of CCA ‘business purpose’ exemption to multi-borrower loans
In Campbell v Tyrrell & Ors [2022] EWHC 423 (Ch), the high court considered the application of the ‘business purpose’ exemption in s.16B(1) of the Consumer Credit Act 1974 (the “CCA“) to a...
Latest Financial Services Act 2021 Commencement Regulations Published
Treasury has published the latest commencement regulations bringing into force provisions of the Financial Services Act 2021. In particular, the The Financial Services Act 2021 (Commencement No. 4) Regulations 2022...
BoE publishes “Productive Finance” statement
The Bank of England (BoE) has published a statement on the progress of the Working Group on Productive Finance (the Working Group) which was set up in November 2020 by BoE, HM Treasury and FCA. The statement provides a...
FCA gives speech on its ‘outcomes focused transformation’
Charles Randell, Chair of FCA and PSR, has given a speech to the Building Societies Association outlining FCA’s continued shift towards ‘outcomes focused’ regulation. The speech traces the origins of...
UK sanctions and AML regulations extended to the Isle of Man and overseas territories
The UK government has published the Global Anti-Corruption Sanctions (Isle of Man) Order 2021 and the Global Anti-Corruption Sanctions (Overseas Territories) Order 2021 which came into effect on 29 April 2021. The Order...
FCA publishes Digital Sandbox pilot evaluation
FCA has published an evaluation report of the Digital Sandbox pilot. The report sets out the findings of the pilot, including how it accelerated the development of innovative products and solutions within financial...
FCA speaks on compliance and culture
Mark Steward, FCA’s Executive Director of Enforcement and Market Oversight, has delivered a speech at NYU Law School entitled “Compliance, Culture and Evolving Regulatory Expectations“. In it, he...
House of Lords publishes financial exclusion report
The House of Lords Liaison Committee has published its third follow-up report, “Tackling Financial Exclusion: A country that works for everyone? Follow-up report.” The report analyses the progress made by...
FCA speaks to FLA on post-Covid regulation
Charles Randell, Chair of FCA and PSR has given a speech to the Finance & Leasing Association in which he outlined the ways in which the financial services sector has changed post-Covid and how FCA must adapt to...
PSR consults on Brexit changes to IFR guidance
PSR has opened a consultation into changes to its guidance on the Interchange Fee Regulation (IFR) as a result of Brexit and changes to the regulatory framework. Following Brexit, the IFR is now retained EU law, which...
CMA publishes annual concurrency report
CMA has published its 2020/21 annual concurrency report outlining how CMA has worked alongside other regulators, including FCA, to enforce competition law across a range of industry sectors. Highlights from the report...
Commission adopts sustainable finance measures
The European Commission has adopted a package of measures to help improve the flow of money towards sustainable activities across the EU. The package includes: the EU Taxonomy Climate Delegated Act which aims to support...
Commission seeks views on retail investment strategy roadmap
The European Commission has published the proposed ‘Roadmap‘ for its retail investment strategy. The strategy, which forms part of the Commissions September 2020 Capital Markets Union Action Plan, aims to...
FCA consults on 2021/22 fees and levies
FCA has opened a consultation on the following for the next financial year (2021/22): its periodic fees rates; further FCA fees policy proposals; the Financial Ombudsman Service general levy; the Money and Pensions...
PRA publishes year-end 2019 Solvency II disclosures
PRA has published supervisory disclosures as required by its obligations under Article 31(2) of the Solvency II Directive for year-end 2019. These disclosures include: aggregate statistical data on key aspects of the...
PRA issues Mortgage Guarantee Scheme statement
PRA has issued a statement on the prudential treatment of residential mortgage loans made under the government’s new Mortgage Guarantee Scheme (MGS). Under the MGS the government guarantees a portion of the first...
FCA publishes statement on approach to Connaught complaints
FCA has published a statement confirming the broad approach it intends to take to complaints made to it in relation The Connaught Income Fund Series 1 and connected companies. The majority of complaints received from...
FCA publishes statement on approach to LCF complaints
FCA has published a statement confirming the broad approach it intends to take to complaints made specifically to it in relation to London Capital & Finance (LCF). This approach will reflect what FCA considers...
BoE and Treasury announce creation of Central Bank Digital Currency Taskforce
The Bank of England (BoE) has announced, jointly with HM Treasury, the creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential UK CBDC. The BoE has also published the...
European Commission performs ‘mini-sweep’ on consumer credit
The European Commission has published details of a ‘mini-sweep’ on websites advertising and selling consumer credit products in 13 EU member states and 2 EEA countries. The Commission’s main objective...
FCA and PRA issue statement on FSB UK remuneration peer review
FCA and PRA have issued a joint statement on the findings from the FSB’s peer assessment of the effectiveness of remuneration reforms in the financial sector. FCA has also updated a webpage to highlight the...
FCA issues reminder to consumer credit firms about post-Brexit disclosure changes
FCA has issued a statement and published an updated webpage to remind firms subject to regulations 8, 10 and 11 of the Disclosure Regulations 2010 and the corresponding rules in the FCA Handbook of the changes they will...
BCBS publishes operational resilience Principles
The Basel Committee on Bank Supervision (“BCBS“) has published a report setting out its “Principles for Operational Resilience”. In the report, BCBS notes that the Covid-19 pandemic has...
FOS publishes 2021/22 plans and budget
FOS has published its plans and budget for 2021/22 which were consulted on between December 2019 and January 2020. FOS has forecast a reduced caseload in 2021/22 following the unprecedented increase during 2020...