FCA has published further details of what it is doing to identify potential consumer harm in the motor finance market. It notes most new car finance is in the form of a Personal Contract Purchase, which is a form of...
Category - Consumer Credit
FIN. TeamFCA to consider whether there is a place for unarranged overdrafts in the modern banking market
In a Feedback Statement published today, the FCA stated that: they have significant concerns about how unarranged overdrafts operate. Charges are high, complex and potentially harmful. Based on the evidence they have to...
FCA foresees the demise of LIBOR in favour of SONIA
Andrew Bailey’s speech today on the future of LIBOR discussed the recent developments that had been made and interestingly, the decision to move away from the benchmark and towards one that is based on factors...
Alex Brazier, Executive Director of BoE delivers a speech entitled: ‘Debt Strikes Back’ or ‘The Return of the Regulator’?
Alex Brazier, Executive Director (Financial Stability) at BoE has delivered a speech in which he considers the recent developments in household debt, how that debt can pose dangers to the wider economy, and the three...
FCA publishes consultation paper on current account services
FCA has published a Consultation Paper (CP) on the information provided to customers about current account services. The CP was prompted by CMA’s recommendation that firms should publish objective measures of...
FCA releases details of consultations on the extension of SM&CR to all firms
The long-awaited consultations on the extension of the SM&CR have been released: CP17/25 – Individual accountability – extending the Senior Managers and Certification Regime to all FCA firms. Banks are...
Law Commission consults on draft clauses for the Goods Mortgages Bill
This month, the Law Commission published a consultation paper on draft clauses that would form part of the new Goods Mortgages Bill, which replaces the Bills of Sale. Background In September 2014, HM Treasury asked the...
FCA makes new rules
At FCA’s July Board meeting it made several new rulebook instruments. Key changes are: to make minor changes to approved persons application forms with effect from 12 September; to set the fees payable to the PSR...
Emma RadmoreICO fines Moneysupermarket.com £80,000
ICO has fined Moneysupermarket.com Ltd £80,000 for sending 7.1 million unsolicited direct marketing emails over a period of ten days to update its customers on its Terms and Conditions. Crucially all the recipients of...
UK Finance publishes updated Access to Banking Standards
UK Finance (the new industry association including, among others, the BBA) has updated its Access to Banking Standards in relation to bank branch closures. It is hoped that these changes will help banks provide...
Government to outlaw payment surcharging
The Government’s approach is set out in their response to its consultation on the implementation of PSD2. Taking into account the range of views received through the consultation, the Government has decided to...
HMT responds to its PSD2 consultation – Third Party Access
On 9 February 2017, the government published a consultation document, ‘Implementation of the revised EU Payment Services Directive II’, as well as draft legislation. The consultation invited responses on the...
FCA publishes thematic review on customer understanding of retailing banking products
On 17 July FCA published a thematic review on customers’ understanding of retail banking products. The review was undertaken amid growing concerns that some customers fail to understand the key features of...
FSCS annual report and accounts 2016/17: compensation costs total £375m
FSCS has published its annual report and accounts and annual report and class statements 2016/17, which set out its vision and strategy. The publications detail that FSCS paid out for over 37,000 claims 2016/17 in the...
LSB publishes ”2020 Vision” Business Plan
The Lending Standards Board has published its Business Plan for 2017/20 which outlines its aims and objectives for the next three years. LSB says it will achieve its goals by focusing on the following activities:...
FCA publishes annual report
FCA’s Annual Report and accounts for 2016/17 sets out its highlights from the past year, and includes specific sectoral reports for competition, enforcement, AML and diversity. FCA regards the year’s...
Treasury publishes financial guidance responses
Treasury has published the responses it received to its consultation on creating a single financial guidance body. The new body has now been legislated for under the Financial Guidance and Claims Bill and will: be a non...
PRA concerned over consumer credit lending
PRA has carried out a review of consumer credit lending, looking at asset quality of PRA-regulated firms and their lending practices in respect of credit cards, unsecured personal loans and motor finance. PRA is...
FCA consults on consumer credit staff incentives
FCA is consulting on how consumer credit firms should manage the risks inherent in staff remuneration and performance management. It has previously issued guidance covering firms in different sectors within SYSC 19...
EBA publishes consumer data usage report
EBA has published a report following its recent observations that a growing number of financial institutions use consumer data in innovative ways, often combining internally held data with data gathered from external...
Creditworthiness Assessment Bill starts parliamentary process
The Creditworthiness Assessment Bill is making its way through Parliament. The Bill requires certain matters to be taken into account when assessing a borrower’s creditworthiness by mandating that FCA rules oblige...
WFE encouraged by Commission consultation on FinTech
The World Federation of Exchanges said it was encouraged by the Commission’s consultation on FinTech as it believed that it was important to get policy right in this area to avoid the rush to regulate. These...
FCA speaks on retail banking regulation
Andrew Bailey has spoken at BBA’s retail banking conference on FCA’s perspective on retail banking. He highlighted 3 points: the importance of understanding business models, in the light of Northern Rock...
BoE publishes Financial Stability Report
BoE has published Financial Stability Report no. 41 which sets out the views of the Financial Policy Committee (FPC) on the current financial stability of the UK, including an assessment of the risks to, and...
Bills of Sale Acts to go
One of the few financial services-related measures discussed in the Queen’s Speech confirmed the Government will act on Law Commission proposals to repeal the Bills of Sale Acts and replace them with a Goods...
John Griffith – Jones leaving the FCA
John Griffith – Jones has confirmed that he will leave both the FCA and the PSR at the end of his term of office on 31 March 2018.
Lending Standards Board considers enhancements to take account of technological advancements
The Lending Standards Board (LSB) published a report (dated May 2017) setting out the findings of its Standards Development Project (SDP) on digital. The SDP included credit card, loan and overdraft products. In the...
BOE speaks on effects of ring-fencing for customers
In a speech by James Proudman (Executive Director, UK Deposit Takers Supervision, Prudential Regulation Authority, Bank of England), it was discussed that the key component of the ring-fence is to provide...
FCA updates on sandbox
FCA has updated information on its regulatory sandbox. It says the sandbox’s popularity is increasing and larger numbers of firms both applied for and were accepted for testing in cohort 2. FCA has named the 24...
FOS publishes annual review
FOS has published its annual review for 2016/17, a period which it described as ‘immensely demanding’. Similarly to previous years, FOS reported that much of its activity focused on PPI...
Up next from FCA
FCA’s latest policy development update provides information on its recent and upcoming publications. Only one key publication is shown as scheduled for June – a policy statement on enhancing conduct of...
LSB looks at digital developments
LSB has reviewed its Standards to assess whether any amendments are needed to take account of various digital developments. It considered the effects of digitalisation of the customer experience on the whole customer...
ECON publishes draft retail FS plan
The EP has published a draft report on the Action Plan for retail financial services. The report: says the EU retail financial services market is still underdeveloped and fragmented, but recognises that such a market...
EBA finalises PAD terminology and disclosure Annex
EBA finalised its technical standards on standard terminology and disclosure under the PAD and submitted it to the Commission in early May. It has now published the Annex which contains the 8 terms in all official...
FSB and CGFS publish joint report on the functioning of FinTech credit markets
On 22 May 2017, the Financial Stability Board (FSB) and the Committee on the Global Financial System (CGFS) published a report on FinTech credit. FinTech credit – that is, credit activity facilitated by electronic...
Up next from FCA
FCA’s latest Policy Development Newsletter promises only a policy statement on enhancing COB rules for firms providing CFDs to retail clients following before the end of June. Many other papers are due later in...
ASA holds against Santander card ad
The ASA has ordered Santander not to show a credit card advertisement again in its current form. The TV advert, aired last November, showed various scenarios including people looking at holiday photos, choosing games...
PPI: the final countdown
We have written an article on the new timescale for handling PPI complaints, the FCA’s customer communications campaign and its new rules on writing to customers whose complaints have previously been rejected and...
meps call for acceleration of eu fintech development
Economic and monetary affairs committee MEPs want the EU to accelerate the development of financial services enabled by new technologies (FinTech). Their key priorities are: Cybersecurity and data protection: the need...
FCA publishes first new-form complaints data
FCA has published the first set of complaints data (covering the second half of 2016) that firms have reported since last year’s rule changes that give firms 3 days to address a complaint to a consumer’s...
FCA publishes Mission Statement and Business Plan
FCA’s latest Mission and Business Plan contain few surprises, but indicate a lot of work in diverse areas. The Mission, which takes into account stakeholder views, seeks to explain to firms how and why FCA...
FSCS confirms £363m levy for 2017/18
FSCS has announced its levy for 2017/18. The £363m is less than forecast in the FSCS’ 2017/18 Plan and Budget in January, but more than the 2016/17 levy. The 2017/18 levy includes: no change to the £100m levy on...
fca issues Financial Advice Market Review progress report
FCA has published the Progress Report reporting on the progress towards implementing the FAMR recommendations. The FAMR final report set out 28 recommendations which are addressed in the progress report. The Financial...
FCA speaks on the next phase of Project Innovate
On 10 April 2017, Christopher Woolard, the FCA’s Executive Director of Strategy and Competition delivered a speech at the Innovate Finance Global Summit in London. The speech considers the work of the FCA’s...
FCA publishes discussion paper on distributed ledger technology
The FCA has published a discussion paper on distributed ledger technology (DLT). The discussion paper describes DLT and acknowledges blockchain as a type of DLT. The FCA invites a discussion on two sets of issues: What...
HMT issues regulatory innovation plan
The government’s vision is for UK financial services to be the most competitive and innovative in the world, supplementing existing services with greater choice and value for consumers. The innovation plan covers how...
FCA PROPOSES NEW RULES TO HELP CUSTOMERS IN PERSISTENT CREDIT CARD DEBT
Under FCA’s definition, credit card customers are in persistent debt if they have paid more in interest and charges than they have repaid of their borrowing, over an eighteen month period. FCA estimates that around 3.3...
FCA makes new rules
FCA made several changes to its rulebook at its Board Meeting on 30 March. Key changes include: changes to fees relating to the FOS and periodic fees for exchanges and benchmark administrators; changes to the FSCS...
PSR publishes terms of reference for its role in preventing and responding to push-payment scams
Today, the payment systems regulator published its final terms of reference PSR will consider whether it would be effective and proportionate for operators of push payment systems to play a greater role in preventing...
FCA to tackle contactless card fraud
John Griffith-Jones, Chairman of FCA and Payment Systems Regulator, has written to Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, about contactless card fraud. In 2015 there was £2.5m of reported...
Keeping up with the credit sector: the FCA’s view on the market today
In a speech by Jonathan Davidson (Director of Supervision – retail and authorisations at the FCA), delivered at the Credit Summit in London today, Davidson highlighted the FCA’s current view on the consumer credit...
Super trade body gets a name
The new trade body, which will be formed from the merger of the BBA, CML, Payments UK, the UK Cards Association, the Asset Based Finance Association and Financial Fraud Action UK, is to be called UK Finance. Bog Wigley...
“Same business, same risks, same rules” – ECB comments on regulation of Fintech
In a statement made at an ECB Fintech Workshop, Sabine Lautenschläger (Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB) told the audience how the ECB sees some of the...
NUMBER OF CONSUMER COMPLAINTS MADE TO REGULATORS RISES – BONDS AND OTHER DEBT SECURITIES NOW MOST COMPLAINED ABOUT
ESMA’s recent report on trends, risks and vulnerabilities (TRV) reveals that the total number of complaints reported across the EU was 7,026 in 1H16 compared to 5,152 in 2H15. The three most common causes among...
European Commission publishes FS action plan
The Commission has published its Financial Services Action Plan for a “deeper and fairer Single Market”. As ever, the priority is to enhance competition and improve consumer choice, regardless of where and...
European Commission releases public consultation on FinTech as part of Consumer Financial Services Action Plan
In a statement released today, the European Commission has presented an Action Plan that sets out ways to provide European consumers with greater choice and better access to financial services across the EU. At its...
Cheque & Credit Clearing Company announce details of image-based cheque clearing system to go live for some banks on 30 October 2017
The C&CCC – the organisation that manages the cheque clearing system – has announced the details of the launch of an industry-wide image-based cheque clearing system that will speed up cheque processing...
FCA warns on debt permission limitations
FCA has warned full permission firms with debt adjusting or debt counselling permissions with “no debt management” limitations that they should review the limitations to check they are appropriate. It says...
Treasury speaks on Fintech
Simon Kirby, Economic Secretary to the Treasury, spoke at the LSE Global Fintech Investor Forum where he emphasised UK dominance in Fintech innovation. Mr Kirby gave three examples of what others envy in the British...
UK and Japan to co-operate on innovator firms
In the latest co-operation agreement between UK and AsiaPac regulators, FCA has exchanged letters of co-operation with the Japanese Financial Services Agency, under which the regulators will provide a...
Spring budget recommendations for regulators
Philip Hammond’s Spring Budget has not sprung any surprises on financial regulation. The Chancellor is required to write to FCA and PRA (to be operated by the Prudential Regulation Committee) each year with...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation, quarterly consultation no.16 proposes changes to: DEPP and EG reflecting the FCA’s powers following the Bank Recovery and Resolution Order 2016: these would set out the...
In the FCA pipeline
FCA has updated its policy development webpage for March 2017. Key publications due before the summer include: March/Q1 2017: IDD Implementation – CP1 MAR 1 changes: inside information relating to commodity derivatives...
Emma RadmoreFCA to consult on SMR extension
FCA is to consult on the extension of the SMR to all authorised firms during the second quarter of 2017.
EU Fintech report to be debated in May
The EU legislative observatory indicates the EP’s report on Fintech is to be debated in committee session in mid-April and in plenary in mid-May. The draft opinion focuses on the benefits of Fintech for SMEs and...
CML supports borrower guardian bill
CML has given its support to the Guardianship (Missing Persons) Bill. It says the Bill would help lenders make pragmatic arrangements with guardians of missing borrowers to act in the best interests of those borrowers...
NEW TRADE BODY FOR FINANCE SECTOR
A new body is to launch later in 2017, designed to be the authoritative voice for the finance sector in the UK. The name and brand of the body is to be announced in summer 2017. Bob Wigley will oversee the appointment...
FCA invites views on website
If you, like us, have views on FCA’s recently revamped website, you have a chance to let FCA know. It has invited views, in an online survey.
Bills of sale Acts to be reformed
The Government has confirmed it will be reforming the bills of sale Acts. The Law Commission had recommended that using goods as security for a loan while still continuing to have use of them should continue to be...
Government publishes Brexit White Paper
The Government has published its White Paper on building a new relationship with the EU after Brexit. The paper looks at the basis on which the Government wants to address the 12 principles Theresa May set out on 17...
FCA updates on skilled persons reviews
FCA has published the figures showing the number of skilled persons reviews it initiated in Q3 2016. Of the 15 reviews, 5 concerned asset management and 5 concerned insurers/
FCA publishes Regulation Round-up
FCA’s latest “Regulation Round up” focuses on: some big issues FCA plans to address in 2017, such as the progress of the FAMR, the extension of the SMR and the closure of lending reviews; the interim...
HSBC sets up debt collection redress scheme
FCA has announced that HSBC has voluntarily agreed to set up a redress scheme for customers who may have suffered detriment by paying an unreasonable debt collection charge imposed by HFC Bank Ltd (HFC) and John Lewis...
FCA publishes finalised guarantor loans guidance
FCA has published its finalised guidance on guarantor loans: default notices. It has made minor changes only from the consultation version of the guidance, which is relevant to guarantor lending firms seeking to take...
May confirms Brexit Plan
Industry has reacted to Theresa May’s speech of 17 January, when she confirmed Britain would leave the single market. In her speech, the Prime Minister reiterated that it is for the Government alone to invoke...
FSCS publishes plan and budget
FSCS has published its plan and budget for 2017/18. FSCS estimates that firms are likely to have to pay a total levy bill of £378 million to cover its costs. Points of interest include that FSCS: intends to raise...
PRA and FCA consult on FSCS levy limit
FCA and PRA have issued a joint consultation paper on the management expenses levy limit (MELL) for the FSCS for 2017/18. The MELL provides the FSCS with adequate resources to process compensation claims resulting from...
Brexit Committee calls for Parliamentary vote on Brexit deal
The first report of the committee on exiting the EU calls for the Government to publish its Brexit plan by mid-February, and says that plan should set out the Government’s position on membership of the single...
House of Commons looks at legislating for Brexit
The House of Commons Library has published a report looking at how many EU laws are directly applicable in the UK (around 5,000), and will therefore cease to apply in the UK once the European Communities Act 1972 is...
FCA updates consumer credit information sheets
FCA has now updated its information sheets consumer credit firms should use when notifying customers that they are in arrears or default. The site now contains new sheets that will be effective from 14 April. Until then...
Government consults on single body for public financial guidance
The Treasury has issued a consultation on proposals to establish a single advisory body to replace, and bridge perceived gaps between, the Money Advice Service, the Pensions Advisory Service and ‘Pension...
FCA withdraws consumer credit info sheets
FCA has withdrawn the information sheets on consumer credit that were intended to become current on 18 January 2017. It says this is due to an error in the production of the information sheets for publication, and it...
FCA’s Future Mission: key themes from feedback
FCA has published initial feedback from the consultation process into its proposed mission statement. Key themes include: a desire for a clearer rationale for FCA decisions, and what FCA chooses to do and not to do;...
Parliament urges FS transition after Brexit
The EU Financial Affairs Sub-Committee has published its report on Brexit and financial services. The report says it is critical to agree a transitional period for financial services to avoid a “cliff edge”...
FOS consults on plan and budget
FOS is consulting on its plan and budget for the year ahead. It expects record numbers of PPI complaints, with a steady level of complaints in the banking, insurance and investment sectors. It plans to keep the case...
FCA consults on FSCS changes
FCA is consulting on changes to FSCS rules and funding. It is considering introducing mandatory terms to make PII more effective for firms that FCA requires to hold it, and also exploring introducing new levy categories...
FCA publishes arrears management review
FCA has published its thematic review report on early arrears management in unsecured lending. The report sets out how the FCA conducted the review, its findings and, where relevant, how firms are currently meeting the...
EP publishes Brexit briefing
The European Parliament has published a briefing on the impact of Brexit on the financial services industry. The briefing describes the prominent role of the UK in the single market for financial services and highlights...
FOS looks at mental health and complaints
The latest issue of Ombudsman News focuses on complaints firms have received in respect of customers with mental health issues.
LSB calls for data on digital
LSB is calling for evidence as part of its Standards Development project to look at firms’ digital capabilities. It asks: What are the main challenges faced when developing products and services for digital...
FCA explains RMAR
FCA has published a summary of why it collects data for the RMAR and how it uses it. Its key purpose is to help it supervise firms in a way to minimise poor consumer outcomes in the retail investment market. The data...
FCA consults on regulatory fees and levies
FCA is consulting on policy proposals for regulatory fees and levies in 2017/18. The main areas in which it proposes to increase its fees are to cover its costs of tackling illegal money laundering and of implementing...
What’s coming up from FCA
FCA’s latest Policy Development Update indicates we can expect its fourth consultation paper on MiFID 2 implementation soon, maybe before the end of the year. It then promises feedback on consultations to date...
LSB updates lending standards
LSB has developed a set of Standards of Lending Practice for business customers, which it plans to launch in early 2017 to replace part of the Lending Code. It will extend the Lending Code provisions to include not only...
FCA Calls for Input on high-cost credit
FCA has published a Call for Input on high-cost credit, including a review of the high-cost short-term credit price cap. In the last two years, FCA has focused on products it believes pose the highest risks to its...
Autumn Statement financial services round up
The Chancellor’s Autumn Statement contained several statements relevant to financial institutions and insurers – some announcements of initiatives already planned or even implemented, and some new promises. We...
FCA publishes consumer credit financial crime booklet
FCA has published a booklet specially aimed at consumer credit firms to help them understand FCA’s expectations of them under financial crime prevention standards. The guide sets out examples of good and poor...
FCA summarises financial services under WTO
Andrew Bailey has written to the Treasury Committee outlining what the regulatory landscape for financial services would be if the UK were a “third country” in respect of the remaining EU27, with access...
FCA updates on sandbox use
FCA has published a list of firms who it allowed to begin testing new products in its regulatory sandbox. It received 69 applications in its first wave, of which it accepted 24. Successful applicants range from the...
FCA and Treasury respond to CMA retail banking market report
In August 2016, the CMA published its final report following its investigation into the competitiveness of retail banking market (Report), which focused on personal current account and SME customers. The Report found...