The Law Commission has announced the programme of reforms it will be working on over the next 3 years. The projects include: Electronic signatures: there is an absence of explicit case law or legislation confirming...
Category - Consumer Finance
Emma RadmoreFCA updates on persistent debt
FCA has updated its consultation paper on its proposals for rules to help customers in persistent credit card debt. The revised proposals follow feedback on its April consultation. Respondents were in favour of...
FIN. TeamESMA clarifies application of MAR to trading in closed periods in updated MAR Questions and Answers
The European Securities and Markets Authority has published 2 new questions relating to the prohibition on dealings by persons discharging managerial responsibilities during a closed period in its updated MAR Questions...
Suzanne GadoFCA sets out future approach to authorisation and competition
FCA has outlined its approach to authorisation and to competition. It notes it is one of the few financial regulators in the world with an objective that includes promoting competition. It wants to understand, in...
Emma RadmoreFCA CLOSES CONSULTATION ON persistent debt and earlier intervention remedies
The FCA has updated its webpage on its consultation on persistent debt and earlier intervention remedies (CP17/10). Now that the consultation has closed, the FCA stated on its website that they are consulting on...
FCA roundtables on high-cost credit
The FCA has issued a paper summarising the issues and ideas raised by participants in the FCA roundtables, held in September and October. The roundtables covered discussions on (i) alternatives to high-cost credit and...
Government to use rental payment data to improve credit scores
Treasury has announced it is to offer financial support for the development of an application to allow those who rent properties to record and share their rent payment data, with a view to this helping them to improve...
IFRS 9 transitional Regulation published
There has been concern about the anticipated regulatory capital impact when International Financial Reporting Standard 9 is implemented from January 2018, resulting from some firms seeing a significant increase in...
Up next from FCA
FCA’s latest Policy Development Update promises the following publications before the end of 2017: Policy Statement on formalisation of the debt concession for smaller credit unions Policy Statement on market...
Financial Stability Report, November 2017
The Bank of England (BoE) has published its financial stability report, issue number 42. The report sets out the Financial Policy Committee’s (FPC), a sub-committee of the BoE’s Court of Directors, views of...
Law Commission finalises Goods Mortgages Bill
The Law Commission has published its final report on the Goods Mortgages Bill. This marks the end of a project that started in 2014, aimed at addressing the problems the outdated Bills of Sale Acts cause for borrowers...
Autumn Budget 2017: Key points for the financial services sector
Philip Hammond, Chancellor of the Exchequer, has delivered the Autumn Budget 2017. Key points for the financial services sector include: Asset management – the Government will publish a new long-term strategy to...
FCA consults on fees
FCA has published its annual consultation paper on regulatory fees and levies. Key proposals include: the proposed tariff data FCA will use to calculate insurers’ FCA periodic fees and the FOS levies, building on...
Financial Exclusion: UK government publishes response to Lords Select Committee final report
Following the appointment in 2016 by the House of Lords of a Select Committee to investigate financial exclusion and access to mainstream financial services, the Committee published its final report, ‘Tackling...
Treasury Committee inquiry into household finances
On 8 November, the Treasury Committee announced the launch of a new inquiry that will examine problematic indebtedness, inter-generational issues, lifetime financial planning and the effectiveness of the market in...
The Supreme Court grants Deutsche Bahn AG permission to appeal against a Court of Appeal judgment concerning interchange fees
The Supreme Court (SC) today announced that permission to appeal has been granted to Deutsche Bahn AG (and other retailers) against the Court of Appeal’s judgment upholding an appeal by MasterCard against a judgment of...
FCA’s future approach to consumers
The FCA has today published its Approach to Consumers paper, which is intended to explore the FCA’s approach to regulating retail consumers. The paper follows the publication of the FCA’s Mission Statement...
Interest Rate rises for the first time in 10 years
For the first time in more than 10 years the Bank of England (BoE) has raised interest rates. At its meeting on 1 November, the BoE’s Monetary Policy Committee (MPC) voted by a majority of 7-2 to increase the...
FCA bans firm for failure to comply with FOS award
FCA has cancelled the permission of Foreman Financial Services Limited for failure to remain fit and proper and specifically for breach of DISP rules and Principles 6 and 11. The firm had advised a customer to transfer...
FCA consults on FSCS funding
Following its December 2016 consultation for views on how FSCS funding could be reformed, FCA has published a further consultation paper seeking to ensure FSCS continues to provide the right protections, works...
New FCA webpage on reporting consumer credit income
The FCA has published a new webpage setting out what consumer credit firms need to report in relation to their consumer credit income. The FCA charges consumer credit firms annual fees based on the data in forms CCR002...
FCA updates on retail banking model review
FCA has published a paper on the purpose and scope of its review of the business models used in the retail banking sector. It is now considering what evidence it can best gather to understand: the state of competition...
HM Treasury’s Call for Evidence to tackle problem debt
On 24 October 2017, HM Treasury published a Call for Evidence to implement a breathing space scheme so that someone in serious problem debt may apply for legal protection from further interest, charges and enforcement...
FCA begins debt management sector review
In line with its 2017/18 Business Plan, FCA has begun its thematic review of the debt management sector. FCA has taken a particular interest in this sector, owing to the increased risks faced by (particularly...
FCA’s first Financial Lives Survey: 50% of UK adults potentially vulnerable
After collecting responses from over 13,000 UK consumers, FCA has revealed the results of its largest tracking survey of consumer behaviour and use of retail financial products and services. Aiming to tell the financial...
The Consumer Protection Partnership Update Report for 2017
The Department for Business, Energy & Industrial Strategy has published a report by the Consumer Protection Partnership (CPP), identifying and prioritising areas where there is greatest harm caused to consumers and...
FCA speaks on the ageing population
Linda Woodall has spoken at an event to launch FCA’s Occasional Paper on the ageing population. FCA has for some years been aware that the financial services needs of older consumers are generally not being met...
Bond Dickinson financial services team ranked in Legal 500
The Bond Dickinson financial services team is delighted to have achieved a Legal 500 ranking. The new directory described the team as providing ‘responsive, practical, commercial and cost-effective’ advice to a wide...
Up next from FCA
FCA’s latest Policy Developments Update lists several key publications due before the end of the year: policy proposals for next year’s fees and levies policy statement on FSCS funding policy statement on...
FCA speaks on challenges of ageing population
Andrew Bailey, speaking at Mansion house, looked at some of the challenges FCA faces as financial conduct regulator. He focussed particularly on: consumer credit – particularly on its rapid growth and the role of...
FPC updates on stability
FPC has reviewed developments since its last meeting on 21 June and assess the outlook for UK financial stability. Its conclusion was that ‘overall risks to UK financial stability from the domestic environment are...
Law Commission publishes draft Goods Mortgages Bill
Following a 2016 report in which the Law Commission concluded that the Bills of Sale Acts should be repealed and replaced with legislation less burdensome to lenders and more protective of borrowers, and its...
FCA looks at ageing population
FCA has published an Occasional Paper looking at the ageing population and financial services. FCA’s research has found there is a risk that the financial services needs of older people are not being fully met...
FCA makes new rules
FCA’s latest Handbook Notice confirms it has made rules amending: TC to update the qualification table COBS and MCOB in respect of the smarter communications initiative, in particular to address the risks of over...
Update from the Bank of England and The Payment Systems Regulator on new payment systems operator
In a joint press release issued today, the Bank of England (BoE) and The Payment Systems Regulator (PSR) announced that a New Payment Systems Operator (NPSO) had been created by the Payment System Operator Delivery...
FCA unhappy with consumer credit complaints handling – asks firms to take action
In a Dear CEO Letter, the FCA explains that it recently undertook a review of how consumer credit firms approach and deal with customer complaints. FCA reviewed data, final response letters and website information on...
FOS updates complaints data
FOS has published individual complaints data for H1 2017, relating to businesses in relation to which FOS both received and settled at least 30 cases during the period. FOS says these firms comprise around 95% of the...
FCA consults on miscellaneous changes
FCA’s latest Quarterly Consultation Paper covers: amendments to FEES in respect of fees when firms apply for a VOP for provision of payment initiation and account services. FCA needs to charge fees as it has...
FCA launches PPI campaign with help from ‘Arnold Schwarzenegger’
The FCA has today launched its PPI campaign with a television advert in order to raise awareness of the two year deadline to make a complaint about payment protection insurance. The deadline, which has been introduced...
MoJ publishes Plevin guidance for CMCs
The Ministry of Justice has published guidance for claims management companies when they handle cases relating to Plevin. The guidance mainly explains what FCA’s expectations are and stresses that CMCs must not...
FCA Regulation round – up for August
This month’s edition of Regulation round-up discusses: the consultation to extend SM&CR to all financial services firms; the Threshold Conditions Team taking enforcement action and cancelling the...
FCA sets out its supervisory approach to PPI
The FCA has today announced that it will soon be launching a campaign to inform people of the 29 August 2019 deadline for making a complaint about PPI. The campaign will contribute to the regulatory and supervisory...
Rise in complaints for PPI
This week FOS published its regular newsletter in which it discussed: a rise in consumer credit complaints; statistics on complaints received in the first quarter of 2017/2018; and an update on PPI and the FCA’s...
ASA unhappy at Amex ad
ASA has found a TV advert for American Express breached the BCAP rules on misleading advertising, qualification and exaggeration. On the ad, a voiceover claimed that “there is a card that could give you 5%...
eba publishes fintech discussion paper
The European Banking Authority has published a Discussion Paper on its approach to financial technology (FinTech). The EBA sets out in the Discussion Paper the results of the first EU-wide FinTech mapping exercise and...
FCA consults on FAMR: implementation Part II and insistent clients
The FCA has today published its consultation paper (CP17/28) on implementing two of the recommendations made in the final report of the Financial Advice Market Review (FAMR), which was published in March 2016. FAMR was...
FCA feeds back on high cost credit
FCA’s response to its call for input into its review of high cost credit has concluded it will keep the HCSTC cap at its current level, but review it again within the next 3 years. It has found an improvement in...
FCA updates on motor finance work
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...
FCA 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...
ICO 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...
Up next from FCA
FCA’s latest policy development update includes: second consultation on the IDD due in July, with a policy statement on the first consultation due in September; consultation on current account services in July and...
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...
Brexit: European Union (Withdrawal) Bill presented to Parliament
The Government presented the European Union (Withdrawal) Bill to Parliament on 13 July for its first reading. The Bill seeks to repeal the European Communities Act 1972 on the day when the UK leaves the European Union...
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:...
BoE publishes its Annual Report and Accounts for 2016/2017
BoE’s has published its Annual Report and Accounts for 2016/2017 which sets out its main achievements for the year, including: Its One Bank strategy which aims to create a single, unified, institution across all...
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 updates on FAMR
FCA has announced the names of the 17 firms who have to date participated in its advice unit . There have been two cohorts of firms, representing deposit-takers, pension firms, IFAs and wealth managers and has included...
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...
PRA amends IRB approach statement
PRA has published a policy statement on risk weights in the residential mortgages sector (PS13/17). The statement applies to banks and building societies who use an internal rating based (IRB) method to calculate...
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...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation proposes changes to: TC to update the list of appropriate qualifications; SUP to clarify how the requirement to have a client assets report applies to loan-based crowdfunding...
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 finalises mortgage payment shortfall guidance
FCA has finalised its guidance on the treatment of customers with mortgage payment shortfalls. The guidance addresses how firms should remediate for customer who may have suffered because of the way some firms calculate...
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...
FCA looks at consumer behaviour and advertising
FCA has published an occasional paper that looks at the behaviour of consumers and the consequences it has on their reaction to financial promotions. The paper considers: how consumers will look for and find promotions...
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...