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...
Category - Consumer Finance
FOS updates on plans and caseload
FOS’ latest Ombudsman news highlights its plans for the year ahead and current statistics. Its case updates focus on complaints where mistakes or misunderstandings led to consumer loss, and where financial...
FIN. TeamFCA 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...
Emma RadmorePSR 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 RadmoreRegulators publish LTI guidance
PRA and FCA have published a policy statement and finalised guidance respectively on loan to income (LTI) ratios in mortgage lending with immediate effect. In June 2014, the Financial Policy Committee issued a...
FCA 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...
MiFID 2 application guide
We’ve written an article on FCA’s recent MiFID 2 application and notification guide.
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.
Court should examine all terms for fairness
A recent case heard in the ECJ states that courts have a duty under the Unfair Terms in Consumer Contracts Directive to assess all terms in a contract for fairness, even if one specific term has already been considered...
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...
FOS focuses on complainant age
The latest edition of Ombudsman News looks at the types of complaints FOS addresses from people under 25. PPI is not a concern for them, with the majority of “millennial and post millennial” complaints...
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...
FCA launches market study on competition in the mortgage sector
FCA has launched a market study on whether competition in the mortgage sector is working in the interests of borrowers. The purpose of the study is to help the FCA understand whether consumers have enough information to...
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...
PRA and FCA consult on LTI ratios
PRA is consulting on changes to its rules and FCA is consulting on guidance to take account of the FPC recommendations on loan-to-income ratios in mortgage lending. The FPC had asked the regulators to ensure mortgage...
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...
FinTech bridge to China agreed
Announced as part of the 8th annual UK-China Economic and Financial Dialogue at Lancaster House in London this month, the FCA has signed a Co-operation Agreement with the People’s Bank of China in a bid to share...
FPC to acquire powers to address systemic risks in the BTL mortgage market
The Financial Policy Committee of the Bank of England is to be given powers to address lending practices in the buy-to-let mortgage sector from early 2017. This move follows the FPC’s acquisition of such powers in...
BBA announces update to Access to Banking Protocol
The BBA has said that it will update the Access to Banking Protocol in response to an independent review into the effectiveness of the Protocol one year after implementation. The Protocol was put in place in May 2015 to...
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...
FCA sets out its mission
FCA has started a discussion on its “future mission”. It sets out how it thinks it should prioritise its energies and resources in terms of ensuring the smooth functioning of markets, protection of...
FCA consults on guarantor loans guidance
FCA is consulting on proposed guidance on guarantor loans. It had previously consulted in February, but its proposals were not popular. It now addresses what it considered is, respectively, enforcing and not enforcing...
FCA consults on mortgage arrears calculation guidance
FCA is consulting on remedies for customers who have gone into arrears on their mortgages, and have been disadvantaged because of the way lenders have calculated their balances. Some firms have automatically included...
PSR speaks on super-complaint
Hannah Nixon, Managing Director of the PSR, has spoken about its first super-complaint and what PSR is doing about it. The PSR must respond by 22 December, and is looking at the scale of the “vishing”...
Updated Consumer Credit information sheets published by the FCA
On 18 October 2016, the FCA announced that it had updated a number of consumer credit information sheets that lenders must use when they are notifying customers of being arrears or default: Arrears Default High cost...
Treasury confirms new advice body
Treasury has confirmed it is to set up a new public body offering debt advice, money and pensions guidance to replace the MAS and bring together the existing pensions advisory bodies. The body has not yet been designed...
FCA updates on smarter communications
FCA has updated its guidance on smarter communications with customers. It has removed some ineffective disclosure requirements from its rules, and published feedback on its discussion paper, looking at how firms can...
Removal of ineffective disclosure requirements from FCA Handbook
The FCA’s policy statement PS16/23 follows its consultation paper CP15/32 which contained its proposals to remove certain disclosure requirements from the Handbook. The policy statement confirms the removal of...
Treasury consults on financial advice amendment
Treasury is consulting on amending the definition of “giving investment advice” under the Regulated Activities Order to bring it into line with MiFID. The current definition is broader than MiFID, and the...
CML updates on lender/intermediary responsibilities
CML and other mortgage industry associations have published updated guidance for mortgage lenders and intermediaries, clarifying their accountabilities and responsibilities in relation to mortgage sales and servicing...
Law Commission proposes log book loan reform
The Law Commission has published a report recommending changes to the “archaic” Bills of Sale legislation, to make log-book loans fairer for borrowers and give better protection to buyers of second-hand...
FCA’s August Consumer Credit update
This month’s consumer credit update from FCA includes its publications in two on-going areas of work: crowdfunding and credit cards. The FCA has published a Call for Input for its review of the crowdfunding rules...
LSB reports on outsourcing
LSB has published a report on how 7 members and key third parties control outsourcing of business covered by the Lending Code. It concludes the sample showed good controls. We think the report has some useful checklists...