On 20 March 2024, the Financial Conduct Authority (FCA) published a letter to CEOs of firms in its consumer lending portfolios, setting out its updated view on the key risks of harm those firms pose to their consumers and the markets in which they operate. This view will shape the FCA’s focus and engagement with … Continue Reading
On 18 March 2024, the Department for Business and Trade announced that it is consulting on competition and consumer protection related information sharing between relevant UK public authorities. The consultation paper highlights that the sharing of information among regulators and public bodies plays an important role in effective enforcement and regulation, and that there can … Continue Reading
On 18 March 2024, the Financial Conduct Authority (FCA) published a joint letter with Ofgem, Ofwat and Ofcom via the UK Regulators’ Network, outlining their shared expectations of the consumer outcomes firms should be delivering in response to identified consumer harms across their sectors, particularly in relation to debt collection practices. Accordingly, together with Ofgem, … Continue Reading
On 1 March 2024, the Financial Ombudsman Service (FOS) published their latest quarterly data and information on the complaints it sees about financial products and services. This includes the number of enquiries and new complaints received, as well as the proportion of complaints resolved in favour of consumers, or ‘upheld’. The key findings of the … Continue Reading
On 21 February 2024, the All-Party Parliamentary Group (APPG) on Fair Business Banking published a report on de-banking. The report was commissioned to explore the extent of the problem of de-banking and then, if problems were identified, to suggest remedies. The work was prompted by a growing number of individuals, companies and trade organisations approaching … Continue Reading
On 21 February 2024, UK Finance published a blog on how to assess fair value under the Consumer Duty. As 2024 will see the first annual Consumer Duty board reports delivered, as well as the implementation deadline of the Duty for closed products (the deadline for both is 31 July 2024), the FCA has … Continue Reading
On 20 February 2024, Sheldon Mills, FCA Executive Director of Consumers and Competition delivered a speech on the progress of the Consumer Duty since it came into force just over half a year ago. The speech identified the progress firms have made in these six months, whilst also identifying some challenges and looking ahead to … Continue Reading
On 20 February 2024, the Financial Conduct Authority (FCA) published guidance on what firms are doing well, and what could be improved, in relation to their implementation of the Consumer Duty. The Consumer Duty came into force for open products and services on 31 July 2023 and while the FCA welcomes the improvements made by … Continue Reading
On 15 February 2024, the FCA published the key findings of its multi-firm review of Claims Management Companies (CMCs) carrying out unregulated claims, to assess whether firms were using their FCA authorisation to legitimise services that are not regulated. This stemmed from the FCA’s concerns that consumers may mistakenly assume that all the services CMCs … Continue Reading
On 25 January 2024, the FCA published information for firms affected by its review into the historical use of discretionary commission arrangements (DCAs) in the motor finance industry. The FCA announced earlier this month that it is using its powers under s166 of the Financial Services and Markets Act 2000 to review sales of historical … Continue Reading
On 23 January 2024, the FCA published a speech delivered by its Chief Executive, Nikhil Rathi, on ‘Leaning in on making consumer tech a force for good’. In the speech, delivered at the Imperial College London Business School, Mr Rathi addressed the question of how consumer-facing technology can help keep consumer markets honest. Key points … Continue Reading
On 22 January 2024, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2024/358 of 29 September 2023 supplementing the EU Crowdfunding Regulation with regard to regulatory technical standards (RTS) specifying requirements on credit scoring of crowdfunding projects, pricing of crowdfunding offers, and risk management policies and procedures. The RTS: … Continue Reading
On 15 January 2024, the FCA published a portfolio letter addressed to investment based crowdfunding (IBCF) platforms. The letter outlines the harms to consumers and markets most likely to arise from crowdfunding business models and the FCA’s strategy to address those harms. Boards should consider whether the risks of harm below are present in their … Continue Reading
On 15 January 2024, the FCA published a portfolio letter setting out its expectations for Loan-Based Peer-to-Peer Lending (P2P) platforms. The letter outlines the harms to consumers and markets most likely to arise from P2P business models and the FCA’s strategy to address those harms. It encourages firms to consider whether the risks of harm … Continue Reading
On 11 January 2024, the FCA published Policy Statement PS24/1 setting out temporary changes to the handling rules for motor finance complaints. The new rules have been introduced in response to a high number of complaints from customers to motor finance firms claiming compensation due to historical, potentially unfair, commission arrangements. By introducing these changes, … Continue Reading
On 11 January 2024, the Prudential Regulation Authority (PRA) published Consultation Paper CP1/24 on the Financial Services Compensation Scheme (FSCS) Management Expenses Levy Limit (MELL) for 2024/25. In CP1/24, the PRA and the FCA set out the proposals for the FSCS MELL, which covers the FSCS’s costs of operating the UK’s statutory compensation scheme, for … Continue Reading
On 14 December 2023, the European Securities and Markets Authority (ESMA) issued a Discussion Paper on MiFID II investor protection topics linked to digitalisation. The Discussion Paper discusses the main trends in digitalisation that are linked to the MiFID II investor protection topics. MiFID II aims at being technology neutral. This means that market participants … Continue Reading
On 14 December 2023, the Financial Ombudsman Service (FOS) published its product complaints data for the second quarter of this financial year, July to September 2023/24. The FOS flags that, according to the data, vehicle-related complaints now make up 25% of all cases. It found that the volume of complaints from people financing their vehicles … Continue Reading
On 12 December 2023, the FCA published a ‘Dear CEO’ letter it has sent to investment platforms and self-invested pension plan (SIPP) operators, setting out its concerns on the way they deal with any interest earned on customers’ cash balances. The letter follows a recent survey of 42 firms carried out by the FCA, which … Continue Reading
On 6 December 2023, the FCA published an update on the cash savings market for December 2023. The update follows the 14-point action plan set out by the FCA in July 2023 in its review of the cash savings market. The action plan aimed to ensure that banks are building societies are: In the update, … Continue Reading
On 5 December 2023, the European Supervisory Authorities updated their consolidated questions and answers on the PRIIPs key information document. These sections of the Q&As have been updated with answers to the following questions:… Continue Reading
On 5 December 2023, HM Treasury (HMT) published an illustrative draft of the Financial Services and Markets Act 2000 (The Ombudsman Scheme) Regulations 2024, along with a Policy Note. Upon laying and subject to being approved by Parliament, this statutory instrument would allow the Financial Ombudsman Service (FOS) to charge case fees to claims management … Continue Reading
On 30 November 2023, the FCA published a statement on communications in relation to packaged retail and insurance-based investment products (PRIIPs) and undertakings for collective investment in transferable securities (UCITS). The statement relates to concerns raised about costs and charges disclosure in the PRIIPs Key Information Document, the UCITS Key Investor Information Document and MiFID … Continue Reading
On 27 November 2023, the Council of the EU issued a press release announcing that it had adopted a Regulation creating the European Single Access Point (ESAP). The proposal for a regulation establishing the ESAP was part of the Capital Markets Union package which the European Commission presented on 25 November 2021. The regulation is … Continue Reading