On 25 January 2024, the FCA published its latest Regulation Round-up.
The Round-up highlights the following key updates:
- The FCA is reviewing whether consumers may have been overcharged on their car loans, in light of a high number of complaints from customers to motor finance firms claiming compensation for discretionary commission arrangements before the FCA banned them in 2021. While the review is ongoing, the FCA has paused the 8-week deadline for motor finance firms to provide a final response to relevant customer complaints until 25 September 2024.
- As part of the introduction of a new authorisations gateway for firms who approve financial promotions for unauthorised persons, firms will require specific permission from the FCA and this will be reflected on the FCA Register for all Part 4A authorised persons. The initial window for firms to apply for this new permission closes on 6 February 2024, with the new legislative restriction entering into force on 7 February 2024.
- The FCA set out its expectations of firms selling client banks in December 2023. Firms considering selling or transferring a bank must comply with FCA Principles and rules, and must also consider their Consumer Duty obligations to be open and honest, act in good faith and avoid causing foreseeable harm.
- The FCA is convening an industry-led working group for financial advisers focussed on building capability in sustainable finance across the sector. This follows the publication in November of a package of measures to support the UK’s position as a world leading centre for asset management and sustainable investment.
- Following HM Treasury’s consultation response on reforming the financial promotion exemptions for high-net-worth individuals and self-certified sophisticated investors, changes to these come into force on 31 January 2024.
- The FCA has published a report on Quantum Security for the financial sector, in partnership with the World Economic Forum, which explores the transformative impact of quantum technologies on finance. It outlines key principles and a strategic roadmap to prepare for a quantum secure future.