United Kingdom

Topic: Retail

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Commission consultation on EU Retail Payments Strategy

On 3 April 2020, the European Commission issues a consultation on a retail payments strategy for the EU. The public consultation, which is published together with the public consultation on a new digital finance strategy, is a key step towards the adoption of a retail payments strategy for Europe. The deadline for comments on the … Continue Reading

FCA speech on its approach to ensuring firms treat vulnerable customers fairly

On 5 March 2020, the FCA published a speech by Nisha Arora (Director, Consumer and Retail Policy, FCA) entitled Our approach to ensuring firms treat vulnerable customers fairly. Key points in the speech include: for many years, protecting vulnerable customers has been a key priority for the FCA and it remains so. But five years … Continue Reading

APP Scams Voluntary Code: interim funding for scam victim compensation to continue to 31 December 2020

On 27 February 2020, UK Finance announced that the interim funding arrangement to pay compensation to victims of authorised push payment (APP) scams in situations where both the customer and their bank have met the standards expected of them under the APP scams voluntary code is being extended to 31 December 2020. The payment service … Continue Reading

Commission final report: Consumer testing services – retail investors’ preferred option regarding performance scenarios and past performance information within the KID

On 27 February 2020, the European Commission published its final report concerning the consumer testing study of retail investors’ preferred option regarding performance scenarios and past performance information within the key information document (KID) under the packaged retail and insurance-based investment products (PRIIPs) framework. The results of the consumer test of performance scenarios in the … Continue Reading

FCA Policy Statement on publishing and disclosing costs and charges to workplace pension scheme members

On 4 February 2020, the FCA published Policy Statement 20/2: Publishing and disclosing costs and charges to workplace pension scheme members and amendments to COBS 19.8 (PS20/2). PS20/2 will be of interest to those who are involved in FCA-regulated relevant schemes in the defined contribution (DC) workplace pensions market. In PS20/02 the FCA details its … Continue Reading

FCA statement on second assessing suitability review

On 21 January 2020, the FCA published a statement on its second review of the market for pensions and market advice (the Assessing Suitability Review 2). The review will focus on the advice that consumers receive around retirement income as a greater number of options are now available in retirement planning and it is therefore … Continue Reading

APP scams voluntary code signatories to continue funding ‘no-blame’ scenario until March 2020

On 27 November 2019, UK Finance announced that the seven launch signatories to its automatic push payment (APP) scams voluntary code (the Code) have agreed to continue interim funding for the ‘no-blame’ scenario until 31 March 2020. The continuation of interim-funding is in response to Pay.UK’s recently published conclusions that there is no industry consensus … Continue Reading

New FCA webpage on approving financial promotions of unauthorised persons

As previously blogged, the FCA introduced temporary intervention measures on the marketing of speculative illiquid securities that will apply from 1 January 2020 to 31 December 2020. On 26 November 2019, the FCA published a related webpage setting out guidance under its existing rules on approving financial promotions of unauthorised persons. These existing requirements are … Continue Reading

ECB speech on the European retail payments market

On 26 November 2019, the European Central Bank (ECB) published a speech given by Benoît Cœuré, ECB executive board member, entitled “Crossing the chasm to the retail payments of tomorrow”. In his speech, Mr Cœuré explains the ECB’s governing council decision to relaunch its retail payments strategy. The aim of the strategy is to actively … Continue Reading

FCA temporary intervention on the marketing of speculative mini-bonds to retail investors

The FCA has today announced the introduction of temporary product intervention measures for 12 months from 1 January 2020 to address risks of consumer harm from the promotion of speculative mini-bonds to retail investors. The intervention reflects the FCA’s concerns with the widespread marketing of mini-bonds in spite of their high risk nature and difficulty … Continue Reading

Pay.UK unable to proceed with CRM fee to fund APP fraud reimbursements

On 15 November 2019, Pay.UK published a document outlining its conclusion that no industry consensus exists to finance a central fund to reimburse innocent victims of authorised push payment (APP) fraud. Pay.UK is the operator of the Faster Payments, Bacs and cheque systems. On 26 July 2019, it received a change request from UK Finance … Continue Reading

Commission Delegated Regulation amending PRIIPs Delegated Regulation to align transitional arrangements

On 8 November 2019, there was published in the Official Journal of the European Union (OJ) a  Commission Delegated Regulation (EU) 2019/1866 which amends Article 18 of Delegated Regulation (EU) 2017/653 supplementing the Regulation on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards with regard to … Continue Reading

Council of EU adopts EU consumer protection Directive

On 8 November 2019, the Council of the EU announced that it had adopted a Directive amending the Unfair Commercial Practices Directive (2005/29/EC), the Consumer Rights Directive (2011/83/EU), the Unfair Contract Terms Directive (93/13/EEC) and the Price Indication Directive (98/6/EC) (the Directive). The intention of the Directive is to guarantee higher standards of protection for … Continue Reading

FCA Policy Statement on changes to mortgage responsible lending rules and guidance

On 28 October 2019, the FCA published Policy Statement 19/27: Changes to its responsible lending rules and guidance – feedback on CP19/14 and final rules (PS19/27). In PS19/27 the FCA will remove barriers that prevent consumers from switching to a more affordable mortgage despite being up to date with their current mortgage payments. The proposals … Continue Reading

Joint ESAs’ supervisory statement on application of PRIIPs Regulation to bonds

On 24 October 2019, the Joint Committee of European Supervisory Authorities (ESAs) published a joint supervisory statement on the application of the Regulation on key information documents for packaged retail and insurance-based investment products (PRIIPs) to bonds. The ESAs state that uncertainty over the application of the PRIIPs Regulation to bonds has led to negative … Continue Reading

EBA opinion on disclosure to consumers buying financial services through digital channels

On 23 October 2019, the European Banking Authority (EBA) published an opinion on the disclosure to consumers of banking services through digital means under the Distance Marketing of Consumer Financial Services Directive (DMFSD). The EBA explains that the DMFSD was established to provide a legal framework governing the distance marketing of financial services. The implementation … Continue Reading

FCA complaints data for first half of 2019

On 17 October 2019, the FCA published its latest complaints data which shows that overall complaints increased by 9.7% compared to the previous six months, driven by the increase in payment protection insurance (PPI) related complaints which continues to be the most complained about product. However, the FCA notes that when PPI is excluded, complaints … Continue Reading
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