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Topic: Retail

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FCA consults on restricting contract for difference products sold to retail clients

On 7 December 2018, the FCA published Consultation Paper 18/38: Restricting contract for difference products sold to retail clients and a discussion of other retail derivative products (CP18/38). Earlier this year the European Securities and Markets Authority (ESMA) introduced a temporary product intervention measure which temporarily restricts how contracts for differences (CFDs) are sold to … Continue Reading

FCA consults on product intervention measures for retail binary options

On 7 December 2018, the FCA published Consultation Paper 18/37: Product intervention measures for retail binary options (CP18/37). Earlier this year the European Securities and Markets Authority (ESMA) introduced a temporary EU-wide product intervention measure to ban investment firms from marketing, distributing or selling binary options to retail consumers. The ban applied from 2 July … Continue Reading

FCA consults on rent-to-own price cap

On 22 November 2018, the FCA published Consultation Paper 18/35: Rent-to-own (RTO) and alternatives to high-cost credit – feedback on CP18/12 and consultation on a price cap (CP18/35). Our earlier blog on Consultation Paper 18/12: High-cost Credit Review: Consultation on rent-to-own, home-collected credit, catalogue credit and store cards, and alternatives to high-cost credit, discussion on … Continue Reading

FCA findings of current account prompt pilots

On 20 November 2018, the FCA published a webpage summarising its research into designing effective current account prompts, together with the full report (the Report). The research was conducted following banks and building societies committing to deliver a package of prompts to their customers. These prompts aim to: increase consumers’ engagement with their current account, … Continue Reading

Joint consultation paper concerning amendments to the PRIIPs KID

On 8 November 2018, the Joint Committee of the European Supervisory Authorities published a consultation paper setting out proposed amendments to the PRIIPs Delegated Regulation (Commission Delegated Regulation (EU) 2017/653 of 8 March 2017). The amendments relate to the empowerment in Article 8(5) of the PRIIPs Regulation concerning the presentation and content of the key … Continue Reading

FCA speech on fairness, flexibility and the long-term view

On 6 November 2018, the FCA published a speech by Christopher Woolard (Executive Director of Strategy and Competition, FCA)entitled Fairness, flexibility and the long-term view: the FCA’s vision for the mortgage market. In his speech Mr Woolard discusses the FCA’s mortgage market study and the regulator’s view of the mortgage sector more broadly. Highlights in … Continue Reading

FCA Dear CEO letter on investment due diligence requirements for SIPP investments

On 30 October 2018, the FCA published a Dear CEO letter, drawing attention to a number of pending civil claims in the High Court, together with the judgment handed down in the case of R (Berkeley Burke SIPP Administration Limited) v Financial Ombudsman Service Limited, which is still open to appeal by the claimant. These … Continue Reading

UK Finance review into the complaints / ADR landscape for the SME market

On 23 October 2018, UK Finance published a review into the complaints and alternative dispute resolution (ADR) landscape for the UK’s small and medium enterprises (SME) market. The report serves three purposes to: recommend ways in which banks and SMEs can resolve future grievances and complaints; help ensure that the excesses of the global financial … Continue Reading

FCA policy statement on improving quality of pension transfer advice

On 4 October 2018, the FCA published Policy Statement 18/20: improving the quality of pension transfer advice – feedback on CP18/7 and final rules and guidance (PS18/20). In CP18/7 the FCA consulted on the following proposals: amending the Pension Transfer Specialist (PTS) qualification and the exam qualification standards; amending the definition of a pension transfer; … Continue Reading

ESA letter to Commission on PRIIPS KID requirements

On 1 October 2018, the European Supervisory Authorities (ESAs) co-published a response to the European Commission’s request to develop guidance on facilitating the production and distribution of information on investment funds as of 1 January 2020. The ESAs state that they are still of the view that an approach whereby retail investors will receive both … Continue Reading

CMA receives super-complaint from Citizens Advice on long term customers overpaying for services

On 28 September 2018, the Competition and Markets Authority (CMA) announced that it is investigating a super-complaint lodged by Citizens Advice about long term customers overpaying for key services. The Enterprise Act 2020 makes provision for designated consumer bodies to make a super-complaint. A super-complaint, as defined by section 11(1) of that Act, is a … Continue Reading

APP Scams Steering Group consults on voluntary code to better protect consumers

On 28 September 2018, the Authorised Push Payments (APP) Scams Steering Group (a body established by the Payment Systems Regulator) published a consultation on a draft voluntary code designed to help stop APP scams from happening and protect consumers when they do. APP scams are where people are tricked into sending money to a fraudster. … Continue Reading

PSR consults on draft specific direction regarding protected ATMs

On 27 September 2018, the Payment Systems Regulator (PSR) published Draft Specific Direction 8 requiring the adoption of appropriate policies and measures and reporting obligations regarding protected ATMs (LINK) (the Direction). LINK is a network of Card Issuers and ATM providers that allows cardholders to use their cards to withdraw cash at any ATM connected … Continue Reading

FCA webpage on FAMR baseline tracking

On 24 September 2018, the FCA published a new webpage on baseline tracking relating to the Financial Advice Market Review (FAMR). The webpage includes new FCA research tracking baseline indicators (the Report). Baseline indicators were identified in the FAMR baseline report published in June 2017. The baseline report was the culmination of the FCA and … Continue Reading

Government confirms intended date of SFGB launch

On 4 September 2018, Parliamentary Under-Secretary for Work and Pensions, Guy Opperman, confirmed that following the recent appointments of its Chair and Chief Executive, the Single Financial Guidance Body (SFGB) is expected to launch in January 2019. This body, created under the Financial Guidance and Claims Act 2018, will bring together the services of the … Continue Reading

ESMA extends prohibition on binary options

The European Securities and Markets Authority (ESMA) has announced that it is renewing the prohibition on the marketing, distributing or sale of binary options to retail clients. The prohibition has been in effect since 2 July 2018, and will extend for a further 3-month period from 2 October 2018. However, ESMA has agreed to two … Continue Reading

FCA consults on recovering the costs of regulating CMCs

On 20 August 2018, the FCA published Consultation Paper 18/23: Claims management companies: recovering the costs of FCA regulation and the Financial Ombudsman Service (CP18/23). The consultation comes ahead of responsibility for claims management regulation passing from the Claims Management Regulator to the FCA on 1 April 2019, which will bring claims management companies (CMCs) … Continue Reading

FOS update on publishing complaints data

On 20 August 2018, the Financial Ombudsman Service (FOS) published an update to their 2016 complaints data consultation. Responses to the 2016 consultation suggested a measure of new cases per 100 FCA-reportable complaints, a “referral rate”. This would require using the FCA’s published complaints data alongside the FOS’ own to calculate the percentage of complaints … Continue Reading

New FCA BCOBS rules come into force for current account providers requiring the publication of standard information

On 15 August 2018, the FCA issued a press release regarding the coming into force of new rules that require providers of personal current accounts and business current accounts to make information about current account services available to customers (our earlier blog is here). Under the FCA’s new rules customers will be able to easily … Continue Reading

FCA statement on selling high risk speculative investments to retail clients

On 1 August 2018, the FCA published a statement in which it fully supports the temporary measures introduced by the European Securities and Markets Authority (ESMA) which restrict the sale, marketing and distribution of contracts for difference (CFDs) to retail clients. The FCA also states that it is concerned that firms may consider getting round … Continue Reading

FCA proposes changes to rules for crowdfunding platforms

Introduction In 2016 the FCA launched a post-implementation review of its regulation of the crowdfunding sector covering investment-based and loan-based crowdfunding. On 27 July 2018, the FCA published Consultation Paper 18/20 (CP18/20) which summarises its findings, and consults on proposed new rules and guidance for loan-based and investment-based crowdfunding platforms. CP18/20 will be of particular … Continue Reading

FCA seeks input on PRIIPs Regulation

On 26 July 2018, the FCA published a call for input regarding the Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation and initial experiences with the new requirements. The FCA is seeking responses from those who are producing, advising on, or distributing PRIIPs (and preparing and providing key information documents), and from consumers now using … Continue Reading
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