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Topic: Retail

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FSCS May 2022 outlook

On 26 May 2022, the Financial Services Compensation Scheme (FSCS) published its May 2022 Outlook, focusing on the 2022/23 levy forecast. The FSCS reports that whilst the headline levy number has decreased since its first forecast in November (now forecast at £625m), the amount of compensation it expects to pay customers during 2022/23 is still … Continue Reading

Commission adopts stronger consumer rules for online financial services

On 11 May 2022, the European Commission published a draft Directive that amends the current EU rules on Distance Marketing of Consumer Financial Services, which govern financial services sold at a distance. The press release mentions that the draft Directive provides for: Easier access to a 14-day withdrawal right for distance contracts for financial services. … Continue Reading

Consumer Panel Research makes case for development of tools and guidance for later life lending

On 11 May 2022, the Financial Services Consumer Panel (FSCP) published new research covering the experiences of consumers as they choose and buy equity release. The research indicates that the prevailing guidance, sales and advice processes may exacerbate some of the risks faced by consumers of equity release. The research findings suggest that consumers who … Continue Reading

ESAs call for improvements in product descriptions intended for retail investors

On 10 May 2022, the European Supervisory Authorities (ESAs) issued a supervisory statement on expectations regarding the ‘What is this product?’ section of the key information document (KID) for packaged retail and insurance based investment products (PRIIPs). The supervisory statement is addressed to Member State competent authorities and is delivered on the basis of Article … Continue Reading

ESAs recommend changes to make the PRIIPs key information document more consumer-friendly

On 3 May 2022, the European Supervisory Authorities (ESAs) published their technical advice to the European Commission on the review of the Regulation on packaged retail and insurance-based investment products (PRIIPs Regulation). The advice will serve as input for developing the Commission’s Retail Investment Strategy. Within section 3 of the technical advice, sections 3.1 to … Continue Reading

Commission call for evidence: Retail investment – new package of measures to increase consumer participation in capital markets

On 3 May 2022, the European Commission issued a call for evidence regarding retail investment and a new package of measures to increase consumer participation in capital markets. The initiative is intended to provide for an evidence-based assessment on the functioning of the current retail investor protection rules and, if deemed appropriate, an impact assessment … Continue Reading

ESMA final report on Commission mandate on certain aspects relating to retail investor protection

On 29 April 2022, the European Securities and Markets Authority (ESMA) issued a final report on the European Commission mandate on certain aspects relating to retail investor protection under MiFID II. The Commission sent a formal request (mandate) to the ESMA last year seeking technical advice on certain aspects relating to retail investor protection asking … Continue Reading

Corrigendum to Delegated Regulation 2021/2268

On 13 April 2022, there was published in the Official Journal of the EU, a Corrigendum to Commission Delegated Regulation 2021/2268 of 6 September 2021 amending the regulatory technical standards laid down in Commission Delegated Regulation 2017/653 as regards the underpinning methodology and presentation of performance scenarios, the presentation of costs and the methodology for … Continue Reading

FOS publish strategic plans and budget 2022/23

On 30 March 2022, the Financial Ombudsman Service (FOS) published their 2022/2021 Plans and Budget, setting out their plans to invest in change, reduce the time it takes to resolve cases, to become financially sustainable and to enable them to deliver a better service for customers. The document includes the volumes of complaints the FOS … Continue Reading

FCA PS22/2 ‘PRIIPs – Final scope rules and amendments to Regulatory Technical Standards’

On 25 March 2022, the FCA published Policy Statement 22/2 ‘PRIIPs – Final scope rules and amendments to Regulatory Technical Standards’ (PS22/2). In PS22/2 the FCA summarises the feedback received to Consultation Paper 21/23 (CP21/23) and outlines its final policy position, Handbook rules and amendments to the onshored regulatory technical standards (RTS) under the Regulation … Continue Reading

FCA speech – ‘Supporting consumers through tough times – priorities for credit regulation’

On 23 March 2022, the FCA published a speech by Brian Corr (Interim Director of Retail Lending, FCA) entitled ‘Supporting consumers through tough times – priorities for credit regulation’. In his speech Mr Corr discusses the outcomes the FCA would like to see from consumer credit and what it’s doing to help deliver those, how … Continue Reading

IOSCO consults on recent retail investor trends and related conduct implications

On 21 March 2022, the International Organisation of Securities Commissions (IOSCO) published a consultation report that seeks comments on the issues identified in an earlier report by its Retail Market Conduct Task Force (RMCTF) which focussed on the retail conduct implications of COVID-19. The RMCTF report was largely based on a survey which highlighted some … Continue Reading

FOS – increase to award limit

On 18 March 2022, the Financial Ombudsman Service (FOS) published an increase to their award limits, as confirmed by the Financial Conduct Authority (FCA). Their award limit is the maximum amount they can require a financial services firm to pay when they uphold complaints. The award limit is adjusted each year to reflect inflation, as … Continue Reading

Commission adopts Delegated Regulation amending PRIIPs KID Delegated Regulation and related Delegated Regulation concerning extension of transitional arrangements

On 17 March 2022, the European Commission adopted a Delegated Regulation amending the regulatory technical standards (RTS) laid down in Delegated Regulation (EU) 2017/653 (otherwise known as the PRIIPs KID Delegated Regulation) as regards the extension of the transitional arrangement laid down in Article 14(2) of that Regulation and amending the RTS laid down in … Continue Reading

FOS publishes diversity, inclusion and wellbeing report for 2021

On 24 February 2022, the Financial Ombudsman Service (FOS) published its latest diversity, inclusion and wellbeing report. A periodic review, undertaken by independent advisers and published in December 2021, recognised the FOS’ good work in this area. It found that: The organisation ‘continues to be open and inclusive to all customers.’ ‘The values of openness, … Continue Reading

FOS webpage on Wider Implications Framework

On 25 January 2022, the Financial Ombudsman Service (FOS) published a new webpage regarding the Wider Implications Framework (the Framework). The Framework sets out a structure for its members (the FOS, Financial Conduct Authority, Financial Services Compensation Scheme, the Pensions Regulator and the Money and Pensions Service) to collaborate on matters of common interest to … Continue Reading

FCA review finds evidence of growing competition in retail banking

On 20 January 2022, the FCA published its 2022 Final Report on competition in retail banking markets. This builds on the FCA’s 2018 Final Report and 2018 Progress Report. The key findings in the 2022 Final Report include: Large banks are in a strong position but face increasing competition, in particular for Personal Current Accounts … Continue Reading

Borrowers in financial difficulty project – supporting those facing payment difficulties due to coronavirus

On 19 January 2022, the FCA issued a webpage regarding its borrowers in financial difficulty project which is intended to ensure firms continue to support borrowers in financial difficulty. With the pandemic ongoing the FCA wants to reiterate its expectations for the treatment of customers, as set out in the Tailored Support Guidance (TSG) for … Continue Reading

FSCS Budget Update

On 12 January 2022, the Financial Services Compensation Scheme (FSCS) published its budget update which sets out its running costs for 2022/23. The FSCS anticipates needing annual management expenses of £95.5m and the total levy (including both management expenses and compensation costs) for 2022/23 is £900m. The PRA and FCA are consulting on an overall … Continue Reading

FCA and PSR respond to announcement from Cash Action Group

On 15 December 2021, the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) published a response to the announcement from the Cash Action Group (CAG) which stated that retail banks and building societies will create an independent body to assess the needs of local communities and direct cash solutions. The FCA and PSR … Continue Reading

FCA publish a policy statement restricting CMC charges for financial products and services claims

On 29 November 2021, the Financial Conduct Authority (FCA) published Policy Statement 21/18 ‘Restricting CMC charges for financial products and services claims’ (PS21/18). In PS21/18 the FCA responds to the comments received to Consultation Paper 21/1 ‘Restricting CMC charges for financial services and products claims’ (CP21/1) and sets out final rules. In PS21/18 the FCA … Continue Reading
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