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Topic: Retail

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FCA consults on restricting CMC charges for financial services and products claims

On 21 January 2021, the FCA published Consultation Paper 21/1: Restricting CMC charges for financial services and products claims (CP21/1). Under the Financial Guidance and Claims Act 2018 (FGCA) Parliament transferred the regulation of claims management companies (CMCs) to the FCA and gave the regulator a duty to make rules about CMC fees for claims … Continue Reading

Dear Board of Directors letter to debt firms published by the FCA

On 18 January 2021, the FCA wrote to the board of directors at debt firms (being debt purchase, debt collection and debt administration firms) to set out they key risks associated with these types of firms, the FCA’s expectations of them and how it plans to supervise the sector. In spite of the impact of … Continue Reading

FCA publishes Defined Benefit Advice Assessment

On 15 January 2021, the FCA published a Defined Benefit Advice Assessment Tool (DBAAT). Supervising defined benefit (DB) transfers has been a key priority for the FCA since the pension reforms, commonly known as the ‘pension freedoms’, were introduced in 2015. The DBAAT is designed to help firms and pension transfer specialists understand the FCA’s … Continue Reading

Commission Delegated Regulation of 18.12.2020 supplementing Regulation (EU) 2019/1238 with regard to RTS specifying the requirements on information documents, on the costs and fees included in the cost cap and on risk-mitigation techniques for the pan-European personal pension product

On 18 December 2020, the European Commission adopted a Delegated Regulation supplementing Regulation 2019/1238 with regard to regulatory technical standards specifying the requirements on information documents, on the costs and fees included in the cost cap and on risk mitigation techniques for the pan-European Personal Pension Product together with annexes. The regulatory technical standards are … Continue Reading

FCA portfolio letter to SIPP operators

On 2 December 2020, the FCA published a letter it had sent to the board of directors of firms assigned to the SIPP operators’ portfolio. The letter sets out the FCA’s key concerns and expectations for firms in the portfolio. The FCA’s key concerns are set out under four broad headings: financial resources, complaints handling, … Continue Reading

Conduct Healthcheck | Take our questionnaire

The global pandemic has brought the importance of good conduct and fair customer outcomes firmly into the spotlight. Whilst this principle is clear, how to interpret it effectively across different sectors, customer service arrangements and delivery models can be challenging. Businesses have also had to rapidly adapt to the broad and growing range of guidance … Continue Reading

FCA sends ‘Dear CEO’ letter setting out its strategy for Price Comparison Websites

The Financial Conduct Authority (FCA) has sent a ‘Dear CEO’ letter to Price Comparison Websites. The letter identifies the key risks of harm which it believes Price Comparison Websites (PCWs) pose to their customers and the markets in which they operate. PCWs are expected to review the harms identified and take steps to reduce the … Continue Reading

The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020

On 18 November 2020, there was published on the legislation.gov.uk website, The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. HM Government has issued two consultations on the debt respite scheme. First, a call for evidence ran between October 2017 and January 2018. HM Government’s response was … Continue Reading

Ombudsman News 155

On 19 October 2020, the Financial Ombudsman Service (FOS) published the latest issue of its newsletter Ombudsman News (issue 155). The newsletter covers: Quarterly complaints data. Between July and September 2020, the FOS continued to see an increase in complaints from people who borrowed money, who then felt the debt was unaffordable. Complaints arising from … Continue Reading

FCA Policy Statement delaying the implementation of the European Single Electronic Format

On 5 November 2020, the FCA published Policy Statement 20/14: Delay to the implementation of the European Single Electronic Format (PS20/14). PS20/14 primarily affects issuers with transferable securities admitted to trading on UK regulated markets, or who are considering admission to trading on a UK regulated market. In PS20/14 the FCA sets out changes to … Continue Reading

FCA speech – Acting flexibly and treating customers fairly in the face of a pandemic

On 5 November 2020, the FCA published a speech by Jonathan Davidson (Executive Director of Supervision – Retail and Authorisations) entitled Acting flexibly and treating customers fairly in the face of a pandemic. Key points in the speech include: The fair treatment of consumers in an effective credit market has long been a top priority … Continue Reading

EBA encourages financial institutions to put the required focus on consumers’ interests when applying product oversight and governance arrangements

On 3 November 2020, the European Banking Authority (EBA) issued its second report on how firms have implemented the EBA guidelines on product oversight and governance arrangements (the Guidelines). The report identifies good practices that firms have put in place and concludes that many of them do not sufficiently put the required focus on ensuring … Continue Reading

FCA occasional paper on understanding consumer financial wellbeing through banking data

On 20 October 2020, the FCA published Occasional Paper No. 58: Understanding consumer financial wellbeing through banking data. In this Occasional Paper, the authors integrate two approaches by investigating the relationship between subjective financial wellbeing, measured by self-reported responses of survey respondents, and objective financial wellbeing, measured by the same respondents’ bank account data. This … Continue Reading

European Parliament adopts Regulation and Directive on European crowdfunding service providers

On 6 October 2020, the European Parliament issued a press release stating that it had adopted at second reading a Regulation on European crowdfunding service providers for business and a Directive making amendments to MiFID II. The adopted texts of both the Regulation and the Directive can be found here. The press release states that … Continue Reading

Government to help pension schemes seize long-term opportunities

On 11 September 2020, the Department for Work and Pensions issued the Government’s response to the February 2019 consultation ‘Investment Innovation and Future Consolidation’ which included a further consultation on proposed measures to improve outcomes for defined contribution scheme members. The Government addresses stakeholder responses to the consultation proposal to use increased transparency as a … Continue Reading

PRA Dear CEO letter: Temporary Permissions Regime – Operational Readiness

On 1 September 2020, the Prudential Regulation Authority (PRA) published a Dear CEO letter from Sam Woods, Deputy Governor and CEO of the PRA to remind firms to be operationally ready for the Temporary Permissions Regime (TPR). The TPR is due take effect at 11pm on Thursday 31 December 2020, which is the point at … Continue Reading

New Bank of England webpage on the Temporary Permissions Regime

On 1 September 2020, the Bank of England (BoE) published a new webpage, which summarises its approach to the Temporary Permissions Regime (TPR). On this new webpage the BoE has confirmed the following: Firms that have submitted a valid Notification or Part 4A application (and not withdrawn) will automatically enter the TPR. Where a firm … Continue Reading

COVID-19: FCA consults on additional guidance for mortgage firms

On 26 August 2020, the Financial Conduct Authority (FCA) published a guidance consultation containing additional draft guidance for mortgage firms in light of the COVID-19 pandemic. It sets out the FCA’s expectations in relation to the fair treatment of mortgage borrowers who are experiencing financial difficulty as a result of the pandemic. This guidance is … Continue Reading

FOS Ombudsman news issue 153

On 26 August 2020, the Financial Ombudsman Service (FOS) published issue 153 of its newsletter, where it sought to summarise the key themes it has seen in complaints handled recently. Key themes emerging from recent complaints have included: Business interruption insurance Debt and financial difficulty Travel and event cancellations Lockdown causing business interruption To view … Continue Reading

HM Treasury Policy Statement: Amendments to the Packaged Retail Investment and Insurance based Products Regulation

On 30 July 2020, HM Treasury published a Policy Statement providing an update on its proposed approach to bringing forward certain amendments to the onshored Regulation on packaged retail investment and insurance based products (the PRIIPs Regulation) in order to avoid consumer harm and provide appropriate certainty to industry once the UK ceases to be … Continue Reading

FCA guidance consultation for firms on the fair treatment of vulnerable customers

On 29 July 2020, the FCA published Guidance Consultation 20/3: Guidance for firms on the fair treatment of vulnerable customers (GC20/3). In July 2019, the FCA published an initial consultation on draft guidance that set out its view of what the Principles for Businesses (the Principles) require of firms to treat vulnerable consumers fairly (GC19/3). … Continue Reading
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