United Kingdom

Topic: Retail

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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

Council note comparing trilogue positions on crowdfunding legislation

On 16 October 2019, the Council of the EU (Council) published a note (dated 15 October 2019) from the General Secretariat of the Council to the Delegations attaching the following addenda: a three-column table setting out the opening positions of the European Commission (Commission), the Council and the European Parliament (Parliament) in respect of the … Continue Reading

Joint Committee of ESAs consult on amendments to PRIIPs Delegated Regulation

On 16 October 2019, the Joint Committee of the European Supervisory Authorities (ESAs) published a consultation paper setting out proposed amendments to existing rules underpinning the key information document (KID) for packaged retail and insurance-based investment products (PRIIPS). The main aims of the review are to: address issues that have been identified by stakeholders and … Continue Reading

FCA statement reminding SIPP operators of their obligations

On 4 October 2019, the FCA published a statement providing information for Self-Invested Pension Plan (SIPP) operators following the administration of Berkeley Burke SIPP Administration Ltd (BBSAL). On 18 September 2019, the directors of BBSAL placed the company into administration as they were unable to cover the costs of litigation arising out of consumer complaints relating … Continue Reading

FCA Policy Statement on overdraft pricing and competition remedies

On 2 October 2019, the FCA published Policy Statement 19/25: Overdraft Pricing and Competition Remedies (PS19/25). Earlier this year the FCA published Policy Statement 19/16 which changed the way in which banks and building societies charge for overdrafts. The Policy Statement was part of the FCA’s High-cost Credit Review. The new rules were designed to … Continue Reading

FCA implementation group on proposed changes to responsible lending rules

On 27 August 2019, the FCA updated its webpage on the March 2019 Consultation Paper: Mortgage customers: proposed changes to responsible lending rules and guidance (CP19/14) (see blog post here). The FCA has included an additional note that it is now considering responses received to CP19/14 and if it decides to proceed with proposals, it … Continue Reading

FCA protocols for independent reviews of regulatory action concerning IRHP and Connaught

On 14 August 2019, the FCA published two protocols in relation to lessons learned reviews commissioned by the non-executive directors of the FCA following the appointments of John Swift QC and Raj Parker as independent reviewers for the Interest Rate Hedging Products (IRHPs) review and the Connaught Income Fund Series 1 review respectively in June … Continue Reading

New FOS webpages – complaints relating to home credit and financial difficulties

On 5 August 2019, the Financial Ombudsman Service (FOS) published new webpages on complaints in relation to home credit, a type of unsecured cash loan arranged at the borrower’s home, and borrowers who are experiencing financial difficulties. Each webpage sets out the types of complaints that the FOS comes across, how it handles those specific … Continue Reading

Pensions Regulator consults on trustee guidance

On 31 July 2019, the Pensions Regulator (TPR) published a consultation paper on draft guides to deliver the Competition and Markets Authority’s (CMA) recommendation for the TPR to produce guidance to trustees of occupational pension schemes on engaging with investment consultants and fiduciary managers. TPR’s guidance includes draft guides to: tendering for fiduciary management services; … Continue Reading

FCA launches package of pension related proposals

On 30 July 2019, the FCA published a package of pension related proposals designed to improve the quality of pension transfer advice and to help consumers get better value from their pension. These proposals include: consultation paper (CP19/25) setting out a proposed ban on contingent charging for pension transfer advice designed to protect customers from … Continue Reading

Pan-European Personal Product Regulation published in OJ

On 25 July 2019, there was published in the Official Journal of the European Union (OJ) Regulation (EU) 2019/1238 on a pan-European personal pension product (PEPP). The Regulation will enter force on 14 August 2019. It will apply 12 months after publication in the OJ of the delegated acts referred to in Article 28(5) (Content … Continue Reading

FCA consults on guiding firms on the fair treatment of vulnerable customers

On 23 July 2019, the FCA launched a consultation on proposed guidance for firms on the fair treatment of vulnerable customers. The draft guidance sets out the FCA’s view of what the FCA Principles for Businesses (Principles) require of firms to ensure that vulnerable consumers are consistently treated fairly across financial services sectors. The FCA … Continue Reading
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