On 1 July 2019, the European Securities and Markets Authority (ESMA) announced that it will not renew the temporary prohibition of the marketing, distribution or sale of binary options to retail clients in the EU. ESMA is not renewing its temporary prohibition on the basis that most Member State national competent authorities have now taken … Continue Reading
On 19 June 2019, the FCA published the results of the data it has received from firms carrying out Defined Benefit (DB) transfers and sets out the next steps in its supervisory work related to transfers. The FCA is concerned that firms are recommending that large numbers of consumers transfer out of their DB pension … Continue Reading
On 20 June 2019, the FCA announced that it had appointed independent reviewers for the lessons learned reviews commissioned by the FCA’s board. One review will cover the redress scheme for interest rate hedging products and the other will cover the regulation of firms involved with the Connaught Income Fund Series 1. John Swift QC … Continue Reading
On 12 June 2019, the PRA published a Dear CEO letter detailing findings from its review of fast growing non-systemic deposit taking firms (FGFs). The review aimed to test the financial resilience of FGFs and enhance the PRA’s knowledge of the funding and lending markets in which they operate. The review was split across three … Continue Reading
On 12 June 2019, the FCA published Policy Statement 19/17: Buy now pay later offers – feedback on CP18/43 and final rules (PS19/17). Buy now pay later (BNPL) offers are credit offers with a product feature that gives the consumer a promotional period, typically up to 12 months, during which they are not generally required … Continue Reading
On 11 June 2019, HM Treasury published the Terms of Reference for the new Joint Authorities Cash Strategy (JACS) Group. The JACS Group will be chaired by HM Treasury and will also involve the FCA, the Payment Systems Regulator and the Bank of England. The goal of the JACS Group is to inform and co-ordinate … Continue Reading
On 4 June 2019, UK Finance, a trade association for the UK financial services sector, published its principles for exiting a customer – which have been developed with input from the FCA. The principles are designed to improve how banks communicate with customers when they cannot offer, or continue to provide, banking facilities. The principles … Continue Reading
On 4 June 2019, the FCA published a Dear CEO letter setting out its expectations of claims management companies (CMCs) when they carry out financial promotions and/or act for their customers. The FCA notes that recently it has seen a number of issues regarding: CMCs acting for their customers without getting their appropriate consent or … Continue Reading
On 4 June 2019, the FCA published Policy Statement 19/14: Loan-based (‘peer-to-peer’) and investment-based crowdfunding platforms: Feedback to CP18/20 and final rules (PS19/14). In PS19/14 the FCA summarises the feedback it received to its consultation last year on loan-based crowdfunding platforms (P2P platforms) (our blog is here) and sets out the final policy positions it … Continue Reading
On 3 June 2019, HM Treasury published a consultation on its proposed regulation of pre-paid funeral plans. Under the current regulatory framework, entering into a funeral plan contract as a provider is a regulated activity. However, a provider is excluded from carrying on this regulated activity if the plans into which it enters are either … Continue Reading
The European Securities and Markets Authority (ESMA) has initiated work on a broad review of Delegated Regulation (EU) 2017/653 on key information documents (KID) for packaged retail and insurance-based investment products (PRIIPs). In a speech delivered by Evert van Walsum, Head of Investors and Issuers Department at ESMA, on 13 May 2019, it was announced … Continue Reading
On 14 May 2019, the FCA updated its webpage on Discussion Paper 18/6 regarding price discrimination in the cash savings market. The Discussion Paper set out a range of options to address issues faced by longstanding customers in the easy access cash savings market. Whilst a Feedback Statement to the Discussion Paper is not yet available, the … Continue Reading
On 10 May 2019, the House of Commons’ Treasury Committee (the Committee) published its twenty-ninth report of session 2017 – 19 on consumers’ access to financial services. The Committee launched the consumers’ access to financial services inquiry on 9 November 2018. The report sets out the evidence that the Committee received in the course of … Continue Reading
On 3 May 2019, HM Treasury published a document containing a summary of responses to its call for evidence on cash and digital payments in the new economy. A total of 218 respondents engaged with the call for evidence. The responses reflected the change in the way that payments are being made. According to data … Continue Reading
On 1 May 2019, the FCA issued a call for input on its evaluation of the Retail Distribution Review (RDR) and the Financial Advice Market Review (FAMR). The RDR took effect in 2012 and made several significant changes to the way investment products were distributed to retail consumers in the UK. The RDR raised the … Continue Reading
On 9 April 2019, the European Commission published a new webpage detailing a consultation on the Distance Marketing Directive (the Directive). The Commission notes that since 2002, when the Directive came into force, the retail financial sector has gone increasingly digital, with new products and actors available on the market and new sales channels being … Continue Reading
On 4 April 2019, the European Supervisory Authorities published additional Q&As on the key information document (KID) requirements for packaged retail and insurance-based investment products. Answers to the following questions have been added: What aspects should be considered by the manufacturer when determining the recommended holding period of a PRIIP? Which form and name should … Continue Reading
On 1 April 2019, the FCA began regulating claims management companies (CMCs) in England, Scotland and Wales. The FCA reports that more than 900 CMCs have registered for temporary permission to continue operating while they go through the FCA authorisation process. The following firms were required to register with the FCA for temporary permission: firms … Continue Reading
On 29 March 2019, the FCA confirmed that all firms acting in or from the UK are prohibited from selling, marketing or distributing binary options to retail consumers. The FCA’s rules are permanent and come into force on 2 April 2019. The FCA states that its rules are in substance the same as the EU-wide … Continue Reading
On 28 March 2019, the Competition and Markets Authority (CMA) published the final report of their funerals market study. The CMA launched a review of the funerals industry on 1 June 2018, amid concerns that prices had been increasing substantially and that funerals had become unaffordable for many. The CMA has concluded that no evidence … Continue Reading
On 27 March 2019, the Payment Systems Regulator (PSR) published its annual plan and budget for 2019 – 2020. Amongst other things, the PSR intends to conduct work over the coming year on issues that include: protecting people from authorised push payment scams and the implementation of confirmation of payee; access to cash through ATMs … Continue Reading
On 26 March 2019, the FCA published Consultation Paper 19/14: Mortgage customers: proposed changes to responsible lending rules and guidance (CP19/14). By way of background, the FCA is concerned that some consumers cannot switch to a more affordable mortgage despite being up-to-date with their mortgage payments. This includes those who cannot switch because of changes … Continue Reading
On 26 March 2019, the FCA published its final report on the mortgage market study. The FCA found that the mortgage market works well in many respects. Engagement is high and consumers are getting mortgages that are suitable and affordable. However, the FCA also found that the mortgage market falls short of its vision in … Continue Reading
On 22 March 2019, the FCA published a Dear CEO letter concerning managing the risks of defined benefits to defined contribution transfers. The Dear CEO letter explains that over the past year the FCA has carried out work to evaluate and reduce the risks of harm to consumers arising from the transfer of funds from … Continue Reading
