On 27 August 2019, the DWP published a tailored review of The Pensions Ombudsman (TPO) explaining that, at the present time, there is not a strong case to merge TPO and the Financial Ombudsman Service (FOS) without changes to the underlying regulatory framework of both organisations. While there is overlap in remit between the two … Continue Reading
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
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
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
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
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
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
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
On 22 July 2019, the European Commission adopted a guidance notice on the interpretation and application of the Unfair Contract Terms Directive (UCTD). The main purpose of the guidance notice is to present, in a structured way, the interpretation which the Court of Justice of the EU has provided on the key concepts and provisions … Continue Reading
On 22 July 2019, the FCA updated its web page concerning the call for input on the evaluation of the Retail Distribution Review (RDR) and the Financial Advice Market Review (FAMR). The FCA states that since issuing its call for input in May 2019 it has received 57 responses from a range of consumer bodies, … Continue Reading
On 22 July 2019, the FCA published a report that provides an update on the key issues it identified in Consultation Paper 18/35: Rent-to-own and alternatives to high-cost credit – feedback on CP18/12 and consultation on a price cap (our blog is here). In the report the FCA: examines the market for alternatives to high-cost … Continue Reading
On 18 July 2019, the FCA published a Feedback Statement 19/04 (FS19/04) summarising the main themes in the submissions received from an earlier Discussion Paper published in October 2018 (see previous blog post) on fair pricing in financial services. In the statement, the FCA provides further clarification on how it will apply its framework on … Continue Reading
On 11 July 2019, the UK Government (the Government) published its response to the Treasury Committee report, ‘Consumers’ Access to Financial Services’, published on 13 May 2019. The report contained a number of recommendations including: firms should be required to always act in the customers’ best interests – a legal duty of care may be … Continue Reading
On 11 July 2019, the FCA published a new web page setting out its findings following a recent review of business continuity planning amongst a number of small and medium-sized retail banks, payment institutions and electronic money institutions. The FCA reports that most firms demonstrated a good understanding of the importance of business continuity planning … Continue Reading
On 9 July 2019, the Joint Committee of the European Supervisory Authorities (ESAs) published a report on the cross-border supervision of retail financial services. The report provides an overview of the main rules that apply in the EU in respect of consumer protection, conduct of business, and the cooperation between Member State national competent authorities … Continue Reading
On 4 July 2019, the Department for Business, Energy & Industrial Strategy published its first ever statutory report on the implementation of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (the Regulations). The Regulations implement the EU Consumer Rights Directive. The Regulations seek to do this in the UK by setting out: the … Continue Reading
On 3 July 2019, the European Commission adopted a Delegated Regulation which lays down a transitional arrangement under Delegated Regulation (EU) 2017/653 that is consistent with the extended transitional arrangement in Regulation (EU) No 1286/2014. It allows manufacturers of packaged retail and insurance-based investment products (PRIIPs) that offer investment funds as the only underlying investment … Continue Reading
On 2 July 2019, the European Securities and Markets Authority (ESMA) issued three opinions on product intervention measures taken by the national competent authorities (NCAs) of Sweden, France and the UK. ESMA’s opinion finds that the proposed measures are justified and proportionate and that it is necessary for NCAs of other Member States to take … Continue Reading
On 1 July 2019, the FCA published Policy Statement 19/18: Restricting contract for difference products sold to retail clients (PS19/18). In PS19/18 the FCA states that the new rules will require firms that offer contracts for difference (CFDs) and CFD-like options to retail consumers to: limit leverage to between 30:1 and 2:1 depending on the … Continue Reading
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
