United Kingdom

Topic: Retail

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FCA statement – Publication of costs and charges data by workplace personal pension providers

On 3 June 2021, the FCA issued a statement on its website concerning the publication of costs and charges data by workplace personal pension providers. In the statement the FCA refers to its earlier consultation paper on requirements for workplace personal pension scheme providers to publish costs and charges data, and the resulting policy statement … Continue Reading

HM Treasury to extend PRIIPs exemption for UCITS funds for five years

On 1 June 2021, HM Treasury announced that the current exemption for UCITS funds from the requirements of the Packaged Retail Investment and Insurance-based Products (PRIIPs) Regulation will be extended by five years to 31 December 2026. HM Treasury intends to legislate to extend the exemption. This legislation will be made under a power HM … Continue Reading

FCA publishes policy statement with final rules on general insurance pricing practices

The Financial Conduct Authority (FCA) has published the long-awaited policy statement General insurance pricing practices market study – Feedback to CP20/19 and final rules (PS21/5). The final rules address what has been described as the ‘loyalty penalty’ paid by existing general insurance product customers. The publication of the policy statement and rules follows a final … Continue Reading

The Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2021

On 12 May 2021, there was published on legislation.gov.uk The Financial Services and Markets Act 2000 (Collective Investment Schemes) (Amendment) Order 2021 (the Order) together with an explanatory memorandum. Paragraph 6A of the Schedule to the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001 (CIS Order) provides that regulated peer to peer … Continue Reading

Commission consults on upcoming retail investment strategy

On 11 May 2021, the European Commission issued a public consultation on the upcoming retail investment strategy, which is planned for adoption in early 2022, as announced in last year’s Capital Markets Union Action Plan. In line with the Commission’s stated objective of “an economy that works for people”, the Commission is seeking to ensure … Continue Reading

Commission consults on a road map for a retail investment strategy

On 20 April 2021, the European Commission published for consultation a road map for a retail investment strategy for the EU. The September 2020 Capital Markets Union Action Plan noted the Commission’s intention to propose a retail investment strategy for the first half of the year of 2022, that should seek to ensure that retail … Continue Reading

FCA urges Claims Management Companies and High Cost Lenders to work better together

On 31 March 2021, the FCA issued a press release reminding high cost lenders (HCLs) and claims management companies (CMCs) that it expects them to work together to resolve disputes and disagreements in the interest of their customers. HCLs and CMCs are also encouraged to agree streamlined claims handling processes with each other, where possible. … Continue Reading

FCA confirms Finalised Guidance for advising on Defined Benefit transfers

On 30 March 2021, the FCA published Finalised Guidance 21/3: Advising on pension transfers (FG21/3). Since the pension freedoms were introduced in April 2015, the FCA’s work on defined benefit (DB) transfer advice shows firms do not always provide the quality of advice that is required. It remains the FCA’s view that it is in … Continue Reading

Draft FCA Guidance: Mortgages and coronavirus: further updated tailored support guidance for firms

On 5 March 2021, the FCA set out proposals to update its January 2021 guidance “Mortgages and Coronavirus: Tailored Support Guidance”. The proposed updates to the earlier guidance are contained in paragraphs 1.2 and section 7 (repossessions).  In section 7 the FCA is proposing to introduce updated guidance for firms from 1 April 2021, to … Continue Reading

PS21/1: Breathing Space Regulations: changes to our Handbook

On 26 February 2021, the FCA published Policy Statement 21/1: Breathing Space Regulations – changes to our Handbook (PS21/1). In PS21/1 the FCA sets out the changes it is making to the Handbook to take into account The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 (the … Continue Reading

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

On 23 February 2021, the FCA published Finalised Guidance 21/1: Guidance for firms on the fair treatment of vulnerable customers (FG21/1). FG21/1 applies to all firms where the Principles for Businesses (Principles) apply, regardless of sector. It applies to the supply of products or services to retail customers who are natural persons, even if a … Continue Reading

FCA finds the Covid-19 pandemic leaves over a quarter of UK adults with low financial resilience

On 11 February 2021, the FCA published the results of its latest Financial Lives survey. The annual survey provides a wealth of information about consumers’ attitudes towards managing their money, the financial products they have and their experiences of engaging with financial services firms. The executive summary is in two parts. In the first part, … Continue Reading

ESAs issue final report on amendments to the PRIIPs KID

On 3 February 2021, the European Supervisory Authorities (ESAs) submitted to the European Commission a final report containing final draft regulatory technical standards (RTS) on amendments to the key information document for packaged retail and insurance-based investment products (PRIIPs). The final report follows a consultation paper that the ESAs launched on 16 October 2019. The … Continue Reading

FCA report – The Woolard Review – A review of change and innovation in the unsecured credit market

On 2 February 2021, the FCA published a report on change and innovation in the unsecured consumer credit market following a review by its former Interim Chief Executive, Christopher Woolard. The review sets out how regulation can better support a healthy market for unsecured lending, taking into account the impact of the COVID-19 pandemic, changing … Continue Reading

Video blog: HMT confirms new regulation of ‘buy now pay later’ sector

Following the publication of the Woolard Review report and the exchange of letters between Mr Woolard and the Economic Secretary to the Treasury, John Glen MP, it is clear that the days of unregulated ‘buy now pay later’ products in the UK is drawing to a close. In this short video blog, retail specialist, Matthew … Continue Reading

FSCS Plan and Budget 2021/22

On 22 January 2021, the Financial Services Compensation Scheme (FSCS) published its plan and budget for 2021/22. Highlights from the plan and budget include: The total levy for 2020/21 is £700m. The supplementary levy for 2020/21 will be £78m, of this £44.5m will be invoiced in early February. The FSCS expects for 2021 that there … Continue Reading

CP21/2 Financial Services Compensation Scheme – Management Expenses Levy Limit 2021/22

On 22 January 2021, the PRA and FCA jointly published a Consultation Paper setting out proposals for the Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for 2021/22. Under section 223(1) of the Financial Services and Markets Act 2000 (FSMA), the FCA and the PRA must set a limit for the … Continue Reading

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
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