United Kingdom

Topic: Retail

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ESMA ceases renewal of product intervention measure relating to binary options

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

Independent reviews of Interest Rate Hedging Products and the Connaught Income Fund Series 1

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

FCA Dear CEO letter to CMCs

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

FCA confirms new rules for P2P platforms

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

HM Treasury consults on regulating the funeral sector

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

ESMA plans to overhaul PRIIPs KID rules

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

Updated information on FCA Discussion Paper on price discrimination in the cash savings market

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

HoC Treasury Committee report on consumers

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

Responses to HM Treasury call for evidence on cash and digital payments

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

European Commission consults on Distance Marketing Directive

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

ESAs publish Q&A on the KID for PRIIPs

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

FCA consults on changes to responsible lending rules and guidance following mortgage market study

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

FCA Dear CEO letter on managing the risks of defined benefits to defined contribution transfers

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
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