On 31 March 2023, the Prudential Regulation Authority (PRA) published Policy Statement 2/23: Depositor Protection (PS2/23). PS2/23 follows an earlier consultation, CP9/22, in which the PRA proposed to amend Rule 6.2 in the Depositor Protection (DP) Part of the PRA Rulebook and make other consequential changes. These amendments sought to clarify that the Financial Services … Continue Reading
On 21 March 2023, the FCA published a speech by its director of consumer investments, Therese Chambers, delivered at the TISA Financial Advice and Guidance Conference in London. In her speech, Ms Chambers notes that although the reforms implemented as part of the Retail Distribution Review a decade ago have had positive impacts, it is … Continue Reading
On 20 March 2023, the Financial Ombudsman Service (FOS) announced that the FCA has confirmed an increase in the award limits – the maximum amounts the FOS can require a financial business to pay when it upholds complaints. The FCA has confirmed that from 1 April 2023, the award limits will go up to:… Continue Reading
On 17 March 2023, the FCA launched a call for input to inform its review of whether the thresholds for small and medium sized enterprises (SMEs) to be able to refer complaints to the Financial Ombudsman Service (FOS) remain appropriate. The FCA’s policy objective is to provide access to the FOS to SMEs it thinks … Continue Reading
On 16 March 2023, there was published in the Official Journal of the European Union (OJ) a Corrigendum to Commission Delegated Regulation (EU) 2021/2268 of 6 September 2021 amending the regulatory technical standards laid down in Commission Delegated Regulation (EU) 2017/653 as regards the underpinning methodology and presentation of performance scenarios, the presentation of costs … Continue Reading
On 10 March 2023, the FCA published final guidance which sets out the ways mortgage lenders can help customers worried about or already struggling with their mortgage payments because of the rising cost of living. The FCA has also published new data and analysis on the mortgage market. The new data shows that, in addition … Continue Reading
On March 2, 2023, the Consumer Financial Protection Bureau (CFPB) published a new report analyzing the financial profiles of Buy Now, Pay Later (BNPL) borrowers. While the report finds that many BNPL borrowers who the CFPB observed used the product without any noticeable indications of financial stress, BNPL borrowers were, on average, much more likely … Continue Reading
On 6 March 2023, the Financial Ombudsman Service (FOS) published a Consultation Paper: Temporary changes to outcome reporting in our business-specific complaints data. Introduction Between 1 November 2021 and March 2022, the FOS amended the way it recorded the outcomes of certain complaints that were proactively resolved by respondent businesses. This led to around 100 … Continue Reading
On 3 March 2023, the FCA published a further batch industry-specific portfolio letters on implementing the Consumer Duty. Each letter sets out a reminder of the implementation timeline, key elements of the duty and how it applied to firms in the relevant portfolio, the FCA’s expectations for how firms should embed the Duty, feedback from … Continue Reading
As we reported previously, a three-judge panel of the US Court of Appeals for the Fifth Circuit ruled on October 19, 2022 that the current funding mechanism for the Consumer Financial Protection Bureau (CFPB) is unconstitutional. Specifically, in Community Financial Services Association of America v. Consumer Financial Protection Bureau, the court held that the CFPB’s … Continue Reading
On 22 February 2023, the FCA published a speech by Sheldon Mills, its executive director for consumers and competition, given at the ‘Countdown to Implementation of the Consumer Duty’ event, on how putting customers front and centre will help the industry innovate. In his speech, Mr Mills reiterates the importance of the Consumer Duty (Duty) … Continue Reading
On 21 February 2023, the FCA published a second batch of industry-specific letters on implementing the consumer duty. Each letter sets out a reminder of the implementation timeline, key elements of the duty and how it applies to firms in the relevant portfolio, the FCA’s expectations for how firms should embed the duty, feedback from … Continue Reading
On 21 February 2023, the FCA updated their press release: FCA supports firms through the transition to implementing the Consumer Duty. The webpage has been updated to include links to the following portfolio letters:… Continue Reading
On 19 January 2023, the FCA announced a thematic review assessing the advice consumers are receiving on meeting their income needs in retirement. Previously planned work on this topic (known as ‘Assessing Suitability Review 2’) was paused to allow resources to be concentrated on the FCA’s response to the COVID-19 pandemic. This new thematic review … Continue Reading
On 12 January 2023, there was published in the Official Journal of the EU, a Corrigendum to Commission Delegated Regulation (EU) 2021/2268 of 6 September 2021 amending the regulatory technical standards laid down in Commission Delegated Regulation (EU) 2017/653 as regards the underpinning methodology and presentation of performance scenarios, the presentation of costs and the … Continue Reading
On 12 January 2023, the Financial Services Compensation Scheme (FSCS) published its budget update which outlines its proposed 2023/24 management expenses. This includes the FSCS’ day-to-day running costs, as well as costs associated with processing claims. To ensure its services are fully funded, and it can compensate customers as quickly and efficiently as possible, the … Continue Reading
On 12 January 2023, the FCA and the PRA jointly published a Consultation Paper concerning the 2023/24 Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS). Introduction Under section 233 (1) of the Financial Services and Markets Act 2000 (FSMA), a limit must be set for the total management expenses that the … Continue Reading
On 5 January 2023, the FCA published a portfolio letter addressed to claims management companies (CMCs). The portfolio letter follows a previous portfolio letter issued in October 2020 and provides an update on the FCA’s view of the drivers of harm and risks that CMCs pose to their consumers or the markets in which they … Continue Reading
On 3 January 2023, the Financial Services Compensation Scheme (FSCS) published an article about the work it does to recover compensation costs and tackle the root causes of consumer harm. The article addresses the following: FSCS levy and the year ahead Pursuing recoveries to reduce the levy Looking to the future… Continue Reading
On 21 December 2022, the European Banking Authority (EBA) published Questions and Answers (Q&As) on the Package Retail Insurance-based Investment Products (PRIIPs) Key Information Document (KID). The Q&As concern Regulation (EU) No 1286/2014 (the PRIIPs Regulation) and its Delegated Acts. The original delegated rules are found in Commission Delegated Regulation (EU) 2017/653. However, this has … Continue Reading
In this episode of Regulation Tomorrow Plus, Matthew Gregory and Simon Lovegrove cover some of the key points in the FCA’s recent consultation for a new core investment advice regime. The podcast is available on Spotify/ Apple podcasts.… Continue Reading
On 16 December 2022, the Financial Ombudsman Service (FOS) published a consultation on strategic plans and budget for 2023/24. The document includes the volumes of complaints the FOS expects to receive and resolve, and the amounts it plans to raise through its levy and its case fees. The consultation is open until 31 January 2023.… Continue Reading
On 15 December 2022, HM Treasury published its response to its earlier consultation seeking views on the implementation of a Statutory Debt Repayment Plan (SDRP). On 13 May 2022, the government published a consultation seeking views on the implementation of a SDRP. The SDRP would be a new statutory debt solution. Debt advisers would devise … Continue Reading
On 14 December 2022, the FCA published Feedback Statement 22/5: Compensation framework review: response to feedback and next steps (FS22/5). FS22/5 follows FCA Discussion Paper 21/5 which was published last December seeking views from stakeholders as part of a review of the compensation framework within which the Financial Services Compensation Scheme (FSCS) operates. The compensation … Continue Reading
