Tag: Retail

FCA consults on broadening access to financial advice for mainstream investments

On 30 November 2022, the FCA published Consultation Paper 22/24: Broadening access to financial advice for mainstream investments (CP22/24). Proposals In CP22/24 the FCA sets out proposals for a new core investment advice regime. The aim is to allow firms to provide mass-market consumers with straightforward financial needs, greater access to simplified advice on investing … Continue Reading

FOS publishes the Independent Assessor’s Annual Report 2021 – 2022

On 22 November 2022, the Financial Ombudsman Service (FOS) published the Independent Assessor’s Annual Report 2021-2022. During the financial year, the assessor investigated 568 services complaints out of 4131, received by the FOS. This shows that for the most part, customers that raised complaints were either satisfied with the response they received from the FOS … Continue Reading

EBA updates Q&As on the PRIIPs KID

On 14 November 2022, the European Banking Authority (EBA) published an updated version of its Questions and Answers (Q&As) on the PRIIPs key information document. The Q&As have been updated in respect of: General topics. ‘What is this product’? Product categories. Past performance. Derivatives. Multi-option products. Investment funds. Autocallable products. Calculation of the summary cost … Continue Reading

Published in the OJ – RTS and ITS supplementing the EU Crowdfunding Regulation

On 8 November 2022, there was published in the Official Journal of EU the following regulatory technical standards (RTS) and implementing technical standards (ITS) supplementing the EU Crowdfunding Regulation: Commission Delegated Regulation (EU) 2022/2111 of 13 July 2022 supplementing the EU Crowdfunding Regulation with regard to RTS specifying conflicts of interest requirements for crowdfunding service … Continue Reading

FCA’s key priorities for the financial advice industry

On 2 November 2022, the FCA published a speech by Therese Chambers (Director of Consumer Investments, FCA) entitled ‘FCA’s key priorities for the financial advice industry’. In her speech Therese Chambers discusses the Consumer Duty and its application to the consumer investments sector focussing on the four Consumer Duty outcomes: Consumer communications. Poor disclosure has … Continue Reading

FCA publishes new guidance on mobile phone and gadget insurance

On 2 November 2022, the Financial Ombudsman Service (FOS) published online guidance, providing information on the types of complaints the FOS sees and resolves about mobile phone and gadget insurance. The FOS also shares case studies that illustrate their approach. The FOS has provided information for customers and businesses: Consumers The guidance for customers sets … Continue Reading

FOS latest quarterly complaints data

On 2 November 2022, the Financial Ombudsman Service (FOS) published its latest quarterly complaints data. In Q2, the FOS received 38,470 new complaints, up from 35,029 new complaints in April- June 2022. The following are the top five most complained about products. 5,945 complaints about current accounts, compared to 5,460 complaints in Q1. 3,386 complaints … Continue Reading

FCA Policy Statement on pension’s dashboards rules for pension providers – feedback on CP33/2 and final rules and guidance

On 1 November 2022, the FCA published Policy Statement 22/12 ‘Pensions Dashboards rules for pension providers – feedback on CP22/3 and our final rules and guidance’ (PS22/12). Pensions dashboards have the potential to benefit consumers in several ways. By equipping people with basic information about the pensions they have, consumers may find it easier to … Continue Reading

FCA publishes Discussion Paper on the potential competition impacts of Big Tech entry and expansion in the retail financial services industry

On 25 October 2022, the FCA published Discussion paper DP22/5 on the potential competition impacts of Big Tech entry and expansion in retail financial services. The Discussion Paper notes that Big Tech firms’ presence internationally and in UK financial services markets has been increasing, with the potential to grow and change market outcomes quickly. Big … Continue Reading

Commission Delegated Regulation (EU) 2022/1988 extending the transitional period for continuing to provide crowdfunding services in accordance with national laws as referred to in Article 48(1) of EU Crowdfunding Regulation

On 21 October 2022, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2022/1988 of 12 July 2022 extending the transitional period for continuing to provide crowdfunding services in accordance with national law as referred to in Article 48(1) of Regulation (EU) 2020/1503 of the European Parliament and … Continue Reading

Buy Now, Pay Later (but take note of the immediate application of the FTC Act)

We recently reported on recent steps taken by the Consumer Financial Protection Bureau (CFPB), which suggest increased US regulation of the Buy Now, Pay Later (BNPL) sector in the coming weeks and months. Shortly after the CFPB published its report on the industry, the Federal Trade Commission (FTC) issued a blog post that lists three … Continue Reading

IOSCO final report on retail distribution and digitalisation

On 12 October 2022, the International Organization of Securities Commissions (IOSCO) published a final report on retail distribution and digitalisation. IOSCO sees retail distribution and digitalisation as a priority given the recent and rapid developments in online marketing and distribution which are changing the way in which financial firms interact with prospective clients and financial … Continue Reading

Futures: German regulator prohibits marketing to retail clients

The German Federal Financial Supervisory Authority (Bundes­anstalt für Finanz­dienst­leistungs­aufsicht – BaFin) makes use of its product intervention powers under the European Markets in Financial Instruments Regulation (MiFIR): Under a general administrative act (All­ge­mein­ver­fügung) dated 30 September 2022 (link to English convenience translation), BaFin prohibited the marketing, distribution and sale of futures to retail clients domiciled in … Continue Reading

All signs point to increased US regulation of Buy Now, Pay Later

Driven by an increase in online and mobile app shopping during the COVID-19 pandemic, the Buy Now, Pay Later (BNPL) market has experienced exponential growth as an innovative consumer offering, particularly for the unsecured credit market. The explosion of the BNPL market, however, is attracting scrutiny from financial services regulators concerned about the lack of … Continue Reading

European Commission launches consultation on consumer rights – adapting out-of-court dispute resolution to digital markets

On 28 September 2022, the European Commission launched a consultation on consumer rights – adapting out-of-court dispute resolution to digital markets. The consultation aims to collect views of various interested organisations and businesses on how to increase the efficiency of retail markets in the EU, how to ensure a level playing field among traders operating … Continue Reading

European Commission launches consultation on consumer protection – strengthened enforcement cooperation

On 28 September 2022, the European Commission launched a consultation on consumer protection-strengthened enforcement cooperation. The consultation aims to collect the views of various interested organisations and businesses on how to increase the efficiency of retail markets in the EU, how to ensure a level playing field among all traders operating in this market, from … Continue Reading

FOS quarterly complaints data: Q1 2022/23

On 7 September 2022, the Financial Ombudsman Service (FOS) published their quarterly complaints data for Q1 2022/23. Between April and June 2022, the FOS received 65,740 new enquiries and 35,029 new complaints about financial products. On average the FOS upheld 34% of these complaints. The most complained about account was current accounts, followed by credit … Continue Reading

FCA warns Buy Now Pay Later firms about misleading adverts

On 19 August 2022, the Financial Conduct Authority (FCA) published a press release warning Buy Now Pay Later firms about misleading adverts. The FCA has warned firms that offer Buy Now Pay Later (BNPL) products that although some agreements are unregulated, the financial promotions of all BNPL products must comply with the financial promotion rules. … Continue Reading

European Commission publishes final report on disclosure, inducements and suitability rules for retail investors study

Introduction  On 2 August 2022, the European Commission published a final report which it produced in May concerning the findings from a study that examined disclosure, inducements and suitability rules for EU retail investors. The study feeds into the development of the Retail Investment Strategy announced earlier this year, being one of the actions planned … Continue Reading

FCA regulation boosts consumer protection in the funeral plans market

On 29 July 2022, The FCA announced that it will regulate pre-paid funeral plans, following legislation passed by parliament. The FCA is authorising 26 providers. Together, these firms hold approximately 1.6 million plans, which make up 87% of the market. Regulation of the sector will bring higher standards and boost consumer protection. New rules, which … Continue Reading
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