Tag: Retail

New podcast – Regulation Tomorrow Plus: FCA CP23/24 on capital deduction for redress for personal investment firms

In our latest podcast, Partner Matthew Gregory is joined by Senior Associate Joe Bamford, both of whom specialise in retail conduct, to discuss the FCA’s consultation (CP23/24) on changes to the capital requirements for personal investment firms, with particular focus on how firms must calculate their potential redress liabilities for these purposes. The podcast also … Continue Reading

FCA publishes finalised guidance for firms supporting existing mortgage borrowers impacted by rising costs of living

On 10 April 2024, the Financial Conduct Authority (FCA) published finalised guidance (FG24/2) for firms supporting existing mortgage borrowers impacted by the rising cost of living. Background The FCA published finalised guidance in March 2023 explaining how firms can support their customers, including through automated processes and digital channels.  The guidance set out the flexibility … Continue Reading

FCA publishes Policy Statement on consumer credit and mortgages

On 10 April 2024, the Financial Conduct Authority (FCA) published Policy Statement PS24/2, which confirms its final rules to strengthen protections for borrowers in financial difficulty, as well as summarising and responding to feedback received on CP23/13. The FCA notes that PS24/2 will primarily affect consumer credit lenders; premium finance firms; mortgage lenders and administrators; … Continue Reading

New briefing note – Retail Investment Strategy: Restoring Consumer Trust by Shrinking the Investment Universe? 

On 24 May 2023, the European Commission published its Retail Investment Strategy (RIS), a legislative package intended to empower retail investors to take more informed investment decisions that would better correspond to their investment needs and objectives. The RIS comprises of a Directive as regards the EU retail investor protection rules. This Omnibus Directive amends … Continue Reading

ECON report on the proposed Regulation to modernise the PRIIPs KID

On 26 March 2024, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published a report on the proposed Regulation amending Regulation (EU) No 1286/2014 as regards the modernisation of the key information document. The report sets out a draft European Parliament legislative resolution which makes amendments to the proposed Regulation.… Continue Reading

FCA Dear CEO letter on its strategy for consumer lending

On 20 March 2024, the Financial Conduct Authority (FCA) published a letter to CEOs of firms in its consumer lending portfolios, setting out its updated view on the key risks of harm those firms pose to their consumers and the markets in which they operate. This view will shape the FCA’s focus and engagement with … Continue Reading

Consultation on competition and consumer protection related information sharing

On 18 March 2024, the Department for Business and Trade announced that it is consulting on competition and consumer protection related information sharing between relevant UK public authorities. The consultation paper highlights that the sharing of information among regulators and public bodies plays an important role in effective enforcement and regulation, and that there can … Continue Reading

FCA, Ofgem, Ofwat and Ofcom set out consumer outcomes firms should be delivering

On 18 March 2024, the Financial Conduct Authority (FCA) published a joint letter with Ofgem, Ofwat and Ofcom via the UK Regulators’ Network, outlining their shared expectations of the consumer outcomes firms should be delivering in response to identified consumer harms across their sectors, particularly in relation to debt collection practices. Accordingly, together with Ofgem, … Continue Reading

ESMA updates consolidated Q&As on the PRIIPS KID

On 15 March 2024, the European Supervisory Authorities (ESAs) published an updated version of their consolidated Q&As on the Packaged Retail and Insurance-based Investment Products (PRIIPs) Key Information Document. The document combines responses given by the European Commission to questions regarding interpretation of EU law according to Article 16(5) of the ESA Regulations, which are … Continue Reading

APPG publishes report on de-banking

On 21 February 2024, the All-Party Parliamentary Group (APPG) on Fair Business Banking published a report on de-banking. The report was commissioned to explore the extent of the problem of de-banking and then, if problems were identified, to suggest remedies. The work was prompted by a growing number of individuals, companies and trade organisations approaching … Continue Reading

FCA publishes speech by Sheldon Mills on the Consumer Duty – “the art of the possible in a year”

On 20 February 2024, Sheldon Mills, FCA Executive Director of Consumers and Competition delivered a speech on the progress of the Consumer Duty since it came into force just over half a year ago. The speech identified the progress firms have made in these six months, whilst also identifying some challenges and looking ahead to … Continue Reading

FCA publishes guidance on good practice and areas for improvement in Consumer Duty implementation

On 20 February 2024, the Financial Conduct Authority (FCA) published guidance on what firms are doing well, and what could be improved, in relation to their implementation of the Consumer Duty. The Consumer Duty came into force for open products and services on 31 July 2023 and while the FCA welcomes the improvements made by … Continue Reading

FCA publishes key findings of multi-firm work on CMCs carrying out unregulated claims

On 15 February 2024, the FCA published the key findings of its multi-firm review of Claims Management Companies (CMCs) carrying out unregulated claims, to assess whether firms were using their FCA authorisation to legitimise services that are not regulated. This stemmed from the FCA’s concerns that consumers may mistakenly assume that all the services CMCs … Continue Reading

FCA publishes information for firms on motor finance complaints

On 25 January 2024, the FCA published information for firms affected by its review into the historical use of discretionary commission arrangements (DCAs) in the motor finance industry. The FCA announced earlier this month that it is using its powers under s166 of the Financial Services and Markets Act 2000 to review sales of historical … Continue Reading

FCA publishes speech on making consumer tech a force for good

On 23 January 2024, the FCA published a speech delivered by its Chief Executive, Nikhil Rathi, on ‘Leaning in on making consumer tech a force for good’. In the speech, delivered at the Imperial College London Business School, Mr Rathi addressed the question of how consumer-facing technology can help keep consumer markets honest. Key points … Continue Reading

Commission Delegated Regulation supplementing EU Crowdfunding Regulation

On 22 January 2024, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2024/358 of 29 September 2023 supplementing the EU Crowdfunding Regulation with regard to regulatory technical standards (RTS) specifying requirements on credit scoring of crowdfunding projects, pricing of crowdfunding offers, and risk management policies and procedures. The RTS: … Continue Reading

FCA portfolio letter sets out expectations for Investment Based Crowdfunding Platforms

On 15 January 2024, the FCA published a portfolio letter addressed to investment based crowdfunding (IBCF) platforms. The letter outlines the harms to consumers and markets most likely to arise from crowdfunding business models and the FCA’s strategy to address those harms. Boards should consider whether the risks of harm below are present in their … Continue Reading

FCA portfolio letter sets out expectations for loan-based peer-to-peer lending platforms

On 15 January 2024, the FCA published a portfolio letter setting out its expectations for Loan-Based Peer-to-Peer Lending (P2P) platforms. The letter outlines the harms to consumers and markets most likely to arise from P2P business models and the FCA’s strategy to address those harms. It encourages firms to consider whether the risks of harm … Continue Reading

FCA introduces temporary complaint-handling rules for motor finance

On 11 January 2024, the FCA published Policy Statement PS24/1 setting out temporary changes to the handling rules for motor finance complaints. The new rules have been introduced in response to a high number of complaints from customers to motor finance firms claiming compensation due to historical, potentially unfair, commission arrangements. By introducing these changes, … Continue Reading

PRA consults on FSCS Management Expenses Levy Limit 2024/25

On 11 January 2024, the Prudential Regulation Authority (PRA) published Consultation Paper CP1/24 on the Financial Services Compensation Scheme (FSCS) Management Expenses Levy Limit (MELL) for 2024/25. In CP1/24, the PRA and the FCA set out the proposals for the FSCS MELL, which covers the FSCS’s costs of operating the UK’s statutory compensation scheme, for … Continue Reading

ESMA Discussion Paper on MiFID II investor protection topics linked to digitalisation

On 14 December 2023, the European Securities and Markets Authority (ESMA) issued a Discussion Paper on MiFID II investor protection topics linked to digitalisation. The Discussion Paper discusses the main trends in digitalisation that are linked to the MiFID II investor protection topics. MiFID II aims at being technology neutral. This means that market participants … Continue Reading

FCA publishes findings from retail banking Consumer Duty multi-firm work

On 14 December 2023, the FCA published a summary of the findings from its review of retail banking firms’ implementation of the Consumer Duty, which came into force for current (on sale) products on 31 July 2023. The multi-firm review looked at actions firms had taken for customers in financial difficulty, dealing with bank accounts … Continue Reading
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