Tag: Retail

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

FCA publishes financial promotions intervention data for Q2 2022

On 22 July 2022, the FCA published its financial promotions quarterly data for Q2 2022. Between April and June 2022, 374 promotions were amended or withdrawn following FCA intervention. Retail investments and retail lending were the sectors with the highest amend/ withdraw outcomes and in 58% of cases website or social media promotions were involved. … Continue Reading

Financial Ombudsman Service publishes new guidance for consumers and businesses regarding complaints that involve gambling-related harm

On 27 July 2022, the Financial Ombudsman service (FOS) announced that it has published two new webpages on the subject of complaints that involve gambling-related harm. One page is directed at consumers and the other is directed at businesses.  Key points on the page directed at businesses include that: The FOS has been contacted by … Continue Reading

Commission adopts Delegated Regulations under the Crowdfunding Regulation

On 13 July 2022, the European Commission published: Delegated Regulation supplementing the Crowdfunding Regulation with regard to regulatory technical standards (RTS) on individual portfolio management of loans by crowdfunding service providers, specifying the elements of the method to assess credit risk, the information on each individual portfolio to be disclosed to investors, and the policies … Continue Reading

Commission publishes crowdfunding Delegated Regulation

On 12 July 2022, the European Commission published the following Delegated and Implementing Regulations supplementing the EU Crowdfunding Regulation: Delegated Regulation extending the transitional period for continuing to provide crowdfunding services in accordance with national law as referred to in Article 48 of the EU Crowdfunding Regulation. Delegated Regulation supplementing the EU Crowdfunding Regulation with … Continue Reading

Pre-paid funeral plan providers – an introduction to the FOS

On 28 June 2022, the Financial Ombudsman Service (FOS) published a new webpage, ‘Pre-paid funeral plan providers – an introduction to the Financial Ombudsman Service’. Pre-paid funeral plans will become regulated by the FCA from 29 July 2022. In this webpage the FOS outlines the support it offers to financial businesses to help plan providers … Continue Reading

FOS publishes annual complaints data 2021/22

On 28 June 2022, the Financial Ombudsman Service (FOS) published its annual complaints data 2021/22. The complaints data shows that complaints about ‘authorised’ scams increased by around a fifth in the last financial year, with nearly 9,370 complaints being received compared to 7,770 in 2020/21. Furthermore, administration and customer service problems topped the list of … Continue Reading

EBA replies to European Commission’s call for advice on the Mortgage Credit Directive review

On 23 June 2022, the European Banking Authority (EBA) published an Opinion and Report in response to the European Commission’s call for advice (CFA) on the review of the Mortgage Credit Directive (MCD). The CFA covered 17 questions across 7 topical areas, which were the evaluation of the MCD, digitalisation, ways to facilitate the cross-border … Continue Reading

Published in OJ – Commission Delegated Regulation amending PRIIPs KID Delegated Regulation and related Delegated Regulation concerning extension of transitional arrangements

On 24 June 2022, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2022/975 of 17 March 2022 which amends Article 18 of Delegated Regulation (EU) 2017/653 (otherwise known as the PRIIPs KID Delegated Regulation) so that Article 14(2) applies until 31 December 2022 (instead of 1 July 2022). … Continue Reading

FCA Dear CEO Letter ‘The rising cost of living – acting now to support consumers’

On 16 June 2022, the FCA published a new webpage, Ensuring the fair treatment of customers in vulnerable circumstances. In the webpage the FCA states that, since the publication of Finalised Guidance 21/1 ‘Guidance for firms on the fair treatment of vulnerable customers’ (FG21/1) it has seen good examples of firms taking positive action to … Continue Reading

FOS publishes discussion paper on its future funding model

On 14 June 2022, the Financial Ombudsman Service (FOS) published a discussion paper on possible changes to its future funding model. Following the Action Plan published last year and recommendations from an independent periodic review, the FOS is committed to consider revisions to its funding model, including those that might incentivise constructive behaviour by the … Continue Reading

FSCS May 2022 outlook

On 26 May 2022, the Financial Services Compensation Scheme (FSCS) published its May 2022 Outlook, focusing on the 2022/23 levy forecast. The FSCS reports that whilst the headline levy number has decreased since its first forecast in November (now forecast at £625m), the amount of compensation it expects to pay customers during 2022/23 is still … Continue Reading
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