Emma RadmoreToday, the FCA published its latest advice for firms in light of Covid-19.
Regulatory Change – activity which is not critical to protect consumers and market integrity in the short-term will be delayed so that firms can focus on supporting customers affected by Covid-19.
Flexible Actions – where firms have taken flexible measures to help customers, they urge the firm to make the FCA aware of these measures so that the FCA can monitor impacts and offer support.
Complaints – if firms are struggling to respond to complaints on time, they should engage with the FCA and should also be transparent with customers in terms of realistic timescales.
Mortgages – the FCA has acknowledged the flexibility of some firms in relation to their customers’ ability to repay their mortgages. The FCA plans to look at this further with industry to update approaches that firms can take in this regard.
Unsecured Debt Products – the FCA is urging firms to show greater flexibility to those customers in persistent credit card debt. This means that firms shouldn’t impose the regulations as written and should provide customers more time (until 1 October 2020) before suspending credit cards of non-responders. This applies to those who have currently had the 36 month notification (and those still to receive it).
Access to Cash – the increase in withdrawal limits from ATMs has been encouraging and firms should continue to be flexible. Firms are also encouraged to help vulnerable customers with their banking services and also remind consumers of the potential for fraud and data breaches.
Travel Insurance – firms websites should include clear, concise information on the scope of their cover and any exemptions. Consumers should also be able to access this information via call centres.
Health Insurance – time period restrictions should be clear where consumers are taking out new policies.
Operational Resilience – all firms should ensure their contingency plans are effective to ensure minimal disruption to service and market integrity.
Market Trading and Reporting – firms must continue to record calls, even where people are moving to alternative working sites (including homes). If this is not possible, firms should inform the FCA. If firms are struggling to submit their regulatory data, records should be kept and this uploaded at the earliest convenience without undue delay. Market abuse risks should still be prioritised through enhanced monitoring and retrospective reviews.
Delayed Consultation Papers and Calls for Input
The FCA has decided to extend the closure dates for the following published Consultation Papers and Calls for Input until 1st October 2020.
Delayed Consultation Papers:
- CP20/4: Quarterly Consultation No 27
- CP19/32: Building operational resilience: Impact tolerances for important business services
- CP20/1: Introducing a Single Easy Access Rate for cash savings
- CP20/3: Proposals to enhance climate-related disclosures by listed issuers and clarification of existing disclosure obligations
- CP20/5: Consultation paper on ETF Listing: Premium to Standard Listing
Delayed Calls for Input:
- Open Finance
- Accessing and using wholesale data
Delays to publications and other activity
The following further publications (due by end of June) will now be delayed:
- Joint PRA FCA work to develop industry led guidance on how to integrate climate related risks into business decision making across the FS sector.
- Motor Finance PS
- CP mortgage switching and info request for CBA
- Vulnerability Guidance
- Vulnerability Research
- New Consumer Principle
- Consumer Credit Act (CCA) review
- CP mortgage switching and info request for CBA
- Credit Information Market Study – Interim Report
- GI Pricing Final report and Consultation Paper on remedies