Emma RadmoreOn 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...
Category - Consumer Finance
Contactless limit increasing
UK Finance announced today that the card transactional contactless limit will be increasing from £30 to £45 with the roll out starting on 1 April. The changes may take a while for retailers to implement, especially...
Caroline Stevenson
Invalidly executed deeds of guarantee still enforceable
In Signature Living Hotel Ltd v Sulyok [2020] EWHC 257 (Ch), the High Court was asked to consider whether two deeds of guarantee were enforceable in circumstances where the signature of the director of the surety had...
Scott NodderBank of England slashes interest rate in response to Covid-19
The Bank of England (“BoE”) has reduced the Bank Rate by 50 basis points to 0.25%. The aim of the reduction is to help support business and consumer confidence amidst the Covid-19 outbreak, to bolster the...
Rachael PrestonFCA publishes mortgage switching research
FCA has released its latest report on mortgage switching, from which it concludes there is a case for intervening to help customers who do not switch. It has found that the reasons people have for not switching...
UK Finance shines a spotlight on resolving Section 75 claims
UK Finance has published a blog post on resolving Section 75 claims made in relation to failed home improvements. It explains that due to the significant number of contractors ceasing to trade each year (nearly 80,000)...
The Treasury Committees approves Bailey, but says it will keep an eye on the FCA
The Treasury Committee has today published its report on the appointment of Andrew Bailey as Governor of the Bank of England. Whilst it is satisfied that Mr Bailey has the professional competence and personal...
Up next from FCA
FCA plans the following publications: consultation on exit fees in investment platforms and comparable firms (March); consultation on listing of OEICs (Q1); consultation on changes to DEPP, EG and the financial crime...
ECB Speech: Climate Change in FS
Christine Lagarde made a speech on climate change and the financial sector on 27 February 2020. Christine identified both the threat and significant opportunity caused by climate change. She urged central banks to...
Mental Health: Practical Guide
The Money and Mental Health Policy Institute and the Money Advice Trust have jointly created a practical guide to understanding and evidencing customers’ mental health problems. The guide is aimed primarily at...
Barnier to be EU negotiator on post-Brexit issues
The Council of the EU has adopted a decision authorising negotiations between the EU and UK towards a new partnership and authorising the European Commission, in the person of Michel Barnier, as the EU negotiator. The...
FSB priorities published
The FSB published a letter addressed to all G20 Finance Ministers and Central Bank Governors on 18 February 2020. The letter sets out the areas that the FSB are focusing their efforts on. All of the measures are to...
MPs debate Consumer Rights Act 2015 and Consumer Ombudsman Scheme
Last week, MPs debated the Consumer Rights Act 2015 and the Consumer Ombudsman Scheme (COS) in the House of Commons. Sir Roger Gale chaired the 30 minute debate brought by Martyn Day (SNP) who previously raised the Act...
Lucy HadrillFCA publishes annual sector views
The FCA has just published its annual sector views report which comprises a state of the nation in terms of the financial services industry. The report sets out the drivers for change in each financial services sector...
FCA bans motor finance ads
FCA has banned a range of adverts for motor finance issued by Rix Motor Company Limited. The ads, variously: did not include representative examples of the costs of credit, or included them in a way that made them...
Unfair Treatment lands Moneybarn big fine
The FCA announced today that it was imposing a £2.77 million fine on Moneybarn Limited for not treating customers fairly between 1 April 2014 and 4 October 2017. The car finance provider had failed to provide adequate...
FCA speech on penalties, remediation and General Principles
On 12 February, Mark Steward, Executive Director of Enforcement and Market Oversight made a speech at an event on Investigations and Enforcement: A Guide to Managing Regulatory Action. Key takeaways from the speech...
Natasha BrownleeRegulators warn firms on selling personal data
The FCA, ICO and FSCS have warned regulated firms and insolvency practitioners of the need to be responsible when dealing with personal data. The regulators have become aware of sales of client data to CMCs either...
Goods Mortgages Bill: First Reading
The Goods Mortgages Bill which we talked about in a previous post, has now had its first reading in the House of Lords. If it becomes law it will: create a new form of non-possessory security that can be created over...
Breathing space to help millions in debt crisis
The government has today, 6 February, Time to Talk Day, published its impact assessment for “breathing space”, a scheme designed to help millions of people in debt crisis, including those suffering with...
FCA writes Dear CEO letter on persistent debt customers
The FCA has written to credit card firms telling them to review their approach to borrowers who have been stuck in a persistent debt cycle for three years. The regulator requires firms to propose and agree plans with...
FCA writes strategy letter to platforms
FCA’s latest portfolio strategy letter to CEOs has been sent to platforms. It starts by making the point that it expects firms will have used the SMCR to ensure clear accountability within senior management and...
Government writes to UK Finance on mortgage prisoners
John Glen has written to UK Finance setting out the possibilities for mortgage prisoners to switch deals. FCA data shows that 170,000 borrowers whose mortgages are in closed books or owned by unregulated firms are...
Jonny WilliamsDExEU updates on FS equivalence post-Brexit
The Department for Exiting the EU has published an updated communication from the European Commission on equivalence in the area of financial services. The documentation notes that temporary equivalence decisions are...
Progress update on PSR’s work
Chris Hemsley, Managing Director of the Payment Systems Regulator (PSR) delivered a speech at last week’s Westminster Business Forum: Payments, policy and regulation – infrastructure, innovation and end-user...
EU to prioritise green deal and MLD5 implementation
In his opening remarks to the ECOFIN conference, Valdis Dombrovskis, handing over to the new Croatian Presidency, singled out as key developments: the Green Deal or Sustainable Europe Investment Plan, the success of...
CMA publishes update on loyalty penalty progress
Following the Citizens Advice super-complaint to the CMA about the loyalty penalty (when companies charge longstanding customers more than new customers or those who renegotiate their deal), the CMA identified a...
Financial institutions raise concerns about PRIIPs RTS review
Insurance Europe, AMICE, the EBF and EFAMA (the Group) have raised concerns about The Joint Committee of the European Supervisory Authorities (the ESA’s) consultation on potential changes to the regulatory technical...
FSCS announces Plan and Budget
FSCS has published its full Plan and Budget for 2020/2021. As well as the indicative levy of £635m (£87m more than the current year, mainly because of a rise in SIPP operator claims) and management expenses budget of...
Up next from FCA
FCA plans a number of important publications during Q1 2020 including: consultation on exit fees in investment platforms and comparable firms potential policy statement on general insurance value reporting measures and...
Consumer Credit Directive: Still Fit for Purpose?
We’ve written an article on the EBF conclusions on whether the Consumer Credit Directive is providing the protections it was intended to.
Queen’s Speech highlights Brexit free trade hopes
The Queen’s Speech, as expected, highlighted Brexit, noting the priority to deliver it on 31 January, and thereafter to seek a free trade agreement with the EU and other leading global economies. The accompanying...
EU reaches political agreement on crowdfunding measures
The EU Council and Parliament have reached a provisional political agreements on the Commission’s proposal for legislation to boost crowdfunding in the EU. The framework is the 12th of the 13 pieces of the CMU...
Regulators update on climate change action
UK and EU regulators have published papers on the regulatory response to the risks of climate change. the BoE has published a discussion paper on how it proposes to carry out its “biennial exploratory...
EVENT: Retail Banking Mixer
Bringing together professionals in the insurance, banking and other financial services sectors, we will be hosting the first of our quarterly RETAIL BANKING MIXERS at our Edinburgh office on 9th January from 4pm –...
FPC publishes latest Financial Stability Report
In its latest Financial Stability Report, the FPC has published its latest stress testing results and current view on the stability and state of the UK financial system. In addition to its comments on open-ended funds...
FCA calls for input on open finance
FCA has launched a Call for Input on Open Finance. The concept builds on the principles of open banking and extends it to a wider range of products. FCA has a vision that open finance will allow consumers and...
FOS consults on plans and budget
FOS has published its consultation on its strategic plans and budget for 2020/2021. Next year, it expects to receive 245,000 complaints and resolve 290,000 (just under half in each case relating to PPI). It expects to...
Up next from FCA
FCA’s latest Policy Development Update indicates several key publications scheduled for Q1 2020, including: potential policy statement on general insurance value measures reporting; consultation or discussion...
Regulators develop work on Operational Resilience
The BoE, the PRA and the FCA have developed a joint policy summary setting out new requirements for operational resilience for regulated firms and financial market infrastructures (FMI). The work is spearheaded by...
Roseyna JahangirComplaints Commissioner publishes responses
The Complaints Commissioner has: ordered FCA to pay compensation (but of a very small amount – adding £250 to the £50 already offered by FCA) to a complainant whose application for authorisation ran out of time...
Banks told to refund customers after CMA action
The CMA has taken action against HSBC and Santander after they broke an Order requiring them to send customers text alerts before banks charge them for going into an unarranged overdraft, giving them time to take action...
FCA publishes ‘approving financial promotions’ webpage
In the light of its new temporary restrictions on the financial promotion of ‘mini-bonds’, the FCA has provided guidance for firms approving the financial promotions of unauthorised persons. The new page on...
Responsible Lending Changes Implementation Group meeting
Further to their last meeting, the FCA reported today that the responsible lending changes implementation group had met again on 25 October. This meeting which was held in advance of publication of the policy statement ...
Financial Inclusion
On Tuesday night, we hosted our first ever Talking Money event in partnership with the Scotsman newspaper in our Edinburgh office. The event focused on the topic of tackling financial exclusion in Scotland. The...
Reserve your place: Tackling Financial Exclusion
Join our expert industry panel for an evening of networking and discussion focused on delivering an inclusive financial sector for Scotland. Help shape the conversation as we discuss: Are we too obsessed with a cashless...
FCA makes new rules
FCA’s latest Handbook Notice summarises various instruments made at the end of September and October: the Overdrafts (Information and Tools) Instrument 2019 takes effect on various dates to 6 April 2020, and...
CCA Unfair Relationships Ruling
In the case of Promontoria (Henrico) Ltd v Jeavons and another [2019], the defendants ran a holiday let business in Cornwall. Clydesdale Bank issued them with a tailored business loan, which they then assigned to the...
FCA warning to CMCs – ‘play fair with PPI claims’
The FCA has issued its latest ‘Dear CEO‘ letter, this time to CMCs in relation to PPI complaints. The FCA has recognised that lenders are facing very significant operational challenges in being able to deal...
UK Finance responds to IT failures in the financial services sector
UK Finance has responded to the Treasury Committee’s report into IT failures in the financial services sector. The Treasury Committee criticised the unacceptably high level of failures and called on regulators to...
FCA speaks on future of regulation
Nausicaa Delfas spoke on the future of UK financial regulation post-Brexit. She said FCA continued to prepare for Brexit, whatever form it takes and whenever it happens, and referenced its preparations for a no-deal...
Mortgages (Responsible Lending) Instrument 2019
Following consultation CP19/14, the FCA published the Mortgages (Responsible Lending) Instrument (together with feedback to the consultation) 28 October 2019. The final rules (which come into force immediately) set out...
EBA recommends enhanced online disclosure requirements
The EBA has issued an Opinion directed to the EC, setting out recommendations to revise the scope and consistency of disclosure requirements in EU law to take account of the increasing use of digital marketing channels...
FCA outlines five steps to drive the future of regulation
Christopher Woolard, Executive Director of Strategy and Competition at the FCA, recently spoke about the FCA’s thoughts on how it approaches the future of regulation. He commented that the FCA will be issuing an...
ESMA to examine reporting issues in annual financial reports
ESMA has set out the matters it will prioritise when looking at the 2019 annual financial reports of listed companies. Among the specific areas of focus, ESMA has underlined the importance of the inclusion of...
Goods Mortgages Bill starts passage through Parliament
The long awaited Goods Mortgages Bill has completed its first reading in the House of Lords. In its consultation on the draft bill, HM Treasury described it as: providing increased protection for consumers who use goods...
FCA Guidance on new credit broking exemption for registered social landlords
The FCA has updated FG18/6, which provides specific guidance for registered social landlords on when they may be carrying on regulated activities, to reflect the amendment introduced earlier this year to the Financial...
FCA publishes feedback statement on climate change disclosures
The FCA has published its proposals for its future work on climate change and green finance, following responses to its Discussion Paper in 2018 . In its work, the FCA will be focusing on three outcomes: Issuers provide...
FCA updates change in control pages
FCA has updated its guidance on how to submit an application for change in control. The page now includes useful tips on what FCA needs to know to deal with the application quickly, and links to all the required forms.
FCA provides Brexit preparations update for firms
The FCA has published an update on the steps firms will be expected to take in the event that there is a hard Brexit. In particular, the FCA reminds EEA passporting firms of the need to notify the FCA by 30 October if...
Queen’s Speech suggests post-Brexit FS Bill
Among the list of legislative proposals referred to in the Queen’s Speech is laws that will provide “certainty, stability and new opportunities” for the financial services sector through a Financial...
Government responds on regulatory perimeter
The Government has published its response to the Treasury Committee’s report on the regulatory perimeter and how it could be refined and should be policed. The report had criticised the lack of a formal system for...
European Banking Authority publishes Communication on preparation for Brexit
The European Banking Authority (EBA) has published a Communication on the remaining issues for financial institutions ahead of the UK’s departure from the EU. In its Communication the EBA urges continued progress...
Government publishes No-Deal Readiness Report
The Government has published its “No-Deal Readiness Report” detailing the UK’s preparedness ahead of Brexit on 31 October. The Report contains a section on financial services which, amongst other...
Up next from FCA
FCA’s latest Policy Development Update heralds the following publications before the end of the year: consultation on investment platforms market study remedies; policy statement on OPBAS fees; consultation on...
Changes to Mortgage Reporting Requirements
The FCA published policy statement PS19/23 (PRA – PS22/19) on 30 September 2019. The rules set out the new reporting requirements for regulated mortgage lenders and home finance administrators. The rule changes...
Guidance on unfair consumer terms Directive
The European Commission (the “Commission”) has issued guidance on the interpretation and application of Council Directive 93/13/EEC on unfair terms in consumer contracts (“UCTD”) The Commission...
Estimated £3.4m redress due to unclear interest term in mortgage agreement
The FCA has published an undertaking from the Co-operative Bank (t/a Platform), relating to a term in its mortgage agreement, and agreeing to amend the term on the grounds that it contravened the transparency...
Responsible Lending Changes Implementation Group
The latest meeting of the responsible lending changes implementation group was held on 29 August 2019. This group discussed the feedback they had received to the consultation launched in March (on facilitating...
No more ink? Law Commission confirms validity of electronic signatures
A Law Commission report confirms that electronic signatures can be used to execute documents as an alternative to wet ink signatures in most circumstances. There are some important exceptions and the report only relates...
Suzanne GadoFCA updates on consultations and feedback
The latest Policy Development Update highlights a number of papers due before the end of 2019: feedback on the investment platforms market study remedies; policy proposals on regulatory fees and levies; permitted links...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation covers a number of minor changes to the rules that will be made only if there is a no-deal Brexit on 31 October, and also other miscellaneous amendments including: minor...
EC calls for action with publication of no-deal Brexit checklist
The EC is urging EU businesses and citizens to consider whether they are prepared for the UK leaving the UK on ‘no-deal’ terms on 31 October, reminding them in this scenario there will be no transition...
FCA create implementation group for mortgage changes
Following publication of CP19/14 (the consultation looking at proposed changes to responsible lending rules for mortgage customers), the FCA announced on 27th August 2019 that they have set up an Implementation Group in...
CMA takes action over PPI reminder failures
CMA has ordered RBS and Santander to take remedial action after they did not send, or sent inaccurate annual PPI reminders to customers. The banks must now appoint independent bodies to audit their PPI processes and put...
Consultation on restricting use of credit cards for gambling
The Gambling Commission is consulting on whether to prohibit or restrict the use of credit cards for online gambling. The basis for this proposal lies in evidence they have received suggesting there are risks of...
FCA updates skilled persons statistics
FCA has released the figures for skilled persons reports it commissioned in Q1 2019/20. It commissioned 9 reports in total – of which 3 related to each of retail lending and wholesale financial markets, 2 to...
Up next from FCA
The latest version of FCA’s Policy Development Update highlights: expected feedback on Investment Platforms Market Study Remedies by the end of the year; potential policy statement on general insurance value...
Treasury Committee calls for FCA powers on perimeter changes
The Treasury Committee has unanimously called for FCA to be given formal powers to recommend changes to the regulatory perimeter. It says the current informal system allows the grey area between regulated and non...
BoE publish the RTGS and CHAPS Annual Report
The Annual Report published on 1 August 2019 sets out the BoE’s strategy on the subjects of RTGS and CHAPS for the year 2019/20. The report notes that they have a target of 99.95% operational availability for RTGS...
FOS has updated its consumer credit resources
The updates published on 1st August 2019 relate to unaffordable lending and guarantor loans. The resources provide details of the types of complaints the FOS tend to deal with and include details about how they assess...
Publication of AG Opinion on consequence of removing unfair terms in consumer contracts
The European Court of Justice has published the AG’s Opinion in a case concerning the effect of a declaration of unfair terms for the purposes of the Unfair Contract Terms Directive (in UK law as the Consumer...
EC sets out position statement on equivalence decisions
The EC has published a communication about equivalence decisions (the timing of which is no doubt entirely unrelated to the ascension of pro-Brexit Boris Johnson to the Prime Ministership of the UK). The communication...
FCA publishes SMCR final rules
FCA has at last published its final rules on extending the SMCR to solo-regulated firms, including CMCs. It has, in the main, implemented the changes it consulted on in its consultation on “optimising” the...
Commission adopts unfair terms guidance
The European Commission has adopted a guidance note on the Unfair Contract Terms Directive. The note covers: the objectives and scope of the directive; key terminology such as “supplier” and...
FCA publishes feedback statement on fair pricing
In the context of ongoing work by both the FCA and CMA on fair pricing and loyalty penalties, the FCA has published a feedback statement setting out a framework for how it will evaluate the fairness of a given pricing...
FCA discusses AI in financial services
In a recent speech, Christopher Woolard of the FCA considered three lenses through which the FCA views the issues relating to AI: what are new, and what are existing issues; how to ensure that AI creates value for...
FCA invites feedback on Gabriel replacement
The FCA has announced that it is planning a replacement for Gabriel, its data collection system. It has therefore asked current Gabriel users to complete a feedback survey to provide views that can be considered in the...
The Government responds to the Treasury Committee Report on Consumers’ Access to Financial Services
The Government’s response to the Treasury Committee report was published on 11th July. The document sets out the Government’s response to each of the report’s conclusions and recommendations. The key...
ESA evaluates cross-border supervision of retail financial services
A report published by the Joint Committee of European Supervisory Authorities, ie the EBA, ESMA and EIOPA, has reviewed the current landscape of cross-border supervision, in particular in the light of the regulatory...
BEIS review of Consumer Contracts (Information, Cancellation and Additional Charges) Regulations
The Department of Business, Energy and Industrial Strategy has completed its 5 year review of the Consumer Contracts Regulations. While these regulations broadly exclude financial services, they may be engaged where...
CMA launches digital advertising market study
The CMA has launched a study into online platforms and digital advertising. The study will focus on harm caused by consumers in connection with three areas of digital advertising: the extent online platforms (such as...
Alex LouchTreasury creates RAO exemption for social landlords
A new exclusion from the regulated activity of credit broking will cover registered social landlords who introduce individuals to credit unions, community benefit societies, community interest companies limited by...
UK financial regulators publish climate change Joint Declaration
The FCA, PRA, TPR and FRC have jointly issued a declaration reiterating their commitment to work on the enhancement of climate-related disclosures. The Joint Declaration also welcomes the UK’s Green Finance...
FCA launch Credit Information Market Study
The FCA has published the Terms of Reference for its credit information market study. Whilst the FCA is not formally consulting on the Terms of Reference they are welcoming any comments by the end of July. The market...
FCA summarises new rules
FCA’s latest Handbook Notice confirms the following rule changes: the changes to, mainly MIPRU, MCOB and SUP that took effect on 4 June in relation to crowdfunding platforms that offer home finance products, where...
EU Council adopts crowdfunding position
The Council of the EU has adopted a position it hopes will make it easier for crowdfunding platforms to provide services across the EU, by setting minimum requirements that the platforms must meet and harmonising...
FCA launches credit information market study
FCA has announced a market study looking at how the credit information market operates and its impact on consumers, and has published terms of reference. Christopher Woolard said FCA is concerned abou the coverage and...
“Not all about Brexit” says Philip Hammond
Philip Hammond, speaking at the Mansion House dinner, highlighted the many ways in which a no-deal Brexit would be damaging for the financial services industry and the UK as a whole. He noted also the political...
Treasury announces ‘Breathing Space’ for problem debts
HM Treasury has announced a new scheme to support those in problem debt, including those with mental health issues. The new scheme will introduce a new 60 day ‘Breathing Space period’ during which interest...
CMA may be given enhanced powers to impose fines for consumer law breaches
The government has announced that it will consult on whether the CMA should be given the power to fine businesses directly if they have breached consumer law, for example through the ‘loyalty penalty’ and...
FCA publishes first perimeter report
FCA has published the first of what will be an annual report on its regulatory perimeter. Among other things, the report is designed to explain what challenges the perimeter is presenting and whether there might be a...
CMA updates on loyalty penalty work
CMA has updated on its work on the loyalty penalty. It says key decisions are due shortly and that two enforcement cases are underway. It says it expects regulators to take strong action where they find problems and...