Since our last publication, the FCA has published feedback from roundtables on its review of high-cost credit, two mission documents for consultation on its approach to authorisation and competition and has updated its webpage on CP17/10 regarding persistent debt.
Feedback from FCA roundtables on high-cost credit review
The FCA has published a report setting out feedback received from roundtables on its review of high-cost credit. The report summarises the issues and ideas raised by participants to three FCA roundtables, hosted in September and October 2017. The roundtables covered two areas: a general discussion on alternatives to high-cost credit, and a focused discussion on the provision of essential goods. The key themes that emerged from the discussions include the following:
- Accessing capital is a major challenge for alternative lenders. Raising awareness of the social benefits could encourage investment from social investors.
- Alternative lending is most effective as part of a complete package of services. Exploring the scope for partnerships across public agencies and the financial services industry would increase the range of assistance available to consumers.
- Greater clarity about the regulatory boundaries and compliance with regulatory requirements could support more cross-referrals at a community-level to providers of alternatives to high-cost credit.
- There is scope for exploring measures by public bodies that could be taken to reduce the cost of accessing data, and to fill gaps in traditional data sources.
- There are opportunities for public bodies and others to take a greater advocacy role in raising awareness about alternative lending.
- Social housing providers' provision of essential goods to tenants can be encouraged through the delivery of clarity about funding sources, a clear pathway to delivery, and the social benefits.
The FCA is considering these views further, with a view to identifying opportunities for increasing access to alternatives, and making recommendations in its spring 2018 consultation paper.
FCA, 6 December 2017
FCA updates webpage on CP17/10 regarding persistent debt and earlier intervention remedies
The FCA has updated its webpage on its consultation paper CP17/10 published in April 2017, which proposed measures to tackle persistent credit card debt and encourage early intervention remedies. The FCA states now that the consultation is closed, it will consider the responses to CP17/10 and will publish a substantive update on its proposed credit card market study remedies before Christmas 2017, and it expects to make new rules available as early as possible in the new year.
FCA, 7 December 2017
BEIS issues guidance on new payment surcharge rules for consumer and business transactions
The BEIS has updated its guidance on the Consumer Rights (Payment Surcharges) Regulations 2012 to add commentary on the amendments introduced by the Payment Services Regulations 2017, which implement the provisions in the revised Payment Services Directive (PSD2), and introduce with effect from 13 January 2018:
- For most retail payments, a ban on merchants charging a fee in addition to the advertised price of a transaction on the basis of a consumer's choice of payment instrument.
- For other retail payments and most payment between businesses made with commercial payment instruments, a ban on merchants charging customers more than the direct cost borne by them for the use of the relevant means of payment.
BEIS Guidance, 1 December 2017
FCA consults on mission documents setting out its approach to authorisation and competition
The FCA has published two mission documents setting out its approach to authorisation and competition which follow the publication in April 2017 of the FCA's Mission, and the FCA's approach to consumers in November 2017.
- In the authorisation document, the FCA explains the purpose of, and its approach to authorisation, setting out the public value authorisation delivers and the changes the FCA is making to improve its approach.
- In the competition document, the FCA looks at how it delivers the competition objective, to promote competition in the interests of consumers and its focus in keeping markets open to entry and innovation.
Both approach documents set out questions for consultation, which is open until 12 March 2018.
FCA, 11 December 2017
FCA Data Bulletin: Trends in regulated mortgage lending
The FCA has published the 11th editions of its Data Bulletin which focuses on trends in regulated mortgage lending over the last 10 years. The bulletin looks at how mortgage activity reduced in the wake of the financial crisis and the extent to which it has changed since. The bulletin highlights some notable trends in lending characteristics highlighted over the period, and provides a focus on lending to home purchasers, in particular first time buyers, as well as a selected analysis of data by UK region.
FCA, 7 December 2017
FCA quarterly consultation 19
The FCA has published its 19th quarterly consultation paper (CP17/39). In the paper, the FCA seeks views on changes to its rules and guidance as outlined below:
- Changes to LR and DTR: the FCA sets out proposals for amendments to its Listing Rules (LR) and its Disclosure Guidance Transparency Rules (DTR) sourcebooks. Consultation ends: 1 February 2018.
- Changes to DISP: the FCA sets out proposals for amendments to the Dispute Resolution: Complaints sourcebook (DISP) relating to politically exposed persons (PEPs) and Referrals to the Pensions Ombudsman (TPO). Consultation ends: 1 February 2018.
- FOS levy for registered account information service providers (RAISPs): the FCA sets out proposals for amendments to the Fees manual (FEES) relating to registered account information service providers (RAIPs). Consultation ends: 1 February 2018.
- Financial Crime reporting: the FCA sets out proposals for amendments to SUP 16 Annex 42BG, which contains guidance notes for completing the Financial Crime Annual Return (REP-CRIM): Consultation ends: 1 January 2018.
- Changes to reporting requirements in the Supervision manual and ICOBS: Consultation ends: 1 February 2018.
FCA, 1 December 2017
FCA policy development update: December 2017
The FCA has updated its policy development update webpage. The update sets out information on recent and future FCA publications and summarises the FCA's proposed future publications and highlights the changes made to the webpage since it was last updated on 3 November 2017.
- PS which formalises the Money Advice Service (MAS) debt advice concession for smaller credit unions, due for publication this month
- PS on CP17/38 on regulatory fees and levies – proposals for 2018/19 – due for publication in March 2018
- PS to CP17/31 which relates to proposed fee rates for market infrastructure providers – due for publication this month
- PS to CP17/36 relating to reviewing the funding of the FSCS, due for publication in Q2-3 2018
- PS to CP17/23 relating to the IDD, due for publication this month and PS on the third CP for the IDD, due for publication in Jan 2018
- PS to CP17/10 relating to the credit card market study on persistent debt remedies, date for publication to be confirmed
- Feedback to CP 17/32 on retirement interest only mortgages, date for publication to be confirmed.
FCA, 1 December 2017