This week has seen the Financial Conduct Authority publish a consultation paper on loan-based crowdfunding platforms and the segregation of client money.


FCA consultation on loan-based P2Ps and client money

The Financial Conduct Authority has published a consultation paper, CP16/02, on loan-based crowdfunding platforms and the segregation of client money. The regulator proposes to simplify its client money requirements for firms that operate P2P platforms and hold both regulated and unregulated client accounts. In future, platforms will be able to elect to hold all money under CASS 7 if they wish to do so without needing to distinguish between money held under P2P agreements and that held under  business to business agreements. The consultation ends on 11 February 2016 with a policy statement and final rules due in March 2016.

FCA, 21 January 2016   

FCA regulation round-up

The Financial Conduct Authority has published its regulation round-up for January 2016 looking at new consumer credit authorisation webpages that explain how the FCA assess consumer credit firms applying for full permission and the process employed. It also refers to recent consultations over minor changes to MCOB with respect  to the implementation of the Mortgage Credit Directive and an update to the FCA's unfair contract terms library.

FCA, 19 January 2016

FCA responds to FOIA request on ceasing banking culture thematic review

The Financial Conduct Authority has released a further document under the Freedom of Information Act 2000 about its decision to end its thematic review relating to culture in banks.

FCA, 19 January 2016 

FCA and PRA New Bank Start-up Unit set up

The Financial Conduct Authority and the Prudential Regulation Authority have launched a New Bank Start-up Unit to give information and support to applicants looking for authorisation to become a new bank in the United Kingdom.

The FCA and the PRA, January 2016

FCA unfair contract terms library updated

The Financial Conduct Authority's unfair contract terms library website has been updated to state that it has no current intention to publish new guidance on unfair contract terms. The conduct regulator withdrew its previous guidance in light of the enactment of the Consumer Rights Act 2015.

FCA, 13 January 2016


CML: 2015 gross mortgage lending up 8%

The Council of Mortgage Lenders has estimated that gross mortgage lending reached £19.9 billion in December which is 23% higher than December 2014 (£16.2 billion).

Council for Mortgage Lenders, 21 January 2016

Bank of England and Financial Services Bill 2015-16 completes third reading

The Bank of England and Financial Services Bill 2015-16 has had its third reading in the House of Lords and has now gone to the House of Commons for further consideration. Among various matters, the Bill will amend the Financial Services and Market Act 2000 with respect to the enforceability of agreements in relation to credit and to credit agreements made through unauthorised persons. 

UK Parliament, 20 January 2016

SRA consumer credit toolkit launched

The Solicitors Regulation Authority has launched a consumer credit toolkit in order to assist SRA-authorised firms comply with the consumer credit regime. SRA-authorised firms may potentially carry on consumer credit activities under Part 20 of the Financial Services and Markets Act 2000 as exempt professional firms.

SRA, 19 January 2016


Whether transfer fees amount to credit

This was an application for summary judgment by a landlord where the tenants of a long residential lease argued that transfer fees payable on an assignment of their interest amounted to the provision of credit under the Consumer Credit Act 1974 and were therefore unenforceable. The High Court considered what could constitute credit finding for the landlord and adopting a common sense approach. The tenants were left to go to trial over their second claim that the transfer fees were unenforceable as an unfair term.

Burrell & Others v Helical (Bramshott Place) Limited [2015] EWHC 3727 (Ch)18 December 2015