Included in this edition of InCredit: BoE brings forward publication date of stability report and stress test results; Treasury Committee confirms that helping 'mortgage prisonsers' is a top priority; ESMA executive director discusses the regulatory response to FinTech and more...

UK

BoE brings forward publication date of stability report and stress test results

The Bank of England (BoE) has announced that the Financial Stability Report (FSR) and the full results of the BoE’s annual stress test of major UK banks, due to be published on 5 December 2018, will now be published at 07.00hrs on 28 November 2018.

BoE, 20 November 2018       

FCA says some motor finance firms are in breach of financial promotions rules

The Financial Conduct Authority (FCA) has said that its financial promotions team has learned that some motor finance firms are not complying with the FCA's rules in chapter 3 of the Consumer Credit sourcebook (CONC 3), which deal with financial promotions and communications with customers. This is particularly in relation to posts on social media platforms such as Facebook, Twitter and Instagram.

FCA, 16 November 2018

FCA publishes Handbook Notice No. 60

The FCA has published Handbook Notice No. 60, which includes changes to the FCA Handbook made by the FCA board on 25 October and 15 November 2018, together with feedback on consultation papers (CPs) that will not have a separate policy statement (PS). The changes include guidance on whether firms should consider the non-disclosure of commission when assessing regular premium PPI complaints.

FCA, 16 November 2018

FCA publishes regulatory fees and levies: policy proposals for 2019/20

The FCA has published CP18/34: Regulatory fees and levies: policy proposals for 2019/20. This paper sets out the FCA's proposed policy changes to the way that it will raise FCA fees from 2019/20. It is part of the FCA's annual cycle of consultation on fees. The proposals include- fees structure the FCA intends to establish for credit rating agencies and trade repositories if responsibility for their regulation passes to the FCA following UK's exit from the EU, streamline the process of setting consumer credit fees by exempting community finance organisations and credit unions and part of the contribution to the debt advice funding across the UK to be designated for the devolved authorities’ debt advice in Scotland, Wales and Northern Ireland. The FCA is seeking comments by 14 January 2019.

FCA, 15 November 2018

FCA reviews firms’ whistleblowing arrangements

The FCA has published its review of the firms’ whistleblowing arrangements in the Retail and Wholesale Banking sectors. The FCA found that the new rules are helping to ensure that firms have implemented whistleblowing arrangements and manage whistleblowing cases and concerns raised by their employees fairly, consistently and in a way which protects the individual whistle-blower. The FCA further found that although there are examples of good practice, there are some key areas in need of improvement, most notably in the provision of whistleblowing training and the requirement to produce an annual report to the firm’s governing body.

FCA, 14 November 2018

CMA investigation: Investigation opened into suspected anti-competitive practices in the financial services sector

On 16 November 2018 the Competition and Markets Authority (CMA) announced it is investigating suspected anti-competitive arrangements in the financial services sector which may infringe Chapter I of the Competition Act 1998 and/or Article 101 of the Treaty on the Functioning of the European Union (TFEU). Further information gathering and analysis by the CMA will take place between November 2018 and August 2019.

CMA, 16 November 2018

UK Finance responds to Treasury Committee letter on trapped borrowers and UK Asset Resolution

UK Finance has responded to a letter from the economic secretary to the Treasury, John Glen MP, to the Treasury Committee on ‘mortgage prisoners’, which states that ‘exploring solutions’ for customers with inactive lenders is a top priority. Jackie Bennett, director of mortgages at UK Finance, has responded to say UK Finance strongly supports the government’s commitment to explore potential solutions for customers who have mortgages with inactive and unregulated lenders.

UK Finance, 15 November 2018

Treasury Committee confirms that helping ‘mortgage prisoners’ is a top priority

The chair of the Treasury Committee, Nicky Morgan MP, has stated that ‘time is clearly of the essence’ in helping customers who are unable to remortgage or find a lower interest rate due to changes in legislation following the financial crash, also confirming that the FCA has agreed that helping these customers is a matter of urgency.

Treasury Committee, 14 November 2018

Worldwide

ESMA executive director Verena Ross discusses the regulatory response to FinTech

The Executive Director of the European Securities and Monetary Authority (ESMA), Verena Ross, has given a speech at the FinPulse Regulatory Summit entitled ‘New Financial Technologies and Regulation’.  Ms Ross discusses the opportunities and challenges arising from financial technology and its use in the securities sector, from the point of view of the regulator. Her focus includes binary options, crowd funding, distributed ledger technology (DLT) and crypto-assets.

ESMA, 15 November 2018