Since our last publication, the FCA has published an undertaking given to it under the Consumer Rights Act, the Consumer Finance Association has merged with the BCCA and the FCA has issued its latest policy development update.


Undertaking given to FCA under Consumer Rights Act 2015 concerning terms in prepaid card contracts

The FCA has published an undertaking given by PPRO Financial Limited (PPRO) under the Consumer Rights Act 2015 (CRA 2015) concerning terms in contracts with its prepaid card customers. The FCA received a referral from the Dutch regulator (The Authority for Financial Markets) under the Consumer Protection Co-operation Regulation, regarding complaints it had received from consumers. Having reviewed PPRO’s terms and marketing practices, the FCA had concerns about the fairness and transparency of terms relating to PPRO's charging arrangements, the cooling-off period, the customer's right to terminate the contract, the redemption fee, the dormancy fee, the auto-renewal of the contract and the jurisdiction of any disputes under the contract. 

Until 2015, it was common for the regulator to seek an undertaking from firms where terms were held to be unfair. This is only the second undertaking published by the FCA since the Consumer Rights Act came into force in 2015. The first was published in July 2017 and concerned terms of an extended warranty policy provided by London General Insurance Company. 

FCA, 4 October 2017

FOS feedback statement to consultation on amending voluntary jurisdiction rules to reflect FCA final rules and guidance on PPI complaints

The Financial Ombudsman Service (FOS) has published a feedback statement to its June 2017 consultation on proposed amendments to its voluntary jurisdiction (VJ) rules to reflect the FCA's final rules and guidance on payment protection insurance (PPI) complaints. The FOS received two responses to the consultation, both of which supported the FOS' proposals to:

  • Amend the VJ in line with the FCA's changes to the FOS' compulsory jurisdiction (CJ) regarding PPI complaint time limits.
  • Adopt to the VJ the FCA's guidance on the application of DISP 2.8.2R (2) to complaints about PPI contracts.

FOS, 4 October 2017

FCA Policy Development Update: October 2017 

The FCA has updated its policy development update webpage which summarises the FCA's proposed future publications and changes made to the webpage since it was last updated on 1 September 2017. 

FCA, 6 October 2017

Consumer Finance Association and BCCA announce completion of merger

The Consumer Finance Association (CFA) has published a press release announcing the completion of its merger with the BCCA. The CFA and BCCA announced in July 2017 that they would be merging. The new association, which will be run by Jason Wassell, former BCCA Chief Executive, brings together lenders, brokers and service suppliers. It will be the principal trade association representing the short-term lending sector in the UK. The first meeting of the new board will be held in late October 2017, bringing together a mix of CFA and BCCA directors. 

Consumer Finance Association, 4 October 2017

The Government appoints first Small Business Commissioner 

The Small Business Commissioner (SBC) will establish a website to provide general advice and information to small businesses on areas such as resolving disputes, as well as considering complaints from small businesses relating to payment matters in connection with the supply of goods and services to larger businesses. It's possible that its remit will expand further. The SBC's office is expected to be operational from the end of 2017. 

Department for Business Energy and Industrial Strategy, 2 October 2017

PRA policy statement on changes to UK leverage ratio framework relating to treatment of claims on central banks

The Bank of England has published a policy statement on changes to the UK leverage ratio framework relating to the treatment of claims on central banks. This statement provides the PRA's feedback to the responses received to the consultation paper published by the PRA and the Financial Policy Committee in June 2017. The policy statement is relevant to PRA-regulated banks and building societies with retail deposits equal to or greater than £50 billion on an individual or a consolidated basis.

Bank of England, 3 October 2017


ECB consults on draft addendum to guidance to banks on tackling non-performing loans 

The European Central Bank (ECB) has published a consultation on a draft addendum to its guidance for banks on non-performing loans. The addendum reinforces and supplements the guidance by specifying quantitative supervisory expectations for minimum levels of prudential provisions for new non-performing loans. A public hearing on the consultation will take place at the ECB's headquarters on 30 November 2017. The consultation closes to responses on 8 December 2017.

European Central Bank, 4 October 2017

Key Contacts

Rosanna Bryant

Rosanna Bryant

Partner, Financial Regulation

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