Since our last publication, the FCA has published its policy development update webpage. In other news, the FCA has also published its 18th quarterly consultation paper, inviting comments on proposed changes to a number of different parts of the FCA Handbook.

UK

FCA policy development update: September 2017

The FCA updated its policy development update webpage, which sets out information on recent and future FCA publications. This update summarises the FCA's proposed future publications and highlights the changes made to the webpage since it was last updated on 4 August 2017. For InCredit readers, the most relevant updates are:

• Policy Statement (PS) to CP 17/10 relating to the credit card market study, publication date to be confirmed 
• PS on Reviewing the funding to the FSCS to be published in Q4 2017 (responding to CP 16/42)
• PS to Chapter 9 in PS17/15, MAS – formalising debt advice concession for smaller Credit Unions, expected Oct 2017
• Regulatory fees and levies: policy proposals for 2018/9, expected Oct 2017
• PS to CP17/7 relating to implementation of the IDD, expected Sept 2017
• Third consultation on the IDD, expected Sept 2017
• PS to CP 17/23 relating to implementation of the IDD, expected Dec 2017
• CP on the implementation of the Benchmarks Regulation, publication date to be confirmed
• Feedback to Chapter 7 of CP 17/6 (COBS and MCOB changes to improve communication)

FCA, 1 September 2017

FCA quarterly consultation 18

The FCA has published its 18th quarterly consultation paper (CP17/32). CP17/32 invites comments on proposed changes to a number of different parts of the FCA Handbook that relate to matters including the following:

• Changes to fees for varying permission under the revised Payment Services Directive ((EU) 2015/2366) (PSD2).
• The FCA's enforcement approach to breaches of the Regulation on key information documents (or KIDs) for packaged retail and insurance-based investment products (PRIIPs) (Regulation 1286/2014).
• Changes relating to the UK implementation of the Insurance Distribution Directive ((EU) 2016/97) (IDD).
• Change to Chapter 2 of the Prudential sourcebook for Investment Firms (IFPRU) to ensure full implementation of the CRD IV Directive (2013/36/EU).
• Changes to the Conduct of Business sourcebook (COBS) relating to the PRIIPs KID and personal projections.
• Changes to the Conduct of Business sourcebook (COBS) in relation to FCA projection rates.
• Changes to reporting requirements in the Supervision manual (SUP).
• A new definition for retirement interest-only mortgages.

Depending on the proposals, comments can be made until either 2 October 2017 or 1 November 2017.

FCA, 1 September 2017

Citizens Advice calls for a ban on raising credit limits for those already in debt

The Citizens Advice charity has called for a ban on credit card companies raising limits on credit cards of those who are in debt without their approval. This follows the charities ‘Stuck in Debt’ report which found that 18% of people who are in debt have had their limits raised without their knowledge - 6% more compared with all credit card holders. The report, which surveyed approximately 2,116 people, also found:

• £67bn of the £200bn rise in consumer borrowing is on credit cards
• Individuals who have credit card debt were more likely to suffer from long term debt in comparison to those with personal loans
• On average those struggling with credit card debt were 12% less likely to reduce it over two years in comparison to those with personal loans.

In addition to banning firms from raising people's credit limits without their consent, the Citizens Advice charity is calling for additional changes to ensure people are protected from falling into long term credit card debt. For example, they are calling for clearer guidance from the FCA, ensuring that before increasing a borrower’s limit, lenders must check their ability to pay it.

Citizens Advice, 30 August 2017

FCA announces campaign about PPI complaints deadline

The FCA has published a press release announcing a new campaign designed to create awareness of the deadline to make a complaint about payment protection insurance (PPI). The FCA has introduced a deadline of 29 August 2019 to prompt customers into deciding whether to check if they had PPI and whether they want to make a complaint. The campaign is being paid for by the 18 firms, including banks, building societies and credit card providers, who had the most PPI complaints. Firms have also agreed to a number of steps to ensure that the complaints process is as easy as possible for their customers. The FCA also highlights the start of a new basis for complaining about PPI, meaning customers could be entitled to compensation, even if they were not missold the insurance. If a customer has complained about PPI previously and had the complaint rejected, they may be entitled to compensation if the provider earned a high level of commission from selling PPI.

FCA, 29 August 2017

EU

BCBS consultative document on implications of FinTech for banks and supervisors

The Basel Committee on Banking Supervision (BCBS) has set up a task force to provide insight into fintech and more specifically to explore the implications for supervisors and banks’ business models. This consultative document summarises main findings and conclusions. Comments are required by 31 October 2017.

BCBS, 31 August 2017