Since our last publication, the Treasury Committee has raised concerns with UK Asset Resolution over buy-to-let mortgage clause and the FCA has published a policy statement, information sheet and introduced a deadline for making new PPI complaints. 

In other news, the FCA has published its Quarterly Consultation No 16 that includes changes to COBS and MCOB. It has also published the first of two Insurance Distribution Directive consultations. 


Treasury Committee raises concerns with UK Asset Resolution over "right to consolidate" buy-to-let mortgage clause

Correspondence with UK Asset Resolution (UKAR) regarding their "right to consolidate" clause has been published by The House of Commons Treasury Committee. They published a letter (dated 17 January 2017), from Andrew Tyrie, Committee Chair, to Ian Hares, UKAR Chief Executive Officer, and a letter (dated 14 February 2017), from Mr Hares to Mr Tyrie, in response.

House of Commons Treasury Committee, 2 March 2017

FCA finalise plans to place a deadline on PPI complaints

The FCA has confirmed that it will introduce a final deadline for making new PPI complaints. The deadline will be 29 August 2019 and the FCA will run a two-year consumer communications campaign from August 2017.

FCA, 2 March 2017

FCA publish policy statement and information sheet on PPI complaints

FCA publishes policy statement containing final rules and guidance and also an information sheet on PPI complaints.

FCA, 1 March 2017

FCA Quarterly Consultation No 16

The FCA has published its 16th quarterly consultation paper in which they seek views to changes to its rules and guidance in the following:

  • COBS and MCOB changes to improve firms’ communication with consumers
  • Changes to DEPP and EG following the Bank Recovery and Resolution Order 2016
  • Changes to Market Conduct sourcebook relating to ESMA guidelines on commodity derivatives
  • Changes to SUP and EG to reflect extension of Immigration Act 2014
  • Listing Rules and Prospectus Rule changes relating to Prospectus Regulation coming into force
  • Changes to REC and MAR
  • Changes to reporting requirements in the Supervision manual

FCA, 3 March 2017

FCA publishes Insurance Distribution Directive consultation

The FCA has published the first of its two consultation papers on the implementation of the Insurance Distribution Directive (IDD). The paper covers the FCA's proposals for the application which include the following areas:

  • Professional and organisational requirements
  • Complaints handling and out-of-court redress
  • Professional indemnity insurance (PII)
  • Changes to conduct of business rules (for non-investment insurance contracts)
  • The regulatory regime for ancillary insurance intermediaries

The consultation closes on the 5 June 2017.

FCA, 6 March 2017

ICO consults on GDPR consent guidance

ICO consults on GDPR consent guidance. The GDPR will be coming into force on 25 May 2018 and it sets high standards for consent. The draft report includes guidance on when the use of consent is appropriate, when it's inappropriate, an explanation of "explicit consent", the rules on children's consent and how to obtain, record and manage consent. Responses required by 31 March 2017.

ICO, 2 Mar 2017

Big data and the insurance sector

The Information Commissioner’s Office (ICO) has stated that the large volumes of data which are available online presents the insurance sector with both challenges and opportunities. The ICO is preparing guidance to help the insurance sector, and others, comply with the new General Data Protection Regulation (GDPR), coming into force from May 2018.

ICO, 3 March 2017

PSR consults on draft terms of reference for review of payment system operators' role in preventing push payment scams

The Payments Systems Regulator (PSR) has published a document in which it is consulting on draft terms of reference covering how the PSR intends to carry out its work to consider the potential for payment system operators to play a role in minimising the consumer harm caused by authorised push payments scams. The PSRs proposed work follows a super-complaint made by Which? Which? raised concerns that there is not enough protection for people who are tricked into transferring money to a fraudster.

Payment Systems Regulator, 28 February 2017


The EBA has published the following reports, relating to assessments of the consistency of risk-weighted assets (RWAs):

  • Results from the 2016 high default portfolios (HDP) exercise. This report sets out the results of a supervisory benchmarking exercise for HDPs (that is, residential mortgage, SME retail, SME corporate and corporate-other portfolios). The exercise involved the entire population of banks that are authorised to use internal models for the calculation of regulatory capital in the context of HDPs. The aim of the exercise was to assess the overall level of variability in RWAs and to examine and highlight the different drivers of the dispersion observed.
  • Results from the 2016 market risk benchmarking exercise. This report sets out the results of a supervisory benchmarking exercise (HPE) intended to assess the level of variability observed in market-risk-weighted assets (MRWA) produced by banks’ internal models.

EBA, 3 March 2017


Aviva Life & Pensions (UK) Ltd) v Financial Ombudsman Service [2017] EWHC 352 (Admin)

In R (Aviva Life & Pensions (UK) Ltd) v Financial Ombudsman Service [2017] EWHC 352 (Admin) (27 February 2017), the High Court upheld an application for judicial review by Aviva, which had challenged a decision taken by a Financial Ombudsman Service (FOS). The case followed Aviva's decision to avoid a life insurance policy on the grounds that the policyholder had not made relevant disclosures about his illness (a form of dementia). The FOS concluded that the policyholder had failed to make the disclosures because of his illness and the policy should be reinstated. Aviva argued that the FOS had not followed relevant law in her decision (as set out in the Consumer Insurance (Disclosure and Representations) Act 2012) and had not adequately explained its reasons for doing so.

Full Circle Asset Management Ltd v Financial Ombudsman Service Ltd and others [2017] EWHC 323 (Admin).

In Full Circle Asset Management Ltd v Financial Ombudsman Service Ltd and others [2017] EWHC 323 (Admin) (24 February 2017), the High Court considered an application by Full Circle Asset Management Ltd (FCAM) for judicial review of a decision of the Financial Ombudsman Service (FOS). The FOS had upheld a complaint made by one of FCAM's clients, Mrs King, who argued that FCAM had provided her with a portfolio of investments that were unsuitable for her. Mrs King had agreed to take on a "medium" level of risk in her portfolio. The court dismissed the application for judicial review. In particular, it rejected FCAM's argument that the FOS should have treated a skilled persons report as a regulator's standard.

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Rosanna Bryant

Rosanna Bryant

Partner, Financial Regulation

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