Included in this issue of InCredit: CMA to investigate super-complaint on 'loyalty penalties' on consumer and competition law grounds; PRA consults on changes to forms relating to applications or notifications for regulatory transactions and much more...
PRA regulatory digest for September 2018 now available
The Prudential Regulation Authority (PRA) Regulatory Digest is for people working in the UK financial services industry and highlights key regulatory news and publications delivered for the month. This edition's highlights include ‘Transition in thinking: The impact of climate change on the UK banking sector’ and CP 20/18 ‘Strengthening accountability: implementing the extension of the SM&CR to insurers (Part 2)’.
PRA consults on changes to forms relating to applications or notifications for regulatory transactions
The PRA has published consultation paper (CP) 21/18 on Regulatory transactions: Changes to notification and application forms. It sets out proposals for changes to various PRA forms relating to applications or notifications for regulatory transactions. The CP is relevant to all PRA-authorised firms as well as firms that have a qualifying holding in a PRA-authorised firm. Feedback is sought by 1 November 2018.
FCA publishes Handbook Notice No. 58
This Handbook Notice describes the changes to the Handbook and other material made by the Financial Conduct Authority (FCA) Board under its legislative and other statutory powers on 26 July and 27 September 2018. It also includes the following SIs:
- Consumer Credit (Creditworthiness) Instrument 2018 (FCA 2018/44)
- Individual Accountability (Dual-Regulated Firms) Instrument 2018 (FCA 2018/45)
- Fees (Miscellaneous Amendments) (No 12) Instrument 2018 (FCA 2018/46)
- Supervision Manual (Reporting No 9) Instrument 2018 (FCA 2018/48)
UK Asset Resolution sale of an £860 million mortgage portfolio
The sale of an £860 million equity release mortgage portfolio, owned by Bradford & Bingley and NRAM Limited (formerly part of Northern Rock) has been authorised by the Chancellor. These mortgages were acquired by the taxpayer during the financial crisis and their sale simplifies the books of both B&B and NRAM, bringing the government closer to the final wind-down of these companies. It also marks a milestone in the plan to recover taxpayers’ money - ten years on.
CMA to investigate super-complaint on 'loyalty penalties' on consumer and competition law grounds
The Competition and Markets Authority (CMA) has received a super-complaint from Citizens Advice about long term customers overpaying for key services. The CMA will now investigate concerns raised that people who stay with their provider - often on default or roll over contracts - can end up paying significantly more than new customers. Citizens Advice refers to this as a ‘loyalty penalty’.
FCA Thematic review: Impact of credit broking remuneration models at the point of sale
The FCA has published its thematic review on the impact of credit broking remuneration models at the point of sale (TR18/2). Their thematic review covered a wide variety of credit brokers offering loans or finance provided by a third party. It did not consider lenders selling their own products directly to consumers, or motor finance firms as this market is subject to a separate FCA review.
EBA executive calls for a coordinated response to cyber threats
Slavka Eley, the head of banking markets, innovation and products at the European Banking Authority (EBA), emphasises on the EBA's focus on cyber security. The following topics are included in the paper:
- Digitalisations trends in financial services and related risks;
- Operational resilience as a new challenge and the EBA’s response; and
- Mitigation of resilience risks in outsourcing and use of third party service providers.