Since our last publication, the Lending Standards Board has announced a review of the Standards of Lending Practice for personal customers and the Council of EU has agreed to a delay in the application of the IDD.
LSB review of Standards of Lending Practice for personal customers
The Lending Standards Board (LSB) has published a press release announcing a review of the Standards of Lending Practice for personal customers. In the press release, the LSB explains that it is seeking input from registered firms, industry bodies, consumer and debt bodies and other relevant parties to help it consider whether further updates to the standards are required. The LSB notes the work that is being undertaken within the personal lending sector, including relation to vulnerability and financial inclusion and the challenge posed by FinTech to the way firms engage with their customers. The LSB welcomes any feedback parties may wish to provide, including:
- how the standards could encompass the digital journey further; and
- how the LSB could seek to capture good practice in relation to financial inclusion.
The closing date for submissions is 30 March 2018.
LSB, 12 February 2018
New Chair of FSCS
The FCA and the PRA has appointed Marshall Bailey as chair of the Financial Services Compensation Scheme (FSCS) with effect from 1 April 2018.
FCA, 13 February 2018
FCA publishes regulatory round-up for February 2018
The FCA has published its monthly regulatory round-up for February 2018. The FCA reminds firms, they have until 12 March 2018 to respond to the FCA's 'approach to authorisation' and 'approach to competition' documents.
FCA, 15 February 2018
Council of EU agrees to delay application date of IDD
The Council of the EU has published a press release confirming that it has agreed to delay the transposition deadline of the Insurance Distribution Directive (IDD) to 1 July 2018 and the application date to 1 October 2018. The press release states that the delay will apply retroactively from 23 February 2018, as the European Parliament and the Council are not expected to adopt the proposed Directive the delaying the application of the IDD before March 2018.
Council of EU, 14 February 2018
European Commission reports on results of public consultation on a revision of the EU consumer law Directives
The European Commission has published a summary of the main results from its public consultation on a targeted revision of the EU consumer law Directives. The consultation was launched on 30 June 2017 and ran until 8 October 2017 to gather opinion from consumers, businesses and associations on how to improve EU consumer law. The summary document groups the responses into the following categories:
- Transparency of online markets;
- Extension of the right to pre-contractual information and the right of withdrawal from distance and off-premises contracts under the Consumer Rights Directive;
- Right to individual remedies for consumers that are harmed by unfair commercial practices under the Unfair Commercial Practices Directive;
- Penalties for breaches of consumer law;
- Reducing the burden for businesses regarding the right of withdrawal from distance and off-premises contracts;
- Amending information requirements, including complaint handling mechanisms;
- Modernisation of rules on the means of communication with the consumer; and
- Regulation of off-premises selling, including doorstep selling.
The Commission will take the results of the consultation into account in preparing an impact assessment which will consider amendments to the current EU consumer law Directives.
EC, 6 February 2018
EBA, EIOPA and ESMA warn consumers on virtual currency risks
The EBA, EIOPA and ESMA have published a joint warning to consumers relating to the high risks of buying, or holding, virtual currencies. The warning explains that the virtual currencies currently available (such as Bitcoin, Ether and Ripple) are a digital representation of value that is not issued or guaranteed by a central bank or public authority, and do not have the legal status of currency or money. Most virtual currencies leverage on distributed ledger technology, which is also commonly referred to as blockchain.
EBA, 12 February 2018