Included in this edition of InCredit: FCA consults on new rules for loan-based crowdfunding platforms; ECON publishes draft report on proposal to exempt crowdfunding from MiFID II; and more...


FCA consults on new rules for loan-based crowdfunding platforms

Following a post-implementation review of its crowdfunding rules, the Financial Conduct Authority (FCA) has launched a consultation on new rules for loan-based crowdfunding platforms. In its consultation paper CP18/20, the FCA is proposing changes designed to address the ways in which the loan-based crowdfunding model has developed since the FCA introduced the rules for the sector in 2014. The deadline for comments is 27 October 2018.

FCA, 27 July 2018

PRA consults on implementation of EBA rules and guidance on CRR definition of default

The Prudential Regulation Authority (PRA) has published a consultation paper (CP17/18) setting out its proposed approach to implementing recent European Banking Authority (EBA) rules and guidance relating to the definition of default in the Capital Requirements Regulation (575/2013) (CRR). The PRA is proposing to update Supervisory Statement SS11/13 on internal ratings based (IRB) approaches and to amend the Credit Risk Part of the PRA Rulebook. The consultation closes on 29 October 2018.

PRA, 27 July 2018

Do not use authorisation status for promotional purposes, FCA warns firms

The Financial Conduct Authority (FCA) has announced that its financial promotions team has learned that some firms are using their FCA-authorised status in a promotional way, which it says could lead to consumer harm and is against the FCA's rules. The FCA warns firms not to use their authorisation status in that way and, if they are, to cease doing so.

FCA, 27 July 2018

FCA publishes research on repayment choices for credit card holders

The Financial Conduct Authority (FCA) has published research on the ways in which the size of repayments made by consumers may be influenced by the ways in which repayment options are presented to them. Together with the measures introduced in policy statement 18/4 Credit card market study: Persistent debt and earlier intervention—feedback to CP17/43, and final rules which take effect on 1 September 2018, the research forms part of the FCA's efforts to limit the use of credit cards for longer-term borrowing, while preserving their flexibility for millions of users.

FCA, 26 July 2018

FCA issues Policy Statement on assessing creditworthiness in consumer credit

The FCA has issued Policy Statement PS18/19 on assessing creditworthiness in consumer credit, in which it summarises and responds to feedback on Consultation Paper CP17/27 and also publishes final rules and guidance In the Consumer Credit sourcebook (CONC).

FCA, 30 July 2018

FCA sets out results of just-in-time arranged overdraft alerts experiment

The Financial Conduct Authority (FCA) has published Occasional Paper 40, on the impact of automatically enrolling customers into just-in-time arranged overdraft alerts and early warning alerts for overdrafts and unpaid items. Part of the FCA’s ongoing high-cost credit review, the paper follows up on Occasional Paper 36, which found that mandating automatic enrolment of consumers into text message alerts before they incur unarranged overdraft and unpaid item charges leads to a substantial reduction in these types of charges.

FCA, 24 July 2018

FCA bans four directors of consumer credit broker for misleading customers

The Financial Conduct Authority (FCA) has banned four former directors and shareholders of Secure My Money Limited, an online consumer credit broker now dissolved. The FCA found the firm took fees of over £7.2m from approximately 124,000 online customers by misleading them into believing they had been approved for short-term loans.

FCA, 25 July 2018


ECON publishes draft report on proposal to exempt crowdfunding from MiFID II

The European Parliament's Committee on Economic and Monetary Affairs (ECON) has published a draft report on the European Commission's proposal to amend Directive 2014/65/EU on markets in financial instruments (MiFID II) in order to exempt crowdfunding service providers from the obligations under that directive. ECON has recommended one change to the recitals.

European Parliament, 27 July 2018

Key Contacts

Amanda Hulme

Amanda Hulme

Partner, Head of Financial Regulation

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Lorna Finlayson

Lorna Finlayson

Partner, Financial Regulation

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Rosanna Bryant

Rosanna Bryant

Partner, Financial Regulation and Co-head of Financial Services Sector

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