FCA call for input on review of retail conduct requirements in light of Consumer Duty

On 29 July 2024, the Financial Conduct Authority (FCA) published a call for input (CfI): Review of FCA requirements following the introduction of the Consumer Duty. In the CfI the FCA is exploring whether, where and how it can simplify requirements through greater reliance on outcomes focussed regulation, while ensuring it continues to support and protect consumers.

Read more on the FCA's CfI and the issues it is exploring.

FCA's decision to extend the temporary changes to handling rules for motor finance complaints

On 24 September 2024, the Financial Conduct Authority (FCA) published a policy statement (PS24/11) on extending the temporary changes to handling rules for motor finance complaints. It is extending the current pause to the time firms have to respond to consumers about motor finance complaints involving discretionary commission arrangements (DCAs). The FCA is also extending the period for setting out its next steps in its review into the past use of DCAs.

Read more to learn what these new timelines mean for your firm.

Findings from the FCA's review of how principals are embedding the new rules for overseeing their appointed representatives

On 6 September 2024, the Financial Conduct Authority (FCA) published a webpage setting out the findings of its review of how principals are embedding the FCA's rules for overseeing appointed representatives (ARs), which were introduced in December 2022. The review identifies good practice and improvement areas for principal oversight of ARs. Firms should consider these examples when reviewing their own approach to effective AR oversight.

Read more on the FCA's findings here. 

FCA's Consultation paper: Consumer Credit Regulatory Returns (CP24/19)

On 12 September 2024, the Financial Conduct Authority (FCA) published a consultation on proposals to issue a new regulatory reporting return for consumer credit firms that engage in one, or more, of the regulated activities of Credit Broking, Debt Adjusting, Debt Counselling and Providing Credit Information Services. Under the proposed return relevant firms will be asked to provide new information and data to the FCA to enable the regulator to proactively supervise them to identify and prevent risk of harm to consumers earlier.

Read more on the FCA's proposals here.

Announcement from the Lending Standards Board on enhancing its business lending standards to strengthen provisions on personal guarantees

On 12 September 2024 the Lending Standards Board (LSB) announced stronger protections for Small and Medium-Sized Enterprises (SMEs) using personal guarantees. The LSB has strengthened provisions on personal guarantees within the Standards of Lending Practice for business customers (‘the business standards’). The changes will help ensure lenders are clear with guarantors about what they are signing up to, and help avoid situations where a guarantor is surprised to find out they are personally liable for lending to a business.

Read more on the updated lending standards on personal guarantees here. 

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