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News & blogs: Compliance Roundups

Compliance Roundup - 27 June 2019

26 June 2019  

This issue - click to view

CSA shares update on NPL Directive
Government publishes response to breathing space consultation
CSA shares feedback from IIC report
FCA shares SM&CR checklists
Government considers expanding powers of Small Business Commissioner to include prompt payment
Law Commission publishes report on the SARs regime
FCA publishes first annual report on its regulatory perimeter
Government responds to CMA loyalty penalty investigation, announcing plans to consult on extending CMA powers
Scottish Law Commission confirms review of mortgage law
EBA consults on loan origination and monitoring guidelines
Chancellor confirms plans for review of UK regulatory framework
MMHPI shares 5 year strategy
FCA issues regulation roundup for June
FCA warnings - unauthorised and 'clone' firms
FCA enforcement - final notices and decision notices

 

CSA shares update on NPL Directive

An e-mail was sent to CSA members providing an update on the European Union’s directive on credit servicers, credit purchasers and the recovery of collateral (“NPL Directive”).

The e-mail provides a brief summary of the directive’s proposals and an overview of the CSA’s key concerns about how the current proposals could affect CSA members.

The update is available here.

 

Government publishes response to breathing space consultation

HM Treasury (HMT) has shared its response to the consultation on a statutory 60-day breathing space scheme. The response sets out the government’s views on who will be eligible and how they would participate in the scheme. The response also discusses the proposals for a statutory debt repayment plan and how it will be implemented.

The government’s press release can be found here and their response to the consultation is available here.

 

CSA shares feedback from IIC report

Following the Investors in Customers (IIC) assessment carried out in June 2018, the CSA has now shared a summary of the findings, along with details of steps taken in response to the feedback.

The CSA attained a Silver Award in this first assessment and is planning to carry out a follow-up assessment next month. Members will receive emails in July inviting them to complete the 2019 assessment; we would encourage all member company staff to participate in the assessment, to give us a wider range of feedback.

The summary of findings from the first assessment can be found here.

 

FCA shares SM&CR checklists

The FCA has shared a set of checklists aimed at helping regulated firms prepare for the implementation of the Senior Managers & Certification Regime (SM&CR). The checklists provide information on what firms need to do and splits these out depending on the how the firm is categorised under the regime.

The checklists can be found here.

 

Government considers expanding powers of Small Business Commissioner to include prompt payment

The Department for Business, Energy and Industrial Strategy (BEIS) has published its response to the 2018 consultation on ‘creating a responsible payment culture’. In the interest of promoting a responsible payment culture, the response proposes setting clear standards of best practice and increasing board level responsibility. BEIS also states that it will consult on extending the powers of the Small Business Commissioner, including responsibility for the Prompt Payment Code.

Further details are available in the press release here. The government response to the consultation is available here.

 

Law Commission publishes report on the SARs regime

The Law Commission has published a report following its review of the use of Suspicious Activity Reports (SARs) as part of anti-money laundering efforts and how effective they were. Alongside the review of the SARs regime, the paper makes a number of recommendations including the establishment of an advisory board and the creation of statutory guidance. The next step is for the government to consider the recommendations.

The Law Commission report is available here.

 

FCA publishes first annual report on its regulatory perimeter

The FCA has published its first annual report on its regulatory perimeter, which looks at issues facing the FCA in relation to the boundaries of its regulation, such as firms operating on the edges of the perimeter in order to avoid FCA regulation but which are causing consumer harm.

The perimeter report can be found here.

 

Government responds to CMA loyalty penalty investigation, announcing plans to consult on extending CMA powers

The Department for Business, Energy and Industrial Strategy (BEIS) has published the government’s response to the Competition and Market Authority’s (CMA) investigation into the loyalty penalty. The CMA investigation looked at whether consumers were being exploited by firms for being loyal and suggested measures to prevent this from happening.

The government’s response discusses principles of good business practice which it expects regulators to take into account when carrying out enforcement action. The response also notes the willingness to extend regulatory powers where existing powers cannot deliver improved outcomes for consumers.

The BEIS press release can be found here and the response to the CMA investigation is available here. The FCA has also published an update on the investigation, which is available here.

 

Scottish Law Commission confirms review of mortgage law

The Scottish Law Commission has published a discussion paper on the reform of securities granted over land and property in Scotland. The published paper focuses on pre-default, however, the 

accompanying press release confirms there are plans for a second discussion paper on enforcement, scheduled for publication in 2020.

The discussion paper and press release are available here.

 

EBA consults on loan origination and monitoring guidelines

As part of European efforts to address the high level of non-performing exposures, the European Banking Authority (EBA) has developed draft guidelines around loan origination and monitoring. Although the draft guidelines are primarily focused around the granting of credit, they could impact members’ clients, introducing new requirements around governance and information collection.

The draft guidelines can be found here and responses are due by 30 September 2019.

 

Chancellor confirms plans for review of UK regulatory framework

In his Mansion House speech, the chancellor of the exchequer, Philip Hammond, confirmed plans to carry out a long-term review into the future of the UK’s regulatory framework. He notes that the first phase of the review will work to improve coordination between regulatory authorities, in light of concerns that businesses have struggled to manage the cumulative impact of regulatory change coming from a multitude of sources.

The full speech can be found here.

 

MMHPI shares 5 year strategy

The Money and Mental Health Policy Institute (MMHPI) has published a document setting out its 5-year strategy through to 2024. The strategy document details some of the institute’s previous work, whilst also setting out the organisation’s goals and how it aims to achieve them.

The MMHPI strategy document can be found here.

 

FCA issues regulation roundup for June

The FCA has issued the latest edition of its regulation roundup, which provides a monthly overview of regulatory news and developments. This edition includes an update on the FCA’s recent work on overdrafts.

The June roundup is available here.

 

FCA warnings – unauthorised and ‘clone’ firms

The FCA regularly publishes warnings about firms that are believed to be carrying out regulated activities without authorisation. They also publish warnings about fraudsters who are using the details of legitimately authorised firms in order to convince people that they work for a genuine authorised company.

The warnings that have been issued by the FCA this week can be viewed by clicking on the relevant links below:

Unauthorised firms

'Clone' firms

Capital Finances   JP Holdings LTD
IAG
  FXCM Germany
Delta Car Insurance
  Cadwyn Capital 
Bucketlist Traders Limited    Bad Credit Site
    CWG Markets 

  Manfred Fitzek 

  Lend Direct, Lend-Direct 
    T. Rowe Price International Limited 
    Trademaker
    ZipCash Ltd
    Andreas Geiger
    Watchtower Finance Limited 
    Tiger 21 Wealth Management t/a United Brokers

 

FCA enforcement - final notices and decision notices

The FCA often publishes final notices and decision notices following investigations into alleged regulatory breaches or the refusal of applications for authorisation. These notices can often provide useful insight into what the FCA considers to be poor practice and the potential consequences of those practices. The FCA will also occasionally publish press releases detailing the outcome of cases pursued through the courts.

In the last week, the FCA has issued the notices listed below. You can read more about the FCA’s investigation and findings by clicking on the relevant link.

Lynden Gerard Scourfield – final notice
  David John Mills – final notice
Mark Dobson – final notice   Bank of Scotland plc – final notice 
Alison Mary Mills – final notice
  KTS Enterprises Limited – final notice
Direct Shelving Service Ltd – final notice
 
Oldham Athletic (2004) Association Football Club Limited – final notice
   

 


Credit Services Association,
2 Esh Plaza, Sir Bobby Robson Way,
Great Park, Newcastle upon Tyne,
NE13 9BA Map

fenca iic

ppc

T: 0191 217 0775

F: 0191 236 2709

E: info@csa-uk.com

Credit Services Association Limited 
Registered in England and Wales No. 00089614

CSA (Services) Ltd
Registered in England and Wales No. 05055685

Registered address:
2 Esh Plaza, Sir Bobby Robson Way, Great Park, Newcastle upon Tyne, NE13 9BA