Compliance Roundup - 13 July 2022

In this issue:

Government launches for call for views on personal insolvency framework
FCA and MoneyHelper urge customers to engage with creditors
Meeting between energy firms and debt charities in response to cost-of-living crisis
FCA appoints new chair
ICO and NSCS advise against ransomware payments
Scottish government shares output from consultation on reforming legal services regulation
FSCS releases annual statement for 2021/22
UK agrees data adequacy agreement with Republic of Korea
Latest DCMS cybersecurity newsletter available online
FCA publishes finalised guidance on its approach to compromises for regulated firms
FCA enforcement - final notices and decision notices
Consultations

Government launches for call for views on personal insolvency framework

The Insolvency Service has launched a consultation seeking views and evidence on the personal insolvency framework for England and Wales, particularly its purpose, how it is funded and how it supports those in financial difficulty. 

The government notes that statutory debt repayment plans (SDRP) are being consulted on separately and do not form part of this call for views. It also advises that County Court Administration Orders and Debt Management Plans are not within scope of the call for views.

Members wishing to contribute to an industry response should share their comments and feedback with the CSA’s head of policy, Henry Aitchison (henry.aitchison@csa-uk.com) as soon as possible.

The call for evidence is available here and responses are due by 24 October 2022.

FCA and MoneyHelper urge customers to engage with creditors

Following the release of a new research paper investigating personal finance, the FCA and MoneyHelper are urging customers to contact their lender if they are struggling to make payments and to contact MoneyHelper if they are worried about money. MoneyHelper is the Money and Pensions Service’s (MaPS) public-facing website.

The press release is available here.

MoneyHelper also recently launched a ‘Talking to your creditor’ help page, encouraging people to have early conversations with creditors and collection agencies, identifying it as "the best first step to resolving your money issues and avoiding falling into problem debt".

The webpage can be found here.

Meeting between energy firms and debt charities in response to cost-of-living crisis

In the most recent CSA News email, we noted that media had reported on a meeting was convened by Martin Lewis of MoneySavingExpert between debt charities and energy firms last week. 

The organisations signaled a desire to set up a call line for customers in need of support and to improve understanding of debt levels. In an effort to ensure that those who cannot pay are treated fairly, energy suppliers agreed to work together with debt charities on a collective set of debt collection principles for unpaid energy bills.

The energy suppliers and debt charities’ joint press release can be viewed here.

FCA appoints new chair

HM Treasury has confirmed that Ashley Alder has been appointed Ashley Alder as its new chair. Alder is currently chief executive officer of the Securities and Futures Commission in Hong Kong. He is expected to take up the FCA role in January 2023 and is appointed on a five-year term.

Further details are available in the FCA press release here.

ICO and NSCS advise against ransomware payments

The Information Commissioner’s Office (ICO) and National Cyber Security Centre (NCSC) have jointly written to the Law Society to remind its members that they should not advise clients to pay ransomware demands if they fall victim to a cyber attack. 

The letter has been prompted by reports that firms have been paying ransoms with the expectation that it is the correct thing to do and they do not need to engage with the ICO, or that they will gain benefit from it by way of reduced enforcement. 

The ICO press release, including a link to the joint letter to the Law Society, can be found here.

Scottish government shares output from consultation on reforming legal services regulation

The Scottish government has released a report following the consultation on reforming legal services regulation. 

The report does not make recommendations but does outline the feedback received by the government to its consultation, noting that there remains a divide between the potential types of regulation model that could be introduced for legal services in Scotland.

The report is available here.

FSCS releases annual statement for 2021/22

The Financial Services Compensation Scheme (FSCS) has published its annual statement for 2021/22, setting out the work carried out over the previous year and the current state of its finances. Alongside the annual report, the FSCS has also published its ‘class statements’, detailing the amounts paid into each FSCS class.

The FSCS report is available here.

UK agrees data adequacy agreement with Republic of Korea

The Department for Digital, Culture, Media and Sport (DCMS) has announced that the UK has reached an adequacy agreement with the Republic of Korea enabling data sharing between the two countries without the need for additional safeguards.

The DCMS announcement is available here.

Latest DCMS cybersecurity newsletter available online

The Department for Digital, Culture, Media and Sport (DCMS) has published its latest cybersecurity newsletter.

The July 2022 newsletter includes the launch of the UK digital strategy and government response to the consultation on cyber profession.

The newsletter is available here.

FCA publishes finalised guidance on its approach to compromises for regulated firms

The FCA has published its finalised guidance on its approach to arrangements enabling a firm to settle its liabilities with creditors, shareholders or both – referred to as compromises in the finalised guidance. 

The FCA has taken this step in light of increasing numbers of regulated firms proposing compromises to deal with significant liabilities to consumers, in particular redress liabilities. The guidance outlines how the FCA approaches such compromises, the information it needs from firms and the factors it will consider when deciding if and what actions it will take.

The finalised guidance is available here.

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.

Alexander David Securities Limited – final notice

Consultations

The following are consultation papers that are currently open for responses and may be of relevance to some or all CSA members.

If an industry response is warranted and you want to contribute, please contact CSA head of policy, Henry Aitchison (henry.aitchison@csa-uk.com).

HMT: Statutory Debt Repayment Plan: consultation
Closing date: 5 August 2022

FOS: Future Funding Model: discussion paper
Closing date: 5 August 2022

EBA: Draft Implementing Technical Standards specifying the templates to be used by credit institutions
Closing date: 31 August 2022

Scottish Government: Moveable Transactions Bill
Closing date: 6 September 2022

Civil Justice Council: Costs Working Group: consultation
Closing date: 30 September 2022

Insolvency Service: Review of personal insolvency: call for views
Closing date: 24 October 2022