Compliance Roundup - 16 November 2022

In this issue:

FCA shares findings of its review of treatment of borrowers in financial difficulty
FCA Consumer Duty webinar available online
FOS comments on Consumer Duty
FCA chief data, information and intelligence officer delivers speech on regulation of AI
FOS shares latest newsletter
FCA enforcement - final notices and decision notices
Consultations

FCA shares findings of its review of treatment of borrowers in financial difficulty

The FCA has shared the key findings from its review of firms’ treatment of borrowers in financial difficulty after the Covid-19 pandemic.

The findings outline the areas and issues that financial services firms need to focus in order to improve outcomes. Areas for focus include firms’ engagement with customers, the effectiveness of firms’ conversations with their customers, how firms help customers to consider and access not-for-profit debt advice and fees and charges imposed on customers.

Alongside publication of their findings, the FCA reports that it told 32 firms to make changes and seven of those firms had voluntarily agreed to pay £12 million in compensation to nearly 60,000 customers.

The FCA report setting out its findings is available here. The press release regarding the reviewed firms’ actions can be found here.

FCA Consumer Duty webinar available online

The FCA recently hosted a webinar on Consumer Duty, specifically for the retail lending sector, during which they outlined their expectations for firms under the Duty and discussed its significance for the retail lending sector. The webinar also included questions submitted prior to and during the webinar. 

The webinar is now available on demand for those who were unable to attend and is available here.

FOS comments on Consumer Duty

At a recent event, Constance Chinhengo, ombudsman leader at the Financial Ombudsman Service (FOS) offered some comments on the incoming Consumer Duty. 

During the event, Chinhengo noted that the FOS is working closely with the FCA to ensure a consistent and complementary approach, and confirmed that they would not apply the duty retrospectively.

The comments are available on the FOS website here.

FCA chief data, information and intelligence officer delivers speech on regulation of AI

The FCA’s chief data, information and intelligence officer, Jessica Rusu, recently delivered a speech in which she discussed the regulation and risk management of artificial intelligence (AI) in financial services. 

The speech touches on a joint FCA and Bank of England survey on the use of machine learning and AI in financial services, which found that machine learning applications are now more advanced and increasingly embedded in day-to-day operations. Rusu also noted that the FCA had recently published a discussion paper on AI, inviting stakeholder input on the regulatory approach to AI.

The full text of the speech can be found here.

FOS shares latest newsletter

The Financial Ombudsman Service has published the latest edition of its newsletter.

Ombudsman News no. 175 includes a link to the most recent complaints data release, covering July-September 2022, and guidance around dealing with fraud and scams.

The latest newsletter can be found 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.

Ashkan Zahedian – 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). 

Money and Pensions Service: Call for advice on debt advice clients with deficit budgets
Closing date: 1 December 2022

FCA: CP22/19: Creation of a baseline financial resilience regulatory return
Closing date: 2 December 2022

ICO: Draft guidance on monitoring at work
Closing date: 11 January 2023

ICO: Draft guidance on use of workers’ health information
Closing date: 26 January 2023