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The FCA delivered a presentation outlining the key points of the directive at the Financial Services Expo earlier this week.

 Due to the comprehensive regulation in place in the UK the directive will mainly affect lenders, but brokers may be forced to make additional declarations under the new rules.

The European Parliament is expected to pass the directive in a vote later this year. From that date the UK will have just over two years to comply with the new rules.

The FCA have now released the consumer credit consultation paper which details the proposed changes which will take place when regulation switches from the OFT to the FCA on 1^st April 2014.  

All firms who hold a current Consumer Credit Licence received a letter from the Financial Conduct Authority earlier this year advising they will take over regulation of consumer credit activities from the Office of Fair Trading (OFT) on the 1st April 2014.

A further letter is now being sent informing licence holders to ensure that their details are up-to-date. You can check your details here . Licence holders will be required to register with the FCA for ‘interim permission’ from September 2013 onwards.
 

A new debt management plan protocol has been launched to give greater protection to consumers who pay for debt management advice.  It ensures consumers using a debt management provider who is subject to this protocol receive a high standard of service that is fully compliant and in their best interest.

The FSA has released the final MMR rules today, the FSA is looking to bring order and put more common sense into the market and provide more protection for consumers.  

The rules come into force on the 26^th April 2014, most of which relate to lenders, we have summarised below the key points for intermediaries. Over the coming months we will examine the rules in detail and all H3 clients will be made aware of the changes and requirements and be fully prepared for the changes in April 2014

The FSA has announced a further delay to the introduction of the proposed CF31 function that would allow it to track individual mortgage advisers in the same way that it does for investment advisers.

If you have read the news over the last couple of days you will have seen the recent press release regarding the clampdown on incentives.  The BBC report states “The UK's financial watchdog is calling for a clampdown on commissions paid for selling insurance, loans and bank accounts.”

However this is not true!

Do you currently hold one of the old consumer credit licences which show permissions for multiple categories you never use?  It will no doubt be due for renewal soon, and you will need to apply for the categories you use.  We have detailed the main points to consider when applying for a consumer credit licence or renewing one.

Once the Financial Conduct Authority (FCA) and Prudential Conduct Authority (PRA) take over firms will be required to update any regulatory status disclosures on paperwork.  This includes the FSA logo if used on letterheads or electronic equivalent.   

Firms should take this into consideration when ordering stationery particularly if ordering in bulk. The FSA will be consulting with firms regarding this and expect to do so in September 2012.  

With effect from 6th April 2012 sales of Payment Protection Insurance (including MPPI, short term income protection and AS/ASU type cover) will be subject to new restrictions under the Competition Commission's 2011 PPI Market Investigation Order