Regulation news: page 17
- August 2022
FPC withdraws affordability test Recommendation for mortgage lending
The Financial Policy Committee has withdrawn its affordability test Recommendation for mortgage lending from 1 August 2022, leaving the loan to income flow limit and the FCA's responsible lending rules in place.
TPR launches three-year strategy to tackle pension scams
The Pensions Regulator has launched a three-year strategy against pension scams, saying the cost of living crisis could leave more savers exposed to fraudsters targeting pension pots.
Which? responds to HM Treasury consultation on BNPL regulation
Which? has told HM Treasury that buy now pay later regulation is moving too slowly, should cover merchant-provided credit and short term interest free credit, and must not be held up by the Consumer Credit Act review.
- July 2022
FCA regulation of funeral plan providers begins
From 29 July 2022 the Financial Conduct Authority regulates firms and intermediaries providing and arranging pre-paid funeral plans, with FSCS protection for customers of authorised providers.
FCA publishes final rules and guidance for new Consumer Duty
The Financial Conduct Authority has published final rules and guidance for a new Consumer Duty, setting higher standards of consumer protection across financial services and giving firms until July 2023 to comply.
CMA issues Directions to Monzo Bank over transaction history failures
The CMA has issued Directions to Monzo Bank after it failed to send payment transaction histories to 13,566 account holders when their accounts closed between May 2021 and March 2022.
Guidance on leaseholder contribution caps first published
The government has published guidance setting out the maximum amounts qualifying leaseholders in England can be charged for non-cladding remediation, with caps based on property value and location.
Financial Services and Markets Bill published
The government published the Financial Services and Markets Bill on 20 July 2022, covering access to cash, scam reimbursement, stablecoin regulation, credit union products and the repeal of retained EU law.
Government response to draft Pensions Dashboards Regulations consultation published
The government has published its response to the consultation on the draft Pensions Dashboards Regulations 2022, setting out how the rules for the pensions dashboards service will be turned into law.
Consultation CP22/2 on further Confirmation of Payee participation closed
The Payment Systems Regulator's consultation on extending Confirmation of Payee closed on 8 July 2022, with plans to direct around 400 more payment firms to offer the name checking service.
Warm Home Discount (England and Wales) Regulations 2022 come into force
The Warm Home Discount (England and Wales) Regulations 2022 came into force on 7 July 2022, continuing the fuel poverty rebate scheme in England and Wales and setting a £150 prescribed rebate.
July Financial Stability Report introduces cost of living adjusted DSRs
The Bank of England's Financial Policy Committee introduced cost of living adjusted debt service ratios in its July 2022 Financial Stability Report, deducting taxes and essential spending from income to gauge debt affordability.
Bank of England introduces new household debt affordability measure
The Bank of England's July 2022 Financial Stability Report set out a new measure of household debt affordability that adjusts income for essential spending and taxes before judging repayment burdens.
Committee recommends the UK Government consider legislating to mandate LINK membership
The Scottish Affairs Committee has recommended that the UK Government consider mandating LINK membership for card issuers and ATM operators through the Financial Services and Markets Bill.
FCA becomes regulator of funeral plans
The Financial Conduct Authority became responsible for regulating pre-paid funeral plan providers in July 2022, after concerns about the conduct of some firms in the sector.
- June 2022
Leasehold Reform (Ground Rent) Act 2022 comes into force
The Leasehold Reform (Ground Rent) Act 2022 came into force on 30 June 2022, ending financial ground rent on most new long residential leases in England and Wales.
Phase 1 CoP technical environment closes
Pay.UK closed the Phase 1 Confirmation of Payee technical environment on 30 June 2022, creating a single operating environment for the name checking service used to prevent misdirected payments and fraud.
Building Safety Act 2022 leaseholder protections come into force
Financial protections for leaseholders in buildings at least 11 metres or five storeys high with historical safety defects took effect on 28 June 2022 under the Building Safety Act 2022.
Further consultation on Pensions Dashboards Regulations launched
The Department for Work and Pensions opened a second consultation on the draft Pensions Dashboards Regulations 2022 on 28 June 2022, covering the Dashboards Available Point and information sharing between MaPS and TPR.
FCA announces data-led approach to tackling online scams faster
The Financial Conduct Authority is scanning about 100,000 new websites a day to spot apparent scams and asking hosts to shut them down, as part of an update on its data strategy.
Research quantifies local poverty premium across Britain
Research from Fair By Design and the University of Bristol puts the cost of the poverty premium at £4.5 million a year for each parliamentary constituency and £2.8 billion for the national economy.
Financial Policy Committee confirms withdrawal of affordability stress test Recommendation
The Financial Policy Committee confirmed it will withdraw its mortgage affordability stress test Recommendation, with the change taking effect from 1 August 2022, following a consultation in February.
Government publishes response to BNPL regulation consultation
HM Treasury has published its response to the consultation on regulating buy now pay later, setting out a wider scope that includes short-term interest-free credit from third-party lenders, with further information requested by 1 August 2022.
UK Government sets out plans to regulate Buy-Now-Pay-Later
The Treasury set out plans on 20 June 2022 to bring buy now pay later lending under FCA regulation, with affordability checks, Ombudsman access and draft legislation due later in the year.
Government announces intention to reform the Consumer Credit Act
The government announced on 16 June 2022 that it intends to reform the Consumer Credit Act 1974, the law covering credit cards, personal loans and consumer hire agreements, with a first consultation to follow.
FCA consults on updates to branch and ATM closure guidance
The Financial Conduct Authority consulted from 14 June to 26 July 2022 on updated guidance for bank branch and ATM closures, proposing to treat long-term cuts to opening hours or services as partial closures.
FOS publishes Discussion Paper on future funding model
The Financial Ombudsman Service has published a Discussion Paper on possible changes to how it is funded, proposing that the levy on firms recover its fixed overheads and that case fees be restructured.
Consultation published on protecting customers claiming tax repayments
A June 2022 consultation sought views on restricting repayment agents' use of assignments over income tax repayments, a practice later rendered void from 15 March 2023.
FCA consults on updated guidance for firms on branch and ATM closures or conversions (GC22/2)
The Financial Conduct Authority has opened a consultation on updated guidance for banks and building societies on branch and ATM closures, extending its expectations to partial closures and other changes.
FCA sends Dear CEO letter to more than 3,500 retail lending firms on supporting customers in financial difficulty
The Financial Conduct Authority wrote to more than 3,500 retail lending firms in June 2022 setting out its expectation that they support customers in financial difficulty, including those affected by the rising cost of living.