WEEKLY REGULATORY UPDATE: 29TH OCTOBER 2015
The following is a summary of the pronouncements issued since our last weekly
regulatory update for the financial services sector.
Financial Conduct Authority (FCA)
Consultation Papers
CP15/33
Consumer credit: proposals in response to the CMA’s recommendations on high-cost shortterm credit
Overview
This Consultation Paper is issued in response to the Competition and Markets Authority (CMA) final report into
payday lending, published in February 2015. It contains proposals for additional standards for price comparison
websites (PCWs) which compare high-cost short-term credit (HCSTC) products and invites views on them. The
Consultation Paper also addresses a number of other areas: the use of real-time data sharing to enable informed
credit assessments, measures to improve shopping around without affecting consumers’ credit ratings, improved
disclosure on the costs of borrowing, and credit broking/lead generation.
Applicable to
• Authorised firms with permissions relating to high-cost short-term credit and credit broking, including firms with
interim permission.
• Firms that are applying for, or considering applying for, authorisation to carry out these activities
Next Steps
Responses are requested by 28 January 2016.
Policy Statements
CP15/33
Consumer credit: proposals in response to the CMA’s recommendations on high-cost shortterm credit
Overview
This document explains how the 2015/16 PSR regulatory fees will be calculated and collected from participants in
regulated payment systems. These fees will be used to fund the PSR’s activities in 2015/16, and to cover the costs
of setting up the PSR.
Applicable to
Participants in regulated payment systems, and in particular PSPs which operate in the UK
Next Steps
Operators and fee-paying PSPs need to make sure that they meet the deadlines in the paper.
This communication is intended to provide general guidance on matters of interest and you should not act or refrain
from acting upon any information contained on it without seeking appropriate professional advice on the particular
facts and circumstances at issue.
Details of the UK group of companies and LLPs trading as RSM can be found by following this link:
www.rsmuk.com/email-disclosure
Final Notices
Notice Served Upon:
Sanction:
Reason:
Magnus Michael Peterson
The FCA has banned Magnus
Michael Peterson, from performing
any function related to any regulated
activity
Mr Peterson was convicted of a range
of fraud offences through his hedge
fund resulting in losses to clients of
approximately $536m
Andrew Peter Wilkins
The FCA has imposed a financial
penalty of £50,000
As a Director of Catalyst Investment
Group Limited, Mr Wilkins had failed
to act with due skill care and diligence
in managing Catalyst’s business, and
thereby breached Statement of
Principle 6
Handbook Notice
• Handbook Notice 26 – The FCA Board have made changes to several instruments which includes:
CP
Title of Instrument
Instrument No.
Change Effective
15/4
Accountability and Whistleblowing Instrument 2015
2015/46
7/03/16; 7/09/16
Handbook Administration (No 39) Instrument
2015
2015/50
23/10/15; 1/11/15; 7/3/16;
15/19
Corporate Governance Code and Miscellaneous
Amendments Instrument 2015
2015/51
23/10/15; 1/12/15
15/26
Fees (Payment Systems Regulator) (Indirect
Billing) Instrument 2015
2015/52
27/10/15
14/27
Reporting Requirements: Compliance Reports
(Amendment) Instrument 2015
2015/53
23/10/15
N/A
21/3/16; 1/4/16
News
• Payday lender Dollar to provide £15.4 million redress to over 147,000 customers – Dollar Financial UK trading
as The Money Shop, Payday UK, Payday Express and Ladder Loans has agreed with the FCA to refund over £15.4
million to 147,000 customers, who may have suffered detriment as a result of the firm’s affordability checks, debt
collection practices and systems errors.
Speeches
• Disruptive innovation in financial markets, a speech by Mary Starks, Director of Competition at the FCA –
The speech confirms that the FS sector is seeing lots of innovation in Fintech, and that the FCA has an important
role in enabling that. The FCA is also seeing plenty of disruption. So far though Fintech is keeping traditional
financial services on its toes rather than yet posing an existential threat.
Prudential Regulation Authority (PRA)
Consultation Papers
Weekly Regulatory Update | 2
CP40/15
The PRA Rulebook: Fees
Overview
This consultation paper sets out the PRA’s proposals to redraft the FEES module of the Handbook to conform to the
Rulebook style.
The PRA intends to replace the rules and guidance set out in the FEES module of the Handbook with a new Fees
Part of the PRA Rulebook. The PRA’s approach has been to divide the existing Handbook material into five topicbased chapters
Applicable to
All PRA‐authorised firms.
Next Steps
Responses are requested by 29 December 2015
Payment Systems Regulator (PSR)
• Nothing new issued
Building Societies Association (BSA)
Policy Briefs
• Capital Requirements Regulation and Directive (CRD 4) – This policy brief confirms the PRA's response to the
European Commission and how it sets out its case for a more proportionate regulatory regime, in capital
requirements.
• Direct recovery of debts – The policy brief confirms that near final guidance notes, templates and letters are
available for review.
• PRA regulatory fees and levies rates proposals 2015/2016 - This policy brief confirms details on the PRA
issuing a consultation paper on restructuring the fees part of the Rulebook. It contains no changes to fees or
method of calculation.
• Strengthening Accountability In Banking: BSA practical resource - The strengthening accountability in banking
practical resource webpage has been updated to provide version 3 of the BSA Issues Log and the presentations
from last week's two-day BSA seminar on the subject.
• Help to Buy ISA - The policy brief has been updated to confirm final version of both scheme rules and guidance
are now available.
• Smart Consumer Communications Consultation – This is a new policy brief created in line with the FCA
consultation which proposes to delete the Initial Disclosure Document (IDD) and Combined Initial Disclosure
Document (CIDD) templates from MCOB and ICOBS.
• FCA cash savings market study – The policy brief has been updated to confirm that the FCA will be issuing an
information request to some members offering easy access savings products and easy access cash ISAs.
Council of Mortgage Lenders (CML)
• Buy-to-let: statement of practice – This statement of practice outlines the overarching principles of CML
members’ general approach to buy-to-let (BTL), including the sale and administration of BTL mortgages excluded
from the regulatory scope of the Financial Conduct Authority (FCA). It is intended to ensure that BTL borrowers
understand their lender’s responsibilities as well as their own, and sets out information customers can expect to be
provided with by the lender, either directly or via an intermediary.
Association of Financial Mutuals (AFM)
• Nothing new issued.
Weekly Regulatory Update | 3
HM Revenue & Customs (HMRC)
• Nothing new issued.
Financial Ombudsman Service (FOS)
• Nothing new issued.
Information Commissioner’s Office (ICO)
• ICO issues £200,000 fine for unsolicited text messages – Help Direct UK Ltd, a Swansea-based lead generation
company has been fined £200,000 by the ICO for sending out thousands of unsolicited marketing text messages. A
marketing campaign run by the company in April 2015 prompted 6,758 complaints in just one month. People
complained about a variety of messages offering services including the reclaim of PPI payments, bank refunds and
loans.
National Crime Agency (NCA)
• Nothing new issued.
Joint Money Laundering Steering Group (JMLSG)
• Nothing new issued.
This Regulatory Update includes pronouncements up to 10.30 am on 29 October 2015. Any relevant pronouncements issued after
this time will be included in our next regulatory update. This list is not exhaustive and should not be seen as a substitute for
reviewing all such documentation. For further information, please contact: Lesley Thacker at Lesley.Thacker@rsmuk.com