Simon Collins: Clues to changes under new-look FCA
The change in leadership at the regulator may signal a revised approach towards supervision of firms
By Simon Collins 26
th January 2021 9:50 am
At the start of 2020, the FCA issued a number of ‘Dear CEO’ letters signposting the key issues it was going to be focusing on during the year, including customer detriment, implementation of the Senior Managers and Certification Regime, and culture to name a few.
That was, of course, pre-pandemic, which has had a material impact on how and where the regulator has deployed its resources.
A year on, despite the third lockdown, there is some degree of optimism we will be over the worst by the spring. With this in mind, it will be interesting to see where its attention will be focused going forwards, and whether we will see any differences in supervisory approach as new chief executive Nikhil Rathi gets his feet further under the table.
a multilateral MoU with EU and EEA NCAs covering supervisory cooperation, enforcement and information exchange between UK and EU/EEA national supervisors in the field of insurance regulation and supervision;
an MoU with the European Insurance and Occupational Pensions Authority (EIOPA) covering information exchange and mutual assistance between the UK authorities and EIOPA in the field of insurance regulation and supervision;
an MoU with the European Banking Authority (EBA) covering information exchange and mutual assistance between the UK authorities and the EBA in the field of banking; and
individual MoUs with EU and EEA NCAs covering supervisory cooperation and information-sharing arrangements in the field of banking. These can be found on the PRA website.
Thursday, January 7, 2021
31 December
The Brexit Transitional Period (pursuant to which the UK stayed in the Single Market and European Customs Union came to an end. The FCA updated its Brexit webpages to remind firms of the potential impact this will have.
30 December
In relation to Brexit, the UK-EU Trade and Cooperation Agreement was signed, which would apply from 1 January 2021.
28 December
The Prudential Regulation Authority ( PRA ) published a policy statement (PS29/20) on the implementation of the CRD V Directive (EU/2019/878) (
CRD V ).
24 December
In relation to Brexit, the United Kingdom and European Union agreed in principle a Trade and Cooperation Agreement, an Agreement on Nuclear Cooperation and an Agreement on Security Procedures for Exchanging and Protecting Classified Information.
Click the thumbs up >As the Financial Conduct Authority (FCA) ban on all discretionary commission (DiC) models in motor finance approaches, what are the alternatives for automotive
retailers?
The ban, from next January 28, follows consultation in October 2019 which was expected to result in a final decision in Q2, before COVID-19 held-up the FCA’s
decision-making process. Confirmation finally came through in July.
FCA interim chief executive Christopher Woolard said back then: “By banning this type of commission, where brokers are rewarded for charging consumers higher rates, we will increase competition and protect consumers.
“We estimate consumers could save £165 million due to the action we are taking.”
Click the thumbs up >Motor retailers have just weeks to get their house in order before clearer rules referring to finance commission disclosure come into effect.
By January 28, any dealer involved in brokering motor finance must have given “prominence” to the fact that they earn income from finance referrals. Upon
knowing this, it is possible a customer might choose to make alternative finance arrangements.
After the January date, retailers must include a disclosure statement in financial promotions or offers to customers.
One consultant told AM: “The Financial Conduct Authority (FCA) has assured the motor finance industry that this change to the rulebook is minor. Strictly speaking, this is true.