FCA is seeking input on the further support that is needed for consumers coming to the end of a second payment deferral under the temporary guidance to firms on providing payment deferrals for mortgage and consumer credit products. FCA is also seeking views on whether it should extend the current guidance beyond the deadline of October 31, 2020. This call for input will be of interest to credit providers, mortgage providers, and consumer groups, with the deadline for response on the call for input being August 07, 2020.
FCA issued various measures to help consumers affected by the impact of COVID-19 pandemic. These include temporary guidance setting out how FCA expects firms to support mortgage and consumer credit customers facing temporary payment difficulties because of the pandemic. FCA had recently confirmed that the temporary guidance would remain in effect until October 31, 2020. However, many consumers that have been given a second payment deferral under the temporary guidance will have deferrals that end from September onward. The purpose of this call for input is to:
- Explore the support still needed by consumers that have already benefited from the temporary guidance but remain in difficulty
- Seek views on a number of propositions that FCA considers should underpin this next phase of support
- Understand the challenges firms might face, understand how they are planning to deliver good consumer outcomes, and identify what further guidance they need
- Seek early views on the factors that should inform the decision on whether to extend the guidance, or provide an alternative form of support, beyond October 31, 2020
If responses show that further guidance is needed, FCA will publish draft guidance related to mortgages and consumer credit. The draft guidance for mortgages will be published in late August, with the final guidance to be published in early September. Additionally, the draft guidance on consumer credit will be published in mid-September, with the final guidance to be published in late September 2020.
Comment Due Date: August 07, 2020
Keywords: Europe, UK, Banking, COVID-19, Credit Risk, Consumer Credit, Loan Moratorium, Mortgage Lending, FCA
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleEIOPA Launches Solvency II Single Rulebook for Insurance Sector
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)