Featured Product

    FCA Consults on Minor Changes to Its Handbook

    October 21, 2020

    FCA is consulting on some minor changes to its Handbook as a result of the Breathing Space Regulations (the Regulations), which are expected to come into force in May 2021. This consultation applies particularly to consumer credit lenders and debt collectors, but is relevant to all regulated firms that need to comply with both FCA Handbook and the Regulations. It is also relevant to interested consumer groups and local authorities that give debt advice to consumers in England and Wales. FCA is requesting comments on this consultation by January 06, 2021.

    The Regulations establish a scheme in England and Wales, giving someone in problem debt the right to legal protections from creditor action for up to 60 days while they receive debt advice and potentially enter an appropriate debt solution. A consumer can only access the breathing space moratorium after being advised and assessed as eligible by an FCA-authorized debt advice firm or a local authority or by accessing a mental health crisis moratorium. There is no 60-day limit to a mental health crisis moratorium period, which will usually end 30 days after the mental health crisis treatment has concluded. FCA wants to make sure that firms have clarity on how its rules interact with these Regulations. The moratorium includes protection from creditor action for most personal debts, including financial services debt, household bill arrears, and most public sector debt. Protections are not extended to mortgage payments on the principal and interest, but they do extend to payment of mortgage arrears not capitalized and interest, fees or any other charges on those arrears.

    The consultation explains why changes are not needed to the Mortgages and Home Finance: Conduct of Business Sourcebook (MCOB) or the debt advice rules in the Consumer Credit Sourcebook, or CONC, and is of interest to regulated firms that will need to comply with the Regulations and those rules, including firms such as mortgage lenders or administrators subject to MCOB and authorized debt advice firms including not-for-profit debt advice bodies subject to the Consumer Credit Sourcebook. However, there are a number of areas in the Consumer Credit Sourcebook where FCA thinks it is necessary to clarify how the rules apply where the Regulations also apply and to avoid duplicating the effects of the Regulations in a disproportionate way. This consultation invites responses on the proposed changes to the FCA Handbook. It does not advise on interpreting or applying the Regulations. The government intends to publish guidance on the Regulations for creditors and organizations giving debt advice.


    Related Links

    Comment Due Date: January 06, 2021

    Keywords: Europe, UK, Banking, Credit Risk, Moratorium, Consumer Credit, FCA Handbook, FCA

    Related Articles
    News

    HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs

    HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.

    February 24, 2021 WebPage Regulatory News
    News

    BoE Sets Out Plan to Transform Data Collection from Financial Sector

    BoE has set out a three-phased plan to transform data collection from the UK financial sector over the next decade.

    February 23, 2021 WebPage Regulatory News
    News

    BIS Issues Updates on Technology Initiatives on Cross-Border Payments

    BIS recently made a couple of announcements with respect to the planned and ongoing work in the area of financial technology.

    February 23, 2021 WebPage Regulatory News
    News

    ESRB Updates List of Macro-Prudential Measures in February 2021

    ESRB updated the list of national macro-prudential measures applied by each member state in the European Economic Area.

    February 22, 2021 WebPage Regulatory News
    News

    BoE Survey Shows Positive COVID Impact on Outsourced Banking Services

    BoE has set out results of a survey on the impact of COVID-19 events on the use of machine learning and data science.

    February 22, 2021 WebPage Regulatory News
    News

    ECB Issues Opinion on Proposal to Regulate Crypto-Asset Markets in EU

    In response to a request from the European Council and Parliament, ECB published an opinion on the proposed regulation on markets in crypto-assets.

    February 22, 2021 WebPage Regulatory News
    News

    APRA Announces Aggregate Committed Liquidity Facility for Banks

    APRA announced the updated aggregate amounts for the 2021 Committed Liquidity Facility (CLF) established between the Reserve Bank of Australia (RBA) and certain locally incorporated authorized deposit-taking institutions that are subject to the Liquidity Coverage Ratio (LCR).

    February 19, 2021 WebPage Regulatory News
    News

    ECB and UK Authorities Agree on Post-Brexit Supervisory Cooperation

    ECB published supervisory Memorandums of Understanding (MoUs) with UK as well as other European and non-European authorities.

    February 19, 2021 WebPage Regulatory News
    News

    EIOPA Outlines Strategic Supervisory Priorities for Insurance Sector

    EIOPA identified business model sustainability and adequate product design as the two EU-wide strategic supervisory priorities.

    February 19, 2021 WebPage Regulatory News
    News

    US Agencies to Revise FFIEC 031, FFIEC 041, and FFIEC 051 Reports

    After considering comments received on the November 2020 proposal, US Agencies (FDIC, FED and OCC) are proceeding with the proposed revisions to the reporting forms and instructions for Call Reports FFIEC 031, FFIEC 041, and FFIEC 051.

    February 19, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6618