FCA Consults on Various Handbook Amendments
FCA published a quarterly consultation paper that proposes miscellaneous amendments to the FCA Handbook. The consultation paper covers proposed changes resulting from the Corporate Insolvency and Governance Bill (Chapter 2), proposals to amend the Consumer Credit Sourcebook as a result of the Bounce Bank Loan Scheme (Chapter 3), and proposed changes to the Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision Sourcebook (Chapter 4). Additionally, FCA notified that it will ask 13,000 firms to complete a short survey to obtain a more accurate view of firms’ financial resilience as a result of COVID-19. The survey will be sent to firms between June 04, 2020 to June 08, 2020.
On May 20, 2020, the government announced that it had introduced the Corporate Insolvency and Governance Bill in Parliament, which will put in place a series of measures to amend insolvency and company law to support business to address the challenges resulting from the impact of COVID-19 pandemic. The proposed changes include an amendment to the Insolvency Act 1986 to introduce a new moratorium for certain companies that are insolvent or likely to become insolvent and where rescue as a going concern is a reasonable prospect. Following the proposed changes to the Insolvency Act 1986, FCA proposes to amend the Compensation Sourcebook Part of the FCA Handbook (COMP). FCA is proposing this amendment to make it clear that in accordance with those rules the Financial Services Compensation Scheme (FSCS) can declare a firm or a successor that is subject to the new moratorium to be in default and can, therefore, pay compensation to eligible customers of the firm or successor, if it considers it appropriate to do so (Chapter 2 of consultation paper).
On May 04, 2020, the government formally launched the Bounce Back Loan Scheme (BBLS) to offer small businesses facing significant financial difficulties additional support during the COVID-19 crisis. In light of amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO), in Chapter 3 of the consultation paper, FCA proposes to amend Chapter 7 (Arrears, default, and recovery including repossessions) of the Consumer Credit Sourcebook (CONC) to ensure that the chapter applies to lenders in relation to credit agreements that are exempt agreements by virtue of the amendments to the RAO. In Chapter 4 of the consultation paper, FCA is consulting on changes to the Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision (OPBAS) Sourcebook for professional body supervisors..
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Comment Due Date: July 05, 2020/July 31, 2020
Keywords: Europe, UK, Banking, Securities, COVID-19, AML/CFT, FCA Handbook, Bounce Back Loan Scheme, Loan Moratorium, Consumer Credit Sourcebook, FCA
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