Category: Consultation

Posted on

FCA consults on changes to CONC 7 following the introduction of the Bounce Back Loan Scheme

On 5 June 2020, the UK Financial Conduct Authority (the FCA) published a quarterly consultation, CP20/7, proposing to make changes to Chapter 7 of the Consumer Credit Sourcebook (CONC).

The proposed changes to CONC follow the introduction of the UK Government’s ‘Bounce Back Loan Scheme’ (or BBLS) which introduced a new category of exempt credit agreement in Article 60C(4A) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (the RAO) (for more, please see our earlier blog post). But the RAO did not exempt the collecting of debts due under such BBLS loans.

The draft instrument proposes to amend CONC so that:

– CONC 7.12 is extended so it applies to firms who would be consumer credit lending but for the changes made to the RAO for BBLS loans; and

– the expression ‘regulated credit agreement’ is expanded to include an exempt agreement under Article 60C(4A) of the RAO (but not in CONC 7.1.5G, CONC 7.6 and CONC 7.7.4G).

The deadline for responding to the consultation is 5 July 2020.

Posted on

Payment Systems Regulator updates its webpage setting out its expectations of firms during the COVID-19 pandemic

On 1 May 2020, the UK Payment Systems Regulator updated its webpage setting out its general expectations of payment firms in light of the global pandemic, COVID-19.

The PSR expects firms to “be taking reasonable steps to ensure they are prepared to meet the challenges coronavirus could pose to customers and staff” and “report to us immediately if they believe they will be in difficulty or if circumstances could lead to them being unable to offer the full range of their services“.

Posted on

Law Commission publishes its report on the electronic execution of documents

On 4 September 2019, the Law Commission published a webpage summarising its findings following its report into the electronic execution of documents. The webpage includes a very useful summary of the law. This broadly says that electronic signatures are generally (except for some exceptions) lawful and do not need to be signed in a particular way. But there are more complications for deeds which must be signed in the presence of the witness.

The Law Commission has recommended setting up a working party to consider some practical solutions (for example, video witnessing of deeds) and a further review of the law on deeds.

You can download:

– the summary paper by clicking here; or

– the full report by clicking here.

Posted on

HM Treasury publishes response to breathing space scheme framework

In June 2019, HM Treasury published its response to the breathing space proposal.

Under the proposal, an individual will be eligible if:

– they’ve accessed debt advice;

– they’ve been assessed as being in ‘problem debt’ by a debt adviser; and

– they’ve not entered into ‘breathing space’ within the last twelve months.

Borrowers must continue to be eligible during the breathing space; this will involve a 30 day check.

The proposed definition of ‘problem debt’ includes a borrower who is having difficulty paying their debt and has sufficient difficulty that they stand a realistic chance of entering into a debt solution (for example, a debt management plan).

There will be no right for a lender to challenge whether a borrower is eligible.

The scheme will be administered using a portal (which will tell lenders when a borrower has entered, and left, a breathing space). The register will, however, be private: lenders will only be able to check other debtors.

For the period of the breathing space, a lender will not be entitled to charge interest, fees and charges. Lenders will also not be entitled to start court proceedings. And enforcement of judgments will also be paused during the breathing space.

The period for breathing space will be 60 days.

HM Treasury proposes to publish drafting regulations by the end of 2019 with a go-live date of early 2021.

Posted on

Payment Systems Regulator consults on a specific direction on the implementation of the confirmation of payee service

On 9 May 2019, the UK Payment Systems Regulator (the PSR) published its response to the first consultation on the proposed implementation of the confirmation of payee service, and published a new consultation on a specific direction on the implementation of the service.

After considering the feedback, the PSR has refined its approach. It has decided to give a specific direction to Lloyds Group, Barclays Group, HSBC Group, Royal Bank of Scotland Group, Santander Group and Nationwide Building Society (being the six largest payment services providers).

The proposed effect of the specific direction is to require:

– From 31 December 2019: the directed PSPs must respond to compliant confirmation of payee requests; and

– From 31 March 2020: the directed PSPs must send confirmation of payee requests and present responses to their customers.

The consultation period ends on 5 June 2019.

Posted on

European Commission consults on the effectiveness of the Distance Marketing Directive

On 9 April 2019, the European Commission started a consultation on the effectiveness of the Distance Marketing of Financial Services Directive 2002/65/EC (the DMD).

The European Commission’s webpage says the goal of the consultation is to “ensure that all relevant stakeholders have the opportunity to express their views on the effectiveness of the Directive”.

The Commission’s webpage goes on to say that since the DMD came into force, “the retail financial sector has gone increasingly digital, with new products and actors available on the market and new sales channels being used. Several EU laws pertinent to financial services have also been adopted or updated”.

The deadline for responding to the consultation is 2 July 2019. The European Commission expects to publish its findings and conclusions by the end of 2019.

The DMD was last reviewed by the Commission in 2009.