Legal issues for the UK motor finance industry
Earlier today, on 28 July 2020, the FCA published a policy statement, PS20/8, banning motor finance discretionary commission models and making minor changes to commission disclosure rules. The FCA also published a press release.
My one page summary is (and you can see a bigger version if you click on it):
If you want a pdf copy, please get in touch: russell.kelsall@TLTsolicitors.com.
Earlier this week, on 20 July 2020, HM Treasury published a policy statement setting out the changes the Government proposes to make on the process for cancelling an authorisation from the UK Financial Conduct Authority.
The Government plans to take forward these measures when Parliamentary time allows.
These changes will only impact firms regulated by the FCA (and not dual regulated firms).
Earlier this week, on 20 July 2020, HM Treasury published a consultation on the regulatory framework for the approval of financial promotions.
HM Treasury says that experience in recent years suggests the regime needs “additional safeguards to ensure that approval by an authorised person is a genuinely effective means of ensuring that consumers are protected from deficient or potentially harmful financial promotions“.
To strengthen the Financial Conduct Authority’s ability to ensure the approval of financial
promotions operates effectively, the Government proposes to establish a regulatory ‘gateway’, which a firm must pass through before it is able to approve the financial promotions of unauthorised firms. Any firm wishing to approve the financial promotions of unauthorised firms would therefore first need to obtain the FCA’s consent.
The deadline for responding is 12pm on 25 October 2020.
Earlier today, on 15 July 2020, the UK Financial Conduct Authority published updated temporary guidance to motor finance and high-cost credit firms dealing with customers needing COVID-19 related payment deferrals.
There’s updated guidance for motor finance, for high-cost short-term credit and for rent-to-own, buy-now pay-later and pawnbroking agreements. There’s also a short feedback statement.
My one page summary is (and you can see a bigger version if you click on it):
If you want a pdf copy, please get in touch: russell.kelsall@TLTsolicitors.com.
Issue 111 of Butterworths Financial Regulation Service has now been published. I’ve reviewed and revised the introductory chapter on CONC and the chapters on CONC 1 to 4, 5A to 5D and 9. I’ve also written new material including:
– a new chapter on CONC 7 (including looking at the impact of the FCA’s COVID-19 related temporary measures); and
– a new chapter on CONC 11 (dealing with cancellation of certain agreements)
The commentary on Division 4H is now up to date to April 2020.
Earlier today, on 3 July 2020, the UK Financial Conduct Authority issued a consultation on draft updated temporary guidance to motor finance and high-cost credit firms dealing with customers needing COVID-19 related payment deferrals.
There’s draft guidance for motor finance, for high-cost short-term credit and for rent-to-own, buy-now pay-later and pawnbroking agreements. There’s also a draft handbook instrument.
My one page summary is (and you can see a bigger version if you click on it):
If you want a pdf copy, please get in touch: russell.kelsall@TLTsolicitors.com.