Comment from John Doyle
The financial services industry is undergoing major changes due to the pandemic which will shape the future of financial services in the future.
Branch closures are speeding up as banks try to move customers online.
Fintech’s are gearing up to make huge inroads into the API world to provide consumers with the tools they need to manage their finances.
The regulators have pushed for a number of initiatives are dealt with speedily, here’s an update of their current projects, click on the image to see the August update.
FCA publishes consultation on treating vulnerable consumers fairly
On 29 July the FCA published draft guidance to set out what firms should do to ensure they are treating vulnerable consumers fairly.
Protecting vulnerable consumers is a key focus for the FCA. More than 24 million people display one or more potential characteristics of vulnerability. Over a million people received debt advice last year. These figures do not reflect the impact of coronavirus (Covid-19), and the pandemic has only highlighted the importance of vulnerability. Sadly, the pandemic means many more people will now be struggling with their finances.
The FCA accompanied their guidance with Financial Lives research which paints a clearer picture of vulnerable consumers’ experiences of dealing with financial services firms. Many firms do excellent work to support their vulnerable customers. But the FCA also found some examples of firms either not considering consumers’ vulnerability or even actively exploiting it for gain. The FCA want vulnerable consumers to experience outcomes as good as other consumers and to receive consistently fair treatment across the firms and sectors we regulate.
The fair treatment of vulnerable consumers applies to all firms serving individuals and retail customers. The FCA encourage you to read the guidance and research and consider how to use it to respond to the needs of your vulnerable customers.
You can also watch our short video to see how the guidance affects you and the actions you can take.
The UK left the EU on 31 January 2020 and entered a transition period which is due to end on 31 December 2020. The FCA have published more information for firms.
Find out what this means for firms and consumers on the FCA Brexit pages.
Preparing for the end of the transition period
The FCA have published updated information about preparing for all scenarios at the end of the transition period for firms and consumers. Find out more:
E-Commerce Directive - changes at end of transition period
The E-Commerce Directive (ECD) provides an exclusion for e-commerce activities given from one EEA State to a person in another EEA State. After the end of the transition period, the ECD exclusion will no longer apply for cross-border activities between the UK and the EEA, and UK and EEA-based firms will no longer be able to use it. If you think you will be affected by this change, you can find more information on the FCA website.
Memoranda of Understanding (MoUs) with ESMA and EU regulators
The FCA issued a joint statement with ESMA on the application of MoUs covering cooperation and exchange of information at the end of the transition period.
Industry testing - FCA FIRDS and FITRS
As part of the next phase of developing the UK MiFID regime, which will come into application after the end of the transition period, industry testing for FCA FITRS (Financial Instruments Transparency System) opened on 05 October. More information is available on the FCA website. FCA FIRDS (Financial Instruments Reference Data System) continues to be available for testing.
DP20/2: A new UK prudential regime for MiFID investment firms
The FCA published a Discussion Paper (DP) to gather industry feedback on the potential contents of a UK prudential regime specifically for firms currently authorised under MiFID. This is the first step in developing and introducing such a regime in the UK. The DP also describes the new EU Investment Firm Directive and Regulation.
On 17 August, the FCA hosted the Prudential requirements for MiFID investment firm’s webinar. Register to watch the on-demand version of the webinar, by creating a user profile on our the new FCA webinar portal, validate your email and then select the webinar you would like to view.
The FCA are asking for feedback to the DP by 25 September 2020 and responses will be used to help inform a follow-up consultation. They have produced a table to aid firms identify the most relevant content of the DP for their business model and size.
You can use the email address on the FCA website to respond to the DP.
FCA Weekly News and Publications Alerts
Trying times whilst at the same time trying to protect businesses and staff. Keep up to date with news and publications from the FCA.
Highlights this week
Request to Pay Webinar
The Payments Business is running a webinar on December 11th on Request to Pay. Speakers will include experts in R2P from the industry.
Attendees will receive a video of the webinar and documentation from all the speakers as well as a How to Guide, prepared by one of our associates.
More details and registration opens on November 11th 2020. If you want to be part of this webinar contact John Doyle.
As technology futurist Kevin Kelly would say, right now is the best time to start a new business. Unfortunately, many potential founders, like my friend, are fearful. This is not anecdotal. Between 1978 and 2012, the number of new companies declined by nearly 44 percent, according to the Kauffman Foundation.
Through the EPA Recovery Toolkit the EPA will provide access to helpful insight and resources whilst offering a platform for our members to collaborate and showcase what they are doing for the industry during these challenging times.
The Payments Business is partnering with @OpenBankingExpo Canada to give you 20% off your ticket price. Book now to discover what the innovators, visionaries and disruptors have to say on all things Open Banking at this 3 day virtual event. Join like-minded executives during the power networking hours, or hop onto 121 video calls with fellow attendees, speakers and partners. November 3-5. Use discount code ‘PAYB20’ now.
Hot on the heels of his success at Worldpay, followed by ClearBank, Nick Ogden launches RTGS Global. The company aims to provide global settlement as an agnostic service as opposed to a national service managed by central banks.
You may not be directly involved in RTGS but what he’s attempting to do is ground breaking and deserves some study.
Nick Ogden is the Branson of Financial Services; what next?
The Payments Business Update
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