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On 9 April 2019, the European Commission published a new webpage detailing a consultation on the Distance Marketing Directive (the Directive). The Commission notes that since 2002, when the Directive 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 Commission is consequently launching an…
On 4 April 2019, the European Supervisory Authorities published additional Q&As on the key information document (KID) requirements for packaged retail and insurance-based investment products. Answers to the following questions have been added: What aspects should be considered by the manufacturer when determining the recommended holding period of a PRIIP? Which form and name should the ‘specific information on each underlying investment option’, referred to in Article 14(1) of the Delegated Regulation 2017/653, take?…
On 2 April 2019, the European Securities and Markets Authority (ESMA) published an opinion on the product intervention measure relating to binary options proposed by the FCA. Our blog on the FCA ban on the sale of binary options to retail clients can be found here. National competent authorities (NCAs) may take product intervention measures in accordance with Article 42 of MiFIR. At least one month before a measure is intended to take effect,…
On 29 March 2019, the FCA published Policy Statement 19/9: Applying the Senior Managers and Certification Regime to Claims Management Companies (PS19/9). In PS19/9 the FCA sets out how it will apply the Senior Managers and Certification Regime (SM&CR) to claims management companies (CMCs) and their staff. The new regime will start to apply to CMCs from 9 December 2019. The FCA previously consulted on how it will apply the SM&CR to CMCs in Consultation
On 28 March 2019, the European Securities and Markets Authority (ESMA) published updated Q&As on MiFID II and MiFIR investor protection and intermediaries topics. A number of new Q&As have been introduced, together with a number of modified Q&As. New Q&As introduced by the update address: the RTS 27 reporting requirements for market makers and other liquidity providers; the suitability report: use of generic statements; the level of individualisation of ex-ante information; conditions to be…
Last night, the House of Commons (the Commons) held a series of indicative votes following its resolution of 25 March 2019 which provided for a series of votes on ways the Government could proceed as regards its Brexit strategy. Earlier in the day, the Commons debated the Business of the House motion stemming from the Commons’ resolution, setting out the ground rules for the voting. The Business of the House motion was passed without amendment.…
On 26 March 2019, the FCA published Consultation Paper 19/14: Mortgage customers: proposed changes to responsible lending rules and guidance (CP19/14). By way of background, the FCA is concerned that some consumers cannot switch to a more affordable mortgage despite being up-to-date with their mortgage payments. This includes those who cannot switch because of changes to lending practices during and after the 2008 financial crisis and the subsequent regulation that tightened lending standards – ‘mortgage…
On 26 March 2019, the FCA published its final report on the mortgage market study. The FCA found that the mortgage market works well in many respects. Engagement is high and consumers are getting mortgages that are suitable and affordable. However, the FCA also found that the mortgage market falls short of its vision in certain ways leading to harm for some consumers who pay more than they need to for their mortgage. There are…
On 25 March 2019, the FCA published its final report (the Report) on its review of retained provisions of the Consumer Credit Act 1974 (CCA). The FCA took over responsibility for regulating consumer credit in April 2014. As part of the transfer, Parliament repealed some CCA provisions and some were replaced by FCA rules. The FCA was then required to undertake a review of the remaining provisions – this Report follows on from the FCA’s…
On 22 March 2019, the FCA published a Dear CEO letter concerning managing the risks of defined benefits to defined contribution transfers. The Dear CEO letter explains that over the past year the FCA has carried out work to evaluate and reduce the risks of harm to consumers arising from the transfer of funds from their defined benefit (DB) schemes to defined contribution (DC) products. The FCA reports that it has now completed its review…