When the FCA took over from the OFT in April 2014 it promised greater scrutiny of businesses, proactive supervision and wider and more robust enforcement powers. It is vitally important that consumer credit firms keep fully up to date with this new style of regulation.
DWF have produced a range of consumer credit law resources to help you navigate the changes and keep fully abreast of new developments, and the legal experts remain on hand to help you navigate all the relevant requirements and frequent changes.
When the FCA took over the regulation of the consumer credit industry in April 2014 it brought with it a plethora of new guidance and regulations for firms to get to grips with, promising greater scrutiny and wider and more robust powers of enforcement. It is therefore vitally important that businesses are fully aware of and fully compliant with this new style of governance.
Below we have highlighted some of the key areas for focus under the FCA regime and provide useful resources and top tips to ensure you have all of the information you need to stay up to date.
“Complaints matter, and how they are dealt with can say much about a firm’s culture” (FCA TR14/18).
The FCA believes that complaints can assist firms in enhancing and retaining customer relations; are a vital part of the connection between firms and consumers and can give firms the opportunity to learn from their mistakes and improve their products and services. Firms need to have effective and transparent complaints processes and procedures which ensure that complaints are dealt with “reasonably, promptly and fairly” (FCA, TR14/18).
Treating Customers Fairly (TCF) is a topic which is very high on the FCA’s agenda. The FCA expects TCF to be central to firms’ business models and culture with the consumer being at the heart of everything they do. Firms are required to demonstrate that they consistently treat their customers fairly and are delivering their services against the TCF outcomes relevant to their business.
The FCA places responsibility on senior management to embed TCF in the culture of their businesses. This allows firms some degree of flexibility in approach but, it is imperative that they get it right – where the FCA finds failings in a firm around TCF it will use its full regulatory powers to take action.
Are your customers at the heart of your business? They should be.
“Vulnerability” cannot be ignored. With the FCA stating that “most users of consumer credit may be regarded as “vulnerable” to some degree because of their financial circumstances”, this is an area firms must not get wrong. Are you providing your vulnerable customers with adequate safeguards? The FCA promises proactive supervision of firms in this area. Staff should receive specific training in this area and firms must have proper documented processes and procedures to ensure compliance.
DWF Conforma is designed to help you navigate your business through complying with the new FCA regulatory regime. It provides a flexible and cost-effect means of understanding how compliant your business is.
Visit the home page of the Financial Conduct Authority to find out more about what they do, how they do it, how they are governed, as well as their aims and objectives. There is also access to the FCA’s latest press releases and much more.
Go straight to the dedicated consumer credit section of the FCA’s website. Here you can sign up for the FCA consumer credit emails, download quick guides and keep up to date with the latest developments in this sector.
Updated regularly, this section of the FCA’s website contains the most frequently asked questions about consumer credit. The FAQs are split into useful categories to assist with navigation.
The FLA campaigns on key industry issues. Read about the FLA’s latest views and publications on consumer credit.
This article examines the key proposals for how firms, not currently subject to the FCA's Senior Managers' regime, will be transitioned into it when it is extended to all firms.
DWF’s expertise in consumer credit law is recognised nationally and we have specialist teams located across the UK. Our leading UK team provides the retail, consumer, motor sectors with industry focused advice and are praised for delivering advice that fits perfectly into clients’ businesses.
We strive to provide a full life agreement consultative approach to the way we do business to support our lender clients in providing them with a holistic approach to compliance and regulation. The team’s experience covers all areas of consumer credit, insurance mediation, mortgage regulation and other financial services regulated products from advertising and drafting documentation through to implementing new business initiatives.