Client Briefing: Compliance, Conduct and Risk Bulletin May 2017

Monthly Regulatory, Compliance and Conduct Bulletin from Aberdein Considine. Our aim is to keep you up to date and provide advance warning on all things regulation, conduct and compliance.

1) FCA publishes final guidance on mortgage payment shortfall: impact of automatic capitalisations

The FCA have published their final guidance on mortgage customers who may have been affected by the way firms calculate customers’ monthly mortgage instalments.

Three key changes have been made, relating to:

• removal of the June 2017 deadline for notifying affected customers
• widening the scope of corrections to customer credit reference agencies records
• asking firms to provide customers with details of debt advice services in their communications

Find out more here.

2) FCA proposes new rules for credit card firms to help millions of customers get out of persistent debt

The FCA is proposing new rules for customers who are in persistent credit card debt.

Customers are considered to be in persistent credit card debt if they have paid more in interest and charges than they have repaid of their borrowing over an 18 month period.

The consultation paper sets out measures voluntarily agreed between the FCA and industry to give customers greater control over increases to their credit limits. New customers will be given the choice of how increases will be offered, while existing customers will be given a more straightforward means of declining an increase and more choice as to how increases will be offered in future. All customers will be made aware of their existing right to choose not to receive offers of credit limit increases.

The consultation will close on 3 July and can be responded to by following the link below.

Find out more here.