14 Sep 2016
Client Briefing: Compliance, Conduct and Risk Bulletin September 2016
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1. FCA provides update on PPI
The Financial Conduct Authority has confirmed the proposals resulting from the consultation in November 2015 should be taken forward.
The proposals include:
- Imposing a deadline for new PPI complaints
- Launching a campaign to raise awareness of the issue of PPI and of the new deadline
The FCA also intends to make changes to the rules and guidance on the handling of PPI complaints in wake of the Supreme Court’s judgment in Plevin v Paragon Personal Finance Limited. The Supreme Court held that a failure to disclose to a client a large commission payment on a single premium PPI policy made the relationship between lender and the borrower unfair under section 140A of the Consumer Credit Act 1974.
The FCA is to consider further feedback before making a final decision on some of the proposals in the package, and the consultation will close on 11/10/2016.
- Following review of further feedback, if the FCA decide to proceed with the package, it is expected that:
- The rules and guidance regarding the deadline, awareness campaign and PPI complaints handling would all be made on the same date by the end of the year
- The rules and guidance in light of the Plevin case would come into force around 3 months later, giving firms time to implement the changes
- The rule regarding PPI complaints deadline would come into force around 6 months after the rule was determined, to allow for campaign production. The deadline would then fall two years later
Find out more: Financial Conduct Authority
2. Use of CCTV or Surveillance Cameras
The Information Commissioner’s Office (ICO) has issued a separate data protection code of practice for the use of surveillance cameras and personal information, the Surveillance Camera Code of Practice. This code covers the use of all devices that views or records individuals and therefore would include something as simple as a camera to monitor entrants to your business premises.
Firms with very limited use of surveillance systems will be able to apply a limited code. Notification to the ICO is required if your firm obtains, records, stores, updates or shares images of individuals.