FCA Regulation roundup – August
Fair Pricing in Financial Services
In July the FCA published a feedback statement on fair pricing in financial services.
The judgement of when pricing practices are unfair is not always straightforward. So, in line with the FCA’s Mission, a fair pricing framework was developed to be transparent about this issue. This summarises the main themes from the submissions received and provides further clarification on how to apply their framework in practice.
The FCA will report further in Q4 2019/20.
Alternatives to High-Cost Credit
As part of the wider high cost credit review, in July the FCA published a report setting out actions and recommendations to improve the availability and awareness of alternatives to high-cost credit.
The report:
- examines the market for alternatives to high-cost credit by looking at consumer demand and the availability of alternatives
- sets out the actions we have taken following the commitments we made in our high-cost credit publications of November and December 2018
- explains our and other organisations’ roles in supporting alternatives to high-cost credit
EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02)
In February 2019 the European Banking Authority (EBA) published its Final Report on outsourcing arrangements.
The Guidelines are for credit institutions and investment firms subject to the EU Capital Requirement Regulations and payment and electronic money institutions. They do not apply to Account Information Service Providers as defined in PSD2.
These Guidelines apply from 30 September 2019 to all outsourcing arrangements entered into, reviewed or amended on or after this date. There are also transitional arrangements extending up to 2021.
The FCA’s FG16/5 remains relevant to all other authorised firms.
Find out more on the FCA website here