FLA – Regulatory Round-Up February 2025

This month, we heard from the Supreme Court that our application to intervene had been refused. All applications other than those from the FCA and the NFDA have been refused, including the application from HM Treasury. No specific reason has been provided, but the time allocated for the hearing is short (1-3 April), which may have been a factor.  As this is a highly expedited case, the Judgment could be handed down in Q2.

Over 300 members joined our Commissions Update Session on 3 March 2025 and while we are not intervening, the Supreme Court judges will have read our application, witness statement and evidence.  In the run up to the hearing, we are continuing our regular discussions with the FCA, the Government, the other parties and our lawyers on the FLA’s position and market implications.

The FCA has begun to roll out a package of measures aimed at supporting the Government’s Growth Agenda.  The first announcement was the removal of the need for firms to have a Consumer Duty Board Champion from 27 February 2025.  More detail will be published as part of the FCA’s new 5-year strategy, but measures are expected to impact mortgage affordability, digital payments, removing redundant data returns, supporting international promotion of UK financial services, opening up to more innovative firms and FOS/complaints reform.  (see FCA speech)

Together with four other trade bodies, we have written to FOS stressing the need for the CMC Portal to be adequately resourced to ensure firms do not see high volumes of poorly evidenced complaints in advance of the 1 April 2025 charging deadline. We are keen to hear from members on this and what you are seeing.

We have also responded to the FCA’s second consultation on delivering greater transparency on enforcement action. At a time when the Government is looking to the FCA and other regulators to do all they can to support competition and growth, we do not support the FCA’s proposals – especially when the impact on firms, consumers and future investment in financial services remains unclear.

FLA emails sent in February 2025:

FCA publishes strategy letter for mortgage – 31 January
The FCA published a letter outlining its supervisory priorities for mortgage intermediaries over the next two years. The letter sets out key areas of regulatory focus, including consumer outcomes, advice quality, and product suitability.

House of Lords Financial Services Regulation Committee publish report on FCA – ‘Naming and shaming: how not to regulate’ – 6 February
The House of Lords Select Committee on Financial Service Regulation published a report entitled Naming and shaming: how not to regulate. The report finds that the FCA has not made a convincing case in CP24/2 Part 2 (28 November 2024) for the proposed shift away from its current policy of publicly announcing enforcement investigations into firms before they have concluded only in ‘exceptional circumstances’.

FOS CMC charging – Implications for members and request for feedback – 6 February
A short update and request for information on FOS charging CMCs/CLFs a case fee and its implications for members.

FOS to start charging CMCs to refer cases – 7 February
FOS published their fee charging Policy Statement feedback statement following consultation in 2024 and the necessary legislative provisions having been passed.

FLA and UK Finance write to the Economic Secretary to the Treasury (EST) with proposed FOS reforms – 7 February
The FLA and UKF have written to the Economic Secretary to the Treasury (EST) following our recent response to the FCA/FOS Call For Input into Modernising the Redress System.

Electronic Invoicing (e-invoicing) consultation launched – 14 February
HM Revenue and Customs (HMRC) and the Department for Business and Trade have launched a long awaited consultation on electronic invoicing, to promote its use in businesses and the public sector.

Commissions update – Supreme Court refuses FLA and HMT applications to intervene – 17 February
We have been informed by the Supreme Court that our application to intervene has been refused. We understand that all applications other than those from the FCA and the NFDA have been refused, including the application from HM Treasury. As is customary, no explanation for the refusals has been given.

Request from FCA on Quarterly Consultation No 46 (CP24/26) – PSD Reporting – 18 February
On 6 December 2024, the FCA published its Quarterly Consultation Paper No 46 (CP24/26).  This paper includes a chapter that sets out some changes to the Consumer Credit – Product Sales Data (PSD) Reporting.  This latest email sought feedback on the FCA’s plans to correct some spelling mistakes in the PSD008 and the possible impact on firms.

FCA and PSR publish joint Feedback Statement (FS25/1) on Big Tech and Digital Wallets – 19 February
The FCA and the PSR jointly published a Feedback Statement (FS25/1) on ‘Big Tech’ and digital wallets.  This follows the recent joint FCA / PSR Call for Information which aimed to understand the benefits and challenges of digital wallets.

FCA Cost Benefit Analysis Panel – vacancies for individuals from authorised firms – 21 February
The FCA has recently advised us that vacancies have arisen on the Cost Benefit Analysis Panel (CBA) for individuals from authorised firms. The FCA has asked that we share the role description with FLA members.

Letter to FOS’s Interim Chief Ombudsman raising concerns – 25 February
Together with four other trade bodies, we wrote to FOS stressing the need for the CMC Portal to be adequately resourced to ensure firms do not see high volumes of poorly evidenced complaints in advance of the 1 April 2025 charging deadline.

FCA removes need for Consumer Duty Board Champions – 27 February
The FCA has confirmed that it no longer expects firms to have a Consumer Duty Board Champion.

FCA sets out plans to support growth – 27 February
The FCA has published a speech by the Chief Executive, Nikhil Rathi, on The Gordian knot of growth. The speech was to the insurance industry and includes points of wider interest to FLA markets. In summary, the FCA is committed to maintaining strong consumer protections, on cutting unnecessary regulatory burdens, on supporting the growth mission. And it intends to move at pace – with more information in the forthcoming 5-year strategy.

FCA Regulation Round-up

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FLA meetings in March 2025:

FLA Training & Events in March 2025:  
For information on additional FLA Training Courses and Events that are being run in March please visit our website.

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