FLA – Regulatory Round-Up – March 2025

Welcome to this month’s Regulatory Round-Up, which summarises the FCA’s announcements and other regulatory information that we have circulated during March 2025.

Overview

In preparation for the Supreme Court Hearing this week, we will be hosting update sessions at 3pm today and on Friday 4 April, together with daily email updates on 1 to 3 April to ensure members are aware of the latest developments. Please register via the links if you would like to join these sessions. For those wishing to watch proceedings live, sittings commence at 10:30am and can be seen on the Supreme Court’s YouTube channel.

FOS will introduce charging for CMCs from tomorrow – 1 April 2025.  This is a very welcome development and one which the FLA has long campaigned for.  Earlier this month we met with FOS to discuss poor practice by CMCs, as they endeavoured to submit high volumes of complaints in the run-up to the charging deadline. We will be providing further updates on complaints and the approaches being adopted by CMCs at the Regulatory Reform Working Group meeting on 2 April 2025.

This month the FCA published its Five Year Strategy to 2030, where the vision is to deepen trust, rebalance risk, support growth and improve lives. To promote trust, the FCA says it will continually show that it is an efficient and effective regulator – one that is proportionate and predictable.  The FCA will also look again at its collective attitude to risk, to avoid lost opportunities.

The FCA also published a Report and Consumer Research following its recent Vulnerability Review.  We are hosting a Collections & Vulnerability Conference on 30 April, where the FCA will be a keynote speaker, and the sessions will explore the Report’s finding and how firms should respond to the good and poor practice identified. We hope you can join us.

We have launched a Review of the FLA Lending Code, which is an exercise we undertake every couple of years.  This Review will explore the role the Code plays in setting good practice standards, alongside FCA regulation and the Consumer Duty.  We will be working with members, regulators, government and consumer groups as part of the Review process.

And finally, the FCA has introduced its new Portal.  My FCA provides authorised and regulated firms with a single point of sign in, using existing FCA user details, for Connect, RegData and the Online Invoicing System. Once signed in, firms can see regulatory reporting and attestation tasks in one place. This is aimed at making it easier to see information relating to regulatory activities and to fulfil regulatory responsibilities.

FLA emails sent in March 2025:

FOS Complaints Update – 4 March
FOS has published its latest Q3 Update – and is receiving 40% more cases compared to the same time last year. The full data set can be accessed here.

FCA publishes findings from Vulnerability Review – 7 March
The FCA has published a series of updates as part of its recent Vulnerability Review:

• Review of firms’ treatment of customers in vulnerable circumstances
• Delivering good outcomes for customers in vulnerable circumstances  – good practice & areas for improvement.
• Vulnerability Review: Improving the understanding of the outcomes for consumers in vulnerable circumstances when engaging with financial services firms (Consumer Research Paper)

FCA sets out steps on mortgage market reform – 7 March
The FCA has reminded lenders of the flexibility in the interest rate stress test rule (MCOB 11.6.18R) – aimed at helping more people access a mortgage. This forms part of the FCA’s work, announced in January in a letter to the Prime Minister, to review regulation to support home ownership and the UK economy.

Statement on motor finance review next steps – 11 March
The FCA has announced that it no longer plans to consult on the next steps in its motor finance review in May. Instead, it has committed to a further announcement within 6 weeks of the Supreme Court’s decision setting out if it will propose a redress scheme, and if so, how it will be taken forward.

FCA Update on Enforcement – D&I – Non-Financial Misconduct & the PSR – 12 March
The FCA made a series of announcements on its proposals for greater transparency in enforcement actions; non-financial misconduct; diversity & inclusion and merging the PSR into the FCA. The announcements are aimed at delivering a more proportionate approach in all these areas.

FCA Announcement on Sustainability Regulations and Defence – 13 March
The FCA has set out its position on sustainability regulations and defence. To read the full statement, please click here.

Government publishes Growth Action Plan – 17 March
The Government has today published an Action Plan to ensure regulations and regulators support growth. This follows feedback from the FLA and other industry representatives that the regulatory framework is a drag on investment.

Small business access to finance consultation – 18 March
The Government has launched a consultation on small business access to finance.
The Government is seeking views on:

• Assessing how far its existing policies meet the needs of business and the lending sector in overcoming barriers to finance
• Understanding what more can be done further to create growth

FOS’s latest approach to motor finance commission case charging – 21 March
FOS has made a further announcement on how they will deal with motor finance claims.  This is a positive development which will hopefully prevent some motor commission cases from being pushed through and becoming chargeable.

Failure to Prevent Fraud e-mail to FLA membership – 21 March
Following the last Financial Crime Working Group meeting, Walker Morris have kindly agreed to share their Failure to Prevent Fraud Risk Assessment template which will assist members as they develop their policies prior to 1 September.

Supreme Court commissions case hearing update – 24 March
This email set out details of how the FLA will be keeping members up to date during the Supreme Court hearing which begins on 1st April.

FCA publishes 5-year Strategy – 2025-2030 – 25 March
The FCA has published its Five Year Strategy to 2030, where the vision is to deepen trust, rebalance risk, support growth and improve lives. To promote trust, the FCA says it will continually show that it is an efficient and effective regulator – one that is proportionate and predictable.  The FCA will also look again at its collective attitude to risk, to avoid lost opportunities.

Spring Statement 2025: FLA Analysis – 26 March
The Chancellor of the Exchequer presented her Spring Statement to MPs. The headlines were:

• an increase in defence spending to 2.5% of GDP by 2027
• a package on infrastructure investment worth £13bn
• widely trailed changes to welfare spending and eligibility rules

Right of Withdrawal and Data Sharing – 28 March
Following the introduction of consumers being able to activate the Right of Withdrawal, there have been numerous discussions on how this should be reflected at the Credit Reference Agencies. A proposed approach is set out in this email, and we would welcome your comments by Friday 11 April 2025. The draft wording will then be considered for inclusion in the Data Quality Guide which sits alongside the Principles of Reciprocity.  

FLA Lending Code Review – 31 March
Following 10 years of FCA regulation, the introduction of the Consumer Duty and moves across the industry, regulators and government to avoid duplicating regulation, we believe now is a sensible time to review the FLA Lending Code and the role it plays in delivering good practice standards for consumers.

FCA Smaller Business Practitioner Panel (SBPP) – Chair Vacancy
The FCA is looking to appoint a new Chair to its Smaller Business Practitioner Panel (SBPP), an independent statutory body representing the views of small and medium-sized regulated firms. This is an opportunity to help shape the FCA’s strategy and policy direction at a time of significant change in UK financial services regulation.
Applications from FLA members are welcome. Please find the job advert attached. The deadline for applications is 11.59pm on Monday, 28 April 2025.
More information about the SBPP is at: https://www.fca.org.uk/panels/smaller-business-practitioner-panel

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FLA meetings in April 2025:

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

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