A recent enforcement case highlights the importance of firms sending clear, fair and not misleading communications.
The Financial Conduct Authority has confirmed a fine for a claims management company that cold called consumers who hadn’t consented to receiving calls.
The Truro-based registered charity was authorised by the FCA in 2017 to carry out not-for-profit debt advice activities. It sought to provide debt advice solutions for customers in arrears on court fines, parking fines, council tax and water bills.
The FCA has issued its fourth consumer research publication on cryptoassets ownership, showing the results of a survey carried out in January 2021. This shows that an estimated 2.3 million UK adults (4.4% of the total) hold this form of investment, up from 1.9 million one year earlier. The median average amount held in cryptocurrency has risen from £260 to £300.
The Financial Conduct Authority has issued details of the application process to be followed by funeral plan providers and intermediaries who are intending to apply for authorisation.
The FCA published a consultation paper on 14/05/2021 wherein it proposes to introduce ‘higher levels of consumer protection’ for firms whose regulated products or services are sold to ‘retail clients’ the FCA define this as all clients other than ‘professional clients’ who are large corporate entities and government bodies, this means SMEs are included within the Consumer Duty rules. The most significant proposal within this consultation includes the FCA seeking to implement an established duty of care between retail clients and regulated firms.
FCA rejects claims management authorisation application over concerns about links to a previous firm
The Financial Conduct Authority has rejected an application for authorisation from a claims management company. Its principal concerns were over the competence of the firm’s director and over another individual – the director’s husband – who was connected to a firm that was subject to FCA action in the past.
The High Court has rejected the scheme of arrangement proposed by a large guarantor lender. This comes despite the firm’s creditors voting to approve the scheme, under which they would have received much less for their complaints claims than would have been the case under normal circumstances – they might have received as little as 10p per £1.
The Financial Conduct Authority says it is concerned that “consumers often fail to make the most of their pensions”. It has launched a Call For Input, aiming to understand consumer behaviour at key points in the pension saving journey in order to improve pension outcomes.
The Financial Conduct Authority has announced plans to ban what it calls claims management company phoenixing. Usually, phoenixing refers to the situation where the assets of an insolvent firm are bought from administration or liquidation by the firm’s directors, and where the business re-commences trading as a new entity.