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.
In its latest Ombudsman News newsletter, the Financial Ombudsman Service explained its approach to cases that involve domestic or economic abuse.
The Bank of England’s Money and Credit Report for March 2021 shows net mortgage borrowing at £11.8 billion – the highest level on record, beating the £10.4 million mark set back in 2006. Gross lending also rose to record levels, at £35.6 billion. These new records are thought to be due to the fact that the stamp duty holiday was initially expected to end in March, although this has since been extended to the end of June 2021.
The Government’s new breathing space scheme, officially known as the Breathing Space Debt Respite Scheme, commenced on May 4.
The Financial Services Compensation Scheme says its research has identified a worrying trend, in that many retirees are prepared to consider higher risk investments in an attempt to boost their returns, even though doing so also exposes them to a greater chance of loss. It says that this may be due to the continuing low-interest savings environment.
Does your firm need advice with FCA regulation? Could you benefit from compliance support? If so, contact Scott Robert on 0161 914 5727.
Marshall Bailey has been appointed for a second term as chair of the Financial Services Compensation Scheme, and to mark the occasion, he has published an article explaining what he sees as the challenges facing the Service and the financial industry in general.
Changes Announced to Debt Relief Orders (DROs)
The Insolvency Service has released an update following the consultation changes to Debt Relief Orders (DROs). The changes to DROs are now agreed, finalised, and will come into effect at the end of June 2021. Due to the changes, It is expected that over 13,000 more individuals may use DROs within the next 12 months and when compared to 2019 statistics. This represents a 50% increase.
Research by pension switching advisory firm Profile Pensions shows that, in some areas of the UK, the ‘gender pension gap’ could be as high as 50%. The gender pension gap is defined as the difference between the level of pension income that can be expected by men and women.
The latest data from the Financial Conduct Authority shows that the number of complaints about authorised firms fell by 26% between the first half of 2020 and the second half of the year, from 2,960,000 to 2,160,000.