DEMSA Summary: CP23-21 / CSA Vulnerability / Data Protection / AI / Loan Sharks / Training / Events and more…

Summary – Read the full update here (including all the links & more)

This weeks update provides a comprehensive overview of various financial and regulatory updates, including insights on recent FCA activities, data reports, and industry events. It discusses topics such as AI and machine learning in financial services, fraud reports, debt solutions statistics, and the impact of the cost-of-living crisis on consumers. Additionally, it highlights upcoming industry events and training programs related to the Consumer Duty.

Key Points

  1. The FCA emphasizes its data-driven regulatory approach and its commitment to enforcing higher standards under the Consumer Duty.
  2. The update highlights responses to the joint FCA and Bank of England Discussion Paper on Artificial Intelligence and Machine Learning.
  3. UK Finance reports a 2% decrease in fraud cases during the first half of 2023.
  4. Grace Brownfield’s post on “Help to Repay – Energy Debts” is mentioned, addressing financial vulnerability.
  5. IE Hub’s user experience enhancements, improving financial data management for users.
  6. FourNet’s Customer Experience Benchmarking capabilities mentioned in relation to digital transformation strategies.
  7. TransUnion’s e-book explores the role of data solutions in navigating evolving socioeconomic environments.
  8. The FCA introduces new reporting requirements for Principal firms regarding their Appointed Representatives.
  9. Non-bank financial institutions in the US will now be required to report data security breaches affecting 500 or more people.
  10. Insights into Scottish Statutory Debt Solutions statistics for Q2 2023.
  11. StepChange Debt Charity Scotland reports an increase in clients with council tax and rent arrears.
  12. The IPA conference discusses various topics related to personal insolvency, gambling reforms, and consumer protection.
See also  DEMSA Summary: Duty countdown / Vulnerability consultations / ISO 22458 / Panorama / Training / Collaborations

Key Statistics

  1. Criminals stole £580 million through unauthorized and authorized fraud in the first half of 2023, marking a 2% decrease from the same period in 2022.
  2. In Q2 2023-24, there were 2,074 personal insolvencies in Scotland, with 570 bankruptcies (a 3.9% decrease) and 1,504 Protected Trust Deeds (PTDs, a 1.6% increase).
  3. 886 applications for moratoria were granted in Q2 2023-24, seven more than in the same quarter in 2022-23.
  4. 1,235 Debt Payment Programmes (DPPs) under the Debt Arrangement Scheme (DAS) were approved, a 1.3% decrease from the same quarter in the previous year.
  5. 465 DPPs under the DAS were revoked in Q2 2023-24, a 15.4% increase compared to the same quarter in 2022-23.

Key Takeaways

  • The FCA is committed to being a data-driven regulator and enforcing the Consumer Duty.
  • AI and machine learning are receiving increased attention in UK financial services.
  • Fraud reports show a slight decrease in financial crimes.
  • Vulnerability in energy debt and user experience improvements are crucial aspects of financial services.
  • Benchmarking and customer excellence are priorities for businesses.
  • Data solutions play a vital role in navigating economic challenges.
  • Reporting requirements for Principal firms are changing.
  • US non-bank financial institutions must now report data security breaches.
  • Scottish insolvency statistics provide insights into financial difficulties.
  • The cost-of-living crisis is impacting consumers’ ability to pay essential bills.
  • Gambling reforms aim to protect consumers from financial harm.
  • Consumer Duty training and courses are available for industry professionals.

Access all the updates here

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