DEMSA Summary: Safer Gambling Week / Ofgem rules / Insolvency stats / CP23-21 / Collaborations / Events / Training

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

This weeks update covers topics such as regulatory impact, personal insolvency statistics, collaborations between organizations, and upcoming events. It also emphasizes the importance of understanding and complying with the Consumer Duty and highlights changes in financial crime regulations.

Key Points

  1. The Credit Services Association (CSA) is examining CP23/21’s impact on debt buyers, along with concerns from the CCTA regarding smaller lenders.
  2. The Debt Managers Standards Association (DEMSA) express the need for more time to review and understand the proposed reporting requirements, especially given pending regulatory changes.
  3. DEMSA raises concerns about the lack of engagement with key stakeholders and emphasizes the importance of data reporting in a cost-of-living crisis.
  4. Ofgem rules for regulated energy firms are discussed, including the focus on identifying and supporting vulnerable customers.
  5. Personal insolvency statistics for October 2023 are highlighted, showing a significant rise in Debt Relief Orders (DROs) and Breathing Space registrations.
  6. The document mentions upcoming events, including the FCA Consumer Duty webinar and the Credit Union & Challenger Bank event.
  7. Collaborations between organizations in the financial sector, such as Salford Credit Union and AperiData, are featured.
  8. The Financial Crime Training for senior management and MLROs is updated to align with recent regulatory changes.
  9. Vulnerability training aligned with the Consumer Duty is introduced for operational management and frontline staff.
  10. The document provides access to recorded Consumer Duty training material for senior management and managers in regulated firms.

Key Statistics

  1. In October 2023, there was a 71% rise in Debt Relief Orders (DROs) compared to October 2022.
  2. Breathing Space registrations in England & Wales saw a 20% increase compared to the previous year.
  3. There were 5,933 Individual Voluntary Arrangements (IVAs) registered in October 2023, a 27% decrease from October 2022.
  4. The amount held by members in credit union shares in Britain reached £2.22 billion.
  5. Credit union lending in Great Britain reached a record level of £1.53 billion.
See also  DEMSA Summary: IVA voting / DROs / FCA news / FOS / MaPS consultation / Collaborations / Events

Key Takeaways

  • The financial industry faces regulatory changes, including the Consumer Duty and financial crime prevention, necessitating thorough compliance and reporting.
  • Understanding and addressing vulnerability, especially in times of economic crisis, is crucial for financial organizations.
  • Collaboration between organizations, such as credit unions and technology providers, can enhance the services and support available to customers.
  • Personal insolvency statistics indicate a rising demand for debt advice and solutions, emphasizing the need for proactive support.
  • Monitoring and reporting financial crime, including fraud and money laundering, remain top priorities for financial firms.
  • Compliance with the Consumer Duty and financial crime regulations requires a deep understanding of vulnerability and fraud detection.
  • The credit union sector in Great Britain continues to grow and provide affordable credit options during challenging economic times.
  • Recognizing the link between vulnerability and financial crime can lead to better risk management and customer protection.
  • Financial organizations should prioritize compliance and invest in training to ensure they meet regulatory expectations.
  • The industry should remain vigilant and adaptive to address emerging challenges and opportunities in the financial and consumer credit landscape.

Access all the updates here

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