DEMSA Summary: Personal Insolvency / IVA early failures / FCA updates / Consumer Duty / Collaborations / Training / Events

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


The latest bulletin from DEMSA reflects significant developments and trends within the debt solution marketplace, highlighting the organization’s growing influence and the evolving landscape of debt management, particularly in response to regulatory changes and consumer protection standards. The bulletin underscores the importance of adapting to new regulatory expectations, the impact of research on policy development, collaborative initiatives for better consumer support, training for professional development, and the relevance of economic indicators in strategic planning.

Key Points

  1. DEMSA’s LinkedIn following surpassing 1,000 marks its increasing influence in the debt solution market.
  2. The transformation of DEMSA’s role since the FCA’s takeover from the OFT in 2014 indicates evolving regulatory expectations in the debt management sector.
  3. The Consumer Duty Board Report for July 2024 is crucial for understanding upcoming regulatory expectations in financial services.
  4. Research on consumer experiences with IVAs is critical for industry stakeholders, potentially leading to regulatory framework changes.
  5. A decrease in IVA volumes, influenced by FCA interventions, provides key market insights for the debt solution sector.
  6. Initiatives like PayPlan’s Inclusive Service Kitemark™ highlight industry focus on vulnerable consumers.
  7. Collaborations like Inicio AI with Northumbrian Water demonstrate the sector’s commitment to improving customer engagement.
  8. The Debt Adviser Level-3 Apprenticeship Scheme is an important development for professional skill enhancement in debt advice.
  9. Upcoming changes in financial promotions and advertising standards are essential for industry compliance.
  10. Economic indicators like average weekly earnings and credit conditions provide critical context for financial service professionals.
  11. StepChange’s research findings help in understanding the broader consumer debt landscape.
  12. The ICO’s consultation on generative AI is relevant for professionals involved in data management in financial services.
See also  DEMSA Summary: IVA statistics / DRO guidance / Enforcement consultation / Collaboration / Training /Events

Key Statistics

  1. DEMSA has attracted 1,003 followers on LinkedIn, indicating its broad audience and influence.
  2. A decline of 38% in the number of IVAs in December 2022 compared to the previous year.
  3. There were 5,769 Breathing Space registrations in December 2023, 15% higher than in December 2022.
  4. Annual growth in real terms for total pay rose by 1.3% and for regular pay by 1.4% in September to November 2023.
  5. Average weekly earnings in November 2023 were £666 for total earnings and £623 for regular earnings.

Key Takeaways

  1. DEMSA’s growing LinkedIn presence signifies its expanding role and influence in the debt solution market.
  2. The evolution of DEMSA post-FCA takeover highlights the changing nature of regulatory compliance and industry adaptation.
  3. The Consumer Duty Board Report provides essential insights into future regulatory expectations for financial services professionals.
  4. The Insolvency Service’s focus on IVAs underscores the need for industry awareness regarding potential regulatory shifts.
  5. The decrease in IVA volumes indicates significant market changes, likely influenced by regulatory interventions.
  6. Recognition of initiatives addressing vulnerable consumers is crucial for ethical business practices in financial services.
  7. Collaboration with technological and service partners shows the industry’s commitment to improving customer support and engagement.
  8. Professional training programs, such as the Debt Adviser Apprenticeship Scheme, are vital for maintaining high advisory standards.
  9. Keeping abreast of changes in financial promotions and advertising standards is key to industry compliance.
  10. Economic indicators, such as wage growth and credit conditions, are essential for strategic planning in financial services.
  11. Research findings from organizations like StepChange are valuable for understanding consumer financial well-being.
  12. Engagement with technological advancements, like generative AI, is critical for data management and compliance in financial services.
See also  DEMSA Newsletter ¦ Summary

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