[INSIGHTS]: Navigating Regulatory Shifts – whitepaper

ABOUT: A comprehensive exploration of adapting to the FCA’s BiFD Project and Consumer Duty in the financial sector.

LINK: Navigating Regulatory Shifts – whitepaper


The whitepaper “Navigating Regulatory Shifts” delves into the challenges and strategies for financial institutions adapting to the Financial Conduct Authority’s (FCA) BiFD Project and Consumer Duty. It highlights the evolving regulatory environment, emphasizing the need for tailored support and compliance strategies in the financial sector, and discusses the role of data-driven approaches and technology in meeting these new regulatory demands.

Key Points and Ideas

  • The FCA’s BiFD project, initiated in March 2021, aims to support borrowers in financial difficulty.
  • Upcoming policy changes in early 2024 will affect the CONC 7 sourcebook.
  • The Consumer Duty, effective from July 2023, brings new compliance requirements.
  • IE Hub provides a strategic framework for creditors to comply with FCA regulations.
  • The FCA is transitioning to more detailed, quarterly data submissions.
  • Standard Financial Statement (SFS) is crucial for consistent affordability assessments.
  • IE Hub aids in data sharing and customer support during financial challenges.
  • Final Policy Statement on CP23/13 (BiFD) is anticipated in 2023, with implementation in H1 2024.
  • Emphasis on objective income and expenditure assessments for forbearance.
  • The need for consistency in vulnerability and affordability assessments is highlighted.
  • IE Hub advocates using SFS for affordability assessments of financially vulnerable individuals.
  • IE Hub’s role as a strategic partner in regulatory compliance is emphasized.

Key Statistics

  • Launch of the FCA’s BiFD project in March 2021.
  • Implementation of Consumer Duty in July 2023.
  • Anticipated new FCA policy rules in early 2024.
  • Transition to granular, quarterly data submissions for ‘Sales’ and ‘Performance’.
  • Introduction of the Debt Respite Scheme in May 2021 in England & Wales.
See also  [INSIGHTS]: CP21/30 Proposals for new rules

Key Takeaways

  • Adapting to FCA’s BiFD Project and Consumer Duty is crucial for financial institutions.
  • Strategic planning and implementation are key to compliance with new FCA rules.
  • The importance of data-driven approaches in regulatory compliance is growing.
  • Consistent affordability assessments are vital for customer support and compliance.
  • Technology integration, like IE Hub, is essential in managing regulatory changes.
  • Understanding and implementing the Standard Financial Statement (SFS) is crucial.
  • Firms should focus on objective and consistent income and expenditure assessments.
  • The significance of data sharing in compliance and customer support is increasing.
  • Preparing for the implementation of new rules in H1 2024 is critical.
  • Firms need to ensure their strategies align with the FCA’s expectations and guidelines.
  • Continuous adaptation and review of practices are necessary to meet evolving regulatory demands.
  • Collaboration with strategic partners like IE Hub can facilitate smoother transitions and compliance.

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