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Regulatory Review and Data-Driven Compliance FCA's Two-Stage Review Process: The Financial Conduct Authority (FCA) has launched a two-stage review to assess how firms treat vulnerable customers, beginning with a wide-reaching questionnaire in Stage 1, followed by a more detailed Stage 2 for selected firms based on their initial responses. This method allows the FCA to effectively identify areas of concern and ensure firms prioritize consumer protection. FCA Investigation Impact of Data Requests on Large Debt Solution Providers: Recent confirmations of… Read more

Financial Strain Among Employed Debtors Growing Debts Despite Employment: The StepChange report, "In work but still in debt," reveals that 21% of their clients in full-time employment cannot cover their expenses even after receiving debt advice. This rising trend indicates a significant challenge within the financial services sector to address the needs of working individuals who are still financially vulnerable. This is crucial for credit management professionals to understand, as it affects the sustainability of debt solutions and client retention… Read more

Find the full DEMSA newsletter and commentary here Regulatory Updates and Compliance FCA's New BiFD Policy Rules (PS24/2): The recent blog by Adam Butler at StepChange discusses the implications of the FCA’s new BiFD policy rules (PS24/2), highlighting significant changes that affect borrower support and lending practices. This is crucial for financial services professionals as it influences how firms will need to adapt their policies to comply with new regulatory standards. Read more Review of Persistent Debt Rules: The FCA's… Read more

Find the full DEMSA newsletter and commentary here Regulatory Updates and Compliance PS24/2 – Policy Rules from CP23/13 (BiFD): The new policy rules under PS24/2, effective from November 2024, are designed to enhance protections for borrowers in financial difficulty. This is critical for financial service providers to understand as it will affect debt recovery practices and require adaptations in how firms engage with vulnerable consumers. FCA Policy Statement SUP15 and FIN073 Reporting: The updates on reporting requirements underscore the importance… Read more

Find the full DEMSA newsletter and commentary here Enhancing Financial Resilience through Non-Executive Directors The role of Non-Executive Directors (NEDs) is critical in providing diverse perspectives and strategies to enhance financial resilience. Their involvement in risk management frameworks and mitigation strategies is invaluable for firms aiming to navigate financial uncertainties effectively. For professionals in financial services, credit management, or debt collection, leveraging NED insights can lead to more robust financial planning and risk mitigation efforts. UK Finance Article Prioritizing Cybersecurity… Read more

Find the full DEMSA newsletter and commentary here Economic Outlook and Interest Rate Insights 2024 Economic Recovery Prediction: Rishi Sunak anticipates a significant economic rebound, supported by the lowest inflation levels in over two years. For financial professionals, this could signal an evolving lending landscape and investment opportunities. BBC News Bank of England’s Interest Rate Decision: Maintaining interest rates at 5.25% amidst high inflation suggests continued economic pressure, directly impacting mortgage and rental markets. This development is crucial for credit… Read more