The financial services industry is currently going through an unprecedented period of change, operationalising new regulatory requirements, remedying past sins and adapting to a digital world. Our three reports on this transition Retail Banking 2020: Evolution or Revolution?, Asset Management 2020: A Brave New World and Insurance 2020: Turning Change into Opportunity examine the powerful forces that are reshaping the industry.
These forces are creating an imperative for firms to change, in particular their interaction with customers. In the banking arena, the industry has responded by asking Sir Richard Lambert to put forward proposals on the creation of a new body to promote higher standards of banking competence and behaviour. He expects that the new body will potentially come in to being by the end of the year.
The FCA took on its biggest challenge yet when it took over regulating consumer credit on 1 April 2014, and consumer credit providers should have started feeling the heat immediately. The FCA finalised the conduct of business rules for consumer credit firms (called CONC) on 28 February 2014. All firms offering consumer credit products – from banks and other financial firms, through to motor-finance, white-good, and furniture fashion retailers – are caught by the new regime. Now that the final rules are clear, firms should be reviewing their compliance with the new regime, and starting to prepare their applications for full authorisation.
Over the next month, we’ll be watching the EU agenda closely, as the current EU Parliament tries to wrap up all the loose ends ahead of the forthcoming elections. The EU legislators have made good progress in recent weeks, but a number of key measures on banking union and other areas still hang in the balance. Watch out for our 4th edition where we’ll give you an update on progress.