Context
The FCA has published a consultation paper relating to some minor changes to its Handbook in relation to some regulations on problem debt which are expected to come into force in England and Wales in May 2021.
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 (the Breathing Space Regulations) will give people in problem debt the right to legal protections from creditor action for up to 60 days giving them time to receive advice and potentially enter an appropriate scheme to resolve their debt.
Key points to note
- The FCA is consulting on the minor rule changes which aim to provide clarity on how the CONC rules interact with these Regulations.
- The consultation applies to consumer credit lenders and debt collectors but is relevant to all regulated firms that need to comply with both the FCA Handbook and the Regulations.
- There are some areas of the Handbook where it has been necessary to clarify how the FCA rules apply where the Regulations also apply to avoid duplicating the effects of the Regulations in a disproportionate way.
- The consultation invites responses on the proposed changes to the FCA Handbook, but does not advise on interpreting or applying the Regulations.
- The Government intends to publish guidance on the Regulations for creditors and organisations giving debt advice.
Next actions
The consultation closes on 6 January 2021 and responses can be provided via the online response form, by email or in writing.