Teaming up with... AVIVA

Welcome to the UKGI weekly regulation update service for Aviva ABC brokers

We hope you find the Updates useful. If you are
interested in subscribing to our affordable
ABC compliance support package, please
email us at ABC@ukgigroup.com or
call UKGI on our dedicated ABC
contact line 01925 767893.

FCA publishes Policy Statement PS24/3: Consumer Credit – Product Sales Data Reporting

May 3, 2024 | Consumer credit, FCA

Link(s):PS24/3: Consumer Credit – Product Sales Data Reporting | FCA
PS24/3: Consumer Credit – Product Sales Data Reporting (fca.org.uk)
ps24-3-consumer-credit-psd-reporting-data-elements.xlsx (live.com)

Context

In September 2023 the FCA published Consultation Paper CP23/21 outlining plans for three new product sales data returns for lenders. This is part of an overhaul of the current CCR returns reporting regime. The FCA has now published the Policy Statement, PS24/3, and has retained the Excel spreadsheet version of the data elements included in the returns.

Key points to note and next actions

  • These new returns relate to lenders only, and there is a reporting threshold for the returns. To be captured by the new reporting requirements a lender has to have £2m in outstanding balances and/or £2m in new advances.
  • The FCA has extended the implementation period so that large firms (£20m plus) have 14 months and small firms (£2 – £20m) have 20 months, to make the impact more proportionate (see the relevant sections in Chapters 2 and 3 of the Policy Statement).
  • The new returns are quarterly, and will be called PSD008, PSD008a and PSD009.
  • PSD006 (Short Term Loans) will be retained for those firms offering High-Cost Short Term Credit or Home Collected Credit products that fall below the threshold for completing the new PSD returns.
  • The first reporting period for ‘Threshold 1’ firms (£2m – £20m in outstanding balances and/or £2m – £20m in new advances) will be Quarter 1 2026.  The sales data (PSD008) will be due by 30/04/2026, with the performance and back book data (PSD008a and PSD009) being due by 15/05/2026.  Back book data will cover the period up to Quarter 1 2026.
  • The first reporting period for ‘Threshold 2’ firms (over £20m in outstanding balances and/or over £20m in new advances) will be Quarter 3 2025. The sales data will be due by 28/10/2025, with the performance and back book data being due by 11/11/2025. Back book data will cover the period up to Quarter 3 2025.
  • Each of the Thresholds will be sub-divided into two ‘Categories’ (A or B).  For reporting purposes, and to define which Threshold and which category firms fall into, lenders should review the proposed new Rules and definitions set out in the Policy Statement.
  • The Appendix outlining the new Rules and definitions is 240 pages long, with 228 pages of that being the details of the new reporting metrics and categories.  The reporting, therefore, is detailed.