| Link(s): | Wider Implications Framework issues log – March 2023 (fca.org.uk) Terms of Reference for the Wider Implications Framework (fca.org.uk) |
Context
The FCA has published its updated Wider Implication Framework and Issues as of March 2023. The FCA, through the introduction of the Consumer Duty, is setting higher expectations for the standard of care that firms give consumers. Some stakeholders are concerned that outcomes-based regulation may lead to inconsistent interpretation of the Consumer Duty by FCA & Financial Ombudsman Service. There is a published Terms of Reference for the Wider Implications Framework.
Key points to note
- The FCA also found issues relating to undisclosed commissions, particularly in the motor finance sector. Actions taken so far regarding undisclosed commissions;
- Working level meetings
- CEO level meeting between FCA and Financial Ombudsman Service.
- Trilateral meeting with FCA, Financial Ombudsman Service and the Finance and Leasing Association (FLA).
- FCA’s outcome will be to ensure consistent and complementary approach to the interpretation of rules, guidance, legislation and relevant law related to commission complaints with respect to the different roles of the framework’s members.
- FCA’s outcome will be to ensure a consistent and complementary approach to the application of the Consumer Duty whilst respecting the different independent statutory roles of the members.
Next actions
None – for information and awareness