FCA fines approach £1bn for arrears breaches
Following the most recent FCA lender fine, conversations with our business partners have been ‘off the scale.’ Everyone is shocked that collection teams are still getting it so wrong. FCA fines for the poor treatment of arrears and vulnerable customers is nothing new, and although they appear to relate to historic cases, be in no doubt, everyone is starting to question their own policies and procedures – again.
Transitional Risk and EPCs
Even though it is a reasonably recent category, transitional risk is going to be a significant issue for lenders, servicers or holders of buy to let mortgage assets.
Horizon scanning for risk managers
Regulators often remind firms that they are expected to learn from all their outputs, so risk manager horizon scanning should not be limited to regulator rules and updates. Their scanning should encompass, for example, consultation papers, speeches, press releases and portfolio letters. It should also consider portfolio letters addressed to other regulated sectors.
Managing risks in a light touch world
We have seen several market cycles and in most cases regulation and regulators are seen as followers, tightening regulation after an event – ‘after the horse has bolted’ if you like. This was certainly the case after the Global Financial Crash (GFC) of 2008/9, which led to expansion and significant tightening of regulation within the financial sector. However, we are now witnessing a substantial swing in the regulatory pendulum leading to some CROs fearing a new ’race to the bottom’.
The FCA continues to drive for consumer protection
The FCA final guidance (FG24/2) has just come into force, replacing and building on the earlier Covid Tailored Support Guidance, and further protecting the ongoing needs of borrowers in financial difficulty. Despite recent public criticisms, the regulator continues to promote its ‘principles-based’ approach, but this latest guidance suggests a change in tone to a more […]
The fines keep coming….
Less than a month ago we wrote about the ‘cost of non-compliance’ exceeding £1bn for poor arrears handling, through FCA fines and redress. Since then, we have seen yet another one. It is clear to us that the FCA is fining firms to drive home the need for a behavioural change in the way lenders treat their customers and arrears strategies.
We are heading back to Global ABS – let’s meet up!
We’re thrilled to announce that Rockstead will be returning to Global ABS in Barcelona this June—and this time, we’re bringing 10 of our finest team members to make sure we catch up with as many of you as possible!
Managing risk in loan portfolios
As risk consultants, with people that have lived through numerous previous recessions, we recognise the cyclical nature of the economy and the need to be prepared for whatever is thrown at us. We have been warning about the cost-of-living crisis, increasing debt to income ratios, payments shock for borrowers leaving fixed rate loans, increasing arrears and repossessions and the return of lender losses for a while now. It’s not us being ‘doom and gloom’ merchants – it’s us being realists.
Later Life lending – regulatory update
The FCA published the results of its multi-firm work on later life mortgage advertising and advice, which can be summarised as “action is needed to ensure good outcomes for later life borrowers”. However, surprisingly, some commentators have dismissed the urgency of any resulting action suggesting there is “nothing to see here” and that the FCA hadn’t said anything new.
Consumer Duty – can you defend your position?
When our prudential regulator calls out a potential conduct issue, while at the same time deferring to the conduct regulator, we should all recognise a problem is brewing!
