Rajiv Agarwal

Head of Regulatory Services

Articles by Rajiv Agarwal

FCA introduce new rules for high-cost credit providers and Price Comparison Websites

FCA have introduced new rules for price comparison websites (PCWs) in relation to high cost short term credit (HCSTC) sector from December 2016, following a review of the recommendations by the
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FCA to undertake complete review of the ‘high-cost’ credit sector

FCA, as part of their further review of ‘high cost short term credit’ price cap, have now decided to look across high-cost products as a whole to build a full picture of how these are used,
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FCA publish financial crime Guide for consumer credit firms

FCA have released in November 2016 a high-level guide to financial crime for consumer credit firms. The guide is designed to help all consumer credit firms, especially those that are new to FCA
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FPC to impose new requirements for the buy-to-let market

The Financial Policy Committee (FPC) has the powers to set a maximum aggregate exposure to high Loan-to-Value (LTV) or Debt-to-Income (DTI) lending if it has financial stability concern related to
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The Immigration Act 2014 (Compliance) Regulations 2016

The above regulations made on 7 November 2016, set to come into force on 30 October 2017, prescribe certain requirements for banks for the purposes of the statutory regime applicable to current
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Potential impact of leaving the single market on ‘passporting’ rights

The FCA have advised, in a letter to the Treasury Select Committee (published in November 2016), the implications for banks and other regulated firms in relation to their exercise of the
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FCA tell mortgage lenders to remediate customers impacted by automatic capitalisation

FCA tell mortgage lenders to remediate customers impacted by automatic capitalisationThe FCA have published a guidance paper in October 2016, GC 16/6, setting out their concerns about the adverse
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FCA change their guidance on guarantor loans

FCA change their guidance on guarantor loans The FCA had earlier consulted on their draft guidance (GC16/2) published in February 2016 when they set out their view, in relation to a guarantor loan,
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New Matchmaking Service for Small Businesses Looking for Finance

New Matchmaking Service for Small Businesses Looking for FinanceFrom 1 November 2016, nine of the UK’s biggest banks will pass on the details of small businesses they have rejected for finance to
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Overall Responsibility for Legal Function under Senior Management Regime

Overall Responsibility for Legal Function under Senior Management Regime FCA have provided further guidance as set out in their discussion paper DP 16/4 as to how the ‘Senior Management Function
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FCA issue updated Information Sheets for Consumer Credit

FCA issue updated Information Sheets for Consumer CreditThe FCA have amended the Information Sheets required to be provided to consumer credit customers in certain circumstances. Essentially,
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FCA ban use of restrictive contractual clauses in corporate finance business

FCA ban use of restrictive contractual clauses in corporate finance businessThe FCA propose to ban the use of restrictive contractual clauses in investment and corporate banking engagement letters
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Are we meeting the needs of older customers?

Are we meeting the needs of older customers? In February 2016 the FCA had published a discussion paper on the ageing population, which looked specifically at the way in which financial services
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UKRN Report on price comparison websites

UKRN Report on price comparison websites The UK Regulators Network (UKRN), which included the FCA and the Payment Systems Regulator, published its final report on price comparison websites (PCWs) on
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Dealing with Vulnerable Customers – LSB Guidance

Dealing with Vulnerable Customers – LSB Guidance The Lending Standards Board’s (LSB) Standards of Lending Practice have replaced their Lending Code from 1 October 2016. The LSB has published
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Financially Vulnerable Mortgage Customers – mitigating the impact of any increase in payments?

Financially Vulnerable Mortgage Customers – mitigating the impact of any increase in payments? The FCA have published in September 2016 a thematic review into mortgage lenders’ strategies to
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Aviva fined £8 million by FCA for inadequate oversight of Outsourcing Arrangements

Aviva fined £8 million by FCA for inadequate oversight of Outsourcing Arrangements The Financial Conduct Authority (FCA) has today fined Aviva Pension Trustees UK Limited and Aviva Wrap UK
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Payday Firm CFO Lending to Pay £34 Million Redress

Payday Firm CFO Lending to Pay £34 Million Redress CFO Lending trading as Payday First, Flexible First, Money Resolve, Paycfo, Payday Advance and Payday Credit mainly offers customers with
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The Changing Definition of Financial Advice – is it Likely to Help your Business?

The changing definition of Financial Advice – is it likely to help your business? In August 2015, the government launched the Financial Advice Market Review (FAMR) to explore how consumers could
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FCA’s Analysis: Can a consumer’s financial distress be predicted?

FCA’s Analysis: Can a consumer’s financial distress be predicted? The FCA have published, in August 2016, an Occasional Paper which analyses the typical features and characteristics of consumer
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Do you carry out sufficient Due Diligence before Outsourcing Consumer Credit Activities?

Do you carry out sufficient Due Diligence before Outsourcing Consumer Credit Activities?The Lending Standards Board (LSB) published a report in August 2016 on the findings of its themed review of
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The FCA have published an alert (in August 2016) to highlight some of the risks arising from authorised firms accepting business from unauthorised introducers/lead generators and/or other authorised firms (the introducer). The FCA are very concerned at the increase they have seen in cases in which the introducer has an inappropriate influence on how the authorised firm carries out its business, in particular where the introducer influences the product choice. They also have concerns where the authorised firm delegates regulated activities, for example, by outsourcing their advice process to unauthorised entities or to other authorised firms that do not have the relevant permissions, or are not their appointed representatives. The alert details the areas of concern the FCA have identified and also lists warning signs which firms should consider if they accepting customer introductions from introducers. According to the FCA, it is essential that firms maintain full and complete ownership of the advisory process between themselves and their customer, and any regulated advice a firm provides must meet the requirements set out in the FCA Handbook. Firms have been advised to: • Carry out robust due diligence on the introducers they transact with; • Have in place a robust vetting procedure to ensure that introductions have been sourced legitimately; • Regularly review and ensure that their systems and controls are adequate to demonstrate that they have full and complete ownership of the advice they are providing; • Only recommend products that they understand fully; • Provide independent advice to customers introduced ("independent" in this context means independence from the issuer or product provider); • Not allow another entity, whether or not it is regulated, to use the firm's reference number on the firm's behalf unless they are satisfied that it is being used appropriately; • Only delegate the performance of regulated activities to other authorised firms that have the required permissions or who are the firm's appointed representatives, with appropriate monitoring.

The FCA have published an alert (in August 2016) to highlight some of the risks arising from authorised firms accepting business from unauthorised introducers/lead generators and/or other authorised
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UK Financial Sector’s Future Post- Brexit?

UK Financial Sector’s Future Post- Brexit? A webpage has been published by the House of Lords EU Sub-committee on Financial Affairs announcing the launch of an enquiry into Brexit and financial
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Challenges in Adoption of Basel III/ CRD IV Standards by Banks

Challenges in Adoption of Basel III/ CRD IV Standards by Banks (This news item is of interest to banks, building societies and large investment firms only) In an update provided by the Basel
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Crowdfunding: FCA and PRA to address issues raised by Treasury Select Committee

Crowdfunding: FCA and PRA to address issues raised by Treasury Select Committee The House of Commons Treasury Select Committee announced in August 2016 the publication of responses from Tracey
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FCA’s Clamp-Down on Misleading Financial Promotions

FCA’s Clamp-Down on Misleading Financial Promotions A report published by Loan Talk has revealed the Financial Conduct Authority (FCA) have investigated and taken action in respect of 54
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FCA investigate Lloyds Bank over Handling of Mortgage Arrears

FCA investigate Lloyds Bank over Handling of Mortgage Arrears Fair treatment of customers in arrears remains an area of regulatory focus with ongoing review and investigations by the FCA. Lloyds
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Are You Ready to Comply with New Reporting Requirements for AML/ Financial Crime from December 2016?<

Are You Ready to Comply with New Reporting Requirements for AML/ Financial Crime from December 2016? The FCA have introduced new reporting obligations on firms in relation to their financial crime
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FCA’s Comments on Brexit

FCA’s Comments on Brexit Delivering a key-note address at the FCA’s Annual Public Meeting on 19th July 2016, the FCA’s new Chief Executive Andrew Bailey said ‘like many organisations the FCA
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Have You Heard From the Regulator About Your Regulatory Permissions? Here’s the FCA’s Commitment to Firms

Have You Heard From the Regulator About Your Regulatory Permissions? Here’s the FCA’s Commitment to Firms The FCA published on 22 July 2016 a webpage setting out their commitments to firms
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Debt Providers and Advisors Required to Use New Standard Financial Statement

Debt Providers and Advisors Required to Use New Standard Financial Statement The Money Advice Service announced on 27 July 2016 that the first Standard Financial Statement (SFS) will go live on 1
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Credit Card Market - Regulatory Intervention to Deliver Better Consumer Outcomes

Credit Card Market - Regulatory Intervention to Deliver Better Consumer Outcomes The FCA published on 26 July 2016 the final findings of its credit card market study which sets out a package of
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FCA Censure, Fine and Order Jersey Resident to Pay Restitution for insider Dealing

FCA Censure, Fine and Order Jersey Resident to Pay Restitution for insider Dealing The FCA announced on 15 July 2016 that they have fined Gavin Breeze £59,557 for engaging in market abuse in the
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Do Mortgage Firms Need ‘Debt Counselling’ Permission when Recommending Debt Consolidation?

Do Mortgage Firms Need ‘Debt Counselling’ Permission when Recommending Debt Consolidation? The FCA have issued a clarification in June 2016 that, in their view, firms offering debt
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Are You Correctly Allocating the Payments Received from Customers with a ‘Payment Shortfall’?

Are You Correctly Allocating the Payments Received from Customers with a ‘Payment Shortfall’? The Financial Conduct Authority (FCA) published in June 2016 a consultation paper, CP16/16, on
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Are you Ready for New Complaints Rules and Regulatory Return?

Are you Ready for New Complaints Rules and Regulatory Return? The FCA’s new complaints-handling rules will come into force from 30 June 2016 and firms will have to submit a new complaints return
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Modern Slavery Act 2015 – New Conduct and Reporting Obligations

Modern Slavery Act 2015 – New Conduct and Reporting Obligations The Modern Slavery Act 2015 ("the Act") came into force from 29 October 2015, introducing a number of measures to combat slavery
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Financial Advice Working Group Established by FCA

Financial Advice Working Group Established by FCA The Financial Conduct Authority (FCA) announced in June 2016 that it has established a Financial Advice Working Group in response to the
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FCA Bans Two Individuals for Lack of Integrity

FCA Bans Two Individuals for Lack of Integrity The FCA announced on 9 June 2016 that they have banned Mark Kelly and Patrick Gray from working in the financial services industry on the basis that
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FCA’s Responsible Lending Review post MMR– TR 16/4

FCA’s Responsible Lending Review post MMR– TR 16/4The FCA have published TR 16/4 to provide a feedback on the key findings of their market-wide thematic review of how firms were applying the new
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FCA Findings on De-Risking

FCA Findings on De-Risking The FCA have published in May 2016 a webpage setting out the findings from research on the nature and scale of de-risking in the UK. FCA have stated that, in recent years,
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The Consumer Credit (Disclosure of Information) (Amendment) Regulations 2016

The Consumer Credit (Disclosure of Information) (Amendment) Regulations 2016The above Regulations, SI 2016/530, have come into force on 17 May 2016. These regulations have made provision in
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Consumer Credit Directive (Radio Advertising)

Consumer Credit Directive (Radio Advertising) European Commission has published, on 27 May 2016, a clarification with respect to the application of the advertising rules in response to a written
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Retail banking market investigation: CMA decision on remedies

Retail Banking Market Investigation: CMA Decision on Remedies The Competition and Markets Authority (CMA) published in May 2016 its provisional decision on remedies in its market investigation
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FCA Business Plan 2016-17

FCA Business Plan 2016-17 The FCA have published the annual Risk Outlook and their Business Plan for 2016/17, which outlines the key regulatory priority themes for the current year. These priorities
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Regulatory Sandbox

Regulatory Sandbox As part of their commitment to promoting effective competition in regulated financial services in the interests of consumers, the FCA have developed a regulatory sandbox, which
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Improving Complaints Handling – New FCA rules

Improving Complaints Handling – New FCA rules The new rules for complaints handling, set out in PS 15/19, will come into force on 1 July 2016. The changes to the DISP rules are aimed at
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FCA’s Review of Retained Provision of the CCA – Call For Input

FCA’s Review of Retained Provision of the CCA – Call For Input It has been acknowledged that the transfer to the FCA has left consumer credit regulation in a state where it is quite complex
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FCA Update for Second Charge Mortgage Firms: MCD Related Permissions

FCA Update for Second Charge Mortgage Firms: MCD Related Permissions The FCA have updated their webpage on the Mortgage Credit Directive (MCD) with information for firms that offer second charge
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General Insurance Add-Ons: Guidance on Value Measures

General Insurance Add-Ons: Guidance on Value Measures The FCA published on 1 March 2016, a feedback statement (FS16/1) which summarises the responses received to its June 2015 discussion paper on
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Ageing Population and Financial Services – DP 16/1

Ageing Population and Financial Services – DP 16/1 The FCA have published a discussion paper on ageing population and financial services. The discussion paper contains contributions by a range of
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Proposal to Issue Guidance on the FCA’s View of Enforcing Security under the Consumer Credit Act 1974: GC 16/2

Proposal to Issue Guidance on the FCA’s View of Enforcing Security under the Consumer Credit Act 1974: GC 16/2 The FCA have published in February 2016 a guidance consultation (GC 16/2) on a
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Loan Based Crowdfunding – CP 16/4

Loan Based Crowdfunding – CP 16/4 Crowd-funding is a way in which some people and businesses, including start-ups, raise money by using online portals (known as crowd-funding platforms) to finance
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GABRIEL – Changes to Regulatory Returns

GABRIEL – Changes to Regulatory Returns The FCA have updated their Gabriel (online regulatory returns portal) webpage in December 2015, to give details of a number of key changes made to the
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Mortgage Credit Directive: Implementation of new MCOB rules for 1st and 2nd charge mortgages (PS 15/9) and further amendments to FCA’s rules and guidance (CP 16/2)

Mortgage Credit Directive: Implementation of new MCOB rules for 1st and 2nd charge mortgages (PS 15/9) and further amendments to FCA’s rules and guidance (CP 16/2) The countdown has begun –
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