DEMSA Summary: Festive Update

Summary – Read the full DEMSA update here (including all the links & more)

A festive DEMSA bulletin before the holidays, addresses various aspects of financial services and consumer protection. It provides insights into upcoming FCA regulations, consumer duty alignment, and insolvency reforms.

Key Points

Active FCA participation in IVA voting research and its alignment with Consumer Duty.
Engagement with The Insolvency Service and IPA on personal insolvency reform.
Anticipation of FCA’s debt advice ‘portfolio’ letter and CONC 8 review.
Focus on commercial sector topics ahead of regulatory updates.
Refresh of FCA Application pages from December 13, 2023.
Emphasis on Fair Value Assessments in light of the cost-of-living crisis.
Ongoing evolution of Duty diagnostics and cost-of-living data requests.
Review of vulnerability guidance FG21/1 starting January 2024.
Discussion on ISO 22458 kitemark adoption and consumer vulnerability.
Rising importance of economic abuse training in debt advice.
Integration of toolkits like the Government Economic Abuse toolkit.
Increased focus on training for operational management and frontline staff.

Key Statistics

Data on IVAs that failed in the first 2 years.
First annual Duty board reports by July 2024.
Number of people impacted by economic abuse.

Key Take Aways

Regulatory compliance and consumer protection remain central in financial services.
The evolving landscape of personal insolvency requires continuous engagement and reform.
Training and education in economic abuse and vulnerability are increasingly important.
The financial sector must adapt to regulatory changes and increased focus on consumer outcomes.
Tools and diagnostics are vital for aligning services with the cost-of-living crisis.

Access all the updates here