Closed books and Consumer Duty
In a recent speech, the FCA warned firms to focus on providing fair value in closed mortgage books, defined as mortgages that were sold before 31 July 2023 and that have not been marketed or sold to new customers since. The FCA said, “We know many firms have applied their laser focus on open book […]
Regulators warnings on debt collection
A quartet of regulators, FCA, Ofgem, Ofwat and Ofcom have recently reaffirmed their joint commitment to increasing standards in debt collection activities. Their update comes as part of Debt Awareness Week 2024 and follows on from a letter they jointly published in June 2023, which set out their shared expectations as to how firms from […]
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!
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.
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.
SRT and Basel 3.1 – are you ready?
We are often asked by our clients to comment on market trends and movements. Significant Risk Transfer [‘SRT’] is currently dominating our conversations, and much of our work, especially our AUP services connected with SRT issuance programmes. 12 September 2024 is a key date that will lead to a seismic market shift – are you […]
