Recent regulatory developments of interest to financial institutions with focus on consumer finance. This week directs to our separate briefing on the Woolard Review Report. See also our Related Materials links for updates with broader application.
- Woolard Review sets out vision for unsecured credit
Woolard Review sets out vision for unsecured credit
The UK Financial Conduct Authority (FCA) has published a report, to the FCA board on a review of change and innovation in the unsecured consumer credit market. The report is published following a review by Christopher Woolard, former FCA Interim CEO (the Woolard review), commissioned by the FCA board.
The report sets out how regulation can better support a healthy market for unsecured lending, considering the impact of the COVID-19 pandemic, changing business models and new developments in unregulated buy-now pay-later (BNPL) unsecured lending. It sets out 26 recommendations to the FCA, government and other bodies to make the unsecured credit market fit for the future.
Read more in our separate briefing: Woolard Review sets out vision for unsecured credit: now over to the FCA to make it happen.
HM Treasury has published a press release confirming that interest free buy-now-pay-later (BNPL) products are to be regulated by the FCA following a recommendation from the Woolard review that such products should be brought into FCA supervision. HM Treasury indicates that the government will consult with stakeholders before bringing forward the necessary legislation to ensure the approach to regulating BNPL is proportionate.