 Coronavirus (Covid-19)
The Coronavirus (Covid-19) crisis touches every aspect of our lives and is creating unprecedented challenges for the UK financial system. We have been working closely with the Government, the Bank of England and other regulators to ensure customers are protected and markets continue to function well.
In the current climate, we recognise how important it is for us stay in touch with firms and keep you up to date on our thinking and plans as things evolve. So from now on we will be issuing Regulation Round-up every 2 weeks, focusing on Coronavirus and the issues it presents us all with.
This is one way that we will be providing regular information for firms. But we are also updating our special dedicated coronavirus webpage frequently, as well as issuing a weekly summary of our activity through our social media channels.
We will take a pragmatic and practical approach to helping firms get the space to ensure they do the right thing for consumers and keep their businesses running.
We continue to review our work plans and have postponed any activity which is not critical to protecting consumers and market integrity in the short-term. This allows firms to focus on supporting their customers. For example, we have extended the closing date for responses to our open consultation papers and Calls for Input until 1 October 2020. You can find a list of work we have postponed or rescheduled on our website.
We have also scaled back our programme of routine business interactions, especially through meetings, so that we only contact firms on business-critical requests and responses to the current situation.
In return, we expect firms to provide strong support and service to customers during this period. Our rules give firms the ability to consider their arrangements and customers’ circumstances so that they can address the evolving situation while managing the risks to their employees, customers and impact on the market.
We also expect firms to manage their operational and financial resilience and actively manage their liquidity. We are in regular contact with firms to assess their current position, and expect them to be operationally resilient and take reasonable steps to ensure they are prepared to meet the challenges coronavirus poses.
I know that firms have already taken steps to respond to the challenge of coronavirus. Working together in the months ahead we can build on the progress made so far to ensure that markets continue to work well and consumers receive the support they need to protect them from harm.
A major event like coronavirus can see new types of scam activity. We give details of potential Covid-19 scams, how they could affect consumers and how consumers can protect themselves.
Support our coronavirus scams messaging by linking to the news story, and retweeting our posts on Twitter (@TheFCA).
FCA and PSR respond to the CMA’s guidance on business cooperation under competition law
Both the FCA and PSR support the CMA’s guidance on its approach to business cooperation under competition law, published 25 March 2020.
We will take a consistent approach to our competition law enforcement activity in the financial services sector (under the Competition Act 1998 and/or the Treaty on the Functioning of the European Union).
It is important that competition law does not hinder firms from working together to provide essential services to consumers in the current situation.
At the same time, neither the FCA nor the PSR will tolerate conduct that tries to exploit the situation and harms consumers.
FCA's expectations on financial resilience
We want to see firms to continue operating in this challenging period and, where we can, we intend to provide flexibility to regulated firms to ensure this. Read our latest statement on our expectations of firms.
Work-related travel – responsibilities of Senior Managers
We published a statement to make it clear how firms should prioritise who should need to travel to the office. Each firm’s designated Senior Manager or equivalent person is responsible for identifying which of their employees are unable to perform their jobs from home, and have to travel to the office or business continuity site. We expect the total number of roles requiring an ongoing physical presence in the office or business continuity site to be far smaller than the number of workers needed to ensure all a firm’s business activities continue to function on a business as usual basis.
Banks, building societies and credit unions – branch access for essential services
On 25 March 2020, we published a statement on branch access to essential services. Banks, building societies and credit unions are working closely with government and regulators to maintain branch access for essential services, balancing the needs of their customers with their staff’s safety and welfare.
Customers are asked to visit branches only when necessary and, wherever possible, to use online banking services. They may also be able to use the Post Office for essential banking services as an alternative to their branch.
Banks, building societies and other payment service providers - Strong customer authentication, contactless payments
On 31 March, we published a statement for payment firms. We are actively considering with the industry, the Treasury and other regulators whether we should make further changes to regulatory or supervisory deliverables and expectations.
We support the use of contactless payments. We have told the industry that we would be unlikely to enforce if they did not meet the specific conditions for applying the contactless exemption, to minimise the frequency of customers being asked to do chip & pin. This is on the condition that firms manage fraud risks adequately and take swift action where needed.
Directory of certified and assessed persons
We have delayed publishing the directory of certified and assessed persons, due to be published on an enhanced Financial Services Register by the end of March, for at least a month. Until the new launch date is confirmed, dual regulated firms (banks, building societies, credit unions and insurance companies) can either regularly update their certified and assessed persons data as changes occur, or wait and provide a bulk update once we confirm the new launch date. Find out more on our directory of certified and assessed persons page.
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
Government’s Coronavirus Business Interruption Loan Scheme (CBIL)
We issued guidance to firms participating in the CBIL Scheme as loans of up to £25,000 to sole traders and unincorporated enterprises can fall within the scope of FCA regulation. The guidance covers information/circumstances that are relevant when assessing the affordability of these loans.
We make clear that the fact a customer may, at the time of applying, be temporarily experiencing exceptional financial pressures does not mean the firm cannot make the loan, and:
- lenders can take into account appropriate evidence, including historic trading figures/ future forecasts
- if forecast income doesn’t materialise, lenders should consider deferring repayments until it does
FCA proposes temporary financial relief for customers impacted by coronavirus
We’ve published a brief consultation on some targeted temporary measures designed as a stop-gap to quickly support users of some consumer credit products who are facing a financial impact because of the current exceptional circumstances.
The measures are for overdrafts, credit cards, store cards and catalogue credit, and personal loans. They would provide an expected minimum level of financial support for consumers who until now have been financially stable.
We are asking stakeholders to respond by 9am on Monday 6 April 2020. If confirmed, the measures would start to come into force by 9 April 2020.
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
Dear CEO letter on Coronavirus
On Tuesday 31 March we published a Dear CEO letter for all firms providing services to retail investors. The letter sets out our changes to our regulatory approach as a result of coronavirus. The areas covered include:
- flexibility within our rules on client identity verification
- requirements around best execution reports
- comments on 10% depreciation notifications
- pauses on the implementation of certain policy and supervisory initiatives
- clarification of how firms should treat government support schemes for financial resilience and prudential issues
Mortgage forbearance
Our new guidance on the fair treatment of mortgage customers sets out that firms should:
- not commence/continue repossession proceedings against customers at this time, unless they can demonstrate the customer agreed it is in their best interest, and
- grant payment holidays to customers who have or reasonably expect to have payment difficulties, and who want one, unless they can show an alternative option is appropriate and in the customer’s best interests
We will review the guidance in the next 3 months in light of ongoing coronavirus developments, and will issue amended guidance if needed.
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
Expectations of insurers
Many consumers are currently in a vulnerable position because of coronavirus.. Given the unprecedented impact, we expect insurers, to be aware of the circumstances that their customers find themselves in. Our web page helps firms to understand our position.
Expectation of brokers
Brokers have a key role to play in helping consumers understand the market, the impact of coronavirus on it and search for products that meet their demands and needs. We encourage brokers to keep up to date with market developments so they can suitably advise their customers. You may find our web page on expectations useful.
FCA’s expectations on financial resilience
We want to see firms to continue operating in this challenging period and, where we can, we intend to provide flexibility to regulated firms to ensure this. Read our latest statement on our expectations of firms, which will include insurance brokers.
Updated guidance on MOTs
The Department for Transport released a statement for consumers who have an MOT due on a car, motorcycle or small van in the next 6 months. Given this additional guidance, we expect motor insurers to continue to provide cover for these consumers’ vehicle insurance due to their temporary situation, in line with Government policy of not being able to receive (and not needing) a new MOT certificate. This includes at renewal, to ensure customers are able to shop around for their insurance.
Updated information on renewals
We have updated our expectations on firms on renewals, specifically where firms have difficulties in contacting consumers, for example if consumers are unwell.
Work-related travel – responsibilities of Senior Managers
We published a statement to make it clear how firms should prioritise who should need to travel to the office. Each firm’s designated Senior Manager or equivalent person is responsible for identifying which of their employees are unable to perform their jobs from home, and have to travel to the office or business continuity site. We expect the total number of roles requiring an ongoing physical presence in the office or business continuity site to be far smaller than the number of workers needed to ensure all a firm’s business activities continue to function on a business as usual basis.
Information for consumers
We have published information for consumers about how coronavirus could impact their insurance policies.
General Insurance Pricing Practices
We have decided to delay the GI Pricing Final report and Consultation Paper on remedies. We will provide an update at an appropriate point. Our website gives a full list of the delayed publications.
Directory of certified and assessed persons
We have delayed publishing the directory of certified and assessed persons, due to be published on an enhanced Financial Services Register by the end of March, for at least a month. Until the new launch date is confirmed, dual regulated firms (banks, building societies, credit unions and insurance companies) can either regularly update their certified and assessed persons data as changes occur, or wait and provide a bulk update once we confirm the new launch date. Find out more on our directory of certified and assessed persons page.
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
Act now: Respond to consultation on temporary financial relief for customers impacted by coronavirus
We have proposed a range of targeted temporary measures designed as a stop-gap to support users of certain consumer credit products who are facing a financial impact because of the exceptional circumstances arising from coronavirus. These proposals include those that offer premium finance arrangements for insurance products. You have the opportunity to respond to our very short consultation (closes 9am Monday 6 April 2020) given the national emergency and the significant impact on consumers' finances right now.
Directory of certified and assessed persons
We have delayed publishing the directory of certified and assessed persons, due to be published on an enhanced Financial Services Register by the end of March, for at least a month. Until the new launch date is confirmed, dual regulated firms (banks, building societies, credit unions and insurance companies) can either regularly update their certified and assessed persons data as changes occur, or wait and provide a bulk update once we confirm the new launch date. Find out more on our directory of certified and assessed persons page.
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
Dear CEO letter on Coronavirus
On Tuesday 31 March we published a Dear CEO letter for all firms providing services to retail investors. The letter sets out our changes to our regulatory approach as a result of coronavirus. The areas covered include:
- flexibility within our rules on client identity verification
- requirements around best execution reports
- comments on 10% depreciation notifications
- pauses on the implementation of certain policy and supervisory initiatives
- clarification of how firms should treat government support schemes for financial resilience and prudential issues
Pension savers urged to keep calm
On Wednesday 1 April, together with the Pensions Regulator and the Money and Pensions Service, we published a press release urging pension savers to beware scams, keep calm and not rush to make any decisions about their pension in response to Covid-19.
Concerned savers can visit the Pensions Advisory Service website for free pensions guidance before making any decisions about their retirement savings. They can also go to the ScamSmart website to learn how to protect themselves from pensions scams.
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
Dear CEO letter on Coronavirus
On Tuesday 31 March we published a Dear CEO letter for all firms providing services to retail investors. The letter sets out our changes to our regulatory approach as a result of coronavirus. The areas covered include:
- flexibility within our rules on client identity verification
- requirements around best execution reports
- comments on 10% depreciation notifications
- pauses on the implementation of certain policy and supervisory initiatives
- clarification of how firms should treat government support schemes for financial resilience and prudential issues
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
Property Fund Suspensions
On 18 March, we published a statement, noting that certain Standing Independent Valuers have determined that there is currently material uncertainty over the value of commercial real estate (CRE). As a result, some managers of open-ended CRE funds have temporarily suspended dealing in units of these funds. We noted that in these circumstances, suspension is likely to be in the best interests of fund investors.
Given the challenges posed by Covid-19, authorised fund managers (AFMs) are reminded of our November 2019 letter about effective liquidity management and the need to act in investors’ best interests.
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
FCA proposes temporary financial relief for customers impacted by coronavirus
We’ve published a brief consultation on some targeted temporary measures designed as a stop-gap to quickly support users of some consumer credit products who are facing a financial impact because of the current exceptional circumstances.
The measures are for overdrafts, credit cards, store cards and catalogue credit, and personal loans. They would provide an expected minimum level of financial support for consumers who until now have been financially stable.
We are asking stakeholders to respond by 9am on Monday 6 April 2020. If confirmed, the measures would start to come into force by 9 April 2020.
Directory of certified and assessed persons
We have delayed publishing the directory of certified and assessed persons, due to be published on an enhanced Financial Services Register by the end of March, for at least a month. Until the new launch date is confirmed, dual regulated firms (banks, building societies, credit unions and insurance companies) can either regularly update their certified and assessed persons data as changes occur, or wait and provide a bulk update once we confirm the new launch date. Find out more on our directory of certified and assessed persons page.
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
Banks, building societies and credit unions – branch access for essential services
On 25 March 2020, we published a statement on branch access to essential services. Banks, building societies and credit unions are working closely with government and regulators to maintain branch access for essential services, balancing the needs of their customers with their staff’s safety and welfare.
Customers are asked to visit branches only when necessary and, wherever possible, to use online banking services. They may also be able to use the Post Office for essential banking services as an alternative to their branch.
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
Banks, building societies and other payment service providers - Strong customer authentication, contactless payments
On 31 March, we published a statement for payment firms. We are actively considering with the industry, the Treasury and other regulators whether we should make further changes to regulatory or supervisory deliverables and expectations.
We support the use of contactless payments. We have told the industry that we would be unlikely to enforce if they did not meet the specific conditions for applying the contactless exemption, to minimise the frequency of customers being asked to do chip & pin. This is on the condition that firms manage fraud risks adequately and take swift action where needed.
Firms to register for FCA’s new data collection platform
Starting on 2 April, when next logging into Gabriel users are taken through a short process to register for our new data collection platform.
We have published guidance on how to register, including a user guide and explainer video. When registering, only link your own personal Connect and Gabriel accounts. If you do not have a Connect account, including if you are a Compliance Consultant, please register for a new Connect account.
We understand this is a difficult time for firms dealing with the impact of coronavirus. The registration process is a simple but key step as we prepare to move to our new data collection platform.
We will send you an email with your moving date for the new data collection platform in good time. Until then, please continue to report via Gabriel using your Gabriel log in details.
Brexit
The UK left the EU on 31 January 2020 and has entered a transition period, which is due to end on 31 December 2020. Find out what this means for firms and consumers on our Brexit pages.
Authorisations, registrations and approvals
Authorisations, registrations and approvals remain a priority for us and are continuing as normal. If we expect any change to normal service due to Covid-19 we will communicate this to the industry via our website. We understand this is a difficult time and we will work pragmatically with firms. Firms should contact their case officer if they are concerned about their ability to meet the relevant assessment standards, want to reconsider their application or raise any issues. Firms should expect us to make greater use of teleconferencing during the assessment process and we strongly advise only sending communications electronically.
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