Financial difficulty

FCA forbearance review

The FCA continues with its review into ‘Borrowers in Financial Difficulty’, and is now undertaking case file reviews, having published its interim report in January. We continue our ongoing engagement with the regulator, in order to ensure members are as sighted as possible on the regulator’s key areas of focus and overall direction of travel. The review will likely consider the cost of living challenges as arise for Customers. Industry will affirm the tailored support that members provide to customers and continue to encourage early engagement by customers with firms to ensure appropriate support is received.

Statutory Debt Repayment Plan (SDRP)

Following our engagement with firms and HMT on the implementation of the Breathing space regulations we are proactively engaging HMT to share members insights ahead of the publication of the draft regulations, which are now expected in Q2 2022. We will continue to highlight relevant material and output as this unfolds

Insolvency reform

We continue to actively engage the Insolvency Service on the need for personal insolvency reform. In March we responded to its ‘Future of Regulation’ consultation, confirming broad support for the creation of a single regulator that is implemented in a cost-efficient way, and for the introduction of regulation for the IVA provider firm as well as the Insolvency Practitioner.

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