OFT’s March 2010 guidance has been updated.

FSA has published this consumer research paper re the above, which was contains results from the 2011 FSA Consumer Awareness Survey. Among the findings: one in three people, overall, thinks that the main responsibility of a financial watchdog should be to ensure that firms treat their customers fairly; one in four thinks that it is to prevent misselling and one in six believes that a financial watchdog should ensure that only appropriate people or firms can operate in the market, and one in ten thinks that such an organisation prosecutes firms and inpiduals. Of those surveyed, 60% are confident that FSA effectively regulates the financial services industry, but only 5% are very confident that it does so. Nearly one in five people are unconfident (confidence has returned after a low of 38% in 2009).

FSA has published the above report as a guidance consultation, together with an accompanying press release. Following a review of all regulated SRB firms which found that most sale and rent back transactions were either unaffordable or unsuitable and never should have been sold, FSA referred one firm to enforcement whilst others have either stopped taking on new business or cancelled their permissions, effectively meaning that the entire sale and rent back market is “temporarily shut”. The most common failings identified by FSA included: firms incorrectly assessing appropriateness and affordability, with customers not given enough time to consider the agreement; issues concerning agreements and key facts documents; inadequate sales processes and breaches of financial promotions rules. Responses to the report are required by 29 March 2012.

The report looks at various documents considered by the Committee and, in the “documents not cleared” section of the report, section 14 cites draft European market abuse legislation still under scrutiny and looks forward to receiving information about: the Government’s final evaluation of whether a criminal sanctions regime is essential; and further developments in working group discussion of matters noted by Mark Hoban in earlier correspondence.

ESMA has launched the above, which provides information on credit ratings issued by those 15 credit rating agencies) which are either registered or certified in the EU. The CEREP database will allow investors to assess for the first time on a single platform the performance and reliability of credit ratings on different types of ratings, asset classes and geo-graphical regions over the time period of choice. (2/02/12)

In this report (which will be published annually from now on), EBA sets out its priorities in the areas of financial innovation and consumer protection. With regard to the former, following a survey amongst Member States’ supervisory authorities, further work by SCFI in 2012 will take place on a number of products, including collateralised commercial paper, CFDs and convertible bonds. With regard to the latter, EBA notes that it has decided to focus its work in 2012 on the analysis of the widespread concerns about consumer detriment in the context of the mortgage market and other indebtedness issues, including aspects such as advice, provisions, credit intermediation, credit cards, transparency, financial education, and complaints handling, adding that analysis of these matters could potentially lead to EBA guidance or recommendations, where appropriate. It also plans to organise a roundtable on consumer protection at which it can outline its consumer protection strategy and plans, and seek input from stakeholders.

FLA has published an updated version of its Lending Code to take account of changes in statutory regulation, such as the Consumer Credit Directive and the latest OFT Guidance. New elements include: additional measures to help customers in financial difficulty and in particular those with mental health problems. a ban on commission payments for shop staff selling store cards, and a delay in discounts or other benefits for the first seven days after a store card is acquired; a requirement on lenders to ensure customers are aware of the total cost of a short-term loan (including fees and charges) before they apply, and that the loan is not suitable for long-term borrowing and a restriction on the number of times a short-term loan can be extended to a maximum of three, coupled with a requirement that a new credit assessment be carried out each time.

FSA: Credit unions – annual return (CY) validation checks

ASB has published financial reporting exposure drafts (FREDs) 46 to 48 setting out revised proposals for the future of financial reporting in the UK and Republic of Ireland. These proposals include: replacing all current accounting standards with a single FRS and retaining the financial reporting standard for smaller entities. ASB is proposing that the revisedproposals should take effect from for accounting periods beginning on or after 1 January 2015 with earlier adoption permitted. Responses are required by 30 April 2012. Subject to the feedback received, it is envisaged that the final standard will be issued by the end of 2012.

BoE has published the text of a book chapter by Paul Tucker (described as “taken from 'Investing in Change', AFME) in which he discusses, among other matters, macro-prudential reform, shadow banking and securities regulation.