Financial watchdog the FCA doubled its interventions in 2014, according to the Financial Times. The FCA provides information for British consumers and regulates a variety of financial institutions, from mortgage brokers to insurers. Their watchword is ‘integrity’, with regulated companies having to abide by strict codes of practice and conduct, outlined by the FCA.
There were “31 so-called early interventions” in 2014, and only 14 in 2013. The most notable and widely publicised intervention case in 2014 has been regarding pay-day loan companies and the amount they can charge customers for repayment. The FCA introduced tough legislation and capped the amount that pay-day loan companies can demand from customers at double the original loan, as more and more found themselves in financial difficulty due to extortionate interest rates. Many companies have “restructured their rates” in response, but some companies were forced to close.
The FCA’s average fine also increased from £624,000 to £3.2m in 2014, with its total fines reaching £1.47bn, proving that the authority is “taking a more rigorous approach to regulating firms.” This has not gone without criticism, however, with the FCA’s Clive Adamson telling “a parliamentary select committee that some insiders felt the agency had gone too far.” The FCA’s head of enforcement, Tracey McDermott, also commented that there was a need for “trust in financial services to be rebuilt” and “the right culture…to stamp out poor practice.”
Wellesley & Co. is a Peer-to-Peer lender regulated by the FCA, meaning that the risks of lending with the platform are always clearly outlined. More information about the safety of peer-to-peer can be found here.