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How will the FCAs publication of the high-cost credit review affect your firm?

FCA publishes guidance on creditworthiness assessments

Our experts outline the ways that the final guidance from the Financial Reporting Council (FCA) will affect firms in future and how they could be caught out.

Simon Walker


KPMG in the UK


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On 30 July, the Finacial Conduct Authority published a Policy Statement clarifying its expectations in terms of the approach firms take to assessing credit risk and affordability. These rules are due to be implemented by 1 November 2018 and firms will need to ensure they are considering a holistic approach to consider the impact of these changes.

The FCA’s aim is to ensure customers are protected from poor culture and practices which lead to inappropriate lending decisions and poor customer outcomes. The FCA Policy Statement introduces changes to the Consumer Credit Sourcebook (CONC) which aim to enhance protection for consumers whilst balancing the need for proportionality. These proposals are outlined in their feedback, policy decisions and final rules and guidance following the consultation paper issued in July 2017.

Read our report, FCA publishes outcome of high-cost credit review,  summarising the background to this review, the FCA’s findings, response and expected next steps.

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