The FCA have published The Woolard Review report today which recommends a huge shift for the ‘buy-now-pay-later’ market. The Review was headed by former FCA Interim Chief Executive Christopher Woolard. Today’s published report details Woolard’s kay recommendations for the unsecured credit market.
The key recommendations the Review sets out include:
- buy-now-pay-later (BNPL) products should be brought under FCA regulation as soon as possible
- ensuring a healthy credit market is underpinned by good debt advice services
- ensuring there is a sustained regulatory response to coronavirus (Covid-19) including through more prescriptive approach to forbearance
- encouraging the growth of alternatives to high cost credit
- building a better credit information market
- ensuring that a healthy, sustainable credit market is built on regulation that focusses on good outcomes across the lifetime of a product
The FCA, Government and other bodies will review these recommendations. The FCA themselves have stated;
‘We have considered and accepted the recommendations of the Review directed to the FCA. Ensuring consumer credit markets work well is one of our five key priorities. We will build the Review’s recommendations into our business planning and will give further details of our response to the Review when our next Business Plan is published in April 2021. Where recommendations are directed at others, the FCA has urged them to act on the Review’s findings.’
Read the full report in detail here.
Source: https://www.fca.org.uk/publications/corporate-documents/woolard-review-unsecured-credit