FCA scales back business interaction to focus on coronavirus market response

The Financial Conduct Authority (FCA) has scaled back interactions with firms it regulates and postponed consultations as part of its response to the coronavirus outbreak.

It said firms must still take reasonable steps to meet their regulatory obligations but said routine business interactions would be scaled back.

The regulator has also delayed the publication of several documents, including some of relevance to peer-to-peer lenders such as a review of the consumer credit act and a credit information market study.

“We are reviewing our work plans so that we can delay or postpone activity which is not critical to protecting consumers and market integrity in the short-term,” the City watchdog said.

“This will allow firms to focus on supporting their customers during this difficult period.

“We have also scaled back our programme of routine business interactions, especially through meetings so that we only contact firms on business-critical requests and responses to the current situation.

“We will continue with a small number of regulatory changes which support consumers, particularly the most vulnerable, or where major long-term programmes would be disrupted.”

Read more: P2P platforms vow to help SMEs amid coronavirus concerns

The FCA said firms should take all reasonable steps to meet the regulatory obligations which are in place to protect their consumers and maintain market integrity.

“If a firm has to close a call centre – requiring staff to work from other locations including their homes – the firm should establish appropriate systems and controls to ensure it maintains appropriate records,” it said.

“Our rules are not specific in respect of call recording in such situations.

“We will continue proactively discussing with firms and trade associations the issues they are facing, and we will be continuing our active dialogue with them in the coming days and weeks.”

P2P lenders have been keeping their operations going while supporting staff and allowing them to work from home as the pandemic deepens.

Withdrawals have been slowed down with RateSetter and Assetz Capital, while Growth Street has stopped access to invested funds.

Other lenders such as Ablrate have said they are monitoring their loanbook and have stopped issuing invites to the office.