On Apr. 16, UK FCA issued first report of credit information group.
FCA published first report of Credit Information Market Interim Working Group (IWG).
Entitled, Report One: What the Credit Reporting Governance Body should do.
Follows UK FCA Jan. 202 4 updated on first meeting of working group, see #199803.
Background
FCA Credit Information Market Study (CIMS) final report found that current industry governance arrangements ineffective on a number of fronts, including re consumers.
Regulator therefore formed IWG to produce recommendations to FCA on the design, implementation, and operation of a new Credit Reporting Governance Body (CRGB).
Four reports due from IWG Chair, first on what CRGB should do, second how CRGB will be constituted, third how it will operate, fourth bringing together all recommendations.
First Report
Report content will continue to evolve as work on other CRGB components progresses.
Recommends that the CRGB's purpose, which is intentionally brief, is to provide effective governance of credit information for all consumers and other stakeholders.
3 recommended objectives, an operational objective, consumer objective and a future-looking objective, set a challenging agenda, aim to ensure it is clear on its priorities.
A set of roles are also recommended which are centred on governance of the scheme, market practice to support execution, policing of data sharing rules, and education.
IWG believes that for effective governance of shared credit information, the datasets encompassed within CRGB framework should exceed those regulated by FSMA 2000.
Set of principles defined to support dataset definitions, next steps recommendations.
To measure and evaluate success of CRGB in achieving its objectives, set of outcomes must be identified for stakeholders, IWG defined outcomes for each stakeholder group.
Outcomes highlighted 3 interrelated themes relevant for most stakeholders: improved data quality, supporting innovation and competition, and enhanced financial inclusion.
It is recommended that the CRGB, when established, defines quantifiable measures to evidence the progress being made towards the achievement of these outcomes.
Next Steps
First report is published on IWG landing page and feedback will be welcome via email.
IWG members will now use it to consult their stakeholders on the recommendations.
Report will be shared with FCA for consideration, which will provide interim feedback.
Full FCA assessment will be reserved until final report is issued in autumn 2024.
