FCA Policy Statement on Consumer Credit Product Sales Data Reporting
Summary
In April 2024, the FCA set out in its Policy Statement 24/3 its final rules and guidance for incorporating three new Product Sales Data (PSD) returns into the Supervision manual (SUP 16).
The new PSD returns will require firms to provide detailed information on the initial sale and ongoing performance of individual loan agreements.
With this enhanced data, the FCA expects to be able to:
- better understand how firms operate and gain more insight into the market,
- authorise and supervise firms more effectively,
- intervene more quickly and boldly where it has identified risk of harm in the consumer credit market, and
- reduce its reliance on ad hoc requests for more information from firms
These returns are expected to play a fundamental role in the FCA’s oversight of the Consumer Credit market, allowing it to make better use of data to spot and stop harm faster.
Firms affected by the changes will need to ensure that their reporting is in line with the changes set out in the Policy Statement. Firms will need to implement the changes within the timescales as set out in Appendix 1, Handbook Text and highlighted in Chapter 3, Thresholds section.
The three new PSD returns will collect more granular information about the sale and ongoing performance of consumer credit products, including Sales PSD, Performance PSD and Back book PSD. Lenders will submit sales and performance data on a quarterly basis so that the FCA can monitor the ongoing performance of agreements through their full life. For agreements entered into prior to the first reporting period, lenders will submit back book data as a one-off submission. The FCA will collect the following data as part of the Sales and Performance PSD returns, including limited agreement and borrower data in the Back book collection; core agreement data, borrower and affordability data, charges and fees and arrears and forbearance information.
The threshold for firms to report PSD will now be £2 million in outstanding balances and/or new advances relating to regulated consumer credit agreements.
The FCA will continue to engage with the industry throughout the implementation period and will provide additional supporting information where appropriate. Large firms (£20m plus) have 14 months and small firms (£2 - £20m) have 20 months to prepare for these reports.
Following the consultation feedback, the FCA has created an Excel version of the data elements found in the instrument and Handbook to aid the review of the required data.