Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

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Banks

RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

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Currencies

Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

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Banks

Carney: UK is ‘investment banker for Europe’

The governor of the Bank of England has repeated his calls for a “smooth and orderly” UK exit from the EU, saying that a transition out of the bloc will happen, it was just a case of “when and how”. Responding to the BoE’s latest bank stress tests, where lenders overall emerged with more resilient […]

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Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Categorized | Financial

FCA tightens rules for payday lenders


Posted on February 28, 2014

Payday lenders operating in the UK are being told to check whether borrowers can afford their short-term, high-cost loans under new rules introduced to address poor practice.

The UK’s financial regulator has announced its final verdict on plans to oversee consumer credit providers and debt management companies and says it intends to take a “hands on” approach.

    From 1 April, around 50,000 firms will be required to meet new requirements which include a ban on misleading adverts and provision of debt advice. Lenders will also not be able to automatically hit a customer’s bank account for funds if they miss a payment and cannot roll over loans more than twice.

    The UK’s “Wonga economy” has ballooned over the past few years, which has led to growing criticism from politicians, debt charities and consumer groups.

    Last year George Osborne, chancellor, told the regulator that it had a duty to impose a cap on the costs incurred by borrowers. This is expected to be put in place on 2 January 2015.

    “Millions of consumers access some form of credit each day, from paying for everyday goods by credit to taking out a payday loan. We want to be sure that the market works well when people need it – whether that’s for one day, one month or longer,” said Martin Wheatley, chief executive of the Financial Conduct Authority.

    “Our new rules will help us to protect consumers and give us strong new powers to tackle any firm found to be overstepping the line.”