FCA final report on credit information market study

The UK Financial Conduct Authority (FCA) has published its feedback to the interim working group's final report on credit information market governance, which was developed in response to the FCA's Credit Information Market Study (CIMS). The CIMS final report proposed a new industry governance model named the Credit Reporting Governance Body (CRGB). An industry working group (IWG) was tasked with designing recommendations for the CRGB's structure and remit, to include strengthening self-governance in the credit information market, improving consistency and quality in data sharing and ensuring broader representation and transparency in decision-making. The FCA supports the IWG's recommendations and suggests areas for further consideration during implementation.

These include:

• Supporting financial inclusion by publishing good practice on the use of credit data and improving the reporting of defaults, forbearance and debt solutions.
• Promoting competition and innovation by considering how updates to the principles of reciprocity and the delivery of industry remedies could reduce barriers and encourage new ways of competing.
• Reviewing the CRGB's decision-making procedures earlier than the four-year schedule currently planned and considering where reviews of different processes could be carried out at the same time to take advantage of possible synergies.
• Ongoing engagement with regulators that reflects their respective roles, to enable the CRGB to effectively carry out its duties.
• Defining criteria for reporting breaches of CRGB rules to the FCA.
• Providing greater transparency around the CRGB's complaint process.
• Giving further thought to the area of commercial credit data (although noting it was outside the scope of the CIMS).

To support a smooth transition, the FCA will temporarily fund the IWG Chair and Secretariat to carry out essential transition activities. This support is expected to conclude by the end of Q3 of this year, after which the industry will assume full responsibility for the CRGB. Transitional arrangements from the IWG are already under way and a new body has been incorporated in the name of the CRGB.

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