Information on Section 166 reports concerning representative APR - June 2022

1. For the 3 years, 2018/19 to 2020/21 inclusive, how many Skilled Persons Reports (under FSMA s166) (which the FCA can require to report on activities of licence holders) has the FCA commissioned in Retail Lending where the issue of representative APR, including the formulation or compliant deployment of representative APR, has been the "matter concerned"?
2. [For the period] 1 April 2021 and 31 March 2022A), in the ordinary course of the FCA's general supervision of retail lending (other than when assessing applications for grant of authorisation):
   1. how many times has the FCA requested a firm to outline how it calculates its representative APR;
   2. how many cases of representative APR rule breaches have been discovered;
   3. how many firms have been referred to the Enforcement Department for action; and
   4. how many times has the FCA required changes to the firm's website and product literature to correct statements on representative APR?

Question A

We can confirm that for the years 2018 to 2021 (inclusive), no section 166 skilled person reviews were the subject of ‘representative APR’ or ‘APR’.

Question B

1. The FCA requested that one firm outline how it calculates its representative APR.
2. The FCA opened 20 cases in response to potential breaches of rules in relation to representative APR.
3. The FCA referred none of these cases to our Enforcement Department.
4. The FCA requested changes to firms’ financial promotions in relation to representative APRs for 19 of these cases.