We have published the Final Report for the Credit Information Market Study. It contains our proposed package of remedies aimed at addressing concerns we identified in the market. We also set out feedback received from stakeholders in response to the Interim Report and Discussion Paper, issues raised, our response and proposed next steps.
May 2025 update: see below FCA and IWG joint statement
Credit information is a key factor in the effectiveness of decisions made by retail lending and wider financial services.
A well-functioning credit market supports our overall strategic objectives and Business Plan priorities. It supports improving consumer outcomes, protecting consumers, increasing market efficiency, and sustainable economic growth.
In November 2022, we published the interim report. This set out our provisional view on the quality of credit information, strength of competition, extent of consumer engagement and understanding as well as the effectiveness of existing governance arrangements. We found:
In December 2023, having considered feedback on the interim report and having engaged widely with a range of stakeholders, we confirmed our position on the proposed remedies outlined in our final report.
In the Final Report, we propose a package of remedies:
The package of remedies consists of proposed new requirements to improve the quality of credit information in the market, and industry-led remedies will be taken forward by the new governance body in the market with FCA input.
We have formed an interim working group (IWG) with diverse industry representatives and consumer bodies to produce recommendations to the FCA on the design, implementation, and operation of the new Credit Reporting Governance Body (CRGB). Read more information about the IWG.
In our Final Report we set out a package of proposed remedies to achieve our vision for the market and deliver better outcomes for consumers and firms.
We found several improvements that could be made to the market that industry is best placed to develop. Our Final Report sets out a holistic package of proposed industry-led remedies to ensure better outcomes for consumers. These include improving consumer awareness and access to credit information, better data quality and increased competition and innovation.
Our Final Report expects work on the proposed industry-led remedies to be taken forward through the future Credit Reporting Governance Body (CRGB). This body will seek appropriate stakeholder input to progress and implement industry-led remedies.
In the interim, some stakeholders have started thinking about progressing these industry-led remedies and asked for our views on this. We are publishing principles to inform industry on an approach to developing remedies before the creation of the CRGB, without limiting its ability to make decisions about these remedies and their implementation in the future.
The principles set out a range of factors for stakeholders to consider when undertaking work on the remedies. These include input from a specialist and/or broad range of relevant stakeholder cohorts, aligning remedy development with the CIMS proposals’ outcomes, and the emerging outcomes of the CRGB and the Consumer Duty. The principles also consider that work should be undertaken to specifically consider the potential impact on different firms (including small businesses) and consumers. This includes taking into account the effects on customers with characteristics of vulnerability and financial inclusion.
We welcome views from all relevant stakeholders on the development and progress of the industry-led remedies in accordance with the above principles. Please send views and comments to: [email protected].
We thank the organisations and individuals who responded to our Interim Report, discussed their feedback with us, and contributed to the proposed new governance arrangements, including the members of the IWG.
The IWG formally launched in January 2024.
The FCA and the IWG have revised the approach to the IWG’s remaining work on recommendations for the design, implementation, and operation of the CRGB. Due to the dependencies between topics and the need for more industry consultation, the IWG’s final report will now be issued in May 2025, consolidating all topics and final recommendations.
Previously, the IWG’s Terms of Reference (ToR) set an aspirational target for issuing the final report in September 2024, with 3 interim reports shared with the FCA. In August 2024, the FCA and the IWG updated that reports 3 and 4 timings would be extended. This was to allow for more comprehensive industry engagement and the development of an in-depth transition plan from Steering Committee on Reciprocity (SCOR) to CRGB.
Following further discussions, the FCA and IWG agreed there would no longer be a formal report 3. Instead, following industry consultation and FCA feedback, the IWG published a set of papers on 23 April.
To support the IWG to amend their final report following FCA feedback, the IWG Chair and Secretariat will remain during this period, with resource funding provided by the FCA. As well as supporting that work, the Chair and Secretariat will also assist with specific essential activities to allow the transition to the new CRGB to commence. These include: (i) supporting CRGB company incorporation; (ii) setting up a bank account; (iii) facilitating the recruitment of a permanent CRGB Chair and support staff; (iv) preparing a handover to permanent CRGB staff; and (v) supporting the IWG’s legal advisers in arranging pre-funding agreements with pre-funders.
Any associated costs for these activities, beyond the resourcing of the IWG Chair and Secretariat, will be a matter for industry.
The FCA will not provide any funding once the scope of the ToR has concluded and essential transition activities have been completed, except for a brief handover (if necessary) to permanent CRGB staff.
The FCA continues to welcome the IWG’s progress towards establishing a CRGB which is well placed to tackle emerging and future market developments that require cross-industry approaches or decisions. The FCA view this as a proportionate approach to tackle our and stakeholders concerns about the current governance arrangements.
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