Credit Management magazine May2017

CICM WINS APPROVAL IN
NEW APPRENTICESHIP DRIVE
Dr Debbie Tuckwood
THE CICM has been approved by the Skills
Funding Agency as an Apprenticeship
Assessment Organisation (AAO) for
the Industry’s new Level 3 Trailblazer
Apprenticeships.
The world’s largest recognised body for
credit professionals already acts as an AAO
for the industry’s Level 2 Apprenticeships,
and the announcement is an extension of the
CICM’s existing approval/status. As such, it
will offer the End Point Assessment (EPA) to
FCA PROPOSES NEW
RULES FOR CREDIT CARDS
THE FCA is proposing new rules to help
customers who are in persistent credit card
debt, following a study of the UK credit card
market that found significant concerns about
the scale, extent and nature of the problem of
credit card debt.
Credit card customers are considered to
be in persistent debt if they have paid more in
interest and charges than they have repaid of
their borrowing, over an 18-month period.
The FCA estimates that around 3.3 million
people are in persistent debt, with over half
(1.8 million) for two consecutive periods of 18
months. The proposals require firms to take
steps to help customers repay their balances
more quickly and to offer further assistance to
those who can’t.
Andrew Bailey, FCA Chief Executive, says
the issue needs to be tackled: “Persistent debt
can be very expensive, costing customers on
average around £2.50 for every £1 repaid, and
it can obscure underlying financial problems.”
Firms will be required to prompt debtors to
make faster repayments if they can afford to
do so. If the debt continues, firms must take
steps, such as proposing a repayment plan,
to help customers to repay their outstanding
balances more quickly. Customers who do not
respond, or who confirm that they can afford to
repay faster but decline to do so, would have
the higher-level apprenticeships.
Dr Debbie Tuckwood, Head of Education
and Professional Development at the CICM,
says it demonstrates the prominence and
significance the CICM places on apprentices:
“These apprenticeships are perfect for training
new and young talent as well as up-skilling
current teams to provide a clear route of
development and career progression for all.
“Funding is available regardless of age
and high-quality training is led by industry
experts,” she says.
Those that pass their Level 3 (or equivalent)
qualifications through the CICM will also be
awarded with ACICM, Associate Membership
of the Chartered Institute, and will have
the opportunity to gain its professional
qualifications to further build technical
knowledge.
The CICM has been integral to the
development of the new style credit
management apprenticeships both for credit
controllers/collectors and advanced credit
controllers/debt collection specialists. It
has worked closely with the Credit Services
Association (CSA) to ensure new apprentices
develop the technical knowledge, skills and
behaviours required for the demanding roles.
Successful CSA Level 3 apprentices are also
eligible for CICM Associate member status.
their ability to use the card suspended.
The FCA also proposes that where a
customer cannot afford any of the options
proposed, firms must take further steps
to assist them to repay the balance in a
reasonable period, for example by reducing,
waiving or cancelling any interest or charges.
It is expected that firms would normally
suspend use of the customer’s card during
this period.
By 2030, the FCA expects savings to
customers would reach a total of between £3
billion and £13 billion, depending on how firms
and customers respond. The FCA expects
that the savings would peak in the first few
years of the proposed rules being in place, at
between £310 million and £1.3 billion per year,
before reducing as fewer customers get into
debt over time.
The FCA is also proposing to require
earlier intervention by firms in response to
signs that customers are in financial difficulty,
building on an existing rule that requires
firms to monitor a customer’s repayment
record for signs of actual or potential financial
difficulties. Under these new proposals, it is
expected that firms would do more to use the
extensive amount of data available to them
to identify customers in difficulty and take
appropriate action. fca.org.uk
>NEWS IN BRIEF
BIBBY RESTRUCTURES
STEVE Box, International Chief Executive, is
to leave Bibby Financial Services as it restructures
its global executive team. As a result
of the re-structure, the international division
of BFS will cease to operate, and Edward
Winterton will become Chief Executive,
UK, moving from his current position of UK
Commercial Director. Ian Watson will become
Chief Executive, North America, while Richard
Carter will move into the newly created role of
Chief Executive, Europe and Asia.
bibbyfinancialservices.com
ACCESS ALL AREAS
THE Access Group has completed the
acquisition of Safe Computing in a deal that
its CEO, Chris Bayne, calls a ‘game changer’.
Safe Computing becomes Access’ biggest
acquisition to date, with revenues of £18 million
and around 500 customers. Safe Computing
adds to Access’ existing recruitment sector
capabilities and will be an extension of
its Tempest ‘Pay and Bill’ solution. Safe
Computing’s other products in Human Capital
Management and Financial Management
Systems complement the existing Access
portfolio. theaccessgroup.com
SENIOR PROMOTION
FREETHS has promoted Graeme Danby to
Director. He joined Freeths in 2013 to head up
and develop the National Creditor Services
team, and has significant experience in volume
recovery, advising creditors in relation to their
position when affected by insolvency and
providing advice to creditors on implementing
effective credit control strategies.
freeths.co.uk
CYBER INSECURITY
THE uptake of cyber insurance by UK SMEs
has grown from 2.1 percent in 2014 to 13.7
percent in 2016, although this is still a relatively
low figure compared to other commercial
products, according to research and consulting
firm GlobalData. The company’s latest report
suggests that in a world where UK businesses
are more dependent on the digital space, and
crime is moving online, there is a greater need
for cyber insurance.
globaldata.com
ANTI-SOCIAL SHARING
THE FCA has fined former investment banker,
Christopher Niehaus, £37,198 for sharing
client confidential information over WhatsApp.
The FCA found that Niehaus failed to act with
due skill, care and diligence while he was
Managing Director in the Investment Banking
division at Jefferies International Limited.
fca.org.uk
NEW ICAEW BRAND
ICAEW has launched a new brand to ensure
it remains modern and relevant to all of its
audiences. The re-brand aims to be strong
and distinctive to differentiate ICAEW from its
competitors in a global marketplace.
icaew.com
The recognised standard
www.cicm.com May 2017 7