This week the Financial Conduct Authority amended the opening date for consumer-buy-to-let registration and the Consumer Finance Association published its in depth report into the short-term loan market.

REGULATORY

FCA amends opening date for CBTL mortgage firm registration and publishes factsheet for house builders on MCD

The FCA has published a direction amending the opening date for consumer-buy-to-let firm registration and has also published a factsheet for house builders on the implementation of the Mortgage Credit Directive. The purpose of this direction is to amend the opening date for applications for entry on the register of consumer buy-to-let mortgage firms under article 8 of the MCD Order (register of consumer buy-to-let mortgage firms). An earlier FCA direction specified an opening date of 21 September 2015. The factsheet (No.37) is for house builders that may be impacted by the UK implementation of the MCD. Among other things, the MCD changes the regulation of second charge mortgages (including shared equity schemes), with it being brought into the FCA's wider mortgage regime rather than its consumer credit regime.

The FCA, 20 July 2015

PRA revises depositor and dormant account protection supervisory statement

The PRA has published an updated version of its supervisory statement on depositor and dormant account protection (SS18/15). The amendments relate to the provision of the information sheet before 1 January 2016 and the requirement to notify depositors of the limit change for deposits protected under the Financial Services Compensation Scheme (FSCS) from £85,000 to £75,000. The PRA has updated this section to advise that firms discuss options with their supervisor (for example, where they face challenges in meeting the relevant requirements).

PRA, 20 July 2015

Martin Wheatley, FCA Chief Executive to stand down

The FCA has announced that Martin Wheatley is to stand down as FCA Chief Executive with effect from 12 September 2015 but will continue to act as an adviser to the Board until 31 January 2016. Tracey McDermott (currently FCA Director of Supervision) will take over as Acting Chief Executive from that date, while a replacement for Mr Wheatley is found.

FCA, 17 July 2015

UK 

CFA: Credit 2.0 – Time for financial services to catch up with 21st Century consumers says report

The Consumer Finance Association has published a new report "Credit 2.0" which looks at an in-depth analysis of the short-term loan market and the impact of new FCA regulations on borrowers. Insight was provided by Equifax, a leading consumer and business credit intelligence agency, providing insight into the latest consumer borrowing and short-term credit market trends. As well as a range of secondary research sources, which are all cited in the report, the CFA analysed data regarding hundreds of thousands of loan applications made to CFA members in 2015.  The Consumer Finance Association, 21 July 2015 

Lenders’ appetite for offering development finance rises sharply

Banks and other lenders are rushing back into property development financing, as Britain’s booming real estate market fuels their appetite for risk-taking.  Financial Times, 20 July 2015

FSCS annual report and accounts

The Financial Services Compensation Scheme (FSCS) has published its 2014/15 annual report and accounts. The report includes many items of interest in relation to how many claims the FSCS received, how much was paid out in compensation and the impact of the Recast Deposit Guarantee Schemes Directive (DGSD). 

FSCS, 16 July 2015

EU 

BCBS consultation on proposed revised version of general guide to account opening

The Basel Committee on Banking Supervision (BCBS) has published a consultation paper on its general guide to account opening. Responses are required by 22 October 2015. The guide focuses on account opening. It is not intended to address every possible situation, but instead focuses on some of the mechanisms that banks can use in developing an effective customer identification and verification programme that enables them to meet their obligations under anti-money laundering (AML) and counter-terrorist financing (CTF) requirements. The guide also sets out the information that should be gathered at the time of account opening and will help the bank to complete the customer risk profile.

BCBS, 16 July 2015

EBA final report on guidelines on product oversight and governance arrangements

The European Banking Authority has published a final report (EBA/GL/2015/18) on guidelines on product oversight and governance arrangements for retail banking products. The guidelines, which are found on page 9 of the report, set out requirements for manufacturers and distributors when designing and bringing to market mortgages, personal loans, deposits, payment accounts, payment services and electronic money.

European Banking Authority, 15 July 2015