REGULATORY

MCD Handbook Changes

The Financial Conduct Authority has published the Handbook Administration (No 38) Instrument 2015. This makes a number of minor amendments to the Handbook in relation to second charge and Consumer Buy-to-Let (CBTL) mortgages. Regarding MCOB, they concern the applicability of these rules to a "second charge regulated mortgage contact" entered into before 21 March 2016, initial disclosure requirements and responsible lending and financing requirements. In SUP, they relate to required terms in contracts governing the appointment of Appointed Representatives which includes CBTL business. With regards to the application of DISP (on complaints handling) to CBTL firms, the amendment concerns the correction of a typographical error.

FCA, 2 July 2015

FPC finalises policy statements on housing and leverage ratio tools

The Financial Policy Committee (FPC) has issued a policy statement in relation to the housing market and leverage ratio. This describes the housing tools (or powers available), the proposed scope of their coverage, the FPC’s understanding of their impact on financial stability and growth, and the matters that the FPC will consider in deciding whether to use them.

Bank of England: FPC, 1 July 2015

FCA consumer credit authorisations data bulletin

The Financial Conduct Authority has published an authorisations data bulletin on consumer credit applications. The publication provides an insight into the application process in light of the transfer of regulation from the Office of Fair Trading to the FCA.  Among the statistics provided, it is stated that as at 31 March 2015, 19,533 firms had applied and that the majority of firms authorised so far are operating as limited permission credit brokers.  FCA, 30 June 2015

UK

FOS report on telephone fraud

The Financial Ombudsman Service has published a report on telephone fraud relating to complaints about 'vishing' scams. This describes how banks can try to prevent "vishing" scams and what action should be taken once fraud has been detected.

Financial Ombudsman Service, 6 July 2015

CMR bulletin on PBA

The Claims Management Regulation Unit of the Ministry of Justice has published a special bulletin on the mis-selling of packaged bank accounts. Besides insurance products, benefits of such accounts can include overdraft facilities at preferential rates.

Ministry of Justice, 3 July 2015