The FCA has published its Quarterly Consultation No.14 (CP16/21), setting out proposed minor changes to the FCA Handbook. Of particular interest are the following:
- Minor change to the APR assumptions for consumer credit - The FCA is proposing to amend the assumption in CONC App 1.2.5R (d) to reflect the assumption in Part II (i) of Annex I of the Consumer Credit Directive as amended. The assumption relates to open-ended agreements and deals with instances of different borrowing rates and charges offered for a limited period or amount. The FCA confirmed it did not believe that this minor change would affect any products currently offered in the UK.
- Minor changes to MCOB relating to equity release - These changes are intended to facilitate better availability of lifetime mortgages where the consumer can choose to switch to interest roll-up. The proposals also include updating rules relating to the determination of the length of term in illustrations and changes to the reporting of Product Sales Data requirements in SUP.
- Consequential changes to Short Form A - These changes relate to the forms used when making an application to perform senior management functions under the Senior Managers regime, specifically to ensure consistency in respect of the criminal records check question which already appears in the Long Form A.
The consultation on proposed changes to the APR assumptions for consumer credit and consequential changes to Short Form A will close on 3 October 2016. The consultation for the proposed minor changes to MCOB will close on 2 November 2016.