The City of London Law Society (CLLS) has published its response to the Treasury consultation on mortgage regulation. In the Treasury consultation the Government proposes to bring second charge mortgages and buy-to-let mortgages within the scope of FSA regulation and to introduce a new regulated activity of managing a regulated mortgage contract.

The CLLS believes that the Treasury’s proposed definition of managing a regulated mortgage is flawed and that the Treasury could achieve its stated policy objective by making amendments to the Mortgages: Conduct of Business sourcebook (MCOB). The CLLS also draws attention to a problem with the existing boundary between the regimes under the Financial Services and Markets Act 2000 and the Consumer Credit Act 1974 (CCA) in relation to the CCA ancillary activity of debt administration. The CLLS notes that a similar boundary problem arises in relation to the CCA ancillary activity of debt collecting under section 145(7) CCA, but assumes that the overlap between the regimes is intentional.

View CLLS response to HM Treasury Consultation Paper on mortgage regulation, 15 February 2010