On 17 December 2015, HM Treasury published an open consultation paper on the Financial Policy Committee (FPC) powers of direction in the buy-to-let market.
The FPC has already been granted the power of direction in relation to loan-to-value and debt-to-income limits in respect of owner-occupied mortgages. This consultation paper seeks to gather views and comments on how the buy-to-let mortgage market may carry risks to financial stability and the specific tools in relation to which the FPC has recommended it be granted powers of direction.
The FPC was set up to protect and enhance the resilience of the UK financial system by identifying, monitoring and removing systemic risks. The FPC is empowered to make recommendations to HM Treasury and use its statutory power to direct the PRA and/or the FCA to ensure the implementation of specified measures.
The deadline for responses is 11 March 2016.