The FCA has issued its ninth quarterly consultation paper (CP15/19), setting out its proposals to:
- Transpose the UK Corporate Governance Code, 2014 edition: The FCA proposes to update the definition of the Code in the Glossary and in the Listing Rules (LR) sourcebook to make a number of other consequential amendments to LR, the Disclosure Rules and Transparency Rules sourcebook (DTR), the Statements of Principle and Code of Practice for Approved Persons (APER) and the Senior Management Arrangements, Systems and Controls sourcebook (SYSC) to reflect the revised Code.
- Make minor amendments to the Mortgages and Home Finance: Conduct of Business sourcebook (MCOB) and the Training and Competence sourcebook (TC):In March 2015, the FCA published a policy statement containing its final rules implementing the Mortgage Credit Directive (2014/17/EU) (MCD) and making second charge mortgages subject to the regulatory regime for mortgages (PS15/9). However, the FCA has since identified that minor amendments need to be made to these rules, in particular:
- an amendment allowing firms to use the current calculation method for the annual percentage rate of charge (APRC) when providing an additional figure as part of the ‘top up’ information to the key facts illustration (KFI).
- a clarification of the application of MCOB to second charge mortgages entered into before 21 March 2016.
- an amendment to the Training and Competence sourcebook (TC) restricting the availability of the transitional provisions delaying the ‘in-force’ dates of the TC requirements to those firms carrying out MCD activities before 20 March 2014. This change is required to implement the MCD.
- Make various Handbook amendments and amend the Enforcement Guide (EG) and the Unfair Contract Terms Regulatory Guide (UNFCOG) to reflect the Consumer Rights Act 2015: The Consumer Rights Act 2015 comes into force on 1 October 2015. The FCA proposes to amend rules and guidance provisions in a number of Handbook sourcebooks, and also EG and UNFCOG, to reflect the changes being brought in by the Act. In particular, the proposed Handbook amendments reflect the new definition of "consumer", clarify the application of references to the Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999/2083) (UTCCRs) and insert references to the Act. The FCA proposes to amend EG to set out the FCA's new investigative powers and new powers in relation to injunctions and enforcement orders. It proposes to amend UNFCOG, which sets out the FCA's policy on how it uses its powers under the UTCCRs, to (among other things) change its title to the Unfair Contract Terms and Consumer Notices Regulatory Guide and replace all references to the UTCCRs with references to the Act, and all references to provisions under the UTCCRs to corresponding or new provisions under the Act.
- Effect technical Handbook amendments relating to HM Treasury small and medium-sized (SME) finance measures: The FCA is consulting on Handbook changes to ensure it has arrangements in place that are consistent with the requirements of the Small Business, Enterprise and Employment Act 2015.
The deadline for comments on the FCA's proposals in chapters 4, 5 and 6 of CP15/19 is 5 July 2015. Comments on the FCA's proposals in chapters 2 and 3 of CP15/19 can be submitted by 5 August 2015.