FCA consequential changes to the Consumer Credit Sourcebook following MCD implementation

The Financial Conduct Authority has published a policy statement (PS15/20) on consequential changes to its Consumer Credit sourcebook (CONC) in respect of UK implementation of the Mortgage Credit Directive (MCD). This follows publication of a consultation paper, CP15/6, in February this year. In September 2015 there will be a further consultation over minor changes to the FCA handbook on, for example, whether to amend the definition of "credit related regulated activity" to include the activity of advising borrowers on MCD lending not secured on the home (article 3(1)(b)), and over additional rule changes necessitated from the Government's decision to make the administration of first charge CCA mortgages a regulated activity.

FCA, 31 July 2015 

FCA Handbook instruments

The Financial Conduct Authority has published the Mortgage Credit Directive (Amendment) Instrument 2015 (FCA 2015/41). This makes minor amendments to its rules that will implement the Directive and subject second charge mortgages to MCOBs to ensure that they accord with the original policy intention (e.g. in respect of calculating the annual percentage rate of charge (APRC)).

FCA, 31 July 2015

New FCA webpage for Project Innovate

The Financial Conduct Authority has published a new webpage setting out details of what it considers as Project Innovate's achievements to date and its future plans. From this autumn firms that have received initial support from the Innovation Hub will have their applications for authorisation dealt with by a specialised Project Innovate authorisation process. Moreover, the Hub will help with the promotion of innovative regulatory solutions to international standard-setters and put innovative businesses in touch with the right regulators when they begin doing business in other jurisdictions. The FCA will also begin a programme of proactive engagement with larger businesses so that they may similarly benefit and not be held back by regulatory issues.

FCA, 31 July 2015

FCA reports on fair treatment for consumers who suffer unauthorised transactions

The Financial Conduct Authority has published a report (TR15/10) containing the findings of its thematic review into fair treatment for consumers who suffer unauthorised transactions in the context of firms providing current accounts and credit cards. The report which contains both examples of good and bad practice found that firms in general meet their legal obligations and are endeavouring to deliver fair outcomes. As a result the FCA does not believe that anymore thematic work is needed but firms should consider the findings in the report and their own approach.

FCA, 28 July 2015 


Banks could face compensation claims for failing to disclose commission payments

According to analysts the financial services industry could face a £33 billion compensation bill for failing to disclose PPI commission payments to customers. The Financial Conduct Authority is considering the implications of Plevin v Paragon Personal Finance Ltd [2014] UKSC 61 where the Supreme Court held that where there is a failure to disclose to customers payment of a large commission from the product provider there could arise an unfair relationship under the Consumer Credit Act 1974.

The Guardian, 30 July 2015 

BBA June 2015 figures for the high street banks

The British Bankers Association has published its June 2015 statistics for high street banks where it says that the housing market is beginning to "hot up" again as the number of mortgage approvals were around 8% higher in June than the same time last year. Lending to larger companies however, continues to be subdued.

BBA, 27 July 2015