Bank of England and Financial Services Bill – amendments to FSMA

New clauses have been accepted into the Bank of England and Financial Services Bill inserting new "clarificatory" provisions into the Financial Services and Markets Act (FSMA) 2000 over the enforceability of consumer credit agreements.

  • Clause 24 amends section 26A FSMA to clarify that a consumer credit agreement may be enforced by anyone permitted to carry on a credit-related regulated activity, including exempt persons such as appointed representatives or members of a designated professional body (e.g. solicitors).
  • Clause 25 amends section 27 FSMA to clarify that an agreement made unenforceable in consequence of something said or done by a third party in breach of the general prohibition will only apply if the provider knew, before the agreement is made, that the third party (e.g. a credit broker), had some involvement in the making of the agreement or in matters preparatory to its making.

UK Parliament,12 November 2015

FCA Discussion Paper on new P2P regulated activity and rules

The Financial Conduct Authority (FCA) has published a discussion paper setting out its thinking in respect of potential new rules for peer-to-peer loan based investments. This is in anticipation of the availability of a new Innovative Finance component to Individual Savings Accounts from April 2016 giving investors exposure to loan based P2P and the anticipated categorisation of advice on loan based crowd funding investments as a regulated activity. The FCA seeks views on which of its conduct of business (and other) rules should be extended to advisers. Comments should be received by 31 December with a policy statement and final rules likely in March 2016.

FCA, 12 November 2015

Speech by Mark Steward on firm culture and governance

The FCA has published a speech as delivered by Mark Steward, the new FCA Director of Enforcement and Market Oversight, on firm culture and governance. 

FCA, 12 November 2015

FCA regulatory sandbox plans

The FCA has published plans for implementing a "regulatory sandbox" following a request from HM Treasury. This initiative is closely associated with the FCA's Project Innovate and concerns the feasibility and practicalities of developing a "safe space" where businesses can test innovative products, services, business models and delivery mechanisms without the normal regulatory consequences of engaging in the activity in question. One case study envisages using a regulatory sandbox to trial automatic advice business models (robo advice) but having human advisers check the advice before customers place reliance on it.

FCA, November 2015


Government agrees to £13 billion sale of former Northern Rock mortgages

The Chancellor has authorised the sale of £13 billion mortgages acquired by the government during the financial crisis.

HM Treasury, 13 November 2015

BSA: Building society sector commits to review maximum age policies on mortgages

The Building Societies Association has published an interim report entitled Lending into Retirement reflecting a major societal shift as our population ages and needs increasingly to fund mortgage borrowing into retirement. Building Societies Association, 12 November 2015 

FLA: Second-charge mortgage repossessions down 48% in Q3

The Finance & Leasing Association has released figures that find that the number of second charge mortgage repossessions were down 48.6% on the same quarter in 2014. Finance & Leasing Association, 12 November 2015

Mortgages pick up in Q3

The Council of Mortgage Lenders has reported that first-time buyers saw month-on-month and year-on-year increases in activity by volume and by value in September. 

Council of Mortgage Lenders, 11 November 2015

BSA elects new Chairman

The Chief Executive of Bath Building Society, Dick Jenkins has been elected as Chairman of the BSA. 

Building Societies Association, 11 November 2015