Regulation

The following issue updates are available for Regulation.

APR calculations

9 July 2009 | Explains what the Annual Percentage Rate of Charge (APR) is and how it is calculated.

Automated valuation models (AVMs) in the context of Basel 2 - FSA guidance

17 August 2009 | This page provides the FSA's view on how automated valuation models (AVMs) can be used in the context of Basel 2.

Banking Bill 2008

9 October 2008 | The Banking Bill was introduced in Parliament on 7 October 2007. It makes a number of changes to the Financial Services Compensation Scheme, the procedures and powers for dealing with banks in financial difficulties, the powers of the Bank of England (BoE) in relation to the interbank payment system, the rights of commercial banks to issue bank notes and the governance of the Bank of England in relation to the maintenance of financial stability.

Basel II - a guide to new capital adequacy standards for lenders

6 February 2008 | A guide to the Basel II capital adequacy standards that are being introduced for lenders, replacing the current Basel Accord.

Basel II - questions and answers

7 November 2008 | A policy update explaining in simple terms the international capital accord, Basel II.

CAT standards

9 July 2009 | An explanation of "CAT" standards and what the standard is for mortgage products.

Citizens Advice Bureau report: Set up to fail - CAB clients' experience of mortgage and secured loan arrears problems

2 February 2010 | The Citizens Advice Bureau (CAB)has published its report "Set up to fail - CAB clients' experience of mortgage and secured loan arrears problems". This page sets out our views on that report.

Claims Management Companies

9 July 2009 | This page provides information about claims management companies (CMCs) and how they are regulated by the Ministry of Justice. The members' section has been updated to include information about a guidance note produced by the Claims Management Regulator on the use of misleading statements or omissions by CMCs.

Codes and Statements of Practice

9 July 2009 | This page provides information about a number of Codes and Statements of Practice which CML members have historically been asked to comply with.

Consumer credit - draft directive

5 November 2009 | This paper provides an overview of the legislative process and key implications for mortgage lenders of the directive on consumer credit, which was published in the Official Journal on 22 May 2008.

Consumer Credit Act "wealth warnings"

9 July 2009 | This page explains the prescribed text for "wealth" warnings which must appear in advertisements for mortgage products.

Consumer Credit Act 2006: Removal of the £25,000 financial limit and impact of Section 82 of the CCA 1974

1 December 2009 | The Legislative Reform Order (LRO) to ensure that buy-to-let loans remain unregulated came into force on 31 October 2008. A copy of the LRO is included on this page. Members may wish to consider a possible legal issue that has recently been raised in relation to the LRO.

Consumer Credit Act; OFT consultation on guidance for second charge lending

1 December 2009 | The OFT has published a consultation on guidance for brokers and lenders on second charge lending. The closing date for responses is 8 May 2009.

Endowment mortgages

9 July 2009 | This page explains the background to endowment complaints, including the ABI's Code of Practice, and summarises recent developments. The most recent update summarised the data for Q2 2008 on endowment complaints.

Enterprise Act 2002 - Office of Fair Trading guidance

9 July 2009 | Explains the implications of changes to competition and consumer law brought into effect by The Enterprise Act 2002, which came in to force on 20 June 2003, largely replacing the Fair Trading Act 1973.

Equity release

9 July 2009 | This provides an overview of the current position on equity release, including an update on the FSA work on good practices in the lifetime mortgage market.

EU developments in mortgage policy and regulation

1 December 2009 | This paper provides an overview of the EU white paper on mortgages, which was published on 18 December 2007 and covers subsequent policy developments. It has been updated to include reference to the latest EU Commission consultation on responsible lending and borrowing plus some additional information on the Commission foreclosure initiative.

EU draft directive on consumer rights

5 November 2009 | The draft directive on consumer rights has recently been the subject of a consultation by DBERR to ascertain its implications for the UK. It could have some limited impact on UK financial services including mortgages.

European Code of Conduct

9 July 2009 | Explains what the European Code of Conduct is and its impact for UK lenders.

Financial Ombudsman Service

12 March 2010 | The Financial Ombudsman Service has this week issued a joint discussion paper with the FSA and OFT outlining plans for a new consumer protection committee, a summary of which is provided for members. David Thomas, corporate director and principal ombudsman, FOS will be giving the keynote address at our mortgage complaints seminar on 23 March in London.

Financial promotions

9 July 2009 | This page provides information on how to meet the advertising requirements of the FSMA and CCA regimes.

Financial Services Authority - annual policy documents

17 February 2010 | Every year the FSA publishes a number of wide-ranging policy documents, such as its annual report, Financial Risk Outlook and the Business Plan and consultation on fees and levies. This page has been updated to include a summary of the proposed regulatory fees and levies for 2010/11.

Financial Services Compensation Scheme

22 February 2010 | This page briefly describes the Financial Services Compensation Scheme and summarises recent consultations concerning the operation of the scheme. The members section has been updated to include the FSCS levies for 2010/11 and some guidance on the treatment of offset mortgages.

Freedom of Information Act 2000

9 July 2009 | This page reports two decisions, both relating to the Financial Services Authority, made by the Information Commissioner under the Freedom of Information Act. The most recent update relates to the first of a series of judgments expected.

FSA stress tests of financial institutions

2 September 2009 | A summary of the FSA's approach to stress testing following a recent statement from them.

FSA's comparative information tables

1 December 2009 | This page gives information about the FSA's comparative tables.

FSA's Key Facts logo

9 July 2009 | Explains that the FSA's Key Facts logo is a registered trademark, and that where it appears on documents as prescribed by the FSA, it must be shown with the ® trademark symbol.

Funding developments

24 April 2009 | This page provides a guide to recent developments in mortgage funding markets and outlines the policy measures that are being implemented or considered to combat the current market dislocation.

Islamic home finance

8 February 2010 | Background on Islamic home finance and an overview of the issues.

Lifetime mortgages - FSA capital requirement under the standardised approach

1 February 2008 | This paper outlines the FSA's guidance on how to calculate the capital requirement for lifetime mortgages under the standardised approach of Basel 2, confirming the treatment agreed with industry over the summer.

Mortgage Code

9 July 2009 | This page provides a background note on the history of the Mortgage Code.

Mortgage exit administration fees

27 May 2009 | This page summarises the FSA's activities in relation to promoting good practice on mortgage exit administration fees.

Mortgage market review

29 January 2010 | The CML has now issued its response to the FSA's Mortgage Market Review (MMR) Discussion Paper. We will be working with our MMR steering group, comprising lender firms, to help develop our response to the approved persons section of the FSA's consultation launched on 26 January.

Mortgage regulation – background

9 July 2009 | Sets out the background to the development of the mortgage regulation regime.

Mortgage regulation – cost transparency of valuation

9 July 2009 | Explains that lenders are required to disclose administration fees levied in connection with mortgage valuations.

Mortgage regulation - Financial Services Authority (FSA) effectiveness review of MCOB

9 July 2009 | This summarises the results of the two stages of the FSA's review of the effectiveness of its Mortgages: Conduct of Business (MCOB) rules.

Mortgage regulation - recent developments

2 March 2010 | This page summarises recent developments on mortgage regulation issues which are not covered on separate pages within our website. Updated for members to include details of the FSA's enforcement penalty framework.

Mortgage rescue in England

4 September 2009 | The scheme is now live in all local authorities in England. The page has been updated for members to include information on the new fast-track team and guidance on over-reaching that CLG have published.

Non-advised sales – scripted questions

9 July 2009 | The FSA's Mortgage Conduct of Business rules require mortgage lenders and mortgage intermediaries to structure non-advised mortgage sales by using scripted questions. This page sets out some of the issues which we believe you will want to take into consideration when devising the scripted questions for use by your firm.

Retail Distribution Review

8 July 2009 | This page gives background information about the FSA's Review of Retail Distibution, including information on the publication of the consultation document on implementing the review, published in June 2009.

Rome 1 regulation on applicable law: implications for mortgage lenders

5 November 2009 | This paper provides an update on aspects of the regulation of relevance to mortgage lenders. The regulation was agreed by the European Parliament in December 2007 and was signed off finally in Council on 17 April 2008 and has been formally adopted. The UK Government has now signaled its intention to opt into the regulation from 17 December 2009.

Training and competence

8 May 2009 | This page summarises the Financial Services Authority's requirements for staff to be trained and competent to carry out their jobs.

Treating customers fairly

9 July 2009 | This issue has been updated to draw attention to further guidance issued by the FSA on how it proposes to embed TCF assessments into its supervisory process.

Treating customers fairly: responsibilities of providers and distributors

9 July 2009 | This page summarises the key points raised in an FSA discussion paper (DP06/4) published on 28 September 2006, and the subsequent Policy Statement (PS07/11) which was published in July 2007.

Unfair Commercial Practices - EU directive

9 July 2009 | The Unfair Commercial Practices Directive was adopted by the European Union on 11 May 2005. It was due to be transposed into UK law by 12 June 2007 and implemented 12 months later. This update draws attention to the Consumer Protection Regulations 2008 (SI 2008 No 1277), which came into effect on 26 May 2008.

Unfair terms in consumer contracts regulations

9 July 2009 | This page summarises the material which the FSA has published in relation to the fairness of terms in mortgage contracts. An update to the members' section to include details of a recent undertaking against the On-Line Partnership Limited.