Regulation
The following issue updates are available for Regulation.
APR calculations
19 November 2008 | 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
29 December 2008 | 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
18 November 2008 | 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
30 July 2008 | 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
28 November 2008 | This page provides information about claims management companies and how they are regulated by the Ministry of Justice.
Codes and Statements of Practice
21 November 2008 | 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
9 October 2008 | 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"
21 November 2008 | 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
31 October 2008 | 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.
Data reporting requirements
30 July 2008 | Following consultation earlier this year, the Financial Services Authority (FSA) has revised some of its data reporting requirements, including complaints data.
Endowment mortgages
28 November 2008 | 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
21 November 2008 | 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
17 September 2008 | 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 white paper on mortgages
22 September 2008 | This paper provides an overview of the EU white paper on mortgages, which was published on 18 December 2007. The Commission has now indicated that it will not publish proposals for a directive in 2008 or 2009. An update on Commission progress on studies and impact assessments has been attached.
European Code of Conduct
21 November 2008 | Explains what the European Code of Conduct is and its impact for UK lenders.
Financial Ombudsman Service
28 November 2008 | This page contains information about the FOS and current issues on which we are engaged with FOS.
Financial promotions
28 November 2008 | This page provides information on how to meet the advertising requirements of the FSMA and CCA regimes.
Financial Services Authority - annual policy documents
28 November 2008 | 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 summarises the key messages in these documents for mortgage lenders.
Financial Services Compensation Scheme
27 November 2008 | This page briefly describes the Financial Services Compensation scheme and summarises recent consultations concerning the operation of the scheme.
Freedom of Information Act 2000
1 December 2008 | 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's comparative information tables
19 November 2008 | This page gives information about the FSA's comparative tables.
FSA's Key Facts logo
21 November 2008 | 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
4 December 2008 | 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 December 2006 | Background on Islamic home finance and an overview of the issues.
Legal Services Bill
13 August 2007 | The Legal Services Bill is at committee stage in the House of Lords at present. Its core proposals include creating a single legal services regulator and allowing alternative business structures for legal firms.
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
21 November 2008 | This page provides a background note on the history of the Mortgage Code.
Mortgage exit administration fees
28 November 2008 | This page summarises the FSA's activities in relation to promoting good practice on mortgage exit administration fees.
Mortgage regulation – background
19 November 2008 | Sets out the background to the development of the mortgage regulation regime.
Mortgage regulation – cost transparency of valuation
21 November 2008 | 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
21 November 2008 | 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
28 November 2008 | This page summarises recent developments on mortgage regulation issues which are not covered on separate pages within our website.
Mortgage rescue in England
5 January 2009 | Updated to include details of the pilot local authorities and answers to frequently asked questions by lenders.
Non-advised sales – scripted questions
21 November 2008 | 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
27 November 2008 | This page gives background information about the FSA's Review of Retail Distibution, including information on the publication of their interim report. The most recent update advises that the policy statement expected in the autumn will now be published in November, not October, as announced in April 2008.
Rome 1 regulation on applicable law: implications for mortgage lenders
8 July 2008 | 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. It has now been put nito the Offical Journal, signalling formal adoption.
Training and competence
21 November 2008 | This page summarises the Financial Services Authority's requirements for staff to be trained and competent to carry out their jobs.
Treating customers fairly
10 December 2008 | 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
21 November 2008 | 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
28 November 2008 | 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
28 November 2008 | This page summarises the material which the FSA has published in relation to the fairness of terms in mortgage contracts.
