Regulation
The following issue updates are available for Regulation.
APR calculations
16 March 2011 | 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
21 July 2011 | This page provides the FSA's view on how automated valuation models (AVMs) can be used in the context of Basel 2.
Basel 3 changes in EU: CRD4
26 October 2011 | On 20 July 2011, the European Commission published the CRD IV Proposal, its implementation of the Basel 3 changes discussed internationally. The proposals are designed to strengthen and stabilise the banking and wider financial systems. This page summarises the key changes for residential mortgages.
Basel II - a guide to capital adequacy standards for lenders
28 May 2010 | A guide to the Basel II capital adequacy standards that lenders have been required to comply with since the start of 2008.
Basel II - questions and answers
2 June 2010 | A policy update explaining in simple terms the international capital accord, Basel II.
Basel II update
10 June 2010 | This page provides an update on the changes to the CRD (CRD 2,3 and 4) introduced in response to the financial crisis. The CRD implements the Basel II Accord in the EU.
Building societies sourcebook
21 July 2011 | The Financial Services Authority (FSA) has published a specialist sourcebook for building societies. It provides guidance on the financial and credit risk management functions and controls that societies should have in place. This webpage provides a summary for members.
CAT standards
16 March 2011 | An explanation of "CAT" standards and what the standard is for mortgage products.
Claims Management Companies
10 August 2011 | The FSA, Ombudsman and Financial Services Compensation Scheme have published a note aimed at both firms and consumers on the role of claims management companies (CMCs). This page also provides information about CMCs and how they are regulated by the Ministry of Justice.
Codes and Statements of Practice
16 March 2011 | 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 Act "wealth warnings"
16 March 2011 | This page explains the prescribed text for "wealth" warnings which must appear in advertisements for mortgage products.
Consumer Credit Act regulated lending
10 August 2011 | This page has been updated with a brief summary on the OFT's irresponsible lending guidance.
Endowment mortgages
31 August 2011 | 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
16 March 2011 | 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
21 July 2011 | 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 Directive on responsible lending and borrowing (now called the Directive on credit agreements relating to residential property)
21 December 2011 | Provides an update on the EU Directive on responsible lending and borrowing - now called credit agreement relating to residential property.
European Code of Conduct
16 March 2011 | Explains what the European Code of Conduct is and its impact for UK lenders.
Financial Ombudsman Service and complaints handling
9 September 2011 | This page has been updated to include a summary of mortgage complaints for the first half of 2011.
Financial promotions
16 March 2011 | This page provides information on how to meet the advertising requirements of the FSMA and CCA regimes.
Financial regulation - transition to FCA, PRA and FPC
16 June 2011 | This page summarises the latest position on the transition towards a new structure for financial regulation. The Treasury Select Committee's report following its inquiry on the subject, published on 3 February, has been summarised for members. The members' section includes an overview of the FSA's feedback on the product intervention discussion paper and the likely actions that will be taken forward by the Financial Conduct Authority.
Financial Services Authority - annual policy documents
18 May 2011 | Every year the FSA publishes a number of wide-ranging policy documents, such as its annual report, Financial Risk Outlook (in 2011 the FRO was replaced by two documents - the Retail Conduct Risk Outlook and the Prudential Risk Outlook) and the Business Plan and consultation on fees and levies. This page has been updated to include of the 2011 documents.
Financial Services Compensation Scheme
16 March 2011 | 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
16 March 2011 | 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
21 December 2011 | This page gives information about the FSA's comparative tables.
FSA's Key Facts logo
16 March 2011 | 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
21 May 2010 | 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
16 March 2011 | This page provides a background note on the history of the Mortgage Code.
Mortgage exit administration fees
16 March 2011 | This page summarises the FSA's activities in relation to promoting good practice on mortgage exit administration fees.
Mortgage market review
23 June 2011 | The FSA's mortgage market review (mmr) aims to deliver a sustainable market for pariticipants and flexible for consumers. We agree with these high-level aims but are concerned that the detailed proposals could have broad ranging negative impacts. This page has been updated following our response to the consultation paper on disclosure and distribution.
Mortgage regulation – background
16 March 2011 | Sets out the background to the development of the mortgage regulation regime.
Mortgage regulation – cost transparency of valuation
16 March 2011 | 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
16 March 2011 | 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
16 March 2011 | This page summarises recent developments on mortgage regulation issues which are not covered on separate pages within our website. A summary of feedback from the government consultation on regulatory scope is provided for members.
Mortgage rescue in England
15 December 2011 | The government has launched its Affordable Housing Framework document, which contains details of the mortgage rescue scheme (MRS) for 2011/12 and 2012/13. Members are provided with a summary of the main changes to MRS and recent developments.
Non-advised sales – scripted questions
16 March 2011 | 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.
Training and competence
16 March 2011 | This page summarises the Financial Services Authority's requirements for staff to be trained and competent to carry out their jobs.
Treating customers fairly
16 March 2011 | 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
16 March 2011 | 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
16 March 2011 | 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
18 May 2011 | This page summarises the FSA's positions relating to the fairness of terms in mortgage contracts. The FSA has published a statement on Early Repayment Charges and how they can be assessed for fairness under the Unfair Terms in Consumer Contracts Regulations 1999.
