Handbook changes to reflect the application of the EU Benchmarks Regulation
Last updated: 22 Jun 2017
- Consulting body:
- Financial Conduct Authority
- Period of consultation:
- Runs from 22 June 2017 to 22 August 2017
- CML action:
- Not responding
Today the FCA has published the consultation Handbook changes to reflect the application of the EU Benchmarks Regulation (BMR)
The Regulation contains an amendment to Article 13 of the Mortgage Credit Directive, which the FCA needs to implement.
This amendment requires lenders and tied credit intermediaries who offer any mortgage linked to a benchmark rate, such as LIBOR, to make available the name of the benchmark, who administers it, and the potential implications for consumers.
This requirement should be relatively inexpensive, as it can be satisfied by relevant firms adding this information to their websites.
The amendment is planned to come into force on 1 July 2018.
In preparing for this implementation, the FCA also discovered that one clause in Article 13 had not been transposed into the Handbook.
This clause requires lenders and tied credit intermediaries to give a generic description of the conditions related to early repayment.
The FCA is thus taking this opportunity to transpose this clause into the Handbook when implementing the amendment above.
This correction is planned to come into force on 1 January 2018.
As this is a minor change to tidy up the Handbook, UK Finance will not be responding to this consultation.