From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

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  4. Handbook changes to reflect the introduction of the Lifetime ISA

Handbook changes to reflect the introduction of the Lifetime ISA

Last updated: 21 Nov 2016

Consulting body:
Financial Conduct Authority
Status:
Closed
Period of consultation:
Runs from 17 November 2016 to 25 January 2017
CML action:
Response submitted

The FCA are consulting on proposals to introduce a Lifetime Individuals Savings Account (LISA) and the changes required to the Handbook rules.

The FCA's proposed approach to regulating the promotion and distribution of the LISA seeks to address the risks that it may present to their objectives – particularly their consumer protection objective.

They categorise these risks under five broad headings:

  • complexity
  • contributions
  • investments
  • access
  • tax

They propose addressing these risks via an ‘enhanced ISA’ approach – by amending their current Handbook requirements as they relate to ISAs in respect of communications, information disclosures, cancellation rights and client assets. 

CML response

CML has responded to the FCA’s consultation, agreeing with the proposals to provide information to investors highlighting the risks; we suggest the need to ensure that the interaction between Help to Buy ISA and Lifetime ISA is well-explained, given the potential confusion which could arise at point of house purchase.

We also note the challenging time frame for ISA providers to implement any new regulatory requirements alongside product development. 

The full CML response can be downloaded below.

Downloads

  1. CML response - LISA consultation (PDF 119KB)