This week has seen the FCA launch a market study on competition in the mortgage sector. In other news, the FCA has also published its thematic review on early arrears management in unsecured lending.


FCA policy statement and final rules on changes to MCOB relating to mortgage borrowers with a payment shortfall

The FCA has published a policy statement on two minor amendments to the Mortgages and Home Finance Conduct of Business sourcebook. An appendix to the sourcebook contains the final version of the Mortgage and Home Purchase Plan Payment Shortfalls Instrument 2016

FCA, 14 December 2016

FCA consults on review of FSCS funding

The FCA has published a consultation paper on reviewing the funding of the Financial Services Compensation Scheme (FSCS). The FCA discuss a range of options on changes to the funding of the FSCS and the coverage of its protection of the following:

  • Professional indemnity insurance market
  • Product provider contributions
  • Funding classes for intermediation activities
  • Risk-based levies
  • Pensions freedoms

The deadline for responses to this consultation is 31 March 2017

FCA, 14 December 2016

Early arrears management in unsecured lending: Thematic Review, FCA

The FCA has published its thematic review on early arrears management in unsecured lending. The report's key findings are set out in Chapter 3, where they found consumer credit lenders are improving the way they deal with customers in arrears. It notes that forbearance and repayment solutions offered to customers vary significantly. 

FCA, 13 December 2016

FCA and PRA consult on amendments to notes for completing MLAR

The FCA and the PRA have consulted on amendments to the notes for completing the mortgage lenders and administrators return (MLAR) and have published these in a joint consultation paper. The paper proposes updating:

  • The PRA's notes to MLAR, which are set out in Appendix 1
  • The notes for completion of the MLAR in the FCA's supervision manual (SUP), set out in Appendix 2
  • The MLA-D1 form for reporting second charge lending, also in SUP

FCA and PRA, 12 December 2016

FCA launches market study on competition in the mortgage sector

The FCA has launched a market study to consider whether competition in the market sector can be improved to benefit consumers. The FCA want to understand whether consumers are empowered to choose on an informed basis between products and services, and are in a position to understand whether these represent good value for money. In line with this, the FCA has published the terms of reference for their mortgages market study.

FCA, 12 December 2016

BSA comments on the FCA launch of a market study on competition in the mortgage sector

The Building Societies Association (BSA) welcomes the FCA’s open and collaborative approach in the run up to the Mortgages Market Study. The BSA believe that the regulator listened to the feedback provided by the mortgage industry in its call for inputs earlier this year, particularly in relation to the increase in the number of borrowers who approach intermediaries for their mortgage borrowing needs. 

BSA, 12 December 2016


ECB consultation: guide on materiality assessment for changes to counterparty credit risk models

A press release issued by the European Central Bank (ECB) announces that it has published for public consultation a guide on the materiality assessment for changes to counterparty credit risk models, together with FAQs. The consultation closes on 14 February 2017.

ECB, 16 December 2016

Guidelines on cryptography and key management, and requirements on privacy shielding for PIN entry

The European Payments Council has published two updated documents on useful payment services providers and their technical suppliers, in particular professional dealing with payment security issues.

ECB, 13 December 2016

Key Contacts

Rosanna Bryant

Rosanna Bryant

Partner, Financial Regulation

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