Following feedback from the consultation paper (CP15/3) released in February this year the FCA has issued a Policy Statement PS15/11 snappily titled ‘Buy-to-let mortgages – Implementing the Mortgage Credit Directive Order 2015, feedback on CP15/3 and final rules’.
The Policy Statement confirms how the FCA will approach the implementation of the government’s legislative framework for consumer buy-to-let (CBTL) mortgages set out in the Mortgage Credit Directive Order 2015 (“the legislation”).
The approach can be summarised into 4 main areas as follows:
- Registration – Legislation now requires firms that wish to lend, administer, intermediate, arrange or provide advisory services in relation to CBTL, from 21 March 2016, to be registered by the FCA to do so. The cost and how you register will depend upon whether or not the firm is already FCA authorised or whether they hold an interim permission for consumer credit (firms that are FCA authorised or hold interim permissions will pay £100);
- Aggregated data reporting – Firms will have to submit a quarterly return via the GABRIEL system recording all CBTL lending activity within the relevant time period, including a nil return if applicable;
- Complaints handling rules – Firms will be subject to the majority of the FCA’s complaints handling rules which are set out in the Dispute Resolution Handbook (DISP) with the exception of the complaints publication rule;
- Modification to other Handbooks – As a result of this Policy Statement to incorporate CBTL there will be modifications to other FCA Handbooks, including changes to the Supervision Manual (SUP), Enforcement Guide (EG), Decision Procedures and Penalties Manual (DEPP), Perimeter Guidance Manual (PERG) and the Glossary.
The Policy Statement can be found here.