Mortgage Market Review – A Reminder

The Mortgage Market Review (MMR) is due for implemetation in April 2014. While this may not have a great impact on your firm, you do need to understand what the changes are and what this means for your firm.

We published a news item on the MMR requirements on the 26th April 2013. Since that time the FCA has conducted an implementation survey and published the results on the 9th October which you can see here. In summary, the feedback for intermediaries is:

  • They are more prepared than lenders;
  • Firms intending to provide execution only services are behind with preparation;
  • Intermediaries were unsure of the disclosure requirements, execution only process and how to evidence suitability;
  • Firms’ biggest stated risk to implementation was understanding the rules.

Further work planned by the FCA includes support in the form of fact sheets and possibly a webcast. They also plan to offer firms face to face meetings with the implementation team in February 2014.

Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.

ATEB Compliance offers compliance and regulatory advice.

ATEB Suitability provides report writing software for the financial services market.

Our View

While you may think that MMR has little impact on your firm, there will inevitably be some change and therefore we would recommend that you plan accordingly.

Action Required By You

The FCA expects all firms to have a documented MMR plan in place. They have provided a suggested MMR Planning Tool, which is available here. We would suggest that all firms providing mortgage advice review and complete the FCA plan. 

There are MMR workshops being run by the FCA from late October through November. Find out more here. It is advisable for firms to send a representative to these workshops.

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About the Author

Steve is an ATEB Director and has a deep understanding of all matter regulatory, built up over his 30 years + in the industry. With a training background and a technical brain, he overseas numerous complex projects and client implementation work.

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