The FCA today published PS16/7: Future regulatory treatment of CCA regulated first charge mortgages.
In this Policy Statement, the FCA reports on the main issues arising from Consultation Paper CP15/36 (Future regulatory treatment of CCA regulated first charge mortgages) and publishes the final rules.
The regulator issues this paper, since in November 2015 it consulted on the future regulatory treatment of first charge mortgages which were entered into before 31 October 2004 and are regulated under the Consumer Credit Act 1974 (CCA) and our Consumer Credit sourcebook (CONC).
This Policy Statement (PS) summarises the feedback the FCA received on the consultation and its response. In general, respondents agreed with our proposed amendments. The FCA is now publishing final rules which come into effect on 21 March 2016; however, they will only apply when the affected loans become regulated mortgage contracts on 21 March 2017, unless the firm in question takes steps to apply the relevant rules before that date.
The FCA statement and the Policy Statement can be found here.