FCA sets out its MCD implementation plans

FCA sets out its MCD implementation plans

Firms that wish to carry out second charge mortgage business will be able to apply for permissions from 20 April 2015 as part of the implementation of the EU mortgage credit directive, the FCA has announced.

In the 319-page policy statement, released today (Friday 27 March), Implementation of the Mortgage Credit Directive and the new regime for Second Charge Mortgages, Feedback to CP14/20 and Final Rules, the FCA encouraged advisers to apply as quickly as possible from this date.

The regulator also revealed that it would make a decision on whether to grant such permissions within six months of receiving a complete application or within 12 months of receiving an incomplete application.

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The regulator also confirmed that it would keep to its originally stated timetable by implementing its advising and selling standards from 21 March 2016, while giving mortgage sellers until 21 September 2018 to obtain the required level three qualification.

Paul Broadhead, head of mortgage policy for the Building Societies Association, said: The final rules published today by the FCA do bring some clarity to the MCD ahead of implementation.

“However, lenders now face additional time pressures of applying these rule changes alongside all of the other regulatory changes.

“We hope that once implemented, they will be able to get back to focusing their energy on product development, innovation and serving their customers, rather than solely on regulatory issues.”