Recent regulatory developments relating to consumer finance of interest to financial institutions. Regulatory news of general application and other sector specific regulatory updates are available as related documents.
Contents
- COVID-19: FCA final guidance on temporary financial relief for mortgage customers
- MCD: European Commission review evaluation consultation
COVID-19: FCA final guidance on temporary financial relief for mortgage customers
On 2 June 2020, the UK Financial Conduct Authority (FCA) published a feedback statement on the responses received by the FCA to its 22 May 2020 consultation and its final updated version of guidance for firms on support for mortgage customers and COVID-19. The proposals include extending the period during which customers can apply for a payment holiday and during which firms cannot commence or continue repossessions, in each case, for a further 4 months, until 31 October 2020. Existing payment holidays can also be extended for a further 3 months. The Guidance came into effect on 4 June 2020 and expires on 31 October 2020 unless it is renewed or updated by then.
Read about this development in our briefing: COVID-19: FCA finalises extended mortgage support measures and its updated Guidance for lenders and servicers.
The FCA stresses that the updated guidance only applies to mortgages. It does not apply to consumer credit products, which are covered by separate guidance that will be updated in due course.
MCD: European Commission review evaluation consultation
The European Commission has appointed consultants to evaluate the Mortgage Credit Directive (MCD) and they have published a consultation questionnaire available here, to gather information on the views of consumers, national and regional authorities, companies, industry representatives and other stakeholders. The purpose of this study is to assess whether the MCD is relevant, effective, efficient and coherent with other EU legislation. It will also assess the added value of the MCD and the potential to simplify the regulatory regime and reduce the burden on stakeholders.
The consultation closes on 12 June 2020.
[View source.]
