2017年-FCA英国金融行为监管局_buy_to_let_mortgages_implementing_the_mortgage_credit_directive_order_2015_4页_204kb

Regulator Assessment Summary: Buy-to-let Mortgages – Implementing the Mortgage Credit Directive Order 2015 (PS 15/11)

Core Content

This document outlines the FCA's impact assessment for implementing the Mortgage Credit Directive (MCD) in the context of buy-to-let (BTL) mortgages in the UK. The directive introduced a European framework for conduct standards in mortgage lending, but the UK government opted to create a separate framework for consumer buy-to-let (CBTL) mortgages through legislation, which the FCA was tasked to implement.

The assessment covers the discretionary aspects of implementation, including complaints and redress and data reporting. It does not include the cost of mandatory elements, which were already assessed by HM Treasury.

Main Regulatory Activity

• CBTL mortgage framework: The government created a new category of BTL mortgages specifically for consumers, distinguishing it from BTL activity for business purposes.
• FCA's role: The FCA is responsible for registering, supervising, and enforcing compliance with the CBTL framework.
• Complaints and redress: The FCA extended the Financial Ombudsman Service (FOS) jurisdiction to CBTL firms and introduced new rules for complaints handling.
• Data reporting: A quarterly aggregate reporting requirement was introduced for CBTL lenders, covering transaction volume, loan performance, and consumer detriment.

Key Information

• Implementation date: 21 March 2016
• Assessment date: 16 November 2016
• Scope: Applies to the whole of the UK
• Number of firms affected:
  • Estimated: around 900 firms (up to 100 lenders and 800 intermediaries)
  • Actual as of November 2016: 3,200 firms (around 100 lenders and 3,100 intermediaries)

Impact on Business

Costs

Benefits

• Estimated additional redress paid to consumers (annual ongoing): £15k
• Additional ombudsman service case fees (annual ongoing): £4k
• Industry administrative costs (annual ongoing): £3k
• Potential one-off compliance costs for complaints handling: £160k

Notes

• The ongoing costs are assumed to be cumulative and increase with the number of CBTL loans.
• The BIT score is calculated based on the assumption of flat growth over a 10-year period.
• The one-off compliance cost for data reporting is estimated at £2.8m for 100 lenders, based on a median of £28,000 per lender.
• The ongoing data reporting cost is estimated at £600k annually for 100 firms, based on a median of £6,000 per firm.

Summary of Key Points

• The FCA was given powers to register, supervise, and enforce CBTL mortgage activity, but not to modify the MCD's conduct standards.
• The complaints handling framework was extended to CBTL firms, with the FOS able to recommend redress and the FCA to enforce it.
• The data reporting requirement is aggregate and quarterly, aimed at supporting supervision and transparency.
• The estimated net cost to business over 10 years is £8.26m, with an annual net cost of £0.9m and a BIT score of £4.5m.
• The one-off compliance costs are primarily associated with setting up complaints handling processes, estimated at £160k.
• The data reporting costs are significantly higher, with one-off costs at £2.8m and ongoing costs at £600k annually.
• The BIT score is based on the assumption of flat growth, but future costs could vary depending on market development, loan maturity, and industry standards.