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BERR and HM Treasury have been working together to address concerns raised by industry stakeholders that there may be circumstances in which residential mortgage agreements can be subject to two competing regulatory regimes.
The Government consultation, which closed on 14 February 2008, sought views on proposals for legislation to avoid the simultaneous regulation of regulated mortgage contracts (RMCs) by both the OFT (which regulates consumer credit under the Consumer Credit Act 1974 (CCA)) and the FSA (which regulates residential first charge mortgages under the Financial Services and Markets Act 2000 (FSMA)).
The Government is amending section 82(2A) of the CCA to ensure that any RMC is regulated only under FSMA. The legislation will take effect on 6 April 2008.
This is a deregulatory measure only to avoid dual regulation. There is no change to the treatment of agreements that are exempt from regulation under the CCA regime except in relation to the risk of dual regulation of RMC agreements.
The Government response to the consultation was published on 14 March 2008 and is available on the HM Treasury website.
