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FCA want to hear from YOU!! Lenders handling of any regulated mortgage

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There is an opportunity for each and every CaG member to feedback to the FCA on issues that they have faced with Lenders handling of any regulated mortgage here:




No feedback = No Voice!


The deadline is the 30th September 2014.



[COLOR="red"][B][CENTER]"Errors do not cease to be errors simply because they’re ratified into law.” [/CENTER][/B][/COLOR][B][CENTER] E.A. Bucchianeri[/CENTER][/B]

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The FCA Handbook is the 'Book of Rules' that all UK Banks and Financial Institutions have to abide by.


The "FCA" - as many of you will or should know or get to know asap - is the "Financial Conduct Authority"


The FCA is the "Regulatory Authority" - As the Authority - they can take action against any Bank/Financial institution that is not abiding by its rules.


You will have seen Wonga recently - reprimanded by the FCA for failings - You will have seen 5 Big Banks reprimanded recently for not abiding by the FCA Rules.


The FCA has jurisdiction and power to vary or cancel a firms 'permissions'


What are 'permissions'?


Permissions are the various "Activities" that the FCA "permits" firms (Banks/Financial Institutions/Law Firms etc) to carry on by way of business in the UK


When it comes to "Mortgages" - take on board that the 'activity' falls under the umbrella of being a "specified kind of Activity" - a firm MUST have permission from the FCA to carry on a "Specified Kinds of Activity" here in the UK.


Take on board also that FCA Rules and Regulations are based and derived from statute, and the FCA were set up by the UK Government to protect the interest of UK consumers.


So, is the FCA doing it's job?


YES!, I believe they are - for it was the FCA that dealt with Wonga and the 5 big banks recently.


If a firm/Bank is not abiding by FCA Rules/Regulations the FCA is THE ONLY Authority that has power to either "Vary" or "Cancel" a firms "permissions".


Recently the FCA invited consumers to give them 'feedback' - (I posted the link - the consultation is now closed)


The FCA publish the details of each and every firm that is "regulated" and permitted to carry on various types of "activity".


For Consumers - this means that you can quickly and easily view the FCA Register to check to see if the firm you are dealing with or the firm dealing with you - is doing so lawfully and within regulation.


Link to FCA Register: http://www.fsa.gov.uk/register/firmSearchForm.do


The link above takes you to the section that helps search the permission of any Bank/financial firm.


"Financial Services Firm Search


By Firm reference number

Firm reference number:


By Name and Post code

Firm name:


Match level:

Currently authorised:


More on The Financial Services Register

Complaints and compensation

How to use the Financial Services Register

Interim Permission Consumer Credit Register

If you are searching for a firm in relation to consumer credit business you may also need to refer to the Interim Permission Consumer Credit Register"


The highlighted section above, is where you can search for any firm who should have or had a consumer credit licence.


Once the details for the company you are searching for comes up - you need to check to see:


Basic Details - does it say "Authorised" or does it say "Appointed Representative"?


if it says "Authorised" - then it is a firm directly Authorised by the FCA


if it says "Appointed Representative" - then it is a firm that is not directly Authorised by the FCA - these firms will have a "Principle" - the "Principle" MUST ALWAYS be a "Authorised" firm.


If the "Authorised" firm has a "Appointed Representative" - then, you can look under that menu heading to check to see who the "Appointed Representative" is.


Under the menu heading "Permissions" - you will see what activities the "Authorised" firm is permitted by the FCA to carry on in the UK by way of business.


Below, is a list of the types of activities that you will see for those firms dealing in "regulated" mortgages - you will find these under the menu heading of "Permissions":


"Administering a regulated mortgage contract"

"Agreeing to carry on a regulated activity"

"Arranging (bringing about) regulated mortgage contracts"

"Entering into a regulated mortgage contract as lender"

"Making arrangements with a view to regulated mortgage contracts"


You will see other permissions too - but the above are the only ones that concern mortgagors with Regulated Mortgages.


Where you find a firm is an "Appointed Representative" - then you can check under the menu of "Principal" to see who the "Authorised" firm will be.


It is important to take on board that just because a "Principal" has an "Appointed Representative" - this does not mean that the "Appointed Representative" can carry on all the activities that the "Principal"/Authorised firm has FCA permission to carry on.




Of the list I've posted above - the "Appointed Representative" should NOT be found by the FCA to be:


"Administering a regulated mortgage contract" or

"entering into a regulated mortgage contract as lender"


If you find that a "Appointed Representative" is carrying on either of the above activities - then you MUST report them to the FCA here:

http://www.fca.org.uk/consumers/protect ... rised-firm


How do you know if what the "Appointed Representative" is doing comes under the heading of:

"Administering a regulated mortgage contract"?


Its in the FCA Handbook here:




see in particular PERG 4.8.3

Under article 61(3)(b) of the Regulated Activities Order, administering a regulated mortgage contract is defined as either or both of:

(1) notifying the borrower of changes in interest rates or payments due under the contract, or of other matters of which the contract requires him to be notified; and

(2) taking any necessary steps for the purposes of collecting or recovering payments due under the contract from the borrower;


but does not include merely having or exercising a right to take action to enforce the regulated mortgage contract, or to require that action is or is not taken.


In layman's terms - this simply means - if you get letters from a "lender" - and you can clearly see a firm name that is not the exact name of the Lender - in terms of "on behalf of" or "on behalf of the mortgage owner" or anything such like - your mortgage is more than likely being "administered" to by an "Appointed Representatives".


YOU MUST REPORT the firm to the FCA immediately.


The reason you MUST report the firm ("Appointed Representative") is because in the FCA handbook it tells you that an "Appointed Representative" can NOT carry on these activities when the mortgage is a regulated mortgage contract - See - PERG 4.12.3:


"Business for which an appointed representative is exempt


PERG 4.12.3




An appointed representative can carry on only those regulated activities which are specified in the Appointed Representatives Regulations. As respects regulated mortgage contracts, these are arranging (bringing about), making arrangements with a view to and advising on regulated mortgage contracts (as well as agreeing to do so)."



The same applies to law firms - they cannot act on behalf of the "Appointed Representative" or the "Authorised" firm unless they too have direct authority from the FCA to do so.


The SRA (Solicitors Regulatory Authority) set down that Law firms cannot:


"Rule 3: Prohibited activities


A firm must not carry on, or agree to carry on, any of the following activities:


entering into a regulated mortgage contract as lender or administering a regulated mortgage contract (unless this is in the firm's capacity as a trustee or personal representative and the borrower is a beneficiary under the trust, will or intestacy);"


see the full SRA prohibitions listed here: http://www.sra.org.uk/solicitors/handbo ... ntent.page


The FCA say the same thing here at PERG 4.10.7:


For each of the regulated activities of entering into a regulated mortgage contract and administering a regulated mortgage contract , the exclusions apply if the trustee or personal representative is acting in that capacity and the borrower is a beneficiary under the trust, will or estate on behalf of which he is acting.


see the full FCA explanation here: http://fshandbook.info/FS/html/handbook/PERG/4/10#D491


Other Exclusions


PERG 4.8.8




The Regulated Activities Order contains an exclusion which has the effect of preventing certain activities of trustees, nominees and personal representatives from amounting to administering regulated mortgage contracts. There is also an exclusion for local authorities.22 These are2 referred to in PERG 4.10 (Exclusions applying to more than one regulated activity).2 In addition, there2 is2 an exclusion where both the administrator and borrower are overseas, which is referred to in PERG 4.11 (Link between activities and the United Kingdom).


I could go on and on - but, the important thing right now is to know that - if the company shown on your Mortgage Deed and Register of Title is not the one administering the mortgage - then the FCA MUST BE INFORMED - Do NOT hesitate or PROCRASTINATE - it is in your interest to protect your interests - YOUR HOME MAY BE AT RISK IF YOU FAIL TO REPORT THE FIRMS CONCERNED - REPORT TO THE FCA Here: http://www.fca.org.uk/consumers/protect ... rised-firm


Check your Bank Statements - is the Direct Debit payment going into the Bank Account of any other firm than the Lender shown on the Deed??? IF SO report it to the FCA here: http://www.fca.org.uk/consumers/protect ... rised-firm


Check all communications you receive - Do they come from firms who act on behalf of your lender??? IF SO report it to the FCA here:http://www.fca.org.uk/consumers/protect-yourself/report-an-unauthorised-firm


Check Mortgage Statements - query who is sending them to you - if you are suspicious - REPORT IT TO THE FCA here:http://www.fca.org.uk/consumers/protect-yourself/report-an-unauthorised-firm


Will the FCA do anything?? - YES!! - but they will not and cannot act if they do not know or are not informed as to who the firms concerned may be.


Most conveyancers asked consumers to return the deed 'signed' and 'witnessed' - you may have a letter on file that confirms that the Conveyancer asked you not to date it?? check to see if you can find it - then report it to the FCA


Here is a link to a case fought out in the High Court recently - that may be of interest to you all:

http://self-realisation.com/equity/bank ... igh-court/


I hope this FCA feedback is useful?



[COLOR="red"][B][CENTER]"Errors do not cease to be errors simply because they’re ratified into law.” [/CENTER][/B][/COLOR][B][CENTER] E.A. Bucchianeri[/CENTER][/B]

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