FCA Restricted FCA/APCC Liaison Meeting 22 nd October

FCA Restricted Agenda Connect update and feedback (Gillian Lavabre) Mortgage Credit Directive (Lucy McClements) 1.30AIFMD (Susan Tyldesley) 1.45Consumer Credit: update and feedback from the regional forums (Keith Cooper & Baljit Bhamra) 2.15Contact Centre: quality controls, professional accreditations, customer satisfaction survey process/results, and common queries (Mark Adams) 2.45AOB

FCA Restricted Connect update & feedback Gillian Lavabre 3

FCA Restricted Second Charge Mortgages, Buy to Let and the Mortgage Credit Directive Lucy McClements 4

FCA Restricted MCD implementation  HMT is principally looking to FCA to implement  Will need to make changes to FSMA and secondary legislation, eg Regulated Activities Order (HMT to decide on scope exemptions)  Second charge loans to transfer into mortgage regime with the Directive 5

FCA Restricted FCA provisional timetable  MCD consultation out now – closes 31 October 2014 (HMT also consulting)  Aim to consult on B2L in early January 2015  Aim to publish final MCD rules in March 2015  Aim to publish final B2L rules early Q  MCD comes into effect 21 March 2016  There are no transitional arrangements 6

FCA Restricted Authorisations  Firms will need to apply for mortgage permissions (in addition to other credit permissions they may hold)  We are reviewing the application process with the aim of making it easier for firms to apply for multiple permissions  Timetable is tight as there are no ‘transitionals’ for firms meaning firms must have mortgage permissions to conduct 2C business post 21 March

FCA Restricted Firms  Firms with mortgage permissions will cover 2C so may not need to apply  Firms without mortgage permissions can start preparing by:  Planning now  Looking at the application for first charge home finance providers to get an idea of the documents that need to be supplied  Reviewing current policies and procedures, especially now the consultation paper has been published  Prepare to submit applications in Q

FCA Restricted Beverley Brewster – Technical Specialist Richard Eager – Manager Contacts

FCA Restricted AIFMD Susan Tyldesley 10

FCA Restricted AIFMD Applications AIFMD team update Applications received by 22/07/14: 1131 Awaiting determination: 168 Applications received post 22/07/14: 41 AIF Schedule “missing data items” exercise 11

FCA Restricted Consumer Credit Keith Cooper & Baljit Bhamra 12

FCA Restricted Customer Contact Centre Mark Adams 13

FCA Restricted The Firm Contact Centre Covers FSMA and Consumer Credit In September we answered 13,321 calls and replied to 2,009 pieces of correspondence Reasons for contact: 14 FSMAConsumer CreditCorrespondence FeesAuthorisation/RegistrationHandbook ONACCI PortalAuthorisation/Registration FeesONA HandbookInterim PermissionGeneral GabrielOFTGabriel

FCA Restricted Accreditation 15

FCA Restricted Our approach to quality Every Associate is quality monitored Minimum of 3, maximum of 12 pcm Scores by: Associate Team Overall 16

FCA Restricted Our approach to quality 17 September performance: Calls: 79% Correspondence: 79% Calls s

FCA Restricted Customer Satisfaction Offer IVR and surveys IVR surveys sent: 1,323 surveys sent:323 IVR response rate:73% response rate:25% 18

FCA Restricted Customer Satisfaction We ask different questions on the IVR and on Use a verbatim rating scale 19 Calls s