UK:
UK PRA And FCA Publish Final Policy On Implementing The FPC's LTI Ratios
To print this article, all you need is to be registered or login on Mondaq.com.
On October 1, the Prudential Regulation Authority
(PRA) issued PS9/14 and the FCA published
FG14/8 setting out their final policies on
implementing the Financial Policy Committee's
(FPC) recommendation on loan to income
(LTI) ratios in mortgage lending.
The policies were published after the FPC noted that acting
against the excessive indebtedness caused by a high number of
mortgages with high LTI ratios will make the financial system more
stable.
The FPC made its recommendation on LTI ratios in June. The
FPC recommended that the PRA and the FCA should ensure that
mortgage lenders limit the proportion of mortgages at LTI multiples
of 4.5 and above to no more than 15% of their new residential
mortgages. The final policies of the PRA and FCA include
permitting the application of the LTI limit to be at a group level
rather than at the level of each regulated entity. PRA Policy Statement. FCA Finalized Guidance.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
POPULAR ARTICLES ON: Finance and Banking from UK
Asset Recovery Comparative Guide
Bird & Bird
Asset Recovery Comparative Guide for the jurisdiction of UK, check out our comparative guides section to compare across multiple countries
Q&A: Safe Harbours For VASPs - Part 1
Ogier
Asian Legal Business was keen to hear from our experts on how this will allow virtual asset services providers (VASPs) to anchor in theses jurisdictions, despite increased regulatory burdens...
Q&A: Safe Harbours For VASPs - Part 2
Ogier
In 2023, Jersey and the British Virgin Islands passed legislation indicating they were welcoming virtual asset service providers, joining the likes of the Cayman Islands...
CRD VI And Its Impact On Lending Into Europe
Cadwalader, Wickersham & Taft LLP
December 2023 saw the publication by the EU of the near-final version of its ‘Banking Package' that makes significant changes to the Capital Requirements Directive known as ‘CRD VI'.
Financial Promotion Exemptions – UK Government U-Turn
Shepherd and Wedderburn LLP
In response to criticism, the UK Government announced in the 2024 Spring Budget that recent changes to the financial promotion exemptions eligibility criteria would be partially reversed from 27 March 2024.