Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

MCOB 2A.5 Variable rate credits

MCOB 2A.5.1RRP

Where the borrowing rate under an MCD regulated mortgage contract is variable, the MCD mortgage lender must:

  1. (1)

    ensure that any index or reference rate used to calculate that rate is clear, accessible, objective and verifiable by the parties to the MCD regulated mortgage contract and the FCA; and

  2. (2)

    keep a record of the index or reference rate used to calculate that rate for as long as the MCD regulated mortgage contract remains outstanding.

[Note: article 24 of the MCD]