EEA passporting rights under the Mortgage Credit Directive
Produced in partnership with Rachpal Thind, Partner and Rachel O’Brien, Associate of Sidley Austin LLP
EEA passporting rights under the Mortgage Credit Directive

The following Financial Services practice note Produced in partnership with Rachpal Thind, Partner and Rachel O’Brien, Associate of Sidley Austin LLP provides comprehensive and up to date legal information covering:

  • EEA passporting rights under the Mortgage Credit Directive
  • Overview of the MCD
  • The scope of passporting rights under the MCD
  • Creditors
  • Credit intermediaries
  • Appointed representatives
  • Passporting requirements
  • Notification process
  • UK notification and consent requirements
  • Changes to branch details or cross border services
  • More...

This Practice Note sets out the passporting rights and related notification requirements of credit intermediaries established in the European Economic Area (EEA) which fall within the remit of the Mortgage Credit Directive (Directive 2014/17/EU) (MCD). Member States were required to implement the MCD by 21 March 2016.

For more information on general passporting rights, see Practice Notes: EU passporting and Treaty rights and Requirements for the exercise of passporting and Treaty rights in the UK.

As detailed in the above-referenced Practice Notes, the Treaty of the Functioning of the European Union (Treaty) provides the general framework for the rights of freedom of establishment and the free movement of services in the European Union (EU) and within the context of the financial services sector, such rights are further defined by the Single Market Directives.

In the UK, the Mortgage Credit Directive Order 2015 (SI 2015/910) (the Order) was published on 26 March 2015 and transposes the MCD into the UK regulatory framework. The Order expands the definition of 'single market directives' in the Financial Services and Markets Act 2000 (FSMA 2000) to include the MCD, bringing the MCD within the scope of the EEA passporting rights under FSMA 2000, Sch 3. The relevant notification provisions came into force on 21 December 2015.

Overview of the MCD

The MCD applies, subject to certain exceptions, to credit agreements:

  1. secured by a mortgage

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