View more on these topics

FCA to review mortgage advice rules

FCA logo new 3 620x430

The FCA will investigate whether its rules around advice reduce competition in the market.

Following a call for input on competition in the mortgage market, the regulator has published a feedback statement today saying where advice is lengthy and does not engage the customer, competition can suffer.

However, it did stress that its rules on advice “do not prescribe how and advised sale must be conducted or the length of time it must take”.

Since the Mortgage Market Review launched in April 2014, lenders’ advice processes have tended to be much lengthier than brokers’. Today’s feedback statement suggests the regulator could also look at whether its rules favour brokers over lenders and if that benefits the customer.

The FCA says it will look at its advice requirements as part of its market study on competition, the terms of reference for which will be announced before the end of the year.

The regulator says: “As part of our general interest in the impact of regulation on financial services, we are keen to ensure that our rules work towards maximising the potential benefits that consumers can get from the advice process. In assessing whether that is the case, we are interested in the impact of our rules on specific types of consumers.

“We are also interested in assessing the impact of our rules on market dynamics more generally. We want to know whether, for example, the regulatory framework favours some distribution or business models to the detriment of others, and whether that is ultimately to the benefit of consumers.

“As part of this, we are also interested in whether our advice rules, which do not aim to differentiate between interactive channels, may have inadvertent impacts on innovation.”


FCA logo new 620x430.jpg

FCA warns on mortgage network panels and commercial deals

The FCA has raised concerns that commercial deals along the mortgage supply chain and the dominance of networks pose a risk to competition in the mortgage market. The regulator has published two reports today on whether the mortgage market is working effectively for borrowers. In the first report, the FCA says following the Mortgage Market […]


Treasury to intervene on mortgage prisoners

The Treasury is investigating how to help hundreds of thousands of mortgage prisoners trapped in their deals following the Mortgage Market Review. The Chancellor met with Money Saving Expert’s Martin Lewis today on the issue and other industry experts have been raising this with the Treasury. So-called transitional arrangements written into the MMR allow lenders […]

west brom

Landlords take on West Brom over future of tracker rate mortgages

The future of tracker mortgages hangs in the balance pending the outcome of the long-running court case involving landlords challenging rate hikes by West Bromwich Building Society. Whichever side wins, there will be a legal precedent set which will affect whether lenders can raise their interest rates without a rise in Bank of England base […]


MPAA consultation

By Fiona Tait, pensions specialist The chancellor’s announcement of proposed cuts to the Money Purchase Annual Allowance means it will be more important than ever to be able to tell your PCLS from your UFPLS What was in the statement? Not much. The chancellor spared three sentences to inform us that the Money Purchase Annual Allowance will be reduced […]

Globe - thumbnail

Considerations for overseas workers in Germany

With Germany’s strong economic growth leading the eurozone’s recovery, many UK businesses are keen to be part of the success story: recent data shows that there are currently more than 280,000* employees working for a UK-controlled company in the country.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm