The FCA has published a speech by Linda Woodall (Director of Mortgage and Consumer Lending, FCA). The speech is entitled Mortgage Lending in the post MMR world.
In her speech Mrs Woodall discusses what life looks like and feels like post the Mortgage Market Review (MMR). She also outlines the FCA’s next steps in terms of thematic work and mentions what the FCA sees as the future challenges facing the industry.
In relation to thematic work Mrs Woodall states that the FCA is looking at how firms have embedded the new rules and is assessing the impact and the outcome for consumers. The first phase of the FCA’s work on advice is now underway and includes a wide range of intermediary firms and lenders.
Mrs Woodall explains that the FCA has three key objectives and so will be assessing:
- whether the firm has executed a cohesive, joined up mortgage advice strategy;
- whether the firm has a well-designed mortgage advice process; and
- whether the firm has a robust monitoring and oversight procedure in place in order to be able to identify poor outcomes such as providing unsuitable advice and also to ensure that the advice process drives positive outcomes for consumers.
The FCA plans to publish its findings in June 2015 with the aim of helping firms to move beyond prescriptive compliance with MMR rules and strive to deliver best practice and good customer outcomes. Between now and then Mrs Woodall’s question to firms is – are you confident that your firm’s advice strategy is delivering the right outcomes for consumers and do you have the right quality assurance process in place to provide you with this comfort?
View Mortgage lending in the post MMR world, 5 November 2014