The FCA has today published a report and a press release following a review of our sector.
The review looked at firms responsible for around half of all lifetime mortgage sales. It found in many cases advice did not meet the standards expected.
For example, it found there was a lack of evidence that sufficient consideration of consumer’s individual circumstances had been given and advice lacked discussion of alternatives.
The review also prompted the removal or amendment of almost 400 misleading promotions.
The FCA’s announcement follows an earlier engagement with our sector in 2020. We have since been working closely with the regulator and membership to address the issues raised.
The Council has already issued its initial response to the media and we will continue to engage proactively with journalists to highlight the many innovations that have taken place in recent years.
In addition, we will work to brief governments, political parties, and industry stakeholders to best represent our members and our socially important sector.
We are currently studying the details of the report ahead of a meeting with the regulator at 1:30pm today, where we will seek more insights into their concerns.
Both the risk and conduct forum and the standards committee will meet as a matter of urgency, to develop appropriate industry responses and initiatives, which we will communicate as soon as possible.
We hope to hold a webinar next week where we will set out our emerging thoughts and give members an opportunity to have their say. Details will follow.
We will also be working across the member forums to ensure all the functions and disciplines within our sector are properly considered.
Everyone at the Council is extremely proud of the excellent work undertaken by our members, which we know can be transformational for customers and their loved-ones.
The team will continue to work hard on your behalf, to protect and promote our sector as we respond to this latest challenge.
We are well aware that operational conditions are difficult at the moment, but we remain confident in our members’ products and services and the future of our market.
Please do not hesitate to contact me or the team if you wish to discuss any of these issues further.
The FCA’s report and press release as well as the Council’s initial response are available at the corresponding links.
