The FCA report, Embedding the Mortgage Market Review: Advice and Distribution, follows last year’s Mortgage Market Review (MMR) which introduced new rules for firms. The report assessed the quality and suitability of mortgage advice provided by firms. The report found that, overall, the quality of advice in the mortgage market was mixed:
- Some firms delivered advice with little or no structure, meaning advisers typically failed to ensure they had sufficient understanding of customers’ needs and circumstances on which to base their recommendations.
- Other firms placed heavy reliance on completion of point-of-sale application systems, allowing little flexibility for advisers to apply judgment or adapt delivery to meet individual customers’ needs.
For the full thematic review click here.