FCA’s review into second charge mortgages

“It’s encouraging to see the FCA shining the spotlight on a sector which often deals with financially vulnerable customers. It’s clear that many firms are not living up to the high standards set by the Consumer Duty, and it’s vital that the FCA’s work in this sector does not end with today’s announcement. It’s nearly three years since the Consumer Duty came into force - and where it identifies poor conduct, it’s vital that the regulator makes use of its enforcement powers. 

“Over the past year, we’ve seen the regulator talking much more about deregulation than consumer protection, and it runs the risk that firms will perceive this message to mean that the pressure is off. There are still many areas of financial services where firms are falling well short of the Consumer Duty - and the FCA needs to show that there are consequences for bad practice.”