FCA consults on changes to mortgage advice rules to encourage consumer choice

On 7 May 2019, the FCA published Consultation Paper 19/17: Consultation on mortgage advice and selling standards (CP19/17). In CP19/17 the FCA sets out proposed changes in its mortgage advice and selling standards to address three harms identified through the FCA’s Mortgages Market Study: the FCA’s advice rules and guidance are a barrier to the development of tools to help consumers choose and buy a mortgage; consumers who would like to buy a mortgage on an execution-only basis find it hard because they are diverted to advice and because execution-only sales channels are not always easy to use; and many consumers are overpaying for their mortgages, even when they get advice. To address the above, the FCA is proposing to: change its Perimeter Guidance on mortgage advice to more closely align it to the recently updated guidance on advising on retail investment; permit more interaction with customers before firms are required to give advice; make other changes that may…

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