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Excessive regulation detracts from customer needs and innovation, says lender

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Excessive regulatory changes can divert focus away from customer needs and innovation, a lender has maintained.

Responding to a topic at the Legal and General Mortgage Club live conference that asked if the FCA was a ‘friend or foe’, Leeds Building Society chief commercial officer Richard Fearon said regulation could take resources away from other areas that also require attention from lenders.

“Lenders retreated from some pockets of the market after MMR,” said Fearon.

“The more regulatory changes that are made the more it crowds out innovation and response to customer needs as we only have a finite number of people.

“Regulatory change is important but so are other improvements for customers.”

Virgin Money commercial director of mortgages Peter Rogerson said that regulation, such as conduct risk, was really important to ensure that customers “understand what they’re signing up for”, but added that all industry regulators needed to be “on the same page”.

Earlier in the event, held at the Royal Society of Medicine in London, FCA senior associate Gordon Findlay said there are three things that advisers should make a priority; customer engagement, customer information and written communication.

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