FCA rules out proc fee ban in upcoming mortgage reviews

The FCA has ruled out a ban on commission in its upcoming mortgage market and advice reviews.

Over the next year the regulator will conduct three reviews of the mortgage market: a post-MMR responsible lending review; a more general review of the mortgage market to see if it is working effectively; and a review into financial advice – including mortgages.

The FCA is yet to clarify in detail what the more general mortgage market and financial advice reviews will cover and it will launch discussion papers later this year.

But responding to a question from Mortgage Strategy at an FCA conference in London today, acting director of supervision – retail and authorisations Linda Woodall ruled out banning commission like the regulator did for pensions and investment advice.

She said: “We didn’t find any evidence of commission bias as we did in the financial advice market, so there was nothing to address there. We still don’t have an issue with commission bias in mortgages and so there is no need to take steps in that regard.”