Written on 23 July 2025 by Ray Boulger
The FCA has issued a brand new part 165 info request to monetary recommendation and wealth administration companies as a part of its transition towards a extra data-driven regulator to make sure companies are delivering good outcomes as required by Consumer Duty.
As properly as governance processes the data requested contains particulars of:
Remuneration demographics – i.e. how companies construction their reward systemsHow companies establish traits of vulnerabilities and help such shoppers
Following the blatant GDPR breech and different points highlighted in final week’s Panorama programme the FCA ought to ask property brokers with in-house mortgage brokers these similar 2 particular questions, amongst others.
With reference to the query of whether or not remuneration constructions are too closely biased on conveyancing and/or mortgage broking referrals property brokers ought to mirror on the truth that an vital issue within the PPI scandal, when heavy fines had been imposed on some banks by the then regulator, the FSA, was the scale of rewards supplied to financial institution workers who offered PPI.
On the second level traits of vulnerability embrace monetary, bodily, emotional, or situational components which will have an effect on a consumer’s skill to make knowledgeable selections; utilizing this FCA definition most FTBs can be classed as weak and so providers and communications needs to be tailor-made accordingly.
Although an property agent will not be required to evaluate vulnerability the mortgage dealer is. It can be attention-grabbing to know what quantity of their FTB purchasers property brokers’ in-house brokers categorized as weak. This is now a historic element which may simply be checked and so it could be helpful to see whether or not or not in-house property agent brokers are outliers.
Category:Ray Boulger
