The timing of the Financial Conduct Authority’s (FCA’s) review into protection advice is “unfortunate” and could lower adviser confidence, it was said at the British Mortgage and Protection Senate (BMPS).
Appearing on a panel at the invite-only two-day event at the Brooklands Hotel in Surrey, Dave Corbett, head of protection at Mortgage 1st, said the timing of the review was “unfortunate to say the least”.
Last month, the regulator announced it would be observing advice practices over mis-selling concerns and the commission paid to brokers where the product does not give customers the best results.
It also produced a separate report where it expressed worries about whether advisers and providers were properly complying with the fair value assessment rule of Consumer Duty.
Corbett said: “Just as the market is really quite buoyant and we’re pushing that open door and looking at products that do address needs, the timing is poor and not well-thought-out.”
He said protection was a “confidence game”, adding: “Maintaining that confidence with a panel of brokers is really tricky. So, we don’t want anything to pull the rug from under that.”
Corbett acknowledged that some firms had knowledge gaps and would need to be upskilled, but said he did not want “the confidence to go out of the market”.
Also on the panel was Matthew Chapman, consultant at The Protection Coach.
He said he was “concerned the regulator might be looking slightly in the wrong direction in certain areas”.
Chapman added: “For those firms who embraced the Consumer Duty model and started looking at improving their advice processes, they shouldn’t have a lot to worry about.
“If they’ve got systems and methodologies for demonstrating fair value for their customers, if they’ve got their right prioritisation roles in place, if they’re compliant with what the regulator and also their networks have said, I don’t think they’ve got a lot to worry about.”
Chapman continued: “If anyone’s doing their job properly, they’re producing good outcomes for their customers, and they can demonstrate that, [then] I don’t think you need to worry about it. I think it’s where we’ve got these complexities in the market, that there’s going to be a bit of a grey area.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
