Regulatory Alerts2019-05-03
Added · Updated
PS20/1: Mortgage advice and selling standards: feedback to CP19/17 and final rules
The Financial Conduct Authority implements final rules and guidance changes to mortgage advice and selling standards, effective 31 January 2020 with transitional provisions until 30 July 2020. The changes clarify that tools allowing search and filtering based on objective criteria do not necessarily constitute regulated advice and align mortgage advice guidance with retail investment rules. Firms are permitted to engage in more customer interaction before advice is required, including issuing European Standardised Information Sheets and explaining execution-only disclosures without triggering an advice obligation. Advisers must now explain why they have not recommended a cheaper mortgage when other suitable products meet the customer's needs.