Commenting on the Financial Conduct Authority's Mortgage Market Study interim report:
Andrew Strange, financial services risk and regulation director at PwC, said:
"Today's report ties together long-standing FCA concerns, predominantly around the fair treatment of legacy customers, with its new focus on technology and innovation.
"While the FCA identifies that many parts of the market work well, firms want to create technology to serve customers more innovatively, and the FCA is right to support this.
“But given the success the Mortgage Market Review has driven through advice and thus suitability, the FCA must be careful to add to consumer convenience, rather than dilute consumer protection.
"The proposed work to help consumers understand the relative strengths of brokers is innovative and could have wider application in other intermediated sectors.
"Helping existing customers to the right outcomes, particularly in a rising interest rate environment, should be an immediate priority for firms. The FCA's work on interest-only mortgages last year will have helped firms think about how to approach these customers.
"An ability to provide greater understanding of eligibility before applying for a product, perhaps through technology, would also be welcomed. Again this could have wider application in the unsecured lending sector."
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