MMR review: FCA flags advice risk in overly rigid use of rules

Carmen Reichman

Most customers are receiving suitable mortgage advice but some firms rely too heavily on tightly structured processes, which force their advisers to bend information to give supposedly 'suitable advice', the regulator has found.

In grading how well the Market Market Review (MMR) rules, introduced last April as mortgage advisers' equivalent to the standrd-raising Retail Distribution Review, are being applied, the Financial Conduct Authority (FCA) was generally positive. However it said it found some advisers - "despite good intentions" - were being forced to deliberately change client information so they could get around their firm's systems which would have otherwise prevented them from giving what they deemed 'suitable advice'. The issue was particularly apparent in lenders which entered the market for the f...

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