22 Skyline | Relaunch Edition 1 | Winter 2021
A wise person once stated that “ life is about moving on , accepting change and looking forward to what makes you stronger and more complete ”. Sage words given the problems and difficulties that we all had contend with during the last year .
Steven Howard
Head of Mortgage & Lending Intermediaries Compliance Services
The SimplyBiz Group
Indeed , we can all be easily forgiven for not wishing to cast too much of an eye back at 2020 , but for the benefits of a well-rounded and context filled compliance article to start the New Year , please indulge me whilst I do a little bit of looking backwards in order to give you an overview of what to expect from mortgage regulation in 2021 .
The first indication of a post-lockdown semblance of order came in June 2020 , with the publication of the FCA ’ s ‘ Equity Release and Advice Process : Key
Findings ’ review , which contained some well-worn and familiar feedback and terminology . The review found equity release to be working well for many consumers but highlighted three significant areas of concern , which the regulator felt increased the risk of harm to consumers :
1 Advice given by firms did not always sufficiently take into account consumers ’ personal circumstances ;
1 Consumers reasons for looking at equity release were not always challenged by firms ;
1 Firms weren ’ t always able to evidence that their advice was suitable .
It was disappointing to read feedback findings such as “ adviser order taking ”, “ lack of clear client voice in advice files ” and “ little adviser exploration of suitable alternatives and / or debt repayment options ” – these being areas that have received regular and consistent guidance from the compliance industry over the years .
More recently , we saw an expansion on some of the above themes via the FCA ’ s ‘ Dear CEO ’ communication , which was sent to a select number of mortgage intermediaries – but which should be considered by all Senior Managers within a firm , especially those with personal