In its 2015/16 business plan, the FCA said from autumn 2015 it would assess barriers to competition in the market including factors that affect consumers’ ability to access credit and switch providers as well as barriers to entry and/or expansion.
Following on from this it said it would launch a market study in early 2016 on parts of the mortgage industry that were not working to the benefit of the customer.
The FCA raised concerns in its business plans that younger consumers struggled financially later in life due to high levels of debt.
“As the financial conduct authority we must be mindful of any emerging patterns of economic stress for younger consumers and establish the facts,” it said.
Following the implementation of the Mortgage Market Review on 26 April 2014, the FCA’s work will look at the main issues it believes are causing debate in the sector.
A review by the regulator published last week found that certain lenders were putting consumers at risk by failing to put them at the heart of each stage of their mortgage lending strategy.
The 2015/2016 plan will cover the implementation of the Mortgage Credit Directive which has to be intergrated into UK law by 21 March 2016. As well as the mortgage market the directive will affect providers of second charge and consumer buy-to-let mortgage products. The regulator will also complete its credit cards market study and conclude its review assessing the quality and appropriateness of debt management advice.
Linda Woodall, director of mortgages and consumer lending at the FCA, has also been assigned the additional responsibility of acting director of the retail and authorisations division.
Martin Wheatley, chief executive of the FCA, said: “The Business Plan is set against the backdrop of the most fundamental changes to pension policy we have seen in over a generation. Therefore we will be looking at how the market is working and in particular, how the industry is adapting to this considerable change and what it means for consumers. This is exactly the sort of work that is expected of the FCA, and I believe is a fundamental benefit to consumers and industry.”
