TSLE2018: FCA reapplies compliance focus on seconds lenders

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  • 30/01/2018
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TSLE2018: FCA reapplies compliance focus on seconds lenders
The Financial Conduct Authority (FCA) is unhappy with activities carried out by some lenders in the second charge market, according to Brightstar Financial CEO Rob Jupp.

Chairing a lending panel at The Specialist Lending Event in York today, Jupp referenced yesterday’s exclusive report in Specialist Lending Solutions that the FCA is hauling in lenders for a workshop.

He said: “The article the other day about getting all the lenders into a room is because all of the lenders have been visited by the FCA in the last 12 months and there were certain practices that perhaps they weren’t very impressed with.

“So I do expect there to be some continuation of change.”

 

Half a job

Further action by the regulator was also welcomed by Crystal Specialist Finance managing director Jo Breeden – though he noted that it was potentially much too late.

This included enforcing the article four rules for brokers to consider a second charge mortgage on all applications.

“There are some fantastic second charge products but the problem is the regulator has only done half a job,” he said.

“It’s a little bit too late.”

Breedon added: “The regulator has to focus on the sector, full stop.”

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