This week’s Star Letter goes to Adam Hosker for his comment on FCA denies regulation to blame for lack of mortgage innovation
Regulation does hinder innovation.
Regulation though is not the only thing that prevents innovation in mortgage sector, far from it. A lot of it is down to status quo and lack of imagination with the added issue of costs from systems, training and development. To then getting the sales to switch their thinking and get the message out to the public.
Plus lets face it, new entrants to the market are innovators. Except the sector is all tied up in the big banks, it was great to see on the more unregulated side buy-to-let lenders entering. Will that continue with the PRA recommendations and BoE wanting to regulate the market? Hmm.
It would be unfair to blame the FCA but certainly over regulation hinders not helps.
