FCA probing second charge master brokers

Ryan Bembridge

September 25, 2018

The Financial Conduct Authority is carrying out a review of the second charge master broker market, Mortgage Introducer understands.

It’s understood that six firms are being scrutinised, roughly one year on from the start of the FCA’s review of second charge lenders last year.

Tim Wheeldon, chief operating officer of Fluent Money, said: “We welcome what would be the continuation of the FCA’s thematic review into the second charge market.

“After looking at lenders the regulator is now focusing its attention onto the intermediary part of the market and we are more than happy to assist in any way we can if called upon.”

In its ‘dear CEO’ open letter in March the FCA found examples of firms breaking MCOB rules by “not basing lending decisions on income and expenditure assessments”.

Now it seems master brokers will come under the same scrutiny.

They came under fire earlier this month when a lender panel at the Financial Services Expo in London accused them of lagging behind the first charge market in terms of standards. At the time Precise Mortgages managing director Alan Cleary warned they will “fall foul of the regulator” and One Savings Bank sales director Adrian Moloney said the industry “has got a long way to go”.

The FCA declined to comment.

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