FCA to publish ‘watch list’
Speaking at a press briefing today Martin Wheatley, FCA chief executive designate, hinted that the regulator has some concerns about the mortgage industry which will be included
Wheatley said: “We are worried that a low interest rate environment in the mortgage space is creating a gap for lenders which makes it very difficult to be profitable.
“One of our concerns, not just about mortgages, is abuse of the back book.
“When you’ve got locked in, trapped customers the raising of fees in inappropriate ways is something that we are concerned about and have talked about.”
Wheatley added that he feared mounting pressure on people’s business models could lead to some elements of the mortgage market “pushing unsuitable products.”
The chief executive designate also confirmed that the FCA’s costs are expected to rise over the coming years as it expands its workload to meet the governments remit.
The watch list will be published on Monday followed by a cost report later next week.