A panel of trade bodies at FSE London have rejected the FCA’s call for a duty of care, which is almost a legal responsibility to act for the client.
Paul Broadhead, head of mortgage policy at the BSA, said that he doesn’t think its required and listed rules and regulation already in place such as the banking conduct and business rules in 2009 and MMR in 2014.
Speaking at FSE London he said: “There’s no shortage of rules or regulation to protect consumers in the UK rather than the need for a conduct regulator that deals with the situation robustly and fairly and that negates the need for a duty of care to be implanted.
Katie Davies, executive director at IMLA, agreed, adding: “If people don’t already follow those rules, it that doesn’t matter how many rules you throw at them so introducing more doesn’t change anything.”
John Barrass, deputy chief executive of PIMFA said that there’s already a lot out there an adviser has to do so adding the duty of care would just be too much.
Jackie Bennet, director of mortgages at UK Finance, added: “We need to understand what is it the consumer advocates pushing for this want that they aren’t getting already. It could make firms even more cautious in terms of where they go and operate.”