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Consumer finance regulatory news, 2 August 2021

FIG Bulletin

02 August 2021

Recent regulatory developments of interest to financial institutions with focus on consumer finance. See also our Related Materials links for updates with broader application.

FCA mortgage prisoners review: terms of reference

The Financial Conduct Authority (FCA) has published the terms of reference for its mortgage prisoners review. Working closely with HM Treasury, and engaging with interested stakeholders, the FCA states that it will provide information on the following areas:

data review: the FCA will review and update its data to consider the demographic and loan characteristics of mortgage prisoners; and
interventions review: the FCA will review the effect of its recent interventions to remove regulatory barriers to switching. It will explore how firms have used the flexibility provided by FCA rules to ensure borrowers who have mortgages with inactive lenders benefit from switching options and whether any barriers remain.

The FCA plans to carry out the data review and analysis between July and October 2021. It will engage with stakeholders in July and August 2021. It will report to HM Treasury on the outcome of the review and it will be laid before Parliament by the end of November 2021.