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September 22.2025

2 Minutes Read

Understanding the FCA's Disengagement with Mortgage Advisors: Key Insights

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The Disconnect Between the FCA and Mortgage Advisors

The ongoing discussions around the future of the mortgage market in the UK have sparked concerns regarding the role of the Financial Conduct Authority (FCA) and its apparent detachment from the realities faced by mortgage advisors. According to Sebastian Murphy, a group director at JLM Mortgage Services, the FCA’s recent communications have raised more questions than answers.

Regulatory Overreach or Innovation?

During a recent forum, Sarah McKenzie, head of the FCA's mortgage market division, emphasized the FCA's intent to 'inject innovation' into the sector. While innovation is essential, many believe it should arise organically from within the industry, rather than being externally imposed by regulators who may lack hands-on experience in the marketplace. The tension between regulatory oversight and genuine innovation raises fundamental questions: Should regulators be dictating trends, or should they focus on maintaining stability and compliance?

The Role of Advisors in Market Progress

Murphy highlights that since the Mortgage Market Review, the landscape has significantly improved, with over 90% of mortgages being navigated through intermediaries, a clear indication of consumer preference for regulated advice. This fundamental shift suggests that advisors have become key players in delivering positive customer outcomes, thereby contradicting the notion that the FCA is the source of market progress. As the regulator appears to distance itself from these developments, it raises concerns about the possibly widening gap between regulatory perspectives and industry reality.

Looking Forward: Bridging the Gap

For the mortgage sector to thrive, it is crucial for the FCA to realign its strategies to better collaborate with market participants. Instead of positioning itself as a trendsetter, the FCA should aim to listen to the voices of advisors, lenders, and consumers in shaping a responsive regulatory framework. This approach will not only foster innovation but also ensure that the regulations enhance the advisory process, ultimately benefiting consumers and the industry at large.

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Understanding the FCA's Disengagement with Mortgage Advisors: Key Insights

The Disconnect Between the FCA and Mortgage Advisors

Regulatory Overreach or Innovation?

The Role of Advisors in Market Progress

Looking Forward: Bridging the Gap

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