Financial behavior authorities said that due to the surveillance mortgage broker in the next two years, the pressure on stress sales will be high and the quality of suggestions will become a key area of attention.
The city’s watchdog said that its overall work will “embed” its consumption tax codes, which wrote in “Dear CEO CEO CEO” on January 30.
It added that it hopes that “seeing a booming suggestion market, and consumers can make a wise decision where the products they need to meet their needs.”
The agency said that economic changes have “led to the challenges of the industry in recent years.”
It added: “The rise in interest rates involves the payment and concerns that some borrowers are involved in the assessment of the burden ability when they take out the new mortgage or converting the loan.”
In the first toll market, it pointed out: “The company must consider the personal and financial conditions, financial goals of customers, and provide appropriate information to make them make effective decisions.
“This may include exploring the preferred preferences of customers, and weighs any balances with those who express contradictions or conflicts.”
It warns in the second charge market: “We have seen some companies that have failed to consider whether a guaranteed loan is suitable for financial difficulties.”
The agency added: “Recommended products without considering the cost related to increasing the repayment period and whether customers are suitable for ensuring that these debts may cause damage.”
In the lifetime market, it pointed out: “Places where customers have more complex financial conditions, enterprises should evaluate their needs and environment to ensure that they have sufficient processes to identify and consider fragile characteristics.”
Looking at the door dog warning that conflicts of interest can promote the company’s high -voltage sales culture.
It said: “Recent supervision work shows that some companies have a culture driven by sales targets, and consultants have economically inspired products to attract higher commissions or expenses.
“If the conflict is incorrect, the payment method of the sales staff may drive mistakes and product prejudice.”
It suggested that “the company should regularly review whether the incentive plans they or their appointment operate in the appointment may hinder employees or companies act as customers’ maximum interests.”
The agency said it has seen the best practice example, where the enterprise has completed the “overall review” of charging fees, and these costs and examples have been reduced or scrapped.
But adding: “However, we have seen examples of less considering methods. We remind the company that it is not far enough for the benchmark testing of competitors.”
Regulatory agencies say that marketing materials should have a safe loan risk of “side -by -side benefits”.
It added: “When promoting more complex products, if the promotion is unbalanced or has prejudice to a certain product, it will increase the risk.
“Enterprises should not seek to use consumer behavior bias, and to avoid predictable damage and help consumers understand.”
The appointed representative of dormant
The regulatory agency said to the main company: “If your appointment does not conduct any regulatory activities, you should consider the termination of the relationship and submit the” specified representative-termination “form.
“This reduces the risk of” halo effect “listed as a financial service registry to promote its use of non -regulatory activities to promote its non -regulatory activities.”
Regulatory agencies said it will continue to conduct market research and “share the results of this work by publishing good and bad practice.”
Andrew Gether, the managing director of Morganash, said that the latest dear executive letter of the door dog’s latest dear executive “again is an appeal to the intermediary, not only to evaluate whether customers meet the standards to ensure that the suggestions we provide meet their needs, characteristics and characteristics and characteristics and characteristics. Financial goals.
“However, if we don’t really know who our customers are and which proportion of fragile characteristics, we will not be able to achieve this goal, and we cannot prove that they are meeting consumer duties.”
Gething added: “This is the biggest challenge in all areas of financial services and one of the biggest frustrations of regulators. This is not a secret.
“Regardless of the recent CII report, the review of the taxation committee’s report on the taxation committee or the extensive market research of regulatory agencies shows difficulty recognition, classification and record customer characteristics, and reduce potential harm.
“The forthcoming fragile customer review of the Financial Behavior Administration may continue this theme because it surveyed how companies above 2024 implement customer fragility management.”
