FCA to look at product governance and research unbundling

A set of oral evidence given to the Treasury Committee includes statements from FCA that:

  • it is now content on how to interpret the mortgage affordability test compliantly with the MCD and now plans to consult on changing it from an absolute test to a relative test;
  • it will be carrying out perimeter work on SME lending as part of its commitment to produce a “perimeter letter” annually; and
  •  it is to carry out supervisory work on MiFID 2 product governance and research unbundling during 2019.

There was also much debate on how FCA is to treat unarranged overdrafts, the FOS review and extension, and the financial services register.


Emma Radmore