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.