Context
The FCA has published four Portfolio Letters, for the building societies, retail banking, lifetime mortgage providers and non-bank mortgage lenders and mortgage third-party administrators sectors, which are very similar in layout but contain some focussed commentary for each of the sectors. The headline messages clearly indicate the main issues that the FCA will (we believe) be looking at in all sectors.
Key points to note and next actions
- In relation to effective cultures and controls, the FCA is highlighting: Leadership and people management which establishes healthy purposeful cultures
- Governance and oversight which is strong and balanced
- Risk management frameworks, including cohesive lines of defence, that give proper early consideration to conduct risks
The FCA’s summary of its priorities includes:
- Consumer Duty;
- the treatment of customers in financial difficulty;
- operational resilience; and
- financial crime and fraud.