In CP10/28 – the MMR paper out last summer – the Financial Services Authority consulted on using “independent” or “restricted” labels to describe a firm’s scope of service to be consistent with those proposed under the Retail Distribution Review.
But today’s paper reveals respondents considered that these labels were not appropriate for the mortgage market.
The Financial Services Authority said: “In the light of this feedback, we have amended our proposed approach. Rather than having to use labels, we propose to require firms to give the consumer a plain and simple explanation of whether there are any limitations in the product range they provide.”
