UK Financial Watchdog Proposes Mortgage and Regulatory Reforms to Spur Growth

The FCA plans to simplify mortgage lending rules and ease regulatory burdens, warning that increased risk-taking may lead to consumer failures.

The Financial Conduct Authority (FCA) has outlined proposals to simplify mortgage rules, aiming to boost home ownership and economic growth in the UK.
The regulator is considering removing the £100 contactless payment limit and relaxing anti-money laundering requirements to reduce burdens on businesses.
FCA chief Nikhil Rathi warned that reforms could lead to increased risks and consumer failures, emphasizing the need for government support in accepting these challenges.
The FCA also aims to prevent future mass compensation schemes, such as those seen in the PPI and car finance scandals, by reforming redress frameworks and improving issue management.
The proposed changes are part of a broader government push to stimulate growth, with ministers urging regulators to remove barriers that hinder economic progress.