The Intermediary – January 2026 - Flipbook - Page 18
Consumer Duty forced many firms to tighten
processes, improve client contact, and be more
open in how they talk about value. It raised
standards in a way that has been good for the
industry. Looking ahead, that is going to be vitally
important.
On the negative side, some lender behaviour has
slipped. We’ve seen product pulls with little notice,
even after many promises they would do better.
We’ve also had a huge rise in down valuations, and
no clear explanation. Advisers are left with delays,
clients frustrated, and lenders are left with a
process that makes little sense when values don’t
match anything else on file.
Then there is the whole issue of product
transfers, proc fees, the direct push for this
business, which will only ramp up. Advisers still
do a full review, carry the same responsibility and
take the same risk. Yet some lenders are clearly
motoring in what I believe is the wrong direction.
We need to face the fact some lenders are
simply driven by shareholder value, and that
means they’ll chase direct business to secure
higher margins or lower costs. We see it already
with borrowers receiving multiple notifications
early in the process with a shiny button to click.
I would like to see clear warnings, much like
on cigarette packets. If the FCA is serious about
consumer protection, that is the level of clarity we
need.
What are the opportunities and
threats for the advice sector?
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16
The Intermediary | January 2026
The biggest opportunity is the
continued demand for advice.
Whether it’s first-time buyers,
remortgagers who now have
more options again, or older
clients who need a more
rounded discussion about later
life lending, demand for advice
is there.
We also have a chance to
push for better standards. I’ve
said many times that a single,
advanced mortgage qualification
for all advisers would help
remove confusion and raise the
bar. The sector needs clarity. We
do not need separate silos or
rules that suggest some clients
only get partial advice. It would
appear the regulator agrees.
The threats are uneven lender
behaviour, regulatory mixed
messages, and a risk of more
poor decisions being made
without talking to advisers first.
However, it’s clear the lobbying
power of some of the big banks
and lenders in courting the
regulator have worked. We
have to keep highlighting these
decisions, pointing out their
flaws, and importantly, offering
solutions and showing the
continued value of advice.
I will continue to voice my
opinions, and hope all others
who have the opportunity do
the same. ●
