The FCA has written to mortgage third party administrators (TPAs) to set out its view of the key risks TPAs pose to their customers or the markets in which they operate and to outline its expectations of TPAs, including how they should be mitigating these risks.
The FCA has identified that the key drivers of harm are:
- customer treatment;
- operational resilience; and
- firms’ prudential resources.
The FCA has also written to firms which outsource to TPAs to highlight these key risks.