According to Mr Montlake, the consultation was “quite a dangerous move” that could result in some consumers being exploited.
He said: “It could end up with a whole range of complaints as consumers find themselves in positions they did not think they would be in.
“I get a little bit why the FCA is making execution-only easier but the industry is not broken thanks to the Mortgage Market Review.
“I think their language around price being the most important factor is nonsense and shows misunderstanding about mortgage advice.”
The regulator's paper on execution-only has also been described as "dangerous" by the chief executive of the Association of Mortgage Intermediaries, Robert Sinclair.
However Mr Montlake thought the future of ‘robo-advice’ was a “long way down the line” as technology was unable to take into account the “soft factors” of a mortgage application.
For example, although artificial intelligence would be able to offer the best price for a two-year fixed rate, it may be unable to ascertain if a two-year fixed is the best option for the consumer, he said.
Mr Montlake hoped the FCA would listen and take note of the industry’s feedback over execution-only and robo-advice, adding that he has been enthused by the regulator’s willingness to adapt to such feedback in the past.
He added: “It’s very easy for tech companies to come into the market and push their agenda without understanding or caring about how the market actually works.
“There’s probably some kind of middle ground to be found — but only if everyone is open minded and listens.”
imogen.tew@ft.com
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