AFB deputy chair calls for FSA to regulate secured loans
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Tony Machin, chief executive officer at Freedom Finance, and the new deputy chairman at the Association of Finance Brokers, says the Financial Services Authority desperately needs to regulate the secured loan market.
In an interview with Loandistributor.co.uk, Machin says that FSA regulation would help the secured loan market’s reputation with first-charge mortgage brokers.
He says: “The industry desperately needs to be regulated by the FSA. I think the secured loan industry needs to be like the first-charge market. FSA regulation will bring additional bureaucracy and additional hassle I accept, but I think it will help to put secured loans on an equal footing in terms of reputation, as first-charges brokers.
“Brokers will be able to give holistic advice, and the economics of the market will change because there will be greater transparency.
“The sooner we get that additional credibility factor by getting ourselves regulated by the FSA, the sooner it will help the industry.”
Machin also stressed that the AFB would survive the current stormy waters.
He says: “We’ve not seen a huge amount of brokers leaving the AFB because of market conditions, but we are in the eye if the storm at the minute, so we will wait and see.
“Will the trade body survive? absolutely, but like everything it will have to reshape itself in accordance with market conditions, it is doing that and continuing to evaluate its role and its resources, but it’s here to stay and I’m confident about that.”
To read the full interview, click below
<http://www.mortgagestrategy.co.uk/cgi-bin/item.cgi?id=ITEMNUMBERHERE&d=409&h=411&f=410> ”> Click here
Please email comments to, natalie.martin@centaur.co.uk
Source:
Loan Distributor
