Stay on the safe side with your providers

7 June 2010

It was interesting to read the recent article in Mortgage Strategy with the headline ’Regulator plans to get tough with small businesses’.

It is evident that the Financial Services Authority has stepped up its enforcement action during 2009 and into 2010.

But this story seems to signal the regulator’s intention to ramp up its supervision of small businesses even further.

In a speech at the City And Financial Intensive Supervision conference recently Jon Pain, managing director of supervision at the FSA, told the audience small firms will be supervised through roadshows, visits, workshops and more intensive interventions.

It was speculated before the general election that a new government may result in a fresh look at financial services regulation but it seems this may no longer be the case.

So the industry must continue to engage with the FSA in a proactive manner to stay within regulatory boundaries.

Of course, the FSA is there for a reason - to ensure the well-being of customers. And as a provider it is our duty to look after our customers too, which generally means you brokers.

As a regulated firm we believe that by having a business model in keeping with these regulatory boundaries we are doing this.

So the question brokers should ask themselves is - would I rather deal with a regulated provider or an unregulated one?

I know the answer but whether enough brokers are posing the question is a different matter.

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