FSA becoming more intrusive, says CML
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The CML will be submitting its response to the Financial Services Authority’s Mortgage Market Review at the end of this month, and says the FSA has already become a more intrusive and intensive regulator.
The trade association says there are proposals within the review which it will take issue, but it believes the FSA has already made some headway.
It believes if the FSA had focused in the past on errant firms in the way it intends to in the future, some of the problems would have been avoided.
The FSA has embarked on a substantial programme to enhance its supervisory role, which the CML says will mean extra costs for firms and consumers but, if it results in a better understanding of the market and greater anticipation of problems in advance, the risk of systemic disruption should be diminished significantly.
It also welcomes the introduction of a conduct risk division and its stress-testing requirements for firms.
However it says it is less convinced that there is a compelling case to regulate the commercial buy-to-let market.
It says the CML – and individual firms within the industry – recognise and accept the need for change, and this will be reflected in our response to the review.
The CML says it is working for a stable market that helps re-build confidence, but it does not want mortgages to be limited to the privileged few who have parental support, never lose their jobs and have only the most conventional financial needs.
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