FSA indefinitely delays individual registration for mortgage brokers
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The Financial Services Authority has indefinitely delayed its plans to introduce individual registration for mortgage brokers.
In December 2010 the regulator announced that it was delaying its plans to introduce individual registration for brokers until 2012/2013.
But an update on its website says: “We remain committed to extending the approved persons regime to those selling mortgages, but given our broader priorities to deliver the UK’s two new regulatory bodies, we will not be able to deliver the necessary changes before the FCA is established.
“We will introduce the changes as soon as practically possible and, in doing so, will make sure that firms have enough time to make the necessary arrangements.”
As part of its Mortgage Market Review, the FSA announced in June 2010 that it was to extend the approved persons regime to include all those who advise or sell mortgages.
The FSA had originally planned to introduce the changes by March 30 2011, requiring all advisers and branch staff to take a ’fit and proper’ test.
Robert Sinclair, director of the Association of Mortgage Intermediaries, says: “We are extremely disappointed by the decision. This is something that the industry has wanted for some time and one of the things the regulator can do to stop bad practice in the industry.
“This is something the industry had consensus on long before the MMR and is why we are paying the FSA £15m in levies.”
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Readers' comments (15)
James Lindon-Travers | 10 Feb 2012 10:23 am
I am sure the FSA have a lot on their plate right now, however indvidual registration is a vital requirement to ensure that all who advise on mortgage business are fit and proper.
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David Sheppard, Perception Finance | 10 Feb 2012 10:26 am
I am disappointed by this. The market needs to have greater oversight on individuals to ensure professional standards are maintained and to prevent those that should not be working in the industry are kept out.
There will be many functions of the current regulator that will switch over to the FCA with relative ease I would imagine and business goes on. Surely it is possible to have a team work on this with the remit that they include a process for transition within their work? It is a big task and no one would dispute that but to delay is not the answer.
The age old phrase rings true - why put off till tomorrow what you can do today.
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Anonymous | 10 Feb 2012 10:33 am
It's only the biggest decsion most people make in their lives - to buy a home and to obtain the right funding. So the FSA is happy to continue allowing those that may not be 'fit and proper' to operate in such an important area of financial services. Still, as long as they get to work out the bonus structure for our new 'twin peak' regulatory structure, everything else can take a back seat.
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Bill Wells | 10 Feb 2012 10:33 am
It's only the biggest decsion most people make in their lives - to buy a home and to obtain the right funding. So the FSA is happy to continue allowing those that may not be 'fit and proper' to operate in such an important area of financial services. Still, as long as they get to work out the bonus structure for our new 'twin peak' regulatory structure, everything else can take a back seat.
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Pat Bunton | 10 Feb 2012 10:35 am
Very disappointing news
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Kevin Fowler | 10 Feb 2012 10:40 am
I can only assume that having considered the risks the FSA have decided this is not a major priority and if that's the case then surely that is a compliment to the broker community ? Or shall I take my rose tinted glasses off ?
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Mark | 10 Feb 2012 10:47 am
Well, well, well..... once more the FSA fails to demonstrate that it is fit for purpose. 'Do as we say, not as we do!!' What a hypocritical shower they truly are.
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Roger Travis | 10 Feb 2012 10:49 am
With all the Financial Crime Risks these days, and the emphesis being placed on that, and that Mortgages are the biggest current risk of Financial Crime, i think its appalling its being delayed.
Compliment to the Broker Community? Don't make me laugh, they don't want to upset their friends in the Bank.
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Doctor S-P | 10 Feb 2012 11:25 am
Not the best of ideas to be honest, but understandable with the changes that the government are making and the timescales to make said changes.
But then again, why let two pieces of major work that weren't the FSA's own choosing get in the way of your usual slagging off? As usual, it's all their fault, despite the fact that it's the brokers/solicitors/delete as applicable committing the fraud...
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Dazed & Confused | 10 Feb 2012 11:38 am
Once again the FSA fails to impress. At a time when the broking community could REALLY do with the bolster of showing that we ARE professional and we ARE fit and proper to carry on our roles. Oh well...just so long as all their buddies in the Banks are being looked after. Wouldn't it be appalling if they all had to retrain? Think of all the costs in getting bank staff up to speed...that would wreck the outrageous bonuses for at least 1 year!
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