Non-advised business ban will be boost for brokers
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The Financial Services Authority is proposing a ban on all non-advised sales, meaning lenders’ telephone and branch based sales staff will have to gain a CeMAP qualification.
In its final Mortgage Market Review consultation paper out today, the FSA proposes that all sales involving some form of interactive dialogue between the intermediary and the consumer - face-to-face, over the telephone, through social media, mobile devices, online propositions with the facility for live chats or otherwise - will be advised sales.
But it is proposing to allow high net worth individuals and mortgage professionals to opt-out of receiving advice and buy on an execution-only basis.
Consumers can also request execution-only, but they must know precisely what they want to buy, including the rate of interest, the price or value of the property, the length of term required and the sum they wish to borrow.
Robert Sinclair, director of the Association of Mortgage Intermediaries, says: “We are pleased that the regulator has recognised the importance of providing a level playing field for lenders and intermediaries on the issue of qualifications and determining product suitability.”
But the consultation paper did not mention any plans to implement the approved persons regime which was delayed last year until 2012/13.
Sheila Nicoll, policy director of the FSA, says: “It is very much still firmly on our agenda but with the regulation that is happening we are unable to commit on a date as to when this will happen.”
The FSA’s consultation paper is open until March 2012 with the final rules due out next summer. Brokers will then have until the middle of 2013 to implement the rules. Nicoll says if the eurozone and economy worsens the intended implementation date could get pushed back.
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