Regulation of secured loans sector will move to FSA
Share
The government has confirmed that secured lending regulation is to be put under the Financial Service Authority’s remit.
The government ended years of speculation last week when it revealed in the Budget that it would transfer regulation of secured loans from the Office of Fair Trading to the FSA.
The Mortgage Market Review also recommended in October that secured lending fall under the FSA’s remit.
Robert Sinclair, director of the Association of Finance Brokers, says it is unlikely that the regulation will be implemented until at least 2012.
He adds: “The FSA will need to fit this around the MMR and what is happening in Europe.”
But some see the move as un-necessary and expensive.
Fiona Hoyle, head of consumer finance at the Finance & Leasing Association, says: “Second charge lenders are not opposed to a move to FSA regulation, but customers are already well protected by the recently-strengthened OFT regime.
“Moving all existing business to a new regulator will lead to increased costs and disruption. The potential for customer confusion must be avoided.”
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
