EC: Directive sets out minimum requirements for brokers
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Mortgage brokers must have a clean police record in relation to serious criminal offences linked to crimes against property or other financial activities, says the European Commission.
They should also not have been previously declared bankrupt, unless they have been rehabilitated in accordance with the national law.
The EC rules will apply to mortgage brokers, but it is not clear whether credit firms, such as advisers in branch will also be subject to the same rules.
Brokers will also be required to hold professional indemnity insurance and the EC will develop draft regulatory technical standards to stipulate the minimum monetary amount of the PII for submission to the commission.
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