FSA sets June deadline for MMR rule changes

23 March 2010 | Updated: 23 March 2010 10:04 am | By Natalie Thomas

The Financial Services Authority plans to publish a policy statement in June this year outlining the rule changes to emerge from the Mortgage Market Review.

The regulator first published its discussion paper on the MMR in October 2009.

There is a consultation period running currently as part of the MMR on arrears and approved persons, which ends on April 30.

The FSA says it expects to publish a policy statement setting out its rule changes in June.

This will be followed by a futher two consultation papers later this year.

The first will be held in Q3 covering the regulator’s “highest priorities”: income verification and affordability assessments, non-deposit taking lenders and product regulation.

Th second consultation paper will come in Q4 and will address issues around distribution, such as selling standards, broker affordability assessments and professionalism, and disclosure.

Another regulatory paper will also be published in Q3 looking at the FSA’s analysis of the causes of arrears, produced with the help of the Council of Mortgage Lenders.

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Readers' comments (18)

Anonymous | 23 Mar 2010 10:30 am
more poppy cock from the FSA.......after the horse has bolted...now wish to use a sledge hammer to crack a nut.

FSA = Food Standards Agency!!!!!!!!!!
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Anonymous | 23 Mar 2010 10:39 am
they destoyed our pensions and savings industry now its the turn of mortgage advisers where will it all end? thank god ime nearing retirement ive seen regulation put many good brokers out of business and are the public better for it i DONT THINK SO how many bankers have lost their business will the government bail me out if I take on massive poor debt what a mess this great industry is in.
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Anonymous | 23 Mar 2010 10:51 am
Vote Conservative. At least they will do something to stop the FSA ruining an industry. Only a change of government can help us.
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Mark Hobbs | 23 Mar 2010 10:53 am
The MMR could be the catalyst for change in the mortgage market.
The key change is that of approved status for mortgage brokers. This will allow us to take a great big step towards getting rid of some more fraudulant brokers. Every one will need to pass the Fit and Proper test.

This is far from "poppy cot" and is a professional move in the right direction.
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Anonymous | 23 Mar 2010 11:05 am
The main thrust of the MMR is still in consultation, in the 2 papers due in Q3 (lenders) and Q4 (advisors).

The arrears and approvals is low-lying fruit.
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Compliance Man | 23 Mar 2010 11:21 am
Re Mark Hobbs comments at 10.53:
You are right in some respects in that it should stop those already found guilty of wrongdoing from getting/keeping jobs in the industry.

Unfortunately it will not stop those rogues who have not been caught yet. As history shows, regulation doesn't stop people being crooked, it just gives you a means to deal with them when you do catch them.

IFA's/Intermediaries have claimed for years how honest they all are but time and again individuals get caught being naughty (and just in case you were getting worried the big boys are just as naughty and get caught out as well).

The reason the banks appear to have more leeway is that they are able to dig into their pockets to meet the fines and redress that they are told to pay - mind you that's with our money these days :-)
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Bob Windust | 23 Mar 2010 11:26 am
"AT THE VERY END OF THE DAY" IF CUSTOMERS BECOME MORE CONFIDENT OF BROKERS AND THE VALUE THAT BROKERS CAN ADD TO THEIR DEDECION MAKING PROCESS, "THE DAY WE WILL EARN MORE MONEY NOT LESS"
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Anonymous | 23 Mar 2010 11:29 am
This useless QUANGO is having one last throw of the dice.
Despite what our Prime Minister thinks, the British people are not complete idiots and 5 May 2010 will see the beginning of the end for Gordon Brown's FSA. Have faith.
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Michael White CEO Emailmortgages | 23 Mar 2010 11:54 am
Mr Hobbs, are you an FSA employee? I cannot think of any other explanation for such a naive comment.

If you really believe that passing a 'Fit and Proper test" will rid Financial Services of Fraud then naive extends to plain daft!

Of course it is inappropriate for errant intermediaries to be allowed to break the law unchecked. And yes we should have regulation. But you are overlooking the key issue that the FSA essentially failed to identify or indeed take any necessary action when the problems that led to the credit crunch were building. Consequently there is now unfortunately much ‘overreaction’ to dealing with the mess.

In this context, describing the MMR as the 'catalyst for change' is actually correct, I make this point as the catalogue of interventionist actions continue and plans are announced for the regulator to “get tough” on the sale of risky financial products to “better protect the consumer.” Also, the FSA’s budget for 2010/11 is to rise 18.3 per cent to £491m, up from £415m last year, amid warnings from Hector that a “more intrusive regulator is going to cost more!”.

'What I would judge as ‘Over regulation' bordering on Totalitarianism is not very safe for a market crawling out of the worst recession in living memory. We must all take a responsible approach to advice and lending, but that doesn't mean becoming so risk-averse that we simply exclude millions of creditworthy consumers.

So as we move from the unreasonable to the ridiculous and the mist begins to clear, might I suggest the very real and pressing question is “who is actually regulating the regulator?” And what could be the outcome if the enthusiasm of the FSA is not curbed?

Maybe you need to get out more often ‘Mr Hobbs’ and gain some experience of what is really happening in the market.
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Anonymous | 23 Mar 2010 12:33 pm
Mark Hobbs......the FSA fanfare every broker they ban as though they have just caught a serial murderer..........the facts are that half of these people should never have been given a licence in the first place.......ASLEEP AT THE WHEEL!!!!!!!!!.........
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