Secured industry needs time to adapt to FSA regulation, says AFB
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The Association of Finance Brokers has given its support to plans announced today by HM Treasury to extend the scope of Financial Services Authority regulation to include second-charge mortgages, but stresses that more time may be needed for the industry to adapt.
Robert Sinclair, director of the AFB, says he fully supports this announcement and that the trade body has long been calling for an alternative regulatory regime under FSA.
He says: “In our view this will benefit intermediaries, lenders and consumers. We welcome the fact the government and the regulators have listened to the intermediary industry in seeking to deliver a better environment for business and consumers.
“We will need to examine the proposals in detail and will consult with our members before formally responding to the consultation. The Treasury appears to have rejected the simpler approach of transferring the existing regime to FSA control.
“The proposals would place the regulation of second charge mortgages under the FSA Mortgage Conduct of Business rules, requiring changes to the way we all do business.”
He adds: “The AFB supports this approach, but it may require additional time for the industry to adapt.”
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