Tory plans to axe FSA could be "unwelcome distraction" warns Coogan

16 December 2009 | By Robert Thickett

Speaking at the CML’s Mortgage Market Review conference today, he says that whether new measures are implemented under the MMR or not is irrelevant to the bigger question - will the Financial Services Authority be more effective as a regulator in the future?

He says: “On this aspect - vital to market confidence - I am optimistic, but the Conservative’s plans to move the regulatory deckchairs after a general election could become an unwelcome distraction.”

But Coogan also hit out again at mortgage brokers. Commenting on his infamous comment in May 2009 that some brokers were “acting more like salesman”, he says if the FSA better regulates brokers, many of the root causes of consumer detriment will be removed.

He says: “It is undoubtedly true that the behaviour of intermediaries worsened the impact on a minority of consumers who borrowed irrationally.

“So we support the FSA measuers to tighten up fraud prevention through the Information from Lenders scheme, and extension of the approved persons regime to adviser firms.”

He also adds that the MMR on its own is largely irrelevant in addressing past areas of consumer detriment.

Coogan warns: “Cumulatively, with other regulatory and prudential changes in development, there is a real, tangible risk that unintended consequences in the mortgage market will undermine the FSA’s good work since the crisis hit in 2007.”

 

 

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