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FCA set to overhaul CeMAP qualification

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The Financial Conduct Authority is looking to overhaul the CeMAP qualification for mortgage intermediaries, Mortgage Strategy understands.

The regulator, which oversees financial exam standards, wants to update the qualification to reflect the modern mortgage market, taking into account new regulation and tax changes, according to sources.

This could involve changing exam scenarios and terminology, neither of which have been updated since 2011. For example, the current CeMAP wording still refers to the former FSA regulator.

The FCA is currently talking to trade bodies, mortgage firms and exam providers to get ideas for tweaks.

The regulator is not currently looking to change the CeMAP qualification from its current level three standing, Mortgage Strategy understands.

The FCA wants to bring out a formal consultation paper in the summer, and will follow that with either new exam rules or more consultation papers on specific aspects of the CeMAP.

Any changes to the CeMAP syllabus will be implemented by the Institute of Financial Services.

An IFS spokesman says: “These standards have been in place for some time now and we would certainly see benefit in them being updated to reflect recent developments in the sector. If any changes were to be made, we think it would be very unlikely that existing CeMAP holders would be affected.”

The FCA would not comment.

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  • Chris Hulme 11th February 2016 at 5:06 pm

    Although they are somewhat lenient, it’s not necessarily the qualifications that are the issue, its the lack of a grandfathering requirement in this industry.

    Currently, it appears that a new entrant to the industry can pass qualifications one day and set up a new mortgage broker desk the next without having turned a page of an application. We saw the devastation of this with the order takers that arrived in the first few years of the new millennium.

    Our equals on other professional are usually required to be time served and have relevant experience before they are able to set up on their own or advise clients without supervision. This year marks 30 years since the Financial Services Act and yet the need to have experience as well as qualifications seems to have bypassed every regulator we’ve had.