Responses to CP146 are putting the FSA under increasing pressure to amend controversial proposals for non-advised sales, as consultation on mortgage regulation closes today (November 11).
CP146 plans for filtering questions – framed to provide information, not advice – have repeatedly come under attack.
Gavin Hunt, compliance manager at Southern Pacific Mortgage Limited, told Mortgage Strategy: “I think the FSA has been taken aback by the response to filtering questions, especially from brokers. A large slice of mortgage business is transacted between execution only and full advice. The FSA is moving in the right direction, but the bit they want to put in the middle as non-advised filtering questions is getting a lot of flak.” Main criticisms include the potential for consumer confusion and overly prescriptive questions.
One alternative put forward to the FSA by SPML is the idea of an “informed choice” model.
And Stuart Aitken, director of credit at SPML, says: “The FSA is very interested in it. The best way to sum it up is a halfway house between full advice and execution only – more like the process today. It allows customers to get as much information as they require, so they feel confident in making an informed choice.”