Industry welcomes Treasury&#39s regulatory changes

Intermediaries have broadly welcomed most aspects of the Treasury&#39s final legislation on the regulation of mortgage advice – especially the exclusion of introducers from the regime.

Patrick Bunton, head of operations and compliance at London & Country, says that rules on introducers and packagers “make perfect sense” and is pleased the Treasury has deferred judgement on the implications of polarisation.

Mike Fitzgerald, sales director at Brentchase Financial Services, says: “I am glad that introducers are outside regulation. We get a tremendous amount of introduced business, but they don&#39t give any advice. If they had been included it would have made a nonsense of the whole thing and would not be to the benefit of the consumer. It will be interesting to see what spin the FSA puts on it.”

And Trevor Youens, director of Flower Independent Financial Advisers, says: “Only those who have contact with the end customer should be regulated, as long as they influence their decision, so introducers should be exempt. I am pleased with this aspect.”

RJ Temple PLC introduces mortgage business to other IFAs. Communications manager Liz Walkington says: “If we are not doing the broking there is no need to regulate us. This is an excellent ruling.”

Charcol senior technical manager Ray Boulger says: “We certainly welcome the concept of regulating mortgage advice. While we will inevitably disagree with some of the regulations, the majority seem very sensible.”

But Mark Osland, director of Fidelius, has mixed feelings and says: “If you regulate everything else then it is daft not to regulate mortgages. But we have a brilliant mortgage industry in this country and I think regulation is more likely to harm than improve it. Regulators don&#39t understand competition, just bureaucracy. They want more paper, we want more freedom. They are mutually exclusive.”