Multiple reform plans may cause confusion

The Council of Mortgage Lenders is warning that separate debates over the future shape of mortgage regulation in the UK and Europe risk causing confusion.

Proposals by the Financial Services Authority and the European Commission are being developed in tandem.

The FSA is working on a discussion paper to be published in September that will set out proposals for UK mortgage regulation.

And last month, the EC published a high-level communication including a comprehensive plan to clean up financial markets.

In its newsletter the CML states: “We will continue to campaign for complementary proposals in the UK and Europe but the challenge will be considerable. There is a risk of confusion and regulatory overload if there is conflicting intervention in the UK and Europe.”

The Finance and Leasing Association has also hit out at the Office of Fair Trading’s plans to review the consumer credit sector.

A number of reviews are being carried out into the sector, including the Department for Business, Enterprise & Regulatory Reform’s White Paper on consumer law.

Stephen Sklaroff, director-general of the FLA, says: “Overlapping reviews could divert attention from helping consumers.”