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FSA should have acted sooner to get rid of rogue firms

Mortgage Strategy Online last week had an excellent blog from Robert Sinclair, director of the Association of Mortgage Intermediaries, which as usual was right to the point.

The Financial Services Authority has been paranoid about not taking any blame for its actions – the use of principle-based regulations that have been shown to be utterly useless and has led the regulator to now interfere after the horse has bolted.

In reality, the FSA has been an expensive and useless nuisance and has failed in every significant aspect. The costs it has imposed on the industry are out of all proportion – especially mortgages.

The regulations being imposed on the remaining brokers are stifling customer choice because good advisers are leaving the industry in droves.

If the FSA had pursued the simple course of identifying the rogue firms (and everyone in each town knows who they are) and taking steps to make them change their ways or be closed down, the remainder of the small broker firms that do a superb job for their clients could get on with what they do best.

In over six years, the FSA has closed down about 100 firms – wow. If it had acted sooner and taken out all the bad apples, we might not need to suffer all the ill thought-out proposals in the Mortgage Market Review.

Keep fighting the fight Robert. Our industry needs you.

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