From John Mawdsley
Does CP146 mean we have seen the end of the beginning for mortgage regulation? Borne out of The Mortgage Code, CP70, CP98 and a further consultation period by the Treasury, with the publication of CP146, it looks as though the FSA has now comprehensively grasped the nettle.
We welcome the clarification that CP146 has provided for the packaging industry. It is now recognised that packagers and other hybrids, such as mortgage clubs, do exist and play a significant role in the market. The regulation will take account of these businesses and it identifies that regulation will only be inclusive in certain circumstances. From a packager's point of view, if you wish to be unregulated, you will need to keep a tight reign on your activities. The definitions of regulated activities are set out and it will be up to each organisation to know how, or if, they fit and make the judgement based upon the FSA definitions. Clearly if you play any part in advising the client about choice of mortgage, you will become regulated by definition. It will mean that packagers who operate direct arms will have to become more transparent.
And a small but positive point; if you don't undertake CCA business (and all mortgages will be outside of CCA) it also looks as though the Consumer Credit Licence will become 'disapplied' although I guess it will find a way to get the money we save back off us somehow.
With just over 350 pages to digest, CP146 needs a great deal of concentration and swift cross-referencing to fully understand. But remember, CP146 is a consultation paper and the FSA needs responses by the November 11. So if you care about your industry and its future shape, then read CP146 and speak up. It may be your last chance.
The Mortgage Partnership