View more on these topics

The end of the beginning

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&#39s 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&#39t undertake CCA business (and all mortgages will be outside of CCA) it also looks as though the Consumer Credit Licence will become &#39disapplied&#39 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.

John Mawdsley


The Mortgage Partnership




Portman guarantees MPPI premium rates

Portman Building Society is guaranteeing existing premium rates for borrowers who take out mortgage payment protection insurance (MPPI) following a deal with Pinnacle Insurance. With the number of job losses hitting Britain&#39s labour market, premiums for this type of insurance cover will tend to rise as insurance companies have to deal with higher numbers of […]

Mortgage advice to be split into three categories

Advisers will have to fit into one of three distinct categories when advising clients on mortgage contracts from June 2004. The FSA has distinguished between three types of selling process in its plans for regulation of the mortgage sales process: advised sales, non-advised sales involving a filter-question system, and non-advised execution only sales. Advised sales […]

The end of the beginning is nigh

Last week the Financial Services Authority published Consultation Paper 146: The FSA&#39s approach to regulating mortgage sales. From around mid-2004, intermediaries that sell mortgages will need to be authorised by the FSA. As we reveal across 15 pages in this special issue of Mortgage Strategy, there are no real surprises in CP146. Introductions to any […]

UK banking retains leading position

Britain&#39s banking sector is bigger than the commercial banking sector in any other EU country according to latest research issued by the British Bankers&#39 Association (BBA). The BBA&#39s annual review, Banking Business, shows that the British banking sector has assets of over €5,000bn (£3,145bn), representing a fifth of all European banking assets. Britain is also […]

Infographic - thumbnail

Infographic — health cash plans 2014

Health Shield has strengthened its position in the cash plan market, according to the latest Laing & Buisson report, increasing its market share by income from £27m in 2012 to £29m in 2013. The Health Cover UK Market Report 2014 revealed that the non-profit-making Friendly Society was the only provider in the top four to have increased its market share by income over the past year. Health Shield was also the only cash plan provider in the top four to have increased its market share by income every year for the previous five years. This infographic presents the figures.


News and expert analysis straight to your inbox

Sign up