JEREZ 2006: FSA admits TCF contradiction

Speaking at the Mortgage Summit in Jerez today, Michael Lord, head of mortgage and credit unions at the Financial Services Authority, admitted that it is possible for a broker to comply with all its rules and still not be treating the customer fairly.

He says: I accept that it is possible for a broker to abide by the detailed rules we have and not be treating the customer fairly.

However he says that the broker should focus on the Treating Customers Fairly principle and take into account all factors.

The FSA is due to release its findings into TCF mid July, which will contain an analysis of the work it has undertaken over the past 18 months.

Lord says: This will give us an idea of what we need to work on. Alongside this we will also be issuing a statement about the differences between providers and distributors and where they stand regarding TCF and their responsibilities.