Regulator choice slated as lash-up

The appointment of the Department of Constitutional Affairs as interim regulator for complaint management firms has been slated as a temporary ‘lash-up’.

As Mortgage Strategy’s Stop the Rot campaign gathers pace, debate goes on as to who should regulate complaint management firms.

The secretary of state will act as the chief regulator initially, with everyday responsibility being delegated to a civil servant.

There will also be a non-statutory advisory committee made up of representatives of the financial services and insurance industries, the legal profession and consumer groups.

But Oliver Herald, Tory MP for North-East Hertfordshire, says: “Many of us are disappointed that an established regulator in the financial field is not taking on the task.

“The Financial Services Authority or the Office of Fair Trading would be preferable as regulators because they have the relevant experience. We are flying blind with a temporary lash-up solution.”