I was interested to read a recent article on Mortgage Strategy Online revealing that the Financial Services Authority is upping its annual funding by almost 10% while brokers will have to cough up a minimum of £1,000 to be regulated.
As there is a diminishing number of brokers to fine the FSA clearly thinks it reasonable to raise the required funds from the remainder
So it may cost us more but we can all sleep safer at night knowing there is a far higher quality of supervision in place. If only.
Time and again the FSA demonstrates just how detached from reality it is. I guess this is not surprising because in the regulator’s world it can do no wrong while being handsomely rewarded.
I won’t dwell on the fact that it allowed so many problems in the market to manifest themselves in the first instance, but this has been exacerbated by what seems to be an embarrassed urge to rectify supervisory errors by overreacting and attempting to create a sort of perfect financial services world.
This pursuit of perfection is based on misguided quantitative theory and accords little or no respect to practitioners’ comments or proposals.
And yes, the argument is beginning to build that the FSA has a hidden agenda regarding the elimination of mortgage advisers in an almost genocidal fashion.
Of course, this strategy is particularly aimed at directly authorised firms and I find it most worrying.
CHIEF EXECUTIVE OFFICER