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New FSA focus will help smaller firms

At last, the Financial Services Authority has announced that it is to move away from a principles-based regulation towards a more outcomes-based regime.

While a principles-based environment might be better for large firms – although I guess history will show it wasn’t better for the economy – it is not appropriate for small and medium firms.

And let’s not forget that the majority of mortgage broker firms have less than three sales people.

I have often wondered why the old Mortgage Code Compliance Board was so successful. After all, it had no statutory backing but still managed to ban and fine rogues. The answer is simple – it was effective.

Member firms knew what was expected of them and were aware of the rules they had to follow.

Neither small nor medium-sized firms have armies of lawyers and compliance consultants who are meant to work out how to comply with principles-based regulation.

The firms I deal with just want to know what is expected of them and they will comply. Small and medium firms have nothing to fear from a shift in the regulatory focus. In fact, they have more to gain than their large counterparts.

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60 Seconds with….Tim Dawson

What are you doing at the moment?

I’m a non-executive director for the Mortgage Times Group and am working with some venture capitalist companies on start-ups. Other than that I like skiiing, sailing, generally relaxing and enjoying my retirement.

Compliance is a safe bet for any job-seekers

In a speech last week Hector Sants, chief executive of the Financial Services Authority, said the regulator would move away from principles-based regulation and focus on a more intrusive and direct style of regulation.

Mortgages for Business launch network

Buy-to-let mortgage packager, Mortgages for Business is launching a buy-to-let network to help unregulated mortgage brokers continue operating in the market.

Coreco Group joins Mortgage Advice Bureau

Coreco Group, the breakout venture initiated by some of the former senior management team and key consultants at Cobalt Capital is to become an appointed representative of the Mortgage Advice Bureau.