FSA learns the bitter truth

Brokers hit out angrily at the FSA during the Mortgage Expo, saying they are “bitterly disappointed” with how the regulatory process is being handled.

A number of brokers expressed their frustration and revealed that they have little confidence in how the FSA is managing the regulatory process.

One broker challenged a panel of FSA members, saying: “I&#39ve got less than eight weeks to make a decision on what regulatory route to take. All the FSA has given us is ifs and buts. At this stage we should be given certainties. I&#39m sure you have my name so I&#39m not optimistic as to how my application will go now but I am expressing my bitter disappointment with the FSA.”

Another broker told the panel that if the MCCB was in charge it would have “hung, drawn and quartered” him if he had not decided what regulatory route to take by now.

One sole trader also criticised the FSA for throwing the Mortgage Code out of the window, saying: “Why doesn&#39t the FSA expand on the rules we&#39ve already got rather than start again from scratch? It&#39s creating unnecessary difficulties on both sides.”

Responding to the comments, Susan De Mont, manager of high street firms at the FSA, told delegates: “We haven&#39t dismissed the Mortgage Code but we&#39ve had to build on it significantly as the Code lacked a legal framework. We also have to demonstrate that our regime is proportionate and that all stakeholders are taken into account.

“There are still uncertainties because we do not yet know how many firms will be registered. We&#39ve had to bolt in a lot of options in case things do not go to plan. People should appreciate we are undertaking the biggest regulatory operation that has ever taken place.”