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How come solicitors get out of being regulated?

From Ian Griffiths

Helen McCormick&#39s&#39 article on FSA regulation (Mortgage Strategy August 19, News, page 5) spelled out the categories of individuals who would be excluded from FSA regulation. I cannot think of any good reason why a solicitor or accountant who sees fit to arrange a mortgage for a client should escape regulation.

In the past, I lost a client to a solicitor who was told, once the offer letter had been produced, that he could get a better deal. It materialised that this deal was by no means based on a like-for-like basis, but was simply cheaper over a shorter term. I would assume that anybody arranging mortgages, who is exempt from FSA regulation, will also benefit from not requiring the relevant CeMAP or FPC qualifications.

If this is the case, what training will these individuals have? Though I have a basic understanding of accounting (in that I know that I have to have accounts) I would by no means class myself as being qualified to advise clients on these accounts, nor would I attempt to handle a client&#39s industrial injuries claim while sorting out his late father&#39s estate and sueing his next-door neighbour because his dog continues to crap in my client&#39s garden.

Meanwhile, it appears that your production editor is developing the CeMAP Syndrome. That is to say, he has developed the ability to set unanswerable questions. In the last edition (Mortgage Strategy August 19) he posed the question: “Hugh & Liz have a 5% cashback on a £60000 mortgage. How much cashback is that? Answer: £33,000”.

Now, either I must bow to his superior knowledge or my calculator does not work!

Ian Griffiths

Mortgage Search UK




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