Richard Fox, compliance director at the Mortgage Code Compliance Board, says that the FSA will be looking to make examples of brokers in the first 12 months.
He told delegates at yesterday's Mortgage Strategy Live conference: “After years of regulation in this industry, the FSA has got to be listened to carefully, there are risks for firms that do not listen to it. If a firm has not carried out the right business, the FSA will take action.”
Chris Cummings, director at the Association of Mortgage Intermediaries, says: “It is taking the FSA six weeks at the moment to process an application to become an appointed representative. My biggest worry is that brokers who do not get authorised in time, will turn to personal friends to pass through deals for them, which will have an effect on the whole mortgage industry.”
There is also the risk that brokers will often treat compliance as an after thought.
John Malone, manager at Premier Mortgage Service, says: “It is critically important for brokers to respect compliance. It is often treated as an after thought by lots of brokers which will have consequences.”