New regulators in 2012 will carry on with FSA policies

Financial Services Authority will continue to deliver on projects such as the MMR until the new regime comes in

It will also help us ensure that inappropriate or non-compliant behaviour is dealt with swiftly and fairly.

This is a further example of where we are applying a more intensive approach to regulation to drive up standards. We believe this is good for consumers and for the industry as a whole.

In the meantime, we continue to collect feedback on the consultation we published in July on responsible lending – Consultation Paper 10/16.
The aim is to get back to basics – consumers borrowing what they can afford to repay.

As I pointed out in my last column in a key part of this is our proposal to ensure lenders make an assessment of affordability in every case.

Although brokers still have a role to play in looking at affordability and the suitability of products, the FSA believes it makes sense for lenders to bear ultimate responsibility for affordability and to be held accountable for the lending decisions they take.

It is, after all, lenders that bear the risk of holding the mortgage on their books.

If you wish to respond to our proposals you can let your trade body know what you think or use the response form on our website.