In June 2010 as part of the Mortgage Market Review it announced that it would be extending the approved persons’ regime to include anyone who advises on or sells mortgages.
it says it remain committed to making these changes to the approved persons’ regime, but as part of its ongoing reprioritisation of work; particularly around the regulatory reform agenda, it is deferring introduction of the changes to 2012/2013.
In a statement on its website, it says: “Once the rules are finalised, we will give firms sufficient time to put changes in place to comply with the approved persons’ regime, as with any new rules.
“We will be publishing a full economic analysis of all our Mortgage Market Review proposals next year which will inform the final rules.”
Robert Sinclair, director of the Association of Mortgage Intermediaries, says it is a big shift that was unexpected.
He says: “We’re not talking about a few months but a couple of years. We were expecting this in either 2010 or 2011. Our concern is that this was part of initial proposals that had industry consensus but it has deferred this without any explanation.
“It can only be one of two things, either the FSA’s computer system isn’t working properly or it is worried about European regulation.”
But Michael Coogan, director general at the CML, says: “With improved professionalism and a range of mortgage issues out to consultation, it is sensible to make changes affecting individual sellers all at the same time.
“Bearing in mind the fact that firms would prefer to be able to budget and plan ahead for change, we are pleased to see the FSA taking a sensible and pragmatic approach on this issue for 2011.”