FSA: bank advisers will not be exempt from new AP regime
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The FSA says it would be “naïve” not to apply the new mortgage market approved persons regime to tied advisers within banks and other lenders.
Speaking at a Council of Mortgage Lenders event yesterday, FSA director of small firms and contact centre Lesley Titcomb assured mortgage brokers that any regime change would affect all persons advising on mortgages. This follows heavy lobbying from the CML to try and exclude tied advisers from the new regime.
She said: “Some still believe that we should only apply changes to intermediaries. But we have to ask what the point of that half-hearted approach would be?
“If we want to have proper oversight we must have oversight of the whole industry and those who work in it, and not just part of it. Whatever we introduce for intermediaries, we must introduce for those people working for lenders who deal with customers as well.
“It would, after all, be naïve to think that fraud can only ever be an intermediary problem.”
Titcomb also assured the industry that the changes to the approved persons regime in the mortgage sector would “not impact directly on any market recovery.”
Titcomb also hinted that there might be caps on mortgage lending going forward. This comes after it was revealed that the new Financial Policy Committee is to be given powers by the new Government that may include actively dampening what it perceives to be risky mortgage lending.
She said: “Keeping in check the overall risks at lenders could be to deal with the loans that combine some of the high-risk characteristics to form a ‘toxic mix’, for example a loan that combines high-loan to value, interest-only and sub-prime.”
Association of Mortgage Intermediaries director Robert Sinclair says: “This confirmation is a welcome affirmation of the desire to provide a consistent regime.”
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Readers' comments (6)
Danny Lovey | 18 Jun 2010 3:10 pm
Stick to your guns on this one Lesley. Anyone who is in contact with the public either working as non advised or whatever as well as all the intermediary market should be approved and accountable.
The next thing is for non advised sales in the bank banches to be fully understood as being that, and not as it is currently where the public get 'confused'. The first step is to ensure the title 'mortgage adviser' is not called an adviser when they do not give advice! Obvious, but it confuses the public. Mortgage salesperson would be a more appropiate and understandable title rather than anything suggesting a client will get 'advice' when the won't!
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Evan Owen | 18 Jun 2010 3:11 pm
Lesley, you must 'bite the bullet' and not listen to the vested interests.
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You must be joking | 18 Jun 2010 3:40 pm
Agree fully that the legislation should apply to all, so a point for the FSA there.
I am however very concerned by the final two paragraphs... is this the start of end of the free market economy in the UK?
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Anonymous | 18 Jun 2010 5:22 pm
Oh Dear....the banks won't like this! I suspect strong lobbying in the corridors and a cave in by the powers at be...whoever they are!
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Anonymous | 19 Jun 2010 9:12 am
About time too ! Customers should be made fully aware of the level of service provided.
The banks will continue to close ranks and pull strings within the FSA to make sure they continue to have a less regulated sales route to market
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Anonymous | 3 Dec 2010 2:00 pm
Dont forget the CAB. I thought that the "A" in CAB stood for Advice.
They too should hold the correct qualifications
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