The Association of Mortgage Intermediaries says it is “disappointed” at the FSA’s decision to delay plans to extend its approved persons regime to include mortgage brokers and bank staff who arrange mortgages.
The regulator published a consultation paper last week outlining the approach of the Financial Conduct Authority and the Prudential Regulation Authority to approved persons.
It says the introduction of the proposed mortgage consumer function, CF31, which will make all mortgage advisers personally accountable and enable the FSA to track individuals as they move between firms, will be pushed back.
The consultation says: “We remain committed to the outcomes we were trying to achieve with the introduction of CF31. However, as a result of regulatory reform we are now undergoing an essential information systems programme of work which must take priority over the introduction of CF31.
“We recognise that this is not ideal and welcome suggestions about how we could achieve the outcomes earlier as an interim measure.”
In December 2010, the FSA announced it had shelved plans to bring the new rule into place in March 2011. At the time, the regulator said the change would be implemented in 2012/13.
In July, Association of Mortgage Intermediaries chief executive Rob Sinclair urged the FSA to create a directory of mortgage brokers in order to “track and eradicate rogues”.
Sinclair says: “It is disappointing that an important change is something the FSA still does not feel is a priority.”
If I Were You chief executive Rob Clifford says: “The regulator should re-evaluate whether CF31 is necessary because it is not clear that the benefits of implementing it will outweigh the costs.”