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FSA delays approved persons regime for mortgage brokers

The FSA is delaying its plans to extend its approved persons regime to mortgage brokers and bank staff who arrange mortgages until 2012/2013.

The regulator announced in June as part of the Mortgage Market Review that anyone who advises on or sells mortgages would have to be individually registered with the regulator, and demonstrate that they are “fit and proper.”

The changes were due to be introduced by the end of March 2011.

But a statement posted on the FSA’s website yesterday says this has now been postponed.

The FSA says: “We remain committed to making these changes to the approved persons’ regime, but as part of our ongoing reprioritisation of work; particularly around the regulatory reform agenda, we are deferring introduction of the changes to 2012/2013.

“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.”

The FSA will publish a full economic analysis of its MMR proposals next year which will “inform” the final rules.

CML director general Michael Coogan 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.”

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. So the paymasters in the banks have got to the FSA again.
    They don’t want this legislation as it will make them train staff properly and make their covert conditional selling much more difficult.

  2. I think it is a disgrace that yet again the FSA seem to be making life easy for the banking sector whilst making it harder for IFAs – when you look at the complaints ratio against bankers surely that is the area that the FSA should be concentrating on, there certanly seems a big inbalance somewhere.

  3. Looks like another thinly-veiled admission by the FSA that they recognise they’ve got it wrong with RDR.

  4. Surely just to make it easier for the banks…

  5. FSA please file this under your ‘Ship High In Transit’ files. Must be pretty full now.

  6. Hmmmmmm

    I wonder who this beneits most?

  7. FSA and FIFA, the pair of them are wrotten to the core. They should both be investigated.

  8. David Hayley-Evans 3rd December 2010 at 4:11 pm

    FSA have bottled it again! But who has paid them off? Let’s see – who’s got all the money? The FSA have blown their chance to make the biggest impact on the mortgage market for years. How difficult is it to ask a principal firm to supply a credit file along with a CRB check and the last years T and C file. The FSA have made a U turn that has massively affected their credibility in the industry. A disgrace indeed.

  9. I thought my diary was wrong it is april the First, all fools day, we have had a few this year !!

  10. Business as usual for the banking sector !

    And by the time 2013 comes the FSA will be history so the issue can be kicked into the long grass and never be seen again !

    If Joe Public knew how the FSA (and the government) are colluding on all things financial to keep the banks in business and trying to get rid of the only people who generally care about their clients (IFAs), they would be in uproar.

    My biggest annoyance is when the FSA continuously bleat on about restoring trust in financial services (with RDR, MMR and all the other crap) when there is almost no evidence that those members of the public who deal with IFAs have anything other than trust and respect for their IFA.

  11. Is there another industry in the world that has anything like the FSA? Safe guard the public, dont make me laugh. I am a warehouse manager who would’nt have a house if it wasnt for my IFA’S great help and advice when my own bank of 20+ yrs said flat NO. Do me a favour FSA start looking at the bigger picture

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