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FSA delays approved persons regime for mortgage brokers

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The FSA has further delayed plans to extend its approved persons regime to mortgage brokers and bank staff who arrange mortgages as it undertakes “essential” IT upgrades.

The regulator published a consultation paper yesterday outlining the approach of the Financial Conduct Authority and the Prudential Regulation Authority to approved persons.

It says the introduction of 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 as a result of an “essential information systems programme of work”.

The consultation says: “There is one particular controlled function that will fall within the FCA’s area of responsibility, and that has been consulted on, but not yet implemented. This is the proposed mortgage consumer function (CF31).

“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 this year, 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”.

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