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FSA failed on register warning

Mortgage professionals say if the FSA had heeded industry calls for an individual register of mortgage advisers when regulation was first introduced, it could have weeded out the “bad apples” long ago.

The FSA’s mortgage market review discussion paper proposes that mortgage intermediaries should be individually registered by the Professional Standards Board when it is set up.

The register would provide a public record of all authorised mortgage intermediaries and would give the FSA the ability to track individuals throughout the industry.

Speaking at a recent Money Marketing mortgage round table, the Chartered Insurance Institute’s Society of Mortgage Professionals chief executive Richard Fox said the FSA ignored pressure from the industry to set this up when mortgage regulation was introduced in 2004.

He said: “There was pressure placed on the FSA at the time when they took on regulation to impose a register and they were very adamant that they would not do so and they have lived to regret it.

“I think the industry was quite adamant that they thought it should happen and the FSA said no, it is expensive, it is difficult and we do not want to do it.”

PMS chairman John Malone says: “It is a filter process which might not have solved all the problems but it certainly would have been a much better solution to the situation that we have got today. It would have got rid of a lot more bad apples if it had come in sooner. The FSA is to blame clear and simple.”

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  1. “the FSA said no, it is expensive, it is difficult and we do not want to do it.”

    Since when was the FSA ever deterred by the expense of anything? The RDR is going to be expensive, difficult and we [most of the industry] don’t want to do it. What does the FSA have to say about that? In the immortal words of David Kenmir “That’s different”. Isn’t it always?

    And what did the FSA do to regulate mortgage lending practices in general for the first four years following November 2004 when it was first given responsibility for regulation of the mortgage sector? Damn all, it seems.

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