View more on these topics

FSA is attacked for allowing interim trading

Which? is lobbying the Treasury to get rid of the interim period for mortgage firms that have failed to gain authorisation.

Brokers will be able to continue trading for up to 12 months after M-Day if they have been denied authorisation and want to appeal against the decision.

Which? accuses the FSA of falling at the first regulation hurdle and says it is extremely concerned that people buying mortgages from firms who are not fully authorised will be at higher risk than other consumers.

Although firms have to disclose their interim authorised status, Which? is worried that consumers will not understand that firms have been refused authorisation.

Under the Financial Services and Markets Act 2000, the FSA has given 28 firms interim authorisation where their applications to trade under the new regulations have either been refused or not yet approved.

These firms have to follow FSA rules but they are not covered by the Financial Services Compensation Scheme. Which? says this means that people who have bought mortgage products from these companies are left with inadequate protection should anything go wrong.

Which senior policy adviser Laurence Baxter says:”This whole situation is ridiculous. Firms which appear to have been refused authorisation will be able to continue to trade. The whole point of regulation is to protect consumers from misselling. We have raised the matter with the Treasury.”

Recommended

LIA’s Ellis to head CII public affairs

LIA public affairs director John Ellis is to become the first public affairs director for the Chartered Insurance Institute in the new year as well as filling that role for the Personal Finance Society.

Tidal wave is swamping us

What has happened to an industry that makes a massive contribution to the UK economy?The CBI spelt it out recently in their comments that we are being battered by a tidal wave of regulation. A recent survey pointed out that on the mortgage front, 0.32 per cent of mortgages result in a complaint, so why […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com