FSA shelves individual loan broker registration

The FSA has indefinitely delayed its plans to introduce individual registration for mortgage brokers.

Last December, the regulator said it was delaying its plans to introduce individual registration for brokers until 2012/13.

But an update on its website says: “We remain committed to extending the approved persons’ regime to those selling mortgages but given our broader priorities to deliver the UK’s two new regulatory bodies, we will not be able to deliver the necessary changes before the FCA is established. We will introduce the changes as soon as practically possible and, in doing so, will make sure that firms have enough time to make the necessary arrangements.”

As part of its mortgage market review, the FSA announced last June that it was extending the approved persons regime to include all those who advise or sell mortgages.

The FSA had originally planned to introduce the changes by March 30, 2011, requiring all advisers and branch staff to take a “fit and proper” test.

Association of Mortgage Intermediaries director Robert Sinclair says: “We are extremely disappointed by the decision. This is something that the industry has wanted for some time and one of the things the regulator can do to stop bad practice in the industry.”

Capital Fortune managing director Rob Killeen says: “I think individual registration clearly would give quality assurance to the general public. It is disappointing that a simple scheme which will protect the public and allow them to discover exactly who they are disclosing important financial information to is being delayed.”