The FSA will still be here in 2014 even if the Conservatives win the next general election, says the Association of Mortgage Intermediaries director Rob Sinclair.
At the Mortgage Business Expo at Olympia in London last week, Sinclair said he did not think scrapping the FSA was going to be a priority for a Tory Government and it may not happen until a second Parliament.
He said he could not envisage the mortgage market review being watered down as a result of the creation of a Consumer Protection Agency.
He said: “I cannot see anything that is in the MMR becoming watered down. The time for change is going to be quite elongated. I do not think abolishing the FSA is in David Cameron’s first 100-day plan when he takes office. In terms of a regulatory timetable, I doubt I will see it until the second Parliament and I doubt whether, having done that, it would take less than two years to create the new structure.
“Therefore, I do not think we will see anything other than the FSA running regulation until 2013 if not 2014. That means what we have now is what we have got.”
But he said if anything does change the shape of the MMR, it will be the European Union credit intermediaries’ study.
He said: “I am worried about where we are going to be with the EU credit intermediaries’ study because that will not come until 2011 and we will be into implementation before Europe actually tells us what they want, so will we have to start and then unravel? The only thing that will drive us off the tracks will be if Europe tells the FSA to stop and that is always an option.”