The HM Treasury and the Department for Business, Enterprise and Regulatory Reform has published a consultation document on proposed changes to the Consumer Credit Acit 1974 to prevent the dual regulation of mortgages.
The consultation asks for views on a proposed change to the Act to ensure that the regulatory regimes of the FSA and the Office of Fair Trading for mortgages remain mutually exclusive.
The consultation closes on February 14 next year.
The proposed change will provide clarity on the regulatory position and reduce the potential burdens associated with dual regulation.
Treasury economic secretary Kitty Usher says: “I have been concerned by suggestions that there could be confusing overlap between the FSA and OFT on mortgage regulation, as this would cause difficulties for industry and consumers alike.”
“In line with the Government’s commitment to open and transparent, principles-based regulation, this proposed change seeks to minimise the regulatory burden on businesses while safeguarding important consumer protections.”
Parliamentary under-secretary of state for trade and consumer affairs MP Gareth Thomas adds: “These proposals are good for business and good for consumers. We are maintaining the existing levels of protection for borrowers, removing unnecessary burdens on business and ensuring that extra compliance costs are not passed on to consumers.”