FSA director of high-street firms Sarah Wilson says the regulator will do all it can to maintain an innovative marketplace for mortgages after M-Day.
Wilson told Money Marketing that the new regime – which takes effect from November 1 – would endeavour to balance the need for consumer protection with the maintenance of a wide range of providers, delivery channels and products.
She estimates that 2.75 million new mortgages a year will come under FSA control.
Wilson says: “Our approach throughout has been to design a set of requirements that retains the consumer benefits of an innovative marketplace with a wide range of providers, of delivery channels and of products that improve consumers' ability to understand and compare the products on offer so that they can make informed choices.
“We will create a system that provides for suitable advice where consumers choose to obtain advice and which protects consumers to an appropriate degree where they are exposed, for example, as purchasers of lifetime mortgages or as borrowers in arrears or facing repossession; or where there is a complaint or compensation is due.”