FSA delays introduction of AP regime for mortgage sellers

Monday 13th February 2012

The FSA has once again delayed the introduction of the Approved Persons regime for mortgage sellers, amidst accusations of the regulator kowtowing to large lenders.

The FSA originally planned to launch the scheme by March last year, but then said it would launch the regime this year or next.
 
It now seems clear that it will be the new regulator, the Financial Conduct Authority, that will handle the issue.

The FSA said: “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.”

Nigel Stockton, financial services director at Countrywide, said the FSA had been influenced by some lenders who had been ‘dragging their heels’.

He said: “This is another example of large lenders railroading over consumer advice to the detriment of customers.

“Consumers are entitled to know that the person sat opposite them or on the phone, giving what consumers think is ‘advice’ on the biggest debt they will ever take out, is registered with an approved regulatory body and trained and qualified to do so.

“This is a missed opportunity by the FSA to engender professional mortgage advisory standards and fight mortgage fraud.

“We urge the FSA to reconsider and put individual registration for all advisers, including all lenders, firmly back on the agenda.”