The Mortgage Code Compliance Board (MCCB) is to introduce a new regulatory framework for all mortgage advisers which aims to improve standards within the industry and increase consumer protection.
Under the new proposals all registered firms will have to ensure their advisers hold the Certificate of Mortgage Advice and Practice (CeMAP) or the Mortgage Advice Qualification (MAP) by 2002. There will also be a focus on training for advisers.
Firms will also have to supply references spanning the last three years and disclose any financial irregularities.
Commenting on the proposals, Luke March, chief executive of the MCCB said: “As advice will not be subject to statutory regulation, we must ensure that the public is adequately protected and we believe that introducing compulsory qualifications is the way forward. Indeed, there is already strong support within the industry for compulsory qualifications. And our research clearly shows that poor advice occurs less often where staff are fully trained and where firms are insisting that their mortgage advisers take professional qualifications.”
It is hoped this will help remove any unscrupulous intermediaries.