‘Near final’ rules for the regulation of mortgage lenders will be issued in June, comprising parts of the now-discarded CP98.
The timetable for regulation was presented to representatives of the Council of Mortgage Lenders (CML) by the Financial Services Authority (FSA) and the Treasury.
Michelle Vosper, the CML’s press and parliamentary officer, said: ‘We think the timetable is reasonable and are quite happy with it. It is helpful that the near final rules for lenders are coming out this summer as it will give lenders and other organisations time to have a look at their procedures and start the process of sorting them out.’
The timetable begins at the end of this month when the Treasury will issue a new Regulated Activities Order giving the FSA its new powers to regulate the market. In March the FSA will be issuing a guide produced specifically for intermediary firms not at present authorised by the FSA, which will explain how the consultation process will be handled.
Vosper said: ‘As far as mortgage advice regulation goes, the FSA is probably going to start from scratch. I imagine they would look at the Mortgage Code to see how it operates. We would hope that some of the procedures concerning advice will be reflected in the new rules, as they work well.’
June is scheduled for ‘near final’ rules and the start of consultation concerning the regulation of intermediaries. July will see the draft legislation for the general insurance side of the industry and the start of general insurance consultation. Conditions for meeting thresholds for authorisation are due out in December for both insurance and mortgage regulation.
Publication of the final rules of both mortgages and general insurance regulation is due in the second half of 2003. Full FSA legislation will come into effect in the second quarter of 2004, by which time all firms must be authorised.