Economic secretary to the Treasury Ruth Kelly has reassured the mortgage industry that regulation under the Financial Services Authority (FSA) should not contain too many surprises.
Speaking in an exclusive interview with the editor of IFAOnline, Julie Henderson, Kelly said: ‘I do not know why the industry is concerned because at the moment, we have a system of mortgage regulation which is run by the Mortgage Code Compliance Board (MCCB) which, in many respects, is quite similar to what the new regulatory regime under the FSA will look like. The fact is the FSA wants to regulate with a lighter touch.’
Much of the industry’s concern has focused around the cost of regulation. Estimates have suggested initial set-up costs will reach £36m with an annual cost of £32m, compared to the MCCB which operates on £5m a year.
Kelly said the Government will consult on how these operational costs are raised: ‘They will raise this money from the industry and will consult widely on how to implement any charges.’
• To read the whole interview, visit www.ifaonline.co.uk