“This raises a number of questions, and the industry will have to take time to consider the proposals,” said Andrew Strange, director of policy at the Association of Mortgage Intermediaries (AMI).
Strange added that if all graduates, for example, only have 30 months after university to pass the exams to practice as an adviser, then this could put off bright, young industry recruits. He said any stipulations on qualifications in the mortgage industry will have to equal the demands made of other professions like accountancy.
He also said that in 2007, the watchdog underwent a review and considered cutting back on areas like this, but it now plans to scale training back up. “This does not offer any consistency or give industry members the chance to plan or co-ordinate.”
The regulator’s proposals would also get rid of transitional provisions which allow individuals to operate without formal qualifications.
The consultation on the proposals is set to close on 6 September.
The FSA said its range of proposals aim to fine tune and professionalise the training regime for approved persons and mortgage brokers, not already covered by the Retail Distribution Review (RDR).
The rules aim to clarify how those with approved person status ought to demonstrate a good standard of ethical behaviour, act in the interests of their clients, avoid consumer detriment and take responsibility for their own competency levels.
Sheila Nicoll, director of conduct policy for the FSA, said: “Competence and ethics are key elements of our regulatory regime. Ultimately, it is in a firm’s commercial interest to recruit, train and retain good quality individuals, and regulation ensures that standards are maintained.”
Jonathan Cornell, spokesman from mortgage broker First Action Finance, said: “I think the current CeMAP qualification should not be too much to achieve within 30 months. In an ideal world, people would start a job that they are already qualified for, because it is really tough to study and work at the same time. But essentially, there shouldn’t be alarm bells ringing over this. It is quite generous really.”
