Insurance trade body, the Chartered Insurance Institute (CII), has welcomed stricter accountability for brokers after the FSA issued its draft rules governing Approved Persons last Friday.
The rules set out more clearly the fact all advisers and non-advised salespeople will have to meet minimum level of competency and subscribe to the FSA’s code of ethics.
The mortgage market review (MMR) highlighted FSA concerns about mortgage fraud and the difficulty in keeping track of individuals operating in this sector, which the new register of individuals is a bid to correct.
The CII said registered APs will be expected to demonstrate honesty, integrity and reputation, financial soundness; and technical competence and capability.
David Thomson, director of policy and public affairs at the Chartered Insurance Institute, said: “This move is a recognition of the more interventionist approach the FSA has been promising, particularly on mortgages.
“This marks a significant change of regulatory policy towards mortgage sales and applies direct FSA intervention and tracking across to the whole of the mortgage sector, imposing tighter controls and ensuring individuals must act with professional integrity and competence.”
