The FSA last said it would launch the the extension of the approved persons regime in 2012/13, having originally planned to introduce the scheme to the mortgage sector by March 2011.
However, it now appears that the new regulator, the Financial Conduct Authority (FCA), will make the decision of whether to extend individual registration when it takes over from the FSA in 2013.
In the update, the FSA said: “We remain committed to extending the approved persons regime to those selling mortgages, but given our broader priorities to deliver the UK’s two new regulatory bodies, we will not be able to deliver the necessary changes before the FCA is established.
“We will introduce the changes as soon as practically possible and, in doing so, will make sure that firms have enough time to make the necessary arrangements.”
Nigel Stockton, financial services director at Countrywide said it wondered why the FSA stopped short of laying out detailed plans for individual registration in December despite all the large brokers being positive but now it’s clear.
“It appears the FSA has been influenced by some lenders who were dragging their heels on the proposal,” he said.
“Consumers are entitled to know that the person sat opposite them or on the phone, giving what consumers think is ‘advice’ on the biggest debt they will ever take out is registered with an approved regulatory body and trained and qualified to do so. It sends yet another message how out of tune with public demand the banks are becoming,” he added.
This is a missed opportunity by the FSA to engender professional mortgage advisory standards and fight mortgage fraud.
“We urge the FSA to reconsider and put individual registration for all advisers, including all lenders, firmly back on the agenda,” he added.
