The regulator published a consultation paper yesterday outlining the approach of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) to approved persons.
It cited upgrading its IT systems as the reason for the delay of the approved persons regime.
The FSA said: “We remain committed to the outcomes we were trying to achieve with the introduction of approved persons (CF31) (ie. to help to clamp down on mortgage fraud to make all mortgage advisers personally accountable, requiring them to demonstrate they are ‘fit and proper’, and to enable the FSA and the industry to track individuals as they move between firms).
“However, as a result of regulatory reform we are now undergoing an essential Information Systems programme of work (relating to ONA, which is used for submitting and processing applications for approval of controlled functions), which must take priority over the introduction of CF31.”
The approved persons regime will fall within the FCA’s area of responsibility said the regulator.
The FSA said it is welcoming suggestions about how it can achieve the outcomes earlier as an interim measure.
