You are here: Home - News -

Scandals show both FSAs have work to do – Nationwide

by: Andrew Baddeley-Chappell
  • 19/02/2013
  • 0
Scandals show both FSAs have work to do – Nationwide
You might have noticed that the FSA has dominated the financial news pages recently.

There have been issues with customer disclosures and with products that did not turn out to be what customers intended.

The issues appear to have arisen, in part, due to the use of third parties and that there appears to be some evidence of extensive criminal activity. The result is a loss of public confidence and an industry that is now seen as slow to respond.

However, this time around it is the Food Standards Agency, and not the City Watchdog that shares the same acronym that is under the spotlight – although, as you can see, comparisons can be made with issues identified within the mortgage industry.

As lenders and intermediaries who are in the middle of interpreting a new set of regulations, it is a timely reminder of the need to focus on customers and not to take shortcuts.

Importantly, the mortgage sector must recognise the need to be consistently on the look out for possible poor practice, even in areas where it has not been seen in the past.

And as we approach the next round in the EU Mortgage Directive, it is also a timely reminder about globalisation. There are still huge variations in the cultures and markets within the European Union.

Andrew Baddeley-Chappell is head of mortgage strategy and policy at Nationwide

There are 0 Comment(s)

You may also be interested in