The incoming regulator said typically advisers don’t “treat their clients as fodder,” tend to know their customers and have a long-standing relationships instead of looking to “turn a quick profit.”
However, product suitability and paperwork are our concerns for the adviser community, said Wheatley.
Mortgage Solutions asked the regulator how carefully it planned to monitor lender’s fully-advised sales after the Mortgage Market Review rules are implemented on 26 April. Wheatley said the regulator is having “intense” conversations with the lending community, but had “no plans to micro-manage lenders.”
“Lenders have to be able to implement their rules, we’ll do some testing early on as will the industry,” he said.
Wheatley also confirmed the regulator’s costs can only rise in the coming years, with a cost report out next week.
“If we are asked to take on more responsibility then extra costs come with it. No-one has asked us to stop doing anything and I have tried very hard to minimise costs to the industry,” said Wheatley.
The FSA is set to publish several papers in the coming weeks including a Risk Outlook paper on Monday outlining key areas of regulatory concern.
For all regulatory updates, follow @mortagesols on Twitter.