At present the changes will only apply to directly authorised mortgage brokers, however the regulator confirmed it wanted to spread this to the whole of the intermediary market.
Speaking at the Financial Services Expo in London today, FCA technical specialist, accountability Peter Ewing said it did not have the legal powers to make such a move.
“That is something we’re talking to the Treasury about. We would very much like to be able to apply the regime to appointed reps as well, but we can’t do that at the moment,” he said.
“Under the existing proposals the approved persons regime continues to apply to appointed representatives, although I’m aware that this isn’t a model that is widely adopted in the banking industry.
“It’s an anomaly we would like to clear up,” he added.
Ewing also explained that the overall aim of the SM&CR was to effect a large scale culture change within the financial services industry.
“We see this as part of our wider initiative around culture and governance,” he continued.
“We see poor culture as being behind a lot of the issues we see, not necessarily in your sector, but right across the financial services industry, and that’s why it’s been one of our business plan proprieties for the last couple of years. So this is a core initiative for us in trying to improve culture and governance in the financial services industry as a whole.
“It’s about instilling standards and individual accountability at every level of the firm. So, while there is a very important role for senior managers, it is in fact everyone who is doing a financial services job, so we are looking at a very wide range of people,” he added.