Authorised Mortgage Business in 'Good Shape'
Financial Services Authority says mortgage business in 'good shape' in respect to authorisation
6th May 2005
Following its first review of the mortgage business since it became responsible for its regulation, the FSA (financial Services Authority) has declared a 'positive outcome'.
Over 600 firms were contacted and 450 visited, and only 11 brokers were found who should be authorised but aren't. Of these, 7 have applied subsequently for authorisation, and 4 have ceased regulated activites.
Knowledge among intermediaries and brokers of the need for authorisation was 'encouraging' with te vast majority well informed about the changes in the law tat came into effect last November.
Two issues were raised by the report however:
- Companies were not always keeping the FSA informed about who their 'appointed representatives' are, leading to confusion over whether these representatives are authorised. Appointed representatives 'inherit' their parent network's authorisation, and their compliance becomes the responsibility of the authorised company
- Some introducer-only firms incorrectly described themselves as mortgage advisers in advertising and promotional material - the FSA has ordered the firms concerned to correct or remove the offending material
Notwithstanding the positive nature of the report, the FSA stresses that it will continue to track down companies flouting regulation.
Read More: FSA Press Release
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