CII welcomes stricter accountability for mortgage advisers

July 3, 2010 by Brendan

Mortgage Advisors

News

Following the new draft rules released by the Financial Services Authority (FSA) last week, the Chartered Insurance Institute (CII) has reportedly applauded the new stricter rules for mortgage advisers.

The FSA’s draft rules for its Approved Persons section aims to set out the code in a far clearer manner. The new rules make clear the fact that any person working as a mortgage advisor or any non-advised sales person must follow the code of ethics set down by the FSA and must meet the competency minimum requirements.

This ‘mortgage market review’ (MMR) also raised awareness about the concerns of the FSA regarding mortgage fraud and how difficult it has been to keep track of those working in the sector. To combat these concerns, the introduction of a register of individuals should help.

The Director of Policy and Public Affairs at the CII, David Thomson commented:

“This move is a recognition of the more interventionist approach the FSA has been promising, particularly on mortgages.

“This marks a significant change of regulatory policy towards mortgage sales and applies direct FSA intervention and tracking across to the whole of the mortgage sector, imposing tighter controls and ensuring individuals must act with professional integrity and competence.”

This is good news for those studying for their CeMAP exam. Tighter controls will help to clean up the sector and mean that customers can feel more confidence in newly qualified and experienced mortgage advisors alike.