FSA proposes deadline for studying CeMAP exams

June 9, 2010 by Brendan O'Neill

CeMAP

News

The Financial Services Authority (FSA) has proposed that a deadline of 30 months should be imposed upon any individual working in a mortgage or financial services-related role to complete the role’s required qualifications.

The Director of Policy at the AMI (Association of Mortgage Intermediaries), Andrew Strange commented:

“This raises a number of questions, and the industry will have to take time to consider the proposals.”

The regulator added that these new proposals intend to professionalise the training programme for mortgage brokers and approved persons that are not covered already by the RDR (Retail Distribution Review) by clarifying more precisely how to avoid customer detriment, demonstrate ethical behaviour and ultimately take responsibility for competency levels. Consultation for these proposals is due to complete on Monday 6th September.

Sheila Nicoll, director of conduct policy for the FSA, said: “Competence and ethics are key elements of our regulatory regime. Ultimately, it is in a firm’s commercial interest to recruit, train and retain good quality individuals, and regulation ensures that standards are maintained.”

Jonathan Cornell, spokesman from mortgage broker First Action Finance, said: “I think the current CeMAP qualification should not be too much to achieve within 30 months. In an ideal world, people would start a job that they are already qualified for, because it is really tough to study and work at the same time. But essentially, there shouldn’t be alarm bells ringing over this. It is quite generous really.”

Ultimately, it makes sense that demands in the mortgage industry should equal those in the accountancy and other financial services sectors.