By March 2011, each mortgage advisor and every bank staff member who arranges mortgages will have to be individually registered with the FSA.
Earlier this month, the Financial Services Authority (FSA) confirmed that it will require each person who arranges mortgages, whether they are an independent mortgage advisor or if they work in a bank, to register individually under the FSA’s approved person scheme.
These changes are expected to be in force no later than the end of March next year.
As part of the approved persons regime, anybody arranging home loans will have to show that they are a ‘fit and proper’ person. These changes are expected to severely reduce the level of mortgage fraud and allow the FSA to better monitor anybody working within the mortgages market.
These changes will also include those people who arrange sale and rentback or home reversion contracts and any members of staff that work for those arranging mortgages.
Those who deal with the borrower at a later stage, i.e. after the sale has been made, will not be included, for instance those who deal with borrowers in arrears. Those who refer potential leads and customers to registered individuals will also be excluded.
In other recent news, the FSA is set to impose a 30 month deadline for taking the required qualifications upon those working in mortgage-related roles.
These latest changes are being set in place to minimise mortgage fraud and to help combat the potential for a future credit crunch.
For those considering CeMAP training, if you are unsure if any of this applies to you then you should contact a reputable financial training provider.