Financial Services Authority happy with mortgage brokers

06 May 2005
The Financial Services Authority (FSA) has reported positive findings in its recent country-wide investigation into unauthorised mortgage business.

The survey, undertaken following the introduction of mortgage regulation last autumn, found that the vast majority of mortgage brokers are well informed about the need to be authorised by the FSA.

Just 11 of the more than 600 brokers investigated by the FSA were found to be lacking authorisation, seven of which have now applied for it.

"This is a vital part of our work to protect homebuyers who do not have protection from regulation, or access to statutory redress and compensation, if they deal with unauthorised firms," said Clive Briault, FSA managing director for retail markets.

"The findings suggest that the mortgage sector is in good shape - but we are not complacent and will not relax our vigilance."

"These findings show that the industry is working closely with the FSA to achieve the shared objective of a robust regulatory system to protect consumers; we are pleased at the proportionate approach that the FSA has taken to this initial perimeter investigation," Michael Coogan, director general of the Council of Mortgage Lenders, added.

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