AIFA on the regulation of mortgages

He said: “The FSA has now issued its consultation paper on the regulation of mortgage advice. The consultation period runs until 8 November. At AIFA, we realise that about a third of the independent mortgage advice market is in the hands of IFAs, even if many firms may only arrange a few mortgages alongside their mainstream business. We will provide our usual full briefing service on mortgage advice matters and will be participating fully in the development of an appropriate regulatory regime which does not add to the costs of giving mortgage advice and takes account of the existing regulatory relationship which IFA firms have with the regulator.

“We should also remember that the FSA appears to look forward to a time when all types of retail advice on mortgages, general insurance as well as IFA activities are regulated in roughly the same manner. We will be working to ensure that this overall picture is satisfactory for members so that it treads the narrow dividing line between the sort of uniformity which forces different businesses into the same regulatory strait-jacket; and the sort of regulation which has different requirements for every different product. So, from all perspectives, we need to be involved in the development of mortgage regulation.”