An FSA spokeswoman said Harley had started in his new role as head of the asset management department in the retail firms division of the FSA shortly after the publication of CP 10/16 on responsible lending on Tuesday 13th July.
She added that Harley’s reappointment was a “simple matter of career progression” but she could not confirm who would be filling the mortgage policy director role as yet.
The FSA is heavily into consultation periods with the industry about the Mortgage Market Review, though the next consultation paper which will cover distribution, is not due to be published until November 2010.
The FSA was unable to comment on who was responsible for the mortgage policy at the FSA until a replacement for Harley is confirmed.
Harley was unavailable for comment.
The Council of Mortgage Lenders and the Building Societies Association both declined to comment.
IFA and industry stalwart Alan Lakey said it smacked of “typical FSA” behaviour and suggested that they didn’t seem to think the role that important.
Lakey, a partner at IFA firm Highclere, said: “It seems to indicate a lack of focus, and suggests in the scheme of things it doesn’t matter.
"Given the FSA's remit of protecting the consumer and ensuring that regulation is fair and proportionate – this is a thing to behold."
And Lakey added: “It seems as though as soon as someone’s learned what they’re doing at the FSA, they’re moved.
"When there’s a lack of input that creates a vacum and a consequence of that is that things get by that shouldn’t, and things don’t get dealt with that should.
"It says to me that the FSa don’t think it’s that important. That being the case my question to them would be, if it’s not that important a role, then why are we paying someone two hundred grand a year to do it?”
