The FSA said: “We remain committed to extending the approved persons regime to those selling mortgages, but given our broader priorities to deliver the UK's two new regulatory bodies, we will not be able to deliver the necessary changes before the FCA is established.
“We will introduce the changes as soon as practically possible and, in doing so, will make sure that firms have enough time to make the necessary arrangements.”
Commenting on the announcement, Nigel Stockton, financial services director at Countrywide, said: “On the back of the MMR announcement in December, we questioned why the FSA stopped short of making clear their intentions on individual registration despite all the large brokers being positive - and now we know why.
“It appears the FSA have been influenced by some lenders who were dragging their heels on the proposal. This is another example of large lenders railroading over consumer advice to the detriment of customers.
“Consumers should be entitled to know that the person sat opposite them or on the phone, giving what consumers think is ‘advice’ on the biggest debt they will ever take out is registered with an approved regulatory body, trained and qualified to do so.
“It sends yet another message how out of tune with public demand the banks are becoming.
“The FSA should have taken the opportunity to create a level playing field for professional standards in the mortgage industry.
“Last year, hundreds of millions of pounds worth of mortgage fraud was committed and the introduction of individual registration would assist with fraud prevention.
“We urge The FSA to reconsider and put individual registration for all advisers, including all lenders, firmly back on the agenda.”
The FSA was unavailable for comment.
