MCCB annual report 2003 highlights improved standards

The last twelve months have been MCCB’s busiest period yet, with the MCCB responding positively to the Treasury’s request to continue to provide effective industry regulation and consumer protection during the transition to statutory regulation. The Mortgage Board has continued to raise industry standards and enhance consumer protection.

This Annual Report highlights that over the past year, the Mortgage Board has:

Stepped up industry standards by fully implementing its Fitness and Competence Requirements - 60,000 individuals have now passed an accredited examination, which is now compulsory for mortgage advisers. The MCCB continues to educate firms about Fitness and Competence and their other compliance obligations by holding over 100 workshops, attended by representatives from over 1,500 firms.

Extended its Fitness and Propriety checking process to existing registered firms on a phased risk-assessed basis with completion of the programme expected by the end of 2003. The MCCB has also extended its compliance monitoring resources and refined its processes to ensure more firms receive compliance contacts than ever before.

Identified the potential gap in consumer protection unless the Financial Ombudsman Service (FOS) is empowered to rule on consumer complaints arising after statutory regulation begins about sales made under the Mortgage Code. The Treasury will consult on this issue shortly.

The Annual Report highlights MCCB’s cost effectiveness and constructive approach as an industry regulator. Standards in the industry have steadily improved year on year, without any reduction in customers’ choice of firms or access to advice or information.

MCCB will continue to work closely with the FSA to ensure a seamless handover on ‘Mortgage Day’ and to provide the FSA with the information it needs on MCCB registered firms to assist the ‘due credit’ process for MCCB registered firms in ‘good standing’. Over the last five years MCCB has gained extensive knowledge of how the mortgage market operates and will work with the FSA to ensure this expertise is made available.

MCCB has also announced that it will run a series of one-day seminars in the first part of 2004 to help registered firms prepare for statutory regulation and ‘Mortgage Day’.

Colin Harris, Chairman of MCCB, said

“I strongly believe that this Annual Report clearly demonstrates the significant value MCCB has provided to both the consumer and the industry – in terms of protection and raising standards and the industry’s reputation. It remains our firm intention to maintain that value right up to 30 October 2004 so that consumers remain protected and we can ensure an effective handover to the FSA.

On behalf of the Board, I would like to thank our Chief Executive, Luke March and all our staff for their outstanding efforts over the last twelve months. I know that the skills, expertise and knowledge of our staff – built up as a result of the industry’s investment in the Mortgage Code and MCCB – will be in great demand in the future. They certainly deserve to be.”