While MiFID has focused on creating EU-wide standards of business for the investment world, there has been concern that it will cross over into the mortgage market. Yet, commentators have stated it will be some months before the true potential impact of MiFID on mortgages becomes clearer.
Bill Warren, director of associate members for the Regulatory Alliance of Mortgage Packagers, said: “It’s expected and anticipated that MiFID will come into the mortgage market, but it’s not clear which part will move across. One aspect is the availability of information to give consumers more choice and more information about cost. When the EU White Paper is issued in December or January it will really help clarify what’s going to come across. But it’s not until next year that we will have to deal with it. It’s the compliance and risk people that are planning ahead that will definitely have it on their radar.”
Richard Farr, director of the Association of Mortgage Intermediaries, said: “This is an EU-wide standard, which is great. But in some areas, UK standards exceed it. In some respects it could ease up regulatory burden. In mortgages there is training and competence, while MiFID has ‘skills, knowledge and expertise’. It’s a different regime. ‘Expertise’ is less prescriptive, so you could have a lighter touch regime, but higher level of expertise.
It’s all about a single market. If or when it cascades across to mortgages, time will tell if it is good or bad.”
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