HM Treasury and the Department for Business, Enterprise and Regulatory Reform are concerned the current regimes in place under the Financial Services Authority (FSA) and the Office of Fair Trading (OFT) could be overlapping and want to prevent ‘dual regulation’.
The review, which is open until 14 February 2008, will provide a clearer picture of how both bodies operate and reduce burdens on business.
Kitty Ussher, economic secretary to the Treasury, commented: “I have been concerned by suggestions that there could be a confusing overlap between the FSA and OFT on mortgage regulation, as this would cause difficulties for industry and consumers alike. So I’m launching a consultation that aims to provide greater clarity of regulation for both lenders and borrowers.
“In line with the government’s commitment to open and transparent, principles-based regulation, this proposed change seeks to minimise the regulatory burden on businesses while safeguarding consumer protections.”
Bill Warren, associate director of the Regulatory Association of Mortgage Packagers, said: “The biggest potential overlap is Financial Promotions. It’s been said previously the FSA has an agreement with the OFT but clarity is important. The concern is that the OFT has an appetite to regulate more, but how physically possible this is will be down to the FSA.”
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