Jon O'Brien, operations director of PMPA, said, " It is unfortunate that mortgage intermediaries who contributed to the funds are unlikely to receive any benefit. It cannot be right that the surplus monies, which they invested, should be swallowed up and used by the FSA in any area they choose. There should have been much more debate about this as we are not talking about a meaningless sum.”
PMPA members are united in their response that appropriation of MCCB funds by the FSA is totally unacceptable unless the FSA is prepared to give assurances that the money would be allocated for specific usage in the mortgage arena.
O’Brien continued, “The possibilities for putting this money to good use within the mortgage industry are manifold. Not least in continually improving brokers’ abilities to meet the very standards the FSA is putting into the industry through regulation. Education and training through workshops or road-shows would all improve the knowledge and performance of industry professionals.
“It should be remembered that, in essence, MCCB was a voluntary regulatory organisation which would not have blossomed as it did without the support of mortgage intermediaries. “
While acknowledging that there are constitutional rules about how the surplus should be used on closure, the PMPA is recommending open and transparent debate to ensure that all options are explored and that funds are not arbitrarily assigned the FSA.