Mortgage Brain, which met with the FSA this week to discuss how its system serves brokers and the compliance issues surrounding this, said it had heard from various brokers who insist sourcing system providers should come under FSA regulation due to the accuracy of Key Facts Illustrations (KFIs).
Mark Lofthouse, chief executive of Mortgage Brain, told Mortgage Introducer: “Some brokers have mooted that we should be regulated because they are getting KFIs from our system.
“We’ll wait to see what the FSA says about this. If we were regulated we would want to know how this would manifest itself as we don’t deal with any customers. But we would work with the FSA if it decided that regulating us was a viable option.”
Bill Safran, chief executive of Trigold, said it would be more than happy to work with the FSA to ensure accuracy of the data but added: “We are working to the highest industry standards so I don’t know if being regulated would change the way we operate in any way.”
Trevor Youens, director of Flower IFA, said he had spoken to the FSA about this issue soon after regulation came into effect. He said: “The FSA told us that we should reasonably expect that the data and KFIs from the sourcing systems are correct.
“But if they are not regulated, how can the FSA take action against them if their information is not compliant?”
Robin Gordon-Walker, spokesman at the FSA, said: “It is not us who decides what should be regulated. That is always the government’s decision.”
