They said lenders and intermediaries now had the certainty they needed to finalise the systems needed to comply with the new regime.
It is just over a year until the new rules take effect, and much remains to be done. A few of the main tasks include –
- Lenders and intermediaries need to ensure that they obtain the necessary permissions and authorisations from the FSA to legally continue in business from 31 October 2004;
- Lenders and mortgage distributors need to build IT systems capable of delivering the new compulsory "key facts illustration" to be given to all borrowers before they apply for a mortgage;
- Lenders and intermediaries need to ensure that their staff are fully trained to comply with the requirements of the new regime.
Later this year the FSA will begin to register intermediary firms who plan to become directly authorised. These firms will need to apply for authorisation early next year, and they will begin receiving information from the FSA about what to do next month. In the meantime, both lenders and intermediaries can begin taking steps to prepare by familiarising themselves with the new rules. The CML is helping the industry by developing an online e-learning package to help train staff on the FSA requirements.
CML Director General Michael Coogan said:
"The shape of mortgage regulation is now certain, and the clock is ticking towards Mortgage Day in 381 days. We welcome that the FSA has given the industry a full year to implement the new rules as we requested. The time for debate on policy has gone, and the industry must now move on to the practicalities of implementing the rules. We look forward to working closely with the FSA to ensure a seamless transition from a voluntary to statutory system of regulation."
