After 30th April 2004 the FSA will be unable to guarantee mortgage firms that their applications will be processed in time to meet the introduction of mortgage regulation in October. This is because under the FSMA, the FSA has six months to make a decision on a complete application (where no information is missing) and twelve months to decide if an application is incomplete.
David Brownlow, Chief Executive of Huntswood, commented: “There are up to 10,000 mortgage firms that still need to take the first step towards becoming authorised.
“Mortgage firms should seek assistance from regulatory compliance experts to ensure that their processes and procedures are aligned with the new regime and that they apply in time to avoid any possibility of incurring penalties when mortgage regulation comes into effect.”
From 31st October 2004 it will be a criminal offence to conduct mortgage business unless a firm is authorised by the FSA, is an appointed representative or has some other exemption. Mortgage firms that apply for authorisation by 31st March 2004 will enjoy a significant discount on the FSA’s application fee – up to 50% for smaller firms.
Huntswood provides best practice services and support to firms auditing current processes and procedures, applying for authorisation or establishing a robust compliance framework.
