AMI has warned that the FSA’s ‘Treating Customers Fairly’ (TCF) rules are “potentially a bigger threat to the industry than ‘Mortgage Day’.”
Speaking at the BDS Mortgage Group’s ‘Winners in Business’ exhibition at the Rosebowl – the home of Hampshire cricket – in Southampton, Chris Cummings, director of AMI, said he was concerned the industry had not been sufficiently informed over the rulings and that the FSA’s rules were focused on negatives.
He said the TCF rules appear to be gradually weakening the customer’s responsibility and putting extra emphasis on the broker’s accountability.
He said: “Intermediaries are still unsure of the TCF rules and the implications could cause this to be potentially a bigger threat to the industry than regulation.”
AMI has issued previous warnings of regulatory creep and will be releasing a factsheet for its members on TCF in the near future.
Keith Hale, mortgage policy at the FSA, said the regulator is moving proactively into the mortgage industry by meeting brokers and talking to them about any issues, including TCF.
He said: “Mortgage intermediaries had, and have, a great deal on their plates dealing with regulation and all its implications.
“TCF is proving to be a regular topic when speaking directly to brokers and such conversations will enable us to obtain feedback and use case studies.
“In due course there will be website developments on TCF and courses set up for intermediaries to deal with this important issue.”
Andy Frankish, managing director at Mortgage Talk, said: “I don’t think anyone knows enough about the rules surrounding TCF and when AMI stands up and makes such a statement then I believe it’s time for the industry to sit up and take notice.”
