Beginning in Northern Ireland in March, then moving on to Manchester and Liverpool, the regulator plans to review 3,000 mortgage brokerages this year, with a total of 11,300 expected to receive FSA visits in the next three years.
The aim is to track how well small firms are implementing the TCF initiative, which Andrew Honey, head of insurance in the small firms division of the FSA, believed would also give small firms direct time with the regulator to solve any issues they might have.
He said: “The scale of this enhanced strategy hopefully shows our commitment to making sure we are covering small firms and helping them fulfil their regulatory obligations.
"Small firms showed very disappointing results last time but hopefully the support we have given in the past few months, coupled with a willingness to implement TCF, will help bring the numbers up.”
Around a quarter of firms reviewed will also receive a follow-up visit, with the focus on those who have shown problems in their embedding process.
The FSA also announced it will be merging its contact centre with its small firms division, a move which Richard Farr, director of the Association of Mortgage Intermediaries, backed.
“He said: “Moving the contact centre is very important as large firms don’t really use it, as they have their own specific person, but it is a vital link to the regulator for smaller firms.”
Farr also welcomed the attention from the financial services regulator for small firms.
He explained: “The FSA has heard requests from small firms to see them more often so this is a solution that will give small firms the time they need with the regulator to iron out any problems they may have.”
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