Stephen Atkins, group compliance director at Freedom Finance and a member of the FSA’s Small Business Practitioner Panel, said the FSA confirmed at its latest panel meeting this week that it would be looking again at the MCOB rules at the end of 2005.
Atkins said the review would look at relaxing the general framework of the rules and its principles. But he added: “The FSA made it clear it will still be pushing firms’ compliance, making sure they are up-to-date on the Training & Competence standards and that their staff are properly trained.”
Tony Jones, managing director of Pink Home Loans and a member of the Association of Mortgage Intermediaries (AMI) advisory group, said: “This is a positive move by the FSA. It is becoming more mindful of the fact that the mortgage industry is a little over-regulated.
“A lot of brokers have been thinking, ‘Where does all this regulation stop?’ It is becoming an administrative burden for a lot of firms. That is the core issue here.”
He added: “Hopefully when the FSA reviews MCOB, it will adopt a more pragmatic approach. By all means keep the spirit and ethos of the rules but a focus on those rules where changes would result in a cut in administrative work would be hugely welcomed.”
Kevin Morgan, managing director of Consilium Financial Planning, commented: “This seems to be in keeping with the FSA’s promised approach of a ‘lighter touch’ to regulation. Any relaxation of red tape and bureaucracy will be welcomed and will make it easier for practitioners to comply.”
