Mortgage Introducer – News exclusively revealed back in October that the FSA had put together a ‘hit squad’ to target unauthorised mortgage firms who were still trading post-regulation. Its pilot scheme in Edinburgh and Glasgow included over 100 visits to targeted firms. The crackdown in other areas across the UK is now continuing.
The FSA's ‘perimeter' project team, which includes both supervisory and enforcement staff, is investigating firms which may be breaking the law by conducting mortgage business following the start of regulation.
The list of firms being contacted is based on a number of sources, including the FSA’s database of firms that registered or applied for authorisation but then withdrew. The FSA is also reacting to leads received from the industry and the public.
Clive Briault, managing director at the FSA, said: “Tracking down firms operating outside our regime is a major priority for the FSA. Unregulated mortgage brokers should act now and decide to get in the regime or stop that side of their business.”
He added: “The FSA will not put firms out of business unnecessarily. Where breaches are inadvertent, or result from genuine misunderstanding, options for the firm will include obtaining proper authorisation.”
Sally Laker, managing director of Mortgage Intelligence, said: “The decision will be well received by the industry. The vast majority of firms have gone through costly compliance processes and those flouting the rules should be brought into line.”
