During a question and answer session at Mortgage Business Expo last week brokers expressed concern over guidance given by the FSA in the MCOB rules on euro mortgages.
Duncan Scott, CEO at Tee Financial plc, discovered during the session involving Simon Conn, senior partner at Conti Financial Services, that the regulatory advice he had been given by the FSA was different to Conn’s understanding of the MCOB rules.
Following the session Scott visited the FSA stand and its representatives gave him an answer which confirmed Conn’s understanding that MCOB rules did not apply to euro mortgages secured on property outside the UK.
He said: “This confirmed that my original advice from the FSA was incorrect. Unfortunately this is one of the drawbacks of having a regulator that regulates virtually the whole of UK financial services and we, the firm, only have one point of contact, i.e. The Firm Contact Centre.
“It is not the first time we have received conflicting advice from the FSA nor is it the first time we have not been able to get clear guidance from them.”
Robin Gordon Walker, spokesperson at the FSA, confirmed: “To be regulated it must be a UK property with the relevant criteria. Other countries may have their own regulatory codes.
“As for receiving conflicting advice I can’t comment but it is important that people are clear with the questions that they ask us.”
Simon Conn said: “I’m glad the matter has been cleared up. This emphasises the importance for intermediaries to research and gather as much information as possible, especially if they are thinking of moving into a new area of business.”
