On the third anniversary of mortgage regulation, the regulator admitted it was becoming ‘increasingly exasperated’ at some firms who, despite warnings and assistance, were failing to improve.
With reports on four areas of the market – self-cert, training and competence, senior management and affordability – set to be published by the end of the month, the FSA promised it will push for tougher penalties for those who do not come up to scratch.
Robin Gordon-Walker, spokesperson for the FSA, commented: “We will be getting tougher where we find failings across all areas of financial services. We will be looking for higher fines and tougher enforcement action as despite several goes at it, some firms just aren’t showing the improvements we wanted.
“After three years it’s unacceptable and we are becoming increasingly exasperated when we see things haven’t progressed.”
The FSA is currently in the middle of a recruitment drive to make sure it is better covering the demands of smaller mortgage intermediary firms and also to ensure they do not slip under the regulatory radar.
Richard Fox, chief executive of the Society of Mortgage Professionals, commented: “Some of the FSA’s reviews have shown only minor take-up, so it will be looking for improvements. It is going to be clamping down a lot harder and there will be more punitive action on those who are not toeing the line.”
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