It’s claimed that the regulator is taking an in-depth look at estate agents, although it’s believed the investigation is only in the early stages.
In particular the FSA is said to be looking at those estate agents that may play a role in the mortgage and general insurance process, and those that handle client money.
Last year the government proposed that all agents belong to an industry redress system, subject to a full assessment of its impact on competition and consumers, after an Office of Fair Trading report concluded the law needed to be strengthened so that rogue agents could be dealt with swiftly and effectively.
However, many criticised the proposals for not going far enough and believe estate agents should come under regulatory scrutiny.
Mike Fitzgerald, sales director at Brentchase Financial Services, said: “I was told by a source at the FSA that it is in the very early stages of its investigation.
“It will be looking at the whole aspect of estate agency and what they do. The fact is estate agents play a major part in the house buying process and everything that follows is kind of secondary to their role.”
But Robin Gordon-Walker, spokesman the FSA, denied the investigation is taking place. He said: “There has always been an argument that estate agents should be regulated and that the FSA should be the body to regulate them.”
David Oliver, compliance officer at the National Association of Estate Agents (NAEA), said: “The only area the FSA would be able to look into would be the mortgage aspects and those advisers employed by estate agents are already regulated by the FSA.”
