For both ‘advised’ and ‘non-advised sales of lifetime mortgages,’ the FSA recommends that the FSA’s full training and competence regime – including an examination – is appropriate. The FSA states that it expects to be able to confirm the precise examination requirement before regulation begins in mid- 2004.
The FSA acknowledged qulaified brokers with CeMAP or MAQ, but states the need to ‘grandfather’ these people into ‘our regime, subject to a top-up exam or other assessment’.
The consultation document divided the FSA’s proposals on training and competence into ‘advised’ and ‘non-advised’ sales, but both would need to take these exams.
Non-advised sales are defined by the FSA as sales where filtering questions are used as opposed to a full-advisory service.
The MCCB gave the proposals a qualified welcome.
Brad Baker, press office spokesman, MCCB said: “This is great because the FSA has acknowledged our 31 December deadline and it means the training transition is likely to be painless.”
However, Baker said: “We want to stimulate the debate and get people talking. Historically, very few responses come from brokers on these consultations and I believe the last one on CP98 received responses in double figures.
Obviously, that paper didn’t directly affect brokers, despite the disclosure of fees issue, but this consultation is different and so brokers must recognise the importance of a response inside the three month period.”
