Mortgage Introducer has learned that the regulator will release its report this week into how successful intermediary firms have been in implementing TCF and early indications are that many firms have yet to adequately comply with the principle.
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An unnamed source told MI: “The FSA will release the report this week and apparently it’s not good. You have to ask if we can’t get the TCF part of the move towards principles-based regulation right, how are we going to cope when the regulator tears the rest of the Mortgage Code Of Business rule book up?”
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The FSA had set a deadline for the end of March for firms to show they had begun to embed TCF within their systems and controls, but it seems many have yet to do so.
The source added: “The idea is great in principle, and as an industry we don’t like being told what to do. However, most small firms don’t have the resources to keep second-guessing what the regulator wants.”
Bill Warren, director of compliance at Complete Mortgage and Loans Service, admitted it was not good news.
“The FSA has said strongly enough that firms had to get their acts together by 31 March, so if the results are disappointing, intermediary firms have got no one to blame but themselves.
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“There has been so much said on the subject this year and the FSA has continually warned firms they must implement the principle, so there isn’t much excuse for not having done it.”
