In its annual report for 2005/6, the regulator said TCF would remain a priority.
Despite firms making progress in the market, Sir Callum McCarthy, chairman of the FSA, said there was still ‘plenty of work to be done.’
Announcing the FSA annual report, McCarthy, said: “It is in our interest as much as that of those we regulate that all our processes are, and are seen to be fair and efficient. Our work with the Practitioner Panel exemplifies our overall approach to our programme of better regulation, including our determination to withdraw from regulation which we judge no longer to be justified, and to shift the balance of the regulatory regime from specific and detailed rules towards general principles.”
The FSA also claimed small firms were beginning to come to terms with the impact of regulation and it had seen a marked improvement in mortgage intermediaries’ comprehension.
It highlighted the use of thematic work to help understand brokers better and it was committed to improve the regulatory environment for the industry.
Speaking on the findings, Rob Griffiths, associate director at the Association of Mortgage Intermediaries (AMI), said: “Small firms are fully engaged with what TCF means and how to use it in their businesses. AMI is aware of what the FSA is expecting and is putting together information to help smaller businesses deal with TCF. However, the FSA must be aware they have limited resources and are looking for a steer on how to implement the principles of TCF effectively.”
