With just a month until the FSA’s Treating Customers Fairly deadline, mortgage firms should be removing any stress or doubt that they will be ready in time.
Paul Holden, sales director at MortgageStream is eager to reiterate to all mortgage firms that the December deadline is not to be trifled with.
“The Financial Services Authority has announced that it will check that brokers are applying TCF principles during its regular assessments from January and so the pressure really is on. This is not a ‘soft launch’ from our regulator and firms need to be aware that failure comply is not an option for a business wishing to survive. The FSA has demonstrated countless times that they have teeth and are prepared to use them.
“The current financial environment will put a number of borrowers in challenging positions and for those most affected they will be looking for someone to blame. This pushes pressure on the FSA to look at every aspect of the advice process and should any firm not be able to evidence the correct procedures they will want to be seen to be cracking the whip.
“Although many brokers are still busy, the Christmas period does inevitably provide some free time which I’d encourage every broker to use to find the right solution for themselves. The frustrating part for me is that most firms using the leading sourcing and case management systems have an integrated TCF capability which can be activated almost instantly. They already hold the majority of data and detail they need to satisfy many of the requirements and a TCF module can be added at the flick of a switch.
“The 31st December really is judgement day and so making sure your firm is ready could be the best present you ever give yourself!” said Holden.
