HM Treasury and the Department for Business, Enterprise and Regulatory Reform have published a consultation document which asks for views on a proposed change to the Act to ensure that the regulatory regimes of the Financial Services Authority (FSA) and the Office of Fair Trading (OFT) for mortgages remain mutually exclusive.
The proposed change will provide clarity on the regulatory position and reduce the potential burdens associated with dual regulation.
The Economic Secretary to the Treasury, Kitty Ussher MP said: "I have been concerned by suggestions that there could be confusing overlap between the FSA and OFT on mortgage regulation, as this would cause difficulties for industry and consumers alike. So I am launching a consultation that aims to provide greater clarity of regulation for both lenders and borrowers.
"In line with the Government's commitment to open and transparent, principles-based regulation, this proposed change seeks to minimise the regulatory burden on businesses while safeguarding important consumer protections."
Parliamentary Under-Secretary of State for Trade and Consumer Affairs Gareth Thomas MP said: "These proposals are good for business and good for consumers. We are maintaining the existing levels of protection for borrowers, removing unnecessary burdens on business and ensuring that extra compliance costs are not passed on to consumers."
The consultation closes on 14 February 2008.
