With the Markets in Financial Instruments Directive (MiFID) set to launch in January 2007, the FSA has begun its plans for the implementation of further rulings. However, despite stating that MiFID would not impact on mortgage and general insurance sectors, with both listed as out of the ‘MiFID scope,’ the proposals set up by the FSA have confirmed that training and competence (T&C) and complaints handling procedures will undergo change.
Announcing the plans, Dan Waters, director of retail policy at the FSA, said: “NEWCOB’s key messages will be easier to understand and so easier to comply with, thereby helping firms to treat their customers fairly in line with one of the FSA’s principles. But more principles-based regulation will not involve relaxing the standards of behaviour we expect.”
Robin Gordon-Walker, spokesperson at the FSA, confirmed all regulated firms would see changes to T&C procedures and complaints handling, including those in the mortgage market. He said: “The new guidelines are not NEWCOB, but MiFID directives. There are changes to time rulings for complaints handling and issues, such as when a member of staff for a firm has to pass examinations.”
Rob Griffiths, associate director at the Association of Mortgage Intermediaries, said: “NEWCOB is a simplification of COB rules, bought on by the Markets in Financial Instruments Directive. Mortgage and general insurance was listed as out of its scope, but the new proposals show that it will have an impact on how intermediaries and firms handle complaints and T&C.”
