•Final fees significantly reduced
•Firms require continuous MCCB registration to benefit from ‘due credit’ in FSA authorisation process
This will be MCCB’s last renewal exercise as industry regulator for the period to 31 October 2004, when statutory regulation under the FSA will be implemented.
MCCB is making the renewal process as straightforward as possible and will require one simplified form to be completed and returned with a cheque for the appropriate fee.
MCCB is also reminding firms of the benefits of responding early to the renewal process.
The Board has previously announced that fees paid by lenders and by intermediaries have been significantly reduced and are considerably below the pro-rata 2003/4 levels. For intermediary firms there will be no firm registration fee and the sales staff fee will be at a rate of considerably less than 50% of the fee payable in 2003/4. In addition, MCCB has confirmed that new applications will be processed at lower fee levels than 2003/4 and that it will accept new applications up until September 2004.
MCCB continues to work closely with the Treasury and FSA in the transition period. The Government has indicated that the Mortgage Code and MCCB should continue to regulate the industry and provide effective consumer protection until statutory regulation is implemented. It is therefore vital for the industry’s reputation that the non-statutory regime remains robust and its coverage comprehensive until then.
MCCB registered lenders will continue only to accept business from MCCB registered intermediary firms in the transition period, so it is essential that firms who wish to remain in the industry renew their registration and their commitment to the standards set by the Mortgage Code.
In addition, and very significantly, the FSA has confirmed that to benefit from due credit firms must maintain their MCCB registration until ‘Mortgage Day’ (31 October 2004); firms that resign or delay their registration will be subject to additional scrutiny.
Luke March, Chief Executive, MCCB said:
“A seamless transition to the FSA on Mortgage Day has always been the key objective of the Treasury, FSA and MCCB, with the full support of the industry. As well as ensuring that the industry’s reputation is maintained through continuity of consumer protection arrangements, a full renewal will allow all firms in good standing to receive due credit towards FSA authorisation. This is a busy time for firms, but the processes we have put in
place for our final renewal will make the exercise as straightforward as possible and we acknowledge firms for their prompt attention.”
