With most other branches of the market falling under the FSA’s spectrum of authority, packagers have so far avoided the spectre of regulation.
However, while discussing the impact of the Association of Mortgage Intermediaries’ packager forum, Terry Pritchard, spokesperson for Freehold, believed the FSA was looking to regulate packagers.
“Maybe the FSA is looking to regulate the packager market. I don’t think it understands the packager market but if it has someone there talking to it and helping it understand, those who don’t deserve to be regulated will escape.”
His belief was echoed by a number of figures within the sector, with many admitting while it was inevitable, it would be a good thing for the market.
Alan Hill, managing director of First Mortgage Options, said: “I’ve said before, I don’t understand why we’re not regulated. We are part of the advice process and while it is the responsibility of the broker to make the decision for the client, we are part of the food chain. In the next 12 months we will see regulation occur.”
Vic Jannels, chairman of All Types of Mortgages, added: “I don’t fear regulation and I think it’s important as we are an integrated part of the chain. The FSA visited packagers over the last eight to 10 months but no papers have been issued regarding regulation. However, I think by the middle of next year, we will
be close.”
However, Robin Gordon-Walker, spokesman for the FSA, said: “It will be up to the government to decide if a specific area should be regulated but there are no plans on our part for packager regulation.”
