The FSA has made no bones about the fact that, now more than ever, it means business. Alongside pushing ahead with a set of ‘structured visits’ to assess how small firms are progressing, the regulator is currently conducting a three-day stint of one-on-one ‘surgeries’ in the North East.
Although the hour-long consultations are not specifically directed at those looking to iron out any TCF teething issues, the looming deadline is undoubtedly one of the regulator’s key concerns – and an issue which it hopes will feature prominently on the attendees agendas.
Frank Eve, managing director of tcfinfo.co.uk, believes this is a vital opportunity for intermediaries who should engage with the FSA whenever they can: “There are still a lot of people out there who are unsure of what they should be doing when it comes to TCF. Seeking help in this way is undoubtedly the best course of action for any broker who is unsure about any aspect of their business.
“Embedding principles-based regulation is not the most straightforward of processes as the intermediary has to adapt their own workings around the TCF culture. This can be even more of a complex issue for businesses which do not have a compliance department.”
While there is no evidence that the impending March 2008 deadline is a direct catalyst for this latest swathe of surgeries, the regulator’s reported impatience when it comes to the progress firms are making with TCF has led many to draw this conclusion.
Indeed, Kate Davies, senior policy adviser at the Council of Mortgage Lenders (CML), said she had seen a decided feeling of ‘frustration’ emanating from the FSA of late with regards to TCF: “There are large numbers of people not complying. What the FSA is saying publicly is very measured, but it does say that if it doesn’t see improvements, it will take action. It is clear the time for explaining the rules is passing.”
Davies believes the FSA is right to bear its teeth: “Small firms think they are too small to be noticed. That’s very irritating, because it’s not a level playing field. Firms should not believe they are under the radar.”
Considering that small firms comprise 90 per cent of the business the FSA regulates, these appointment-based surgeries are reinforcing the message that passing below the radar is not an option.
Certainly the FSA made no secret of its intentions when it announced a rolling programme of visits and telephone interviews with small firms, and now the message it is clearly sending is that it is giving ample opportunity for these firms to bring any concerns out in the open sooner rather than later – however there will come a point where the FSA stops playing nice and begins to rule with a rod of iron.
