Kate Davies, senior policy adviser at the Council of Mortgage Lenders, said she had seen a decided feeling of ‘frustration’ emanating from the FSA, as it seeks to instil its principles-based regulation across the industry.
Davies said: “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.
“It’s right that the FSA does show 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.”
Davies said it appeared the FSA felt it had done enough, particularly when it came to ‘Treating Customers Fairly’ (TCF). She explained: “TCF was given a real push a couple years ago, but the principle has been there for years; it’s not a new initiative. People are looking for certainties and it becomes very difficult when there is no absolute right or wrong.”
Thomas Reeh, chief executive of blackandwhite.co.uk, commented: “Most intermediaries in this industry are very aware of TCF and implementing it into their business. But we need to keep in perspective that the numbers of mortgage complaints are miniscule.
“We’ve come a long way since regulation. The FSA doesn’t come out saying what is best practice, which is frustrating. There is a definite mismatch of expectations, especially right now. TCF is giving customers accurate information and with products changing every day, everyone is doing their best. I would be very disappointed if the FSA came in with a big stick when people across the industry are losing their jobs.”
