The Retail Mediation Activities Return (RMAR) that brokers fill in every six months has come under fierce criticism from a number of brokers, who are tired of constantly filling in forms and updating their knowledge of the ever-changing regulatory framework. However, the Financial Services Authority (FSA) has reiterated its stance that RMAR is essential in judging market trends and the state of the market. It has updated its tips and guidance for brokers so that they can get a greater understanding, knowledge and level of advice when completing their RMAR forms. Designed specifically for the smaller broker firms, a target area for the FSA in 2006, the updates to the FSA’s RMAR guidance includes dedicated webpages and e-learning packages in addition to roadshows on RMAR. Improvements to the Firm Contact Centre have also been made as part of the drive by the FSA to make it easier to do business with the regulator, while further additions have been made to the regulators tips and advice section that brokers can access on the FSA website.
Essential
Speaking to Mortgage Introducer, Sam Bennett, press officer at the FSA, said RMAR was essential for the FSA to be able to judge the market. She said: “We need to know what is going on in the market and RMAR allows us to monitor it on a regular, six-monthly basis. RMAR is something the FSA is looking into.” On the improvements that the regulator has made in response to RMAR concerns, she said: “We have bought all of the relevant information together, making it easily accessible for intermediaries to get the information that they want and need. This was done following feedback from firms and is part of our commitment to make it easier to do business with the FSA.”
Rob Griffiths, associate director at the Association of Mortgage Intermediaries (AMI), welcomed the FSA’s increased involvement in RMAR. He said: “AMI is pleased to see the FSA giving further help to firms on completing their RMAR, especially those smaller firms most in need of guidance. The vast majority of enquiries to our technical helpdesk concern RMAR. AMI has worked extensively to feedback the queries we receive to the FSA, submitting a document detailing the frequently asked questions we receive on RMAR. We are encouraged to see the FSA dealing with these queries. We would encourage AMI members to take advantage of the web information, packages and roadshows provided by the FSA, while remembering they also have access to the AMI helpdesk.”
Peter O’Donovan, mortgage manager at Bestinvest, shared this sentiment and admitted the move by the regulator to improve RMAR was needed. He said: “I think it is a definitely a good idea for the FSA to improve its guidance on RMAR, and producing guides and tips will definitely help. Some of the FSA’s rulings are so general and so the roadshows will prove to be really useful as you can get the information from someone at the FSA who is sitting in front of you. Assistance is needed in this area, and welcome.”
Further review
However, Julian Gilbert, of The Mortgage Professional Ltd, argued the current system was in desperate need of further review and action. He said: “The RMAR form is a nightmare. There are boxes that should add up automatically, but have to be manually typed, encouraging errors. The FSA also want end of year tax figures six weeks later, which is ridiculous.”
RMAR is very much in brokers minds and the decision by the FSA to update its guidance notes and tips should be a welcome addition. However, what is also clear is the need for further action and commitment from the industry as a whole to ensure RMAR is acted upon and that it helps improve the mortgage market as a whole. The only way this will happen is if brokers understand the importance the regulator places on RMAR, and at the same time, the regulator keeps taking steps to make it easier to complete this process. The increase in advice and guidance given by the FSA should go some way to increasing broker confidence, with the quarter three review by the FSA into RMAR certain to be looked at with interest.
Grant Bather is assistant editor at Mortgage Introducer
