Gary Lester, managing director of Lifestyle Mortgage Services in London, led the argument and stated that the FSA’s ‘incredible fines’ and authorisation payments should be spent on educating the industry, not funding ‘glossy marketing campaigns’.
While it is clearly positive that the FSA is committed to training the industry, some believe the cost of the seminars is extortionate and feel their fees are being mis-spent. The FSA has said greater regulatory fees would be needed if such training were to be free.
MI asked industry experts whether they thought FSA courses are value for money or whether mortgage professionals should be provided with free training.
Thomas Reeh, chief executive of blackandwhite.co.uk
“The FSA should most certainly provide training and yes it should be free. The manual is now over nine feet thick – and for the FSA to expect the average broker to stay on top of daily changes is unreasonable. We recently appointed a policy officer just to keep up with the changes. We have attended several workshops and found them very helpful and informative.
“More training is needed and the FSA should take the view that the money it spends on training is money saved in litigation from bad advice and from bolstering the confidence of consumers in the market.
“I’m not sure paying for training from fines is a good idea. Bit of a negative positioning for me. Let’s hope the FSA spends as much time catching mortgage brokers ‘doing things right’ and recognises how much money has been spent collectively throughout the industry trying to get it right.”
Rob Clifford, managing director of Mortgageforce
“The MCCB threw down the gauntlet when it ran exceedingly useful regulation courses for practitioners for as little as £50 per delegate and they were almost always over-subscribed. Many courses were also free of charge and it would be great if the FSA could do the same.
“I can understand brokers are upset that statutory regulation is costing them 10 times that of voluntary regulation and if this is the case it’s regrettable and unfair. The reality is practitioners want guidance and training but £100 could be the difference between small firms, who make up a large group in the mortgage broking industry, attending or not.”
Andy Wilgoss, managing director of Square Mile Mortgage Finance
“I wouldn’t expect the FSA to run free courses because as far as I know this has never been a part of its published policy. Obviously appointed representatives have the support and infrastructure of their Principal for any required training which is absorbed within the fees paid to the particular network.
“But it’s quite relevant that almost 12 months on from ‘Mortgage Day’ we are seeing the true costs of regulation for intermediaries and this will lead to some brokers reconsidering and revising their strategy going forward.”
