With the regulator calling for a vast improvement in TCF prior to the Spring deadline, especially within the self-cert sector, it has been claimed that the self-cert market is in danger of ‘extinction.’
A Mortgage Introducer source, an appointed representative (AR) of a network, claimed that networks had struggled to adhere to the FSA’s TCF policies, while retaining their own compliance and business strategies.
The source said: “Networks have had to make changes to their policies but because of this self-cert doesn’t seem to exist any more. For taxi drivers and hairdressers where their income is not set, it’s much harder to verify income, which self-cert should help – but can’t. The FSA is stamping down on self-cert but there is still a market for it.”
However, James Smith at Vision Network, refuted the claims, but admitted that the organisation had been forced to make changes to improve advisers’ understanding of TCF, and had implemented a number of schemes to aid brokers meet regulatory requirements.
He explained: “The aim of TCF is to encourage a change in behaviour of firms to deliver improved outcomes for consumers so they are confident they will receive fair treatment whoever they deal with. In response to this we have increased staff training, implemented AR testing, issued consumer questionnaires and obtained feedback, restructured our packaging team and phone systems, and introduced a new back office and management system.”
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