Speaking at the Mortgage Business Expo in Belfast, Dominic Clark, manager, small firms division at the FSA, said its plans to visit more firms would drive up costs.
He said “As part of our enhanced TCF strategy we are looking to weed out people who should not be in the industry. We plan to visit 25 per cent of all firms to go through all systems and controls for the implementation of TCF.
"This increase in supervision will have an impact on fees.”
Clark said a fees consultation paper outlining the impact on intermediaries would be released on 5 February. While Clark dismissed an authorisation fee increase of 30 per cent, he proposed a figure of 10 to 15 per cent which would cover additional staff recruitment.
“Our review enhanced strategy will kick off in Northern Ireland where will be directly contacting firms, and over the next three years we plan to contact all senior management of the firms to see how they are embedding TCF into their businesses. This process extends beyond the March 2008 deadline.”
Clark warned that while the management information systems should be in place by 31 March 2008, by December 2008 all firms should have moved from the implementation stage to having the concept fully embedded.
He also encouraged small brokers to use their new business register as a means of identifying key areas of development.
Richard Fox, chief executive of the Society of Mortgage Professionals, said: “The FSA has got to look at the returns it is getting. It should be an example to businesses and if it doesn’t control costs, it will be asked to justify what the extra money is doing.”
