With the commencement of regulation of Mortgage advice by the Financial Services Authority (FSA) with effect 1 November 2004, the Financial Services Compensation Scheme (a fund that all financial companies pay into to protect investors) has confirmed that mortgages will now be covered.
Our view
At the end of the day, mortgage companies are now regulated and now pay fees similar to financial advisers and insurance companies, so it is right that clients have protection against losses and insolvency. The only problem we have is that the FSA has allowed some mortgage companies to defer registration and paying fees for up to 12 months as they "are not ready".
This is most unfair given that would be closed if it failed to pay its fees.