The Council of Mortgage Lenders (CML) have made a plea to the Treasury to delay the start of regulation by the financial services industry regulator, the Financial Services Authority (FSA), to coincide with the introduction of regulation with the General Insurance Industry.
Mortgages are due to become regulated with effect 31 October 2004 and general insurance with effect 14 January 2005. The CML argues that bringing the two into line on the same appointed day will save money.
Our View
The sooner regulation and protection for consumers is in place the better. The CML, or the larger banks and building society lending arms, ware just flexing their muscles because it suits them. Most lenders already have to contend with FSA regulation for their advisory and investment arms so they are used to it - so why it cannot be sooner we do not know.
The fact remains that there are thousands of companies who are not involved in lending such as general insurance brokers and to take both lending and general insurance on the same day would be a massive logistical task. They should all count themselves lucky that they are not regulated now.
has to ensure that any life insurance, pension or investment plan that it offers advice on has had the rules and regulations of the FSA adhered to. If we have not we face fines as well as the large, in the thousands, annual fees that we, along with insurance companies, investment managers and stockbrokers, have to pay now to be registered.
Why should a lender or a general insurance broker get away with it? They should all be regulated now to provide protection for you, the client. Do it today and not 2004 or 2005!
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