MEDIA CENTRE
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Press Releases
25-11-2009
AFB supports proposal for FSA regulation of second-charge lending
The Association of Finance Brokers (AFB) has given its support to plans announced today by HM Treasury to extend the scope of Financial Services Authority (FSA) regulation to include second-charge mortgages.
Robert Sinclair, Director of AFB, said:
“We called for this change in our White Paper, published in March this year, after a detailed consultation with the industry on the future of regulation. We fully support this announcement as we have long been calling for an alternative regulatory regime under FSA. In our view this will benefit intermediaries, lenders and consumers. We welcome the fact the government and the regulators have listened to the intermediary industry in seeking to deliver a better environment for business and consumers.
“We will need to examine the proposals in detail and will consult with our members before formally responding to the consultation. The Treasury appears to have rejected the simpler approach of transferring the existing regime to FSA control. The proposals would place the regulation of second charge mortgages under the FSA Mortgage Conduct of Business rules, requiring changes to the way we all do business. The AFB supports this approach, but it may require additional time for the industry to adapt.”
ENDS
For further information please contact:
Robert Sinclair, Director, AFB - 020 7628 1287
John Hood/Tony Cox/Simon Maule, Linstock Communications - 020 7089 2080
Notes to Editors
AFB
1. AFB exists to support the professional secured loan broker. To do this they effectively lobby the Treasury, FSA, OFT, government, EU policymakers and other opinion formers to ensure the regulatory and business environment is positive towards the broker.
2. It is AFB’s objective to play a critical but constructive role within the secured loan regulation process – offering insights from the “front line” of the secured loan market.
3. AFB is a non-commercial, not-for-profit trade body. It exists solely to bring about a better business environment for our members so they can continue to serve their clients.
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