Questions from hell
Over 376 pages of detailed reading from the FSA
Papers of manullr importannull to the intermediarnullmarnullt
the demands of colleagues, sitting comfortably alongside functions within larger lend-
by
clients and others eager to existing regulated business ers, insurers and other firms
Bill Warren,
understand the implications, sectors. is clear evidence of the FSA
managing
director,
potential costs and impact The three Consultation wanting to prevent some of
Bill Warren
upon business volumes that papers covering Corporate the mis-management events
Compliance they possess. Governance (Significant In- of the last three years or more.
LLP
The three critical Consul- fluence Functions-Approved The return to Home Finance
Fast and furious might be the tation papers issued in the Persons), Arrears and Ap- firms needing to appoint an
label applied to FSA activ- last week of January have proved Persons (Home Fi- approved person in the CF10
ity currently to go with their been of great significance to nance) alongside Sale and role i.e. an individual having
stated intention to be more lenders, intermediaries and Rent Back adds up to 376 responsibility for Home Fi-
intrusive and intensive. One in particular those provid- pages of fairly detailed and nance compliance within the
could ask has the intensity ers and intermediaries in- intense reading. The two for- firm will have a significant im-
got too much for the outgo- volved in the Sale and Rent mer papers are of major im- pact upon many firms. This,
ing chief executive Hector Back segment of the market. portance to the mortgage and in addition to Home Finance
Sants or is he jumping be- The final rules mark almost general insurance markets advisers also having to be-
fore there is an election de- the end of a very short and and firms as they set out very come approved persons, will
spite not being a politician? therefore challenging time clearly how the FSA expects add to the drive for higher
The number of Consulta- for firms involved in what has them to evolve from both standards and controls, much
tion papers issued by the FSA been historically a much ma- a management and control as was the case under the old
over the past few weeks could ligned market place. The final perspective and most impor- Mortgage Code. It all adds
certainly be described as in- regulatory requirements and tantly a risk approach to busi- up to a much tighter regime
trusive by those that have to their speed of introduction ness. of responsibility and control,
read them, understand them will further cement the SRB The re-introduction of cer- making the regulator’s life
and interpret the content to sector as a professional one tain key significant influence easier.
Q
My firm is comparatively small with find it difficult to meet any financial renullirements. nullestions shortly relating to nullme nullance
ten advisers and external compliance What are the renullirements that the advisers have nullms and business.
support. Will the new mortgage adviser and to meet to be approved?
compliance approved person rules mean we have
to employ, at a not insubstantial cost, an internal null
There are three listed in the proposed
rules by the nullnulland they are the same Q
Will the approval of financial promotions to
be used by nullle and nullnt nullcnullfirms be any
compliance person? We have plans to increase as nullr those nullthin the Cnullnullposition nonull different to the Mnullnullrules operated now?
our number of advisers to approximately 40 by nullthin investment nullmsnull
the end of this year but have not budgeted for an l nullnesty, integrity and reputation. null
No the rules relating to approval,
recording and regular revienull nullll be
additional person for compliance. l Competence and capability. the same. The main dinullnullrence is in the use
null
Not necessarily. The rules I believe give l nullnancial soundness. onullcertain nullrds and phrases that are used
you the scope to appoint an existing nulldely at present to describe elements onull
director/partner/senior manager into the nullrms submitting applications nullll need to the nullB business environment. Words such
Cnullnullposition. The nully being that they need address each onullthese points very carenulllly to as rescue, nullst sales and cash sales are
to be able to demonstrate competence and convince the nullnull should they need to, that an banned. Crucially nullms must appoint a person
capability, nullich in a nullm onullyour sinull probably individual is suitablenullThis nulluld include tanullng nullnternally or externallynullnullo has the experience
means all onullyour partners/directors are closely renullrences inullappropriate, undertanullng credit and nullonulledge to nullpprovenulltheir nullancial
involved in compliance issues so could tanull checnull, providing evidence onullcompetence promotions connullming on each occasion that
the responsibility. e.g. CPnullrecords or appraisal documents and the content meets the nullnullrules as specinullally
perhaps an assets and liabilities statement, applied to nullle and nullnt Bacnullnullancial
Q
nulle nullnullstatements that all mortgage along nullth a disclosure nullom the Cnull nullr single promotions.
advisers must become approved persons will directors and sole traders. Inullyou havennullt loonulld
threaten the position of several advisers who over at a nullnullnullrm nullnullpplication nullr approved nullou can contact Bill nullth your regulatory
the last three years have perhaps suffered similar person statusnullnullr a nullile it nulluld be nullrth nullestions by emailingnull
financial difficulties to that of their clients and may doing so particularly as the nullnullnullll be adding bill@billwarrencompliance.co.uk
MORTGAGe InTROduCeR mArch 2010
17
MI p17_0310.indd 1 23/02/2010 10:59
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48