He is singular in his approach with


the authorities saying in no uncertain terms, “I will make my own relationship with the FSA”. He plans to be “punchy but constructive” with regulators, whose senior managers have “his sympathy”. “I talked about herding cats,” he says.


“Their job is almost directing cats. I do believe very strongly and have always tried to follow this principle, you have got to try to understand what the other side’s objectives are and then you have to show them the best way of meeting those objectives.” Smee’s understanding of those


objectives is that the FSA now wants to see “a thriving mortgage market” that is nonetheless more stable than it has been in the past. “Where I think we can help particularly


is around getting them to understand what measures our members are already taking to mitigate risk so that regulators do not simply pile additional requirements on top of what is already happening,” he says. He is clear about the difference


between the trade body and its members. The CML’s role is to “create a framework within which the market can develop” while members have a responsibility to shape and drive that market.


The fuTure One of Smee’s strengths is clarity –


he often speaks in lists. “One, I think this, two I think that, and three I think the next,” is typical of him. With the mammoth set of incoming regulations and the equally mammoth amount of uncertainty about which regulator will be responsible for which bit of regulation, Smee is succinct about his intended approach. Clarity about the precise objectives of


the new regulatory bodies - the Financial Conduct Authority and the Prudential Regulatory Authority – that will replace the dismantled FSA, is needed. “That seems to me the big


unponderable for our members at the moment,” he says. “We are going to have several people all of whom are very focused on delivering their objectives for the government, economy, people,


whatever. How does that all interrelate in the big mix? “I do believe government can give


pushes, guidance and leadership,” he says. “I don’t think they should be involved in the detailed devising of complex schemes but I think they should be involved with how they can facilitate a better functioning housing market.”


BalancIng acT With more than 80% of mortgage lending being done by just six lenders a repeated concern from the smaller players has been whether their opinions and voices are being heard by their trade body. Smee is acutely aware of this and has


already begun his inaugural tour of the country to meet members face to face. He also reveals plans to change how the CML talks to its members. “It’s critically important we listen to all


of our members and I think it makes us a much more effective influencer if you can say you represent all parts of the market and you can nuance the views,” he explains. “When you are trying to influence


government department policy then you


have to be able to say this will happen to the larger institutions and this other thing will happen to the smaller ones if you implement that policy,” he says.


Brokers The important question brokers will be asking is whether Smee likes or loathes them? “I’m channel neutral,” says Smee.


Firmly. “I hope the MMR will deliver channel neutral regulation as well. There is so much going on in the outside world that for trade bodies to be involved in the industry politics is wrong, and I really use that word strongly,” he says. “Do I believe that intermediaries have


an important role to play? Yes. Am I looking at how lenders can interface in the best possible way with the intermediary channel? Yes.” Smee is a careful person. Careful with


words, careful about outcomes and careful to listen. Whether he succeeds with the FSA and MMR will become apparent over the coming months but the industry should be quietly confident. And if it’s a total disaster, there’s always a plate of baked beans.” n


mortgage introducer DECEMBER 2011 43


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