BSA welcomes FSA announcement that the MMR will be delayed
BSA welcomes FSA announcement that the MMR will be delayed
FSA Chairman, Lord Adair Turner, has today announced that the next Mortgage Market Review proposals will now not be published until the Autumn.
The BSA welcomes that the FSA are not rushing ahead with reforms to mortgage regulation without full analysis. We have consistently called for the FSA to review its proposals and we hope this will result in regulation that is appropriate and continues to allow an innovative mortgage market, which not only promotes consumer protection, but choice and competition amongst lenders. The FSA also needs to take account of the proposed EU Directive.
It is vital that the reforms do not lock out sections of the market, including first time buyers and the self employed. A robust impact assessment on all consumer groups is both important and challenging and we welcome the FSA's commitment to getting this right.
Commenting on the announcement today, Paul Broadhead, Head of Mortgage Policy at the BSA, said:
"The FSA is right to take its time to develop appropriate proposals that benefit the market rather than hinder it. We have worked closely with the FSA to assist the debate and to help them shape a policy that will lead to a sustainable mortgage market for consumers.
"It remains important for the FSA to take stock and assess changes already made to prudential regulation and supervision before pressing ahead with prescriptive rule changes. Once this analysis has been done targeted proposals can be introduced that prevent any consumer detriment that persists.
"The BSA supports Lord Turner's intention that the analysis will form the basis of a wide-ranging debate in order to forge a social consensus. The BSA looks forward to engaging in that debate.
"We will continue to work closely with the FSA; it is in everyone's interest to get this right."
Notes to Editor
1. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 48 UK building societies. Mutual lenders and deposit takers have total assets of over £365 billion and, together with their subsidiaries, hold residential mortgages of almost £235 billion, 19% of the total outstanding in the UK. They hold more than £245 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
2. Photographs of Paul Broadhead are available from the BSA press office, or from the Association's website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk.
3. CONTACT: Rachel Wylie- 020 7520 5905 / rachel.wylie@bsa.org.uk
Katie Wise (nee Errington)
Policy and External Affairs Officer
Building Societies Association
6th Floor, York House
23 Kingsway
London
WC2B 6UJ
Tel: 020 7520 5904
Fax: 020 7240 5290
Email: katie.wise@bsa.org.uk
Web: www.bsa.org.uk
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