AMI plays down RDR-style mortgage review speculation

The Association of Mortgage Intermediaries has called for calm after the FSA hinted the mortgage arena could be in line for an “RDR-style” review of its own.

Richard Farr, director of the AMI, says it is important the industry is focused on treating customers fairly (TCF) and not on “future developments that may never happen”.

Last week Stephen Bland, FSA director, small firms division, gave a speech at the Mortgage Masters Conference on how the RDR could, but not necessarily would, affect the mortgage industry.

At the tail-end of the speech, Bland picked up on some areas of concern in the mortgage advice arena and said there was a possibility it could have a major review of its own.

The Retail Distribution Review, comments on which are due at the end of the month, is focused mainly on investments advice.

But Farr says the mortgage market should not be distracted by reading into what the future may or may not hold for the industry.

“Stephen’s speech was certainly not a press release or policy statement,” he says. “It was a thought provoking speech delivered to a small audience, which reflected on why the RDR is not an automatic read-over to mortgage intermediaries.

“It is important that this speech is not taken out of context. We need to focus current thinking on TCF rather than future developments that may never happen.

“There are two important TCF deadlines next year, and we can’t let anything detract from this.”

On Friday, Bland told the Mortgage Masters Conference: “To my mind the jury is still out on whether there are aspects of the mortgage market that require an RDR-style review at some stage.

“What I do know is that, while many firms are treating their customers fairly, too many firms are currently operating in a way which is unacceptable – and risk bringing the industry into disrepute and damaging consumer confidence in it.”

Scott Sinclair
News Editor
020 7034 2636
scott.sinclair@incisivemedia.com