The FSA sets up External Mortgage Advisory Group

The External Mortgage Advisory Group is made up of practitioners from various parts of the industry, and consumer and public interest representatives. Members of the Group are appointed purely in a personal capacity.

Speaking at the FSAs second consultation seminar on its high level approach to mortgage regulation, Michael Foot, Managing Director, FSA said:

"We are delighted to have secured the expert input of leading figures with knowledge of the lending, intermediary and consumer interests. The Group will have an important contribution to make as the details of mortgage regulation are developed.

The External Mortgage Advisory Group will chaired by David Kenmir, Director of the Strategic Review Project at the Financial Services Authority.

Notes for editors

1. The individuals members of the External Mortgage Advisory Group are as follows:

   Matthew Bullock - Chief Executive, Norwich and Peterborough Building Society;

   Frances Harrison - Acting Head of Policy Research and Development, National Consumer Council;

   Ashley Holmes - Head of Legal Affairs, Consumers Association;

   Phil Jenks- Head of Mortgages, Halifax;

   John Maltby - Chief Executive, Kensington Group;

   Janet Payne - Compliance and Quality Control Director, Connell Estate Agents;

   Teresa Perchard Head of Social Policy, National Association of Citizens Advice Bureaux;

   David Seviour - Franchise Development Director, Allied Dunbar Assurance;

   Richard Thomas - Director of Public Policy at Clifford Chance, previously Director of Consumer Affairs at the Office of Fair Trading;

   Tony Ward - Chief Executive of First Active Financial plc; and Catherine Whitehead Consumer Consultant and Lay Member of the Compliance and Supervision Committee of the Office for the Supervision of Solicitors.

2. Members may be employed by major businesses or representative bodies but they are on the EMAG in an individual capacity. It is presently anticipated that the Group will conclude its work by the end of 2001.

3. The Government announced on 26 January 2000 its intention to introduce statutory regulation of mortgage lending, but not mortgage advice. HMT are currently consulting on the secondary legislation needed to implement this decision. Their proposals (most notably on the definition of a regulated mortgage contract) were published in a consultation document entitled Regulating Mortgages on 26 October 2000. The deadline for comments, to Treasury, is 20 December 2000.

4. The FSA has held two consultative seminars (on 28 November and 12 December) to assist businesses and consumer groups in responding to the proposed high level approach to mortgage regulation.

5. The FSA Consultation Paper 70 Mortgage Regulation; The FSAs High Level Approach covers three areas: the firms and consumers that will be affected; key elements of our proposed approach such as the provision of mortgage information to consumers; and the regulatory processes which will apply to mortgage lenders. Key dates in the timetable: 12 January 2001 Deadline for response to FSA high-level consultation; March 2001 Publication of feedback of first consultation exercise, and draft rules and guidance for consultation; July 2001 Making and publication of final rules. Applications for authorisation/change of permission can be made; January 2002 Full implementation of mortgage regime (or six months after the implementation of the FSMA, whichever is the later).

6. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

7. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.