Brokers: lenders should explain regulation
A further four fifths (81.9%) want Shawbrook to provide guidelines on FCA permissions on direct and introduced business, which is something the lender is considering.
Brokers said that lenders should provide more uniformity in terms of what is required, while one added that they should lead the way as “they have the infrastructure and financial capability to translate the guidelines and relay that information”.
Karen Bennett, sales and marketing director, commercial mortgages at Shawbrook Bank, said: “At our partner days held in the summer, we provided brokers with guidance notes on FCA permissions, addressing questions such as what constitutes credit broking, as well as Shawbrook’s stance, which were well-received.
“As one of the NACFB’s sponsors, we also supported their series of compliance services seminars designed to educate brokers about the new Consumer Credit Act regulations.
“We are fully aware of brokers’ desire for clear instructions around this issue, and we are working toward the release of material to help ensure our expectations are communicated as transparently as possible.”
Of brokers (33.6%) who disagreed that lenders should take the lead with explaining regulation, the demographic was equally split between those who felt the FCA should take the lead and others calling it everybody’s responsibility to research regulation.
Almost nine out of 10 (89.3%) believed their business was ready to incorporate the CCA into the FCA, with many being licensed for mortgage advice already.
Only one in six brokers felt that obtaining FCA authorisation was the biggest challenge facing their business over the next six months.
Lending restrictions were viewed as the biggest challenge by over a quarter (26.8%), while over a fifth (21.5%) listed the ongoing impact of the MMR.
Brokers expect further regulation, as 86.6% believed the buy-to-let market will eventually be regulated, while nearly half (49.7%) expecting this to happen within the next two years.