The Financial Services Authority (FSA) has announced that it is to reconsider regulating individual mortgage brokers.

In 2002/03 the FSA decided that it was unnecessary to regulate individual mortgage brokers but due to what it describes as “mortgage fraud having been perpetuated on a large scale in recent years” it has decided to reassess broker regulation. Currently every mortgage broker firm is regulated but individuals are not. A spokesperson for the FSA, told PIN: “There would be definite benefits from tighter controls over individuals.” The authority plans to assess a number of different options before the review is completed in Q4 2008.

Broker regulation is one of a number of measures laid out by the FSA to crackdown on mortgage fraud. Other measures included targeted visits to 200 brokers to assess their systems, improving information sharing within the industry and increasing intelligence from lenders.

Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), told PIN: “I welcome broker regulation as an idea and fully understand why the FSA want to go down this path. Regulation is a very long term ambition and we are a long way from this at present. The FSA will find regulation a challenge and they have yet to visit any of the 200 brokers. The question is whether regulation is a real solution? If it is then it would need to be backed by action.”