Will sales regulation change the face of the mortgage industry? Learning from history

Document description

FSA regulation of mortgage sales is scheduled to be introduced on 31 October 2004. The purpose of this report, published in July 2003, some 15 months before the regulations come into effect, is to assess the likely implications of this for the structure and shape of the mortgage industry, and highlight the strategic issues that companies should be addressing now. The report draws heavily on experience and lessons learned in the life industry where the introduction of sales regulation occurred in the 1980s and 1990s. This report is not intended to review the benefits or otherwise of sales regulation, although it notes that the companies interviewed as part of the investigation welcome it and believe the introduction of regulation will improve sales processes. Hence, the report focuses solely on the practical impact of such a major change in the financial services industry.