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On October 31 2004, the mortgage business became a regulated industry. The organisation given the responsibility to authorise and regulate mortgage intermediaries is the Financial Services Authority (FSA), and their powers are supported by legislation (Financial Services & Markets Act ).
So, what does this mean to you, the consumer?
The FSA's objective is to rid the industry of rogue players who tarnish the mortgage industry's reputation. In doing so, they aim to reduce financial crime and improve consumer confidence and understanding of the mortgage market.
How will they do this, I hear you ask?
First of all, individuals and firms intending to give mortgage advice will need to be authorised by the FSA. The authorisation process can take up to 6 months and involves certain criteria being satisfied. For example: