Mortgage Regulatory & Trade Bodies

Association of Independent Financial Advisers (AIFA)

AIFA is a trade association which represents and acts as the 'voice' for independent financial advisers to the UK government and within the European Union by lobbying the policymakers, regulators such as the FSA, Government, media and consumer action groups.

The trade body has three main objectives:

• Advocating the importance of independent financial advice
• Highlight the needs of independent financial advisers to those who make the decisions that will impact on their business
• Act as a united voice to express the opinions of independent financial advisers to regulators which will aim to influence and challenge a policy

The AIFA is a not-for-profit organisation that is funded by its members and industry supporters.

The Association of Mortgage Intermediaries (AMI)

AMI is the 'voice' of the mortgage intermediary. It represents the collective view of its membership to the regulatory bodies. In particular proposals under the mortgage market review, this is being carried out by the FSA.

AMI believes there is a need for mortgage intermediaries to speak with one strong voice and be represented as a united front. AMI influences the opinions of policy decision makers often seeing it as indirectly championing the consumer who is serviced by many of its members. It is in constant discussions and debates with the Government, FSA and other industry bodies to ensure it is able to actively participate in any decision or policy making which may affect the operation and business of its members.

It is funded by its members and industry supporters, and is a "not-for-profit" organisation.

Association of Mortgage Lenders (AML)

The AML was established in June 1988 as a trade body. It originally set out to represent the opinions of the new 'centralised' lenders in a rapidly expanding mortgage market. The lenders who were part of the AML did not have any branches, and used a very specific funding model; it used intermediaries for mortgage sales. In 1995, the AML changed its name to the Intermediary Mortgage Lenders Association (IMLA). Refer to IMLA.

The AML along with the British Bankers Association, the Building Society Association, the Association of British Insurers and the Finance and Leasing Association all united and formed the Council of Mortgage Lenders (CML).

The Building Societies Association (BSA)

The BSA is a trade association, it represents mutual lenders and deposit takers these include all building societies. There are 53 mutual lenders and deposit takers including 49 building societies. The BSA was established in 1869; it acts as the central representative body for building societies and provides information and advice to its members. The BSA is the voice of its members and represents their views to the government, regulators in particular the FSA. It also provides statistical information and analysis to the industry, media and consumers.

Corporation of Insurance, Financial and Mortgage Advisors Ltd. (CIFMA)

This CIFMA trade body represents general insurance and mortgage advisers' interests.

The Council of Mortgage Lenders (CML)

The Council of Mortgage Lenders is a "not-for-profit" organisation and is the trade association for the mortgage lending industry; its members represent approximately 94% of all residential mortgage lending. It is very active in the mortgage market review.

The CML's objective is to help to maintain and look after a good operating environment in the housing and mortgage markets. It represents an increasingly influential voice for the residential mortgage lending industry, and is the central provider of economic, statistical, legal, research and other market information to both the industry and media.

Its members are banks, building societies and other mortgage lenders. The CML also has associate members, these come from a number of related businesses, including lawyers, conveyancing firms, search companies, technology firms and management consultants.

Consumer Protection and Markets Authority (CPMA)

This independent authority is due to begin in 2012 after the FSA will divide into two different divisions, the CPMA and the PRA (Prudential Regulatory Authority). The CPMA will be in charge of the section of the FSA that deals with the regulation of how products are sold to consumers and in that respect will have the power to ban retail products for consumers. The CPMA will also be responsible for promoting the integrity of the financial markets within the UK and for dealing with 'conduct of business' rules. The authority body has also been given to power to notify possible investors of forthcoming enforcement actions against companies and for regulating insurance brokers.

Financial Ombudsman Service (FOS)

The FOS began in 2001 to act as an ombudsman between consumers and UK based businesses that provided financial services. The FOS was established as a result of the Financial Services and Markets Act 2000. FOS is a member itself of the International Network of Financial Services Ombudsman Schemes.

FOS can look at most financial complaints; i.e. banking, insurance, mortgages, pensions, money-transfer operators, credit/store cards, pawnbroking, bonds, stocks, shares, savings, hire purchase, loans and investments. The consumer, however, must first approach the institution that provided the business before FOS can look at the complaint.

The FOS is funded through a mixture of levies and case fees that are directly linked to the financial services sector. These levies and fees are compulsory paid by companies that are regulated by the Financial Services Authority (FSA) and Office of Fair Trading (OFT). The consumers' service is free.

Financial Services Authority (FSA)

The FSA is a non-governmental, independent body within the UK that began in June 1985. It acts within the financial sector in a two fold manner. Firstly, the FSA is a 'quasi-judicial body' in that it has similar powers to a court of law or judge. The FSA can also impose fines or penalties on a company or person if required. Secondly, the FSA is a company that is responsible for organisations regulations within the financial sector in the UK. The FSA is responsible for regulating banks, financial advisers and insurance companies. On 31 October 2004, the FSA began regulating mortgage business and on 14 January 2005, general insurance, with the exception of travel insurance, came under FSA regulation.

In June 2010, it was announced that the FSA will broken down into two main sections; the Consumer Protection and Markets Act Authority and the Prudential Regulation Authority. The Bank of England will fulfil any other responsibilities.

The Intermediary Mortgage lenders Association (IMLA)

IMLA was originally the Association of Mortgage Lenders see AML. It changed its name to the Intermediary Mortgage Lenders Association in 1995. IMLA was established to offer specific representation and a service to financial intermediaries. Its membership now includes banks, building societies and companies who offer mortgage lending. IMLA works closely with both the CML and BSA and other trade bodies and regards itself as a strong and independent voice on all intermediary-based mortgage lending.

Mortgage Code Compliance Board (MCCB)

The MCCB was set up in 1999 in order to create a single and independent body that would be responsible for registering and monitoring lenders and intermediaries compliance with the Mortgage Code. The board was also required to ensure that any consumer will be fully informed and protected when taking out a mortgage. Each year, the MCCB carried compulsory inspections and liaison visits to registered firms and individuals as well as 'mystery' consumer research exercises to ensure that the code was being adhered to.

The Mortgage Code had come into effect on 1 July 1997 for lenders and 30 April 1998 for intermediaries. From the 30 April 1998, mortgage lenders and intermediaries were not able to accept any mortgage instructions from persons who were not registered. The MCCB continued until 31 October 2004 when the FSA took over the regulation of mortgages. This was known as MCOB.

Society of Financial Advisors (SOFA)

SOFA is a self-governing body that aimed to assist financial advisers into achieving a range of qualifications and striving for professionalism amongst all advisers. SOFA began in 1991 and affiliated itself to the Chartered Insurance Institute, which was the examination body for the whole of the insurance industry throughout the UK. The body set minimum entry level requirements and insisted that advisers were kept up to date with industry changes through Continuous Professional Development programmes.