Industry wanted self-cert, says defensive FSA

Retail markets managing director Jon Pain says the current initial disclosure document (IDD) and key facts illustration (KFI) are insufficient, adding it underestimated the irrationality of consumers when it developed them. However, in a speech at the FSA mortgage conference, Pain also says the regulator consulted on not allowing self-certification for employed customers but "the industry disagreed and we relented". "We allowed this to happen and with hindsight this may have been a mistake," he says. Pain says the regulator will ask, in a September discussion paper, whether it should ...