View more on these topics

&#39Regulation could finish small firms&#39

The Council of Mortgage Lenders says FSA mortgage regulation could drive out smaller intermediaries and lenders as bigger players club together to cope with higher compliance costs.

At the CML annual conference in London last week, senior policy adviser Kate Main said she fears CP146 proposals mean smaller firms will be unable to compete and consumer choice would suffer.

Main said: “We would not want to see the tail wag the dog with the structure of regulation dictating the structure of the market.”

She was responding to FSA high-street firms director Sarah Wilson who claimed there is “not necessarily a relationship between the number of intermediaries and the scale of consumer choice.”

Wilson said the FSA does not have a view on what would be the optimum number of firms in the market.

Main also attacked the filtering questions proposals in CP146 as a middle ground between advice and execution-only sales, warning that consumers may be confused and think that they have received advice.

She said brokers using this method are concerned that the lack of clarity will “come back to bite them” if clients are unhappy with their mortgage and complain to the ombudsman that they were wrongly advised.

Aifa director general Paul Smee called on the FSA to put intermediaries with a good compliance track record on a fast track under the Mortgage Code Compliance Board into the new regime and warned against compulsory professional indemnity cover.

Smee said: “PI insurance is a nice idea but if it is compulsory you have got to ask if it is available in the marketplace and the answer is no. PI is in severe crisis with an excess of demand over supply.”

Recommended

Switch out of Aberdeen funds, says IFA Bates

Bates Investment Services is advising investors to sell their Aberdeen unit trust holdings immediately. ]The IFA has written to all clients it advised to buy Aberdeen funds to urge them to consider switching into alternative funds as soon as possible. Only Aberdeen&#39s progressive growth unit trust, which invests in split-caps, is spared the sell warning, […]

FSA looks to cut back own pension benefits

The FSA has outlined its approach to the regulation of general insurance which will become its responsibility in October 2004. The FSA says the new regime will require firms to recommend products adequate to customers&#39 needs, clear product disclosure, fair claims handling procedures, a training and competence regime for sales staff and clear complaints procedures.

When will Green shoots appear?

Those who want to make a difference to pension policy should seize this moment.The predicted failure of next week&#39s Green Paper is your chance to make sure that meaningful change comes about by the time of the next Green Paper in, say, 2006.If the consensus of opinion is to be believed, next week&#39s document will […]

Half of advisers think buy-to-let saturated in South-east

Specialist lender Future Mortgages&#39 quarterly survey of 500 intermediaries reveals 51 per cent of respondents believe the buy-to-let market in London and the south east is precarious, 33 per cent think it is stable and 17 per cent say they are unsure about its future. And of those who took part in the survey 54 […]

The death of retirement – a boost for protection?

According to our recent report on the death of retirement, changes in workplace pension provision mean that coming generations of retirees could have a radically different experience of retirement from their parents. The average contribution rate into an old-style final salary pension was around 20% of total wages, the statutory minimum for a new automatic […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com