View more on these topics

AMI backs regulator in provider/distributor debate

The Association of Mortgage Intermediaries has announced its support for the Financial Service Authority’s stance on provider/distributor relationships, after the publication of its discussion paper last week.

AMI associate director Rob Griffiths says: “The message from the FSA is clear: lenders must look to work in co-operation with intermediaries, taking a more open and long term strategic view of the shared responsibilities that exist to serve the mortgage consumer better.

“We believe the FSA is right to assign product design responsibilities to lenders. We are pleased to see the FSA highlight the role of advice for complex products and consumer needs – especially in such areas as sub-prime. The need for advice is even greater in areas such as equity release.

“AMI believes the FSA has rightly identified that intermediaries carry responsibility for advice, but they can only be held to account if lenders provide them with accurate and timely information, both when the product is new and exciting but also on an ongoing basis. There is a clear message here that lenders need to improve their levels of post-sales service.”

He adds: “While the FSA clearly expects lenders and intermediaries to continue to communicate where it is in the best interest of the consumer, this may require a radical rethink by some lenders as to how they share information with intermediaries post-completion.

“Mortgage networks will need to gather detailed information from lenders about levels of churn and customer satisfaction. This requires an open and strategic relationship. We take comfort from the fact that the FSA has said this will not be a hindsight activity.”


New ScotProv form aims to cut non-disclosure

Scottish Provident has repriced premium rates on its death and critical-illness insurance plans and redesigned its application form to reduce non-disclosure. It has cut the majority of its rates but some have increased. Intermediaries will get an extra 10 per cent commission if they submit business online. The application form has been redesigned to reduce […]

Consumers are failing to pick suitable protection

Seventy-one per cent of consumers do not choose the protection insurance most suitable for their circumstances and only 13 per cent select the product offering the best level of cover. Research from Lifesearch, which surveyed 1,001 people, found that in the 18-29 age group, only 12 per cent of respondents buy the product which best […]

BSA’s amazing attack on the Woolwich

Woolwich has been slammed for poor service and labelled as a declining brand in an astonishing outburst from the normally reticent Building Societies Association. The BSA says Woolwich, which demutualised in 1997, has been outshone by smaller building societies as it has not demonstrated suitable “management, promotion, care and understanding”. But the Barclays-owned lender, which […]

Value of ongoing advice

It’s in both your interests to bully clients, in the nicest possible way, into having regular financial reviews


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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