View more on these topics

Bolton says FSA unsure if retention schemes break TCF principles

Edeus chief executive Michael Bolton believes the FSA is struggling to understand whether retention strategies conform with its principles on treating customers fairly.

Bolton says other contentious areas, such as payment protection insurance, are easier to understand and have been dealt with head on but the regulator has not yet got to grips with the relatively new phenomenon of mass retention.

FSA retail markets managing director Clive Briault, speaking to Money Marketing at last week’s Mortgage Business Expo, could not clarify whether the regulator has any issues with retention schemes or whether it could give them a clean bill of health.

The regulator has only previously stated that it is not about to start an investigation into retention but has not passed any judgment, saying only it is aware of the debate.

Bolton says: “Retention is not like flagrant misselling of PPI, which is easy to identify. Retention takes a lot more thinking through and I am not sure the FSA has got to grips with it yet and it has not given an opinion.”

Meanwhile, Woolwich has revamped its retention scheme so that it covers both regulated and non-regulated mortgages, as it previously only covered non-regulated homeloans. But a glitch means it will not be available for fee-charging brokers on retention cases until next March.

The Mortgage Practitioner sole trader Danny Lovey says: “It is pleasing to see that Woolwich is now doing the regulated side as well.”

Recommended

JS&P Towry Law appoints Jones as non-executive chairman

Leading IFA firm JS&P Towry Law has appointed Glyn Jones as non executive chairman of the group.Jones was most recently chief executive of Thames River Capital (2005-6) and prior to that chief executive of Gartmore Investment Management from 2000 to 2004.Before Gartmore, Jones was chief executive of Coutts Group and ran Standard Chartered’s international private […]

MitonOptimal cuts global portfolio exposure to Japan

MitonOptimal is reviewing its exposure to Japan and has cut exposure to the region in its global portfolio, bringing it in line with the benchmark position.The region is a long-term play in the firm’s portfolios despite growth being slower than expected.MitonOptimal says there is a lot to be positive about in terms of a recovery […]

‘Churning’ points

HBOS has rejected a City analyst’s claim that the company is a “churner”.Aviva, Prudential, Standard Life and HBOS have all been branded “churners” in a new report conducted by Fox-Pitt Kelton. The report, The DNA of Life, measures persistency by calculating whether new business premium growth translates into reserve growth.It claims that HBOS stands out […]

PPF rejects Aon levy attack

The Pension Protection Fund has rejected criticism that changes to the way it sets its levies will wreak havoc with firms’ budgeting processes.Aon Consulting says the PPF is considering setting the 2007/08 scaling factor on March 30, 2007 rather than the several months’ notice given ahead of the 2007/08 deadline on March 31, 2006.It says […]

Is volatility dead? No, sell credit

There are several arguments that one could currently make for why credit markets look unattractive. These include signals that the US economy is in late cycle, the fact that corporate leverage has been increasing (with 2016 setting a record for the amount of global bond issuance), and that US high-yield default rates have risen considerably […]

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