LibDem Shadow Chancellor Vince Cable has called for home-reversion regulation to be backdated to M-Day or at the very least the point at which the legislation reached Parliament.Cable is is calling on the Government to rush through the regulations to avoid a gap in consumer protection. Regulation is scheduled to come into force in 2007 and Treasury Financial Secretary John Healey said this timetable, which includes a 12-week Treasury consultation and six months for the FSA to draw up and consult on the rules, followed by firms applying for permission to sell the plans, needs to be heeded. Healey said the issue of backdating regulation would be explored by the FSA when it draws up the rules. Cable asked Healey for clarification on how lifetime mortgage rules would protect consumers from falling into negative equity. He also asked if the Treasury, in conjunction with the Department for Work and Pensions, would publish a note describing the relationship between the benefit system and equity release, particu- larly regarding means-test- ing, and whether there is a need for reform. Cable said: “It would give confidence to people in the industry and borrowers, if the Government gives assurance that the protection provided by the new regulation could be backdated.” Healey said: “Specific matters will be settled during the period when secondary legislation is being made and, in particular, when the FSA draws up proposals for the detailed rules.”
Deutsche Bank has announced its new mortgage lending arm to launch later this year will be called db mortgages.It did not reveal a precise launch date but confirmed its range of products will include sub prime, buy to let and self certification mortgagesDeutsche also confirmed the team to front the start-up will be the ex-TMB […]
This week by freelance personal finance journalist Dido Sandler
Unions representing 1.5 million local council workers are to ballot for strike action over plans to raise their retirement age from 60 to 65. These workers were excluded from DTI Secretary Alan Johnson’s deal with other public sector workers.
IFA Promotion has been awarded a Plain English Campaign Award for its consumer guide Financial advice: The buzzword is independent. The guide, aimed to clear up any confusion surrounding financial advice after depolarisation, topped the 2005 Plain English category as one of the years clearest documents.
By Kunal Desai, head of Indian Equities at Neptune Returning from a recent research trip, Kunal Desai asks three key questions: first, do prime minister Modi’s reform policies still offer hope for investors; second, what exactly is required to drive an earnings upgrade cycle; and finally, which areas of the market do we believe are […]
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As the outlook for the UK’s economy remains uncertain, how can advisers prepare portfolios for any change in inflation? As higher inflation fails to appear on the horizon and wages grow faster than expected, fund managers are weighing up their portfolio moves for any potential changes in the economy. The UK consumer prices index rose […]
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