View more on these topics

Call for vigilance on self-cert mortgages

Lenders should not be complacent about selfcertification mortgages, warned FSA chief executive John Tiner at the Building Societies Association&#39s annual conference in Manchester last week.

Tiner said while the FSA&#39s investigation into self-cert mortgages – which was prompted by allegations of abuse made by the BBC – concluded that lenders&#39 systems and controls were broadly adequate to counter the risk of financial crime, there was no room for complacency.

He told delegates they should have systems in place to detect and report attempted fraud. They must check the information provided by borrowers is plausible and internally consistent and lenders must not accept such information at face value.

Tiner said lenders needed to test samples of information to ensure any assumptions made about accuracy were valid.

“You as lenders have a right to expect your customers to be truthful and borrowers need to be aware that fraudulent misrepresentation – whether encouraged by an adviser or not – is a crime,” explained Tiner.

“We expect all regulated firms to have systems in place to detect and report attempted frauds to the relevant criminal authorities.

“I wonder if the principles of good lending sometimes tend to get forgotten in the excitement of pursuing new sources of business and reducing administration costs.”

Recommended

Sarasin wrapper out for fifth time

Sarasin has brought out another issue of Sarasin Guaranteed Portfolio – globalsar principal guaranteed note. Issue five of this capital-protected fund invests entirely in the Sarasin CI globalsar sterling balanced fund, which is a Guernsey-based unit trust. The underlying fund has a 16-year track record and invests globally in a combination of equities, bonds and […]

B&W backs home plan for Muslims

The Arab Banking Corporation and Bristol & West have joined forces to launch an Islamic home finance product. Tailored to the needs of the Muslim community in the UK, the product will be marketed by ABC under an Islamic brand name, alburaq. Financing and full back-office support services will be provided by B&W. The agreement […]

Insurers&#39 duty is to protect clients, not themselves

Isn&#39t it ironic that in an industry which is as closely regulated as financial services, the concept of duty of care is so often blatantly lacking. As an IFA, I have almost now become used to seeing the business introducer and, more important, the client being left in the corner while the insurance company undertakes […]

SVM fund shows recovery in house building and property sectors

SVM&#39s UK Opportunites fund has showed recovery in various sectors in April including house building, property and telecoms and pub management. The £8.4m fund aims to achieve long term capital growth from a UK equity portfolio within the UK mid and small cap sector.

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