View more on these topics

CII misselling warning over exclusion of T&C

The FSA proposal to exclude training and competence requirements for non-advised mortgage sales could result in consumer confusion and misselling, says the Chartered Insurance Institute.

The CII&#39s warning comes in its submission to the FSA&#39s consultation on CP146, which outlines its approach to the regulation of mortgage advice.

Under the regulator&#39s proposals, the non-advised route would involve brokers working from a list of filtered questions from which they would not be allowed to stray. It would sit alongside execution-only and fully regulated advice.

In its submission, the LIA has criticised the decision to close the consultation period on CP146 this week before other relevant consultations, saying it does not represent joined-up thinking by the FSA.

It believes other areas such as general insurance regulation, polarisation, appointed representatives and product disclosure must be taken into consideration before mortgage rules can be completed.

The LIA also believes there should be a single definition of independence for investment and mortgage advisers, as having different definitions will only confuse consumers.

The CII says, without adequate training and exams, consumers who would benefit from more advanced mortgage arrangements will only get advice on simple products because that is all their broker is authorised to discuss.

It is also advocating a single-title of qualified mortgage adviser for all regulated brokers to ensure that consumers are not misled.

Director general Sandy Scott says: “If the current recommendations are adopted, we believe that, in order to avoid the extra training required, firms could potentially offer a level of advice that does not meet the consumer&#39s needs. We believe this could lead to confusion for consumers, with the potential for misselling.”

LIA head of public affairs John Ellis says: “It seems to us that sales are either advised or execution-only. The introduction of a person providing information and using filtering questions creates misunderstanding on the part of clients that they are receiving advice.”


Henderson Global Investors – FTSE 100 income or Growth Plan

Monday, 11 November 2002 Type: Guaranteed equity bond Aim: Growth linked to the performance of FTSE 100 index Minimum-maximum investment: £7,000-£5m Term: Five years Guarantee: Capital returned in full provided the index does not fall by more than 30% in last two years Return: Choice of 6.5% income a year, 0.52% income a month or […]

Gullwing Asset Management – Exempt Property Unit Trust

Thursday, 14 November 2002 Type: Unit trust Aim: Growth by investing in retail and leisure property Minimum investment: Lump sum £50,000 Investment split: 100% in retail and leisure property Isa link: No Pep transfers: No Charges: Initial 3.75%, annual 1.1% Commission: Initial up to 2% Contact:

UK launches checking service

UK has launched a new service that helps borrowers work out whether they are being overcharged for their mortgages.The service, which is being run in association with Bespoke Independent Financial Advisers, can also help borrowers seek recompense from their lender.The mortgage adviser estimates that a significant proportion of borrowers have been overcharged by more […]

Norwich Union – Norwich Union Distribution Fund

Tuesday, 12 November 2002 Type: Oeic Aim: Income and growth by investing in fixed interest securities and UK equities Minimum investment: Lump sum £1,000, £500 Isa, monthly £50 Investment split: 65% fixed interest securities, 35% UK equities Yield: 5.7% gross a year Isa link: Yes Pep transfers: Yes Charges: Initial 4%, annual 1.25% Commission: Initial […]


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