View more on these topics

CML calls for RDR read-across in fierce broker attack

The Council of Mortgage Lenders has called for aspects of the retail distribution review to be read across to the mortgage market in a fierce attack on brokers.

Speaking at the FSA mortgage conference today, CML director general Michael Coogan said the industry should look at stricter authorisation standards and higher capital and professional indemnity requirements for mortgage advisers, arguing that some brokers have behaved more like “salesmen” in prioritising cashflow over consumer interests.

Coogan argued that smaller firms pose more of a risk than larger intermediaries.

He said: “We need to read across aspects of the RDR sooner rather than later.

“I am yet to be convinced that the right outcomes are being routinely achieved, this is a major area of the mortgage review to address.”

Coogan added: “Some intermediaries have acted more like salesmen more interested in their cashflow than advisers protecting their customers interest.

“It seems in their nature, large intermediary firms are less likely to exhibit this behaviour but the long term of small firms have been largely unsupervised since 2004 and that cannot be the structure that continues in the future.

“We are going to have to look at a combination of enhanced intermediary authorisation requirements, higher capital and PI requirements for firms, enhanced training and a review of remuneration in our sector. Only by this will we sustain quality of advice.”


Pada shortlists four teams

The Personal Accounts Delivery Authority has drawn up a short list of four suppliers to administer personal accounts.

Powerful estate planning tools ignored or forgotten by wealthy Brits

Canada Life IHT Survey 2016 Only a quarter of wealthy Brits have sought professional estate planning advice to ensure their families don’t pay more tax than required More than a quarter don’t even have a will and just one in five have gifted money Many say they do not need these tools but families would […]


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