View more on these topics

CML: MMR advice proposals could hit third party servicers

The Council of Mortgage Lenders believes making advice compulsory for arrears handling could have a major impact for third party servicers.

In its submission to the final mortgage market review consultation paper, the trade body says it could lead to third party servicers seeking permissions for advice.

It states: “This will have a significant impact on third party administrators working on behalf of lenders, whose models are based on offering a non-advised service, and most third party administrators do not have the necessary permissions to provide advice.”

The CML believes most forbearance options are based on temporary changes and concessions, and not formal contract variations.

It states: “A lender would not be certain of the outcome at the start of the conversation and would have to progress on an advised basis.

“This will result in a significant cost to lenders to amend their systems, train their staff in an advised process, much of which will be irrelevant to their vital function.

“There will be additional costs – not factored into the FSA’s cost benefit analysis – because advisers are on higher pay rates than non-advised sales staff.”

It is also calling for any changes in advice rules in the MMR to be aligned with the introduction of the approved persons register.

It believes this would create a consistency of approach and significantly reduce the costs to lenders and third party administrators.

The CML says an alignment would also ensure borrowers are not subjected to a disproportionate process when making changes to their existing mortgage contract which they will expect to be straight forward and swift.



PwC and RSM Tenon in row over auditing

RSM Tenon and its auditors PricewaterhouseCoopers are embroiled in a row over the quality of the firm’s auditing, according to The Times. In January, Tenon announced its chairman Bob Morton and chief executive Andy Raynor were stepping down and the firm was reviewing its financial reporting. It said this review may lead to restatements of […]


Easter launches advice firm with Peter Williams and David Ingram onboard

Former Honister Capital director Alan Easter is launching a new advice and fund management group, which has former Aegon head of industry development Peter Williams and former Threesixty technical director David Ingram on the board. The Beaufort Group is made up of Beaufort Financial Planning and Beaufort Investment Management. BFP will provide whole of market […]

Multi- manager view

With the Greek problem punted into the middle distance, investors have had to find something else to worry about. The price of oil has stepped up to the oche, with the recent price hikes and the Iranian tensions making it the obvious choice for the nail-biters among us. Previous episodes of elevated oil prices have […]

Blacksquare absolute fund recovers ground

Blacksquare Capital’s diversified absolute return fund is recovering lost ground following a difficult period last year which started with the extreme market volatility in August. The fund was up by 2.32 per cent last month, building on gains made in January, bringing year-to-date returns up to around 4.84 per cent. The firm says nine of […]

The Day of (B)reckoning

A period of exceptional uncertainty started last Friday for the UK, including a fierce leadership battle in a deeply divided Conservative party, the timing of the trigger of the EU’s Article 50, as well as a potential referendum in Scotland, and Northern Ireland. Click here to read the full article


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