View more on these topics

‘FSA equity release call will harm sector’

Concerns have been raised that the FSA’s request for firms which do small amounts of equity release to stop doing so could harm the sector.

The fear is that brokers will be forced out of the market rather than being encouraged to train at a time when the industry is urging more intermediaries to enter the sector.

The regulator’s call came as it delivered the results of its latest mystery-shopping exercise into the sector last week, which revealed that standards have improved but that the industry still has some way to go.

Scottish Widows head of product development & marketing Murdo McHardy says: “We would all like to see more brokers involved but the FSA coverage will continue to put high-street brokers off this market.”

But some experts think the FSA had no choice but to issue its demand as standards are said to be low among firms that do a small amount of equity release business.

Provider In Retirement Services, which set up an outsourcing service for advisers in March, has already seen an increase in business this week.

Safe Home Income Plans chairman Jon King says: “From August 2007, members will no longer accept business from advisers who do not hold qualifications. By insisting that advisers are qualified, we will stop brokers dabbling.”

Recommended

First Actuarial plans for expansion as it approaches 2nd birthday

First Actuarial is finalising its expansion plans as it celebrates itssecond year of trading with strong business figures.The actuarial consultancy is planning further recruitment at its four existing offices and the opening of a fifth office in Peterborough next month.Latest annual trading figures from First Actuarial show annual revenues up by 40 per cent on […]

F&C hires Coles for global equities team

F&C has appointed Terry Coles as alternate manager to Sophie Horsfall for its international funds.Coles joins from Morgan Stanley Asset Management where he was most recently junior portfolio manager for global equity in its private wealth management business.Director of global equities and fund manager of the F&C stewardship international fund Sophie Horsfall said: ” Terry […]

The Pensions Regulator publishes its 2006/7 business plan

The Pensions Regulator has published its business plan for the period 2006/7 with a focus on delivering effective risk-based regulation.The business plan also builds on the regulator’s medium term strategy to strengthnen defined benefit schemes, improve the governance of work-based pension schemes and reduce the risks to members of work-based defined contribution schemes.The Pensions Regulator’s […]

Fidelity special sits shareholders vote yes to split

Fidelity has received resounding backing from special situations shareholders to split the fund in two.The special shareholder meeting saw an unprecedented 88,000 take part in the voting process with 97 per cent voting in favour of splitting the 6.5n fund in two, one with the current mandate and the other a new global mandate. Fidelity […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment