View more on these topics

FSA finds areas of non-compliance with arrears rules

The FSA has found areas of non-compliance by firms with arrears rules as part of the second stage of its mortgage effectiveness review.

It says it is undertaking focused thematic work on the arrears management practices of firms to establish whether such problems are indeed occurring. The results will be published in June.

It says the second stage of its mortgage effectiveness review will help inform the wider review of the mortgage conduct of business regime, as announced in the regulator’s business plan for 2008/09.

The second stage of the FSA’s review focused on consumer experiences in the sub-prime and lifetime mortgage sectors of the market.

Its mortgage effectiveness review found that in neither market do consumers make a distinction between receiving advice or information-only, and the Initial Disclosure Document is not prompting them to think about the level of service they might get.

In addition, both sub-prime and lifetime consumers see the Key Facts Illustration as an important and useful document for helping them to check points of detail and clarify uncertainties, but not for product comparison and shopping around.

The research also found that sub-prime consumers rely on their broker and accept their broker’s recommendation. Most lifetime consumers also rely on their brokers. Both sets of consumers focus heavily on price, with sub-prime consumers concentrating particularly on initial payments,

Director of retail policy and themes Dan Waters says: “The Mortgage Effectiveness Review is an integral part of the FSA’s programme of work on mortgages, and will help shape the future of our mortgage conduct of business regime. It sits alongside our thematic work and close supervision of individual firms, and forms part of the balanced and proportionate approach we are taking to ensure the fair treatment of consumers.”


Small firms turning to specialist protection providers

CBK Colchester principal Peter Chadborn believes that smaller advisers will increasingly opt to use specialist protection providers because they are being neglected by the major players.Chadborn says most major life offices no longer build quality relationships with smaller adviser firms.He says: “Life offices have decided there are certain distribution channels which they will not bother […]

FSA failed to rein in the greed of the banks

Because of the banks’ overriding need to make greater and greater profits, they have lent enormous sums of money in an irresponsible and cavalier manner.

Keep your distance

Maybe it’s just me but a lot seems to have happened in the financial world since my last IFA View in January and not much of it is the sort of stuff that puts a smile on your face.

Interbank rates aggravated by Northern Rock cash flow, says Ward

New Star economist Simon Ward says the upward pressure on interbank interest rates has been aggravated by a flow of cash back to Northern Rock.He says: “Other banks benefited from Northern Rock’s woes last autumn, as savers withdrew funds from the troubled lender and redeposited them elsewhere. Now, the reverse flow is occurring, with savers […]


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