View more on these topics

FSA fines Select Mortgage Services

The FSA has fined Select Mortgage Services £10,500 for poor financial promotions, inadequate sales processes and inappropriate systems and controls to manage its business.

A review by the FSA last year of financial advertising in the sub-prime mortgage market highlighted that Swindon-based Select had issued unclear financial promotions and had weaknesses in its management systems in relation to the sale of mortgage products generally, not only sub-prime.

The subsequent investigation found evidence that Select failed to ensure its financial promotions accurately described its ‘Capital Repayment Plan’, meaning customers did not receive reliable information to help them make informed choices and achieve a fair deal.

The FSA also found that Select had inadequate sales processes in place for the recommendation of mortgages to customers and did not have appropriate management systems and controls in place to ensure that the firm met the necessary regulatory requirements.

FSA director of enforcement Margaret Cole says: “Taking out a mortgage is one of the most important decisions anyone makes during their life. Poor practice by firms in this area therefore poses a high risk to consumers – and this is particularly the case when it comes to sub-prime mortgages, given the vulnerable nature of the target audience.

“It is essential that firms’ financial promotions are clear, fair and not misleading, so that consumers know exactly what they are buying. In addition, firms need to have the right sales processes in place so that they recommend suitable mortgages.”

Select says it has put in place controls to ensure that its future mortgage business meets the required standard and has also agreed to write to all of its existing customers to inform them of the risks associated with its CRP.


F&C launches a diversified growth fund

F&C is launching a diversified growth fund which it says aims to address the lack of portfolio diversification across pension schemes.F&C says the fund will offer an alternative to the balanced pooled platforms currently available in the UK market place.The F&C diversified growth fund has a 50 per cent exposure to alternative assets. F&C says […]

White knights

UK growth funds have marginally outperformed UK income funds in recent times but income funds have consistently outperformed over the longer term. In today’s volatile markets, higher dividends and increasing profits matter more than ever.

‘Primary advice puts consumers at risk’

Consumer advocate Mick McAteer has blasted the RDR for “completely missing the point” by failing to understand consumer needs and playing into providers’ hands.McAteer also warned that “second-class” primary advice could damage generic advice.Speaking at Osney Media’s financial services distribution summit in London this week, McAteer said the RDR will cause more confusion in a […]

‘Restructure must address non-advice’

Aifa is calling on the FSA to look more closely into non-advised sales as it says consumers are confused over what constitutes advice.The trade body’s second retail distribution review issues paper paper says: “This is a growing market in which we are seeing increasing problems and a misunderstanding over the nature of service received.”Aifa says […]


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