View more on these topics

FSA hits out at sub-prime advertising

The Financial Services Authority has ordered more than 200 sub-prime mortgage brokers to withdraw or amend misleading advertising.

The regulator says that brokers who issue poor advertising and promotional materials were also found to have inadequate systems and controls to manage their businesses.

The FSA visited the worst offenders in October and November 2006 and found that where poor promotional materials had been issued, there were usually wider problems at the mortgage brokers.

A number of these firms have now been referred to the FSA’s enforcement division for further investigation.

Examples of misleading information included fee disclosure where the range of fees advertised was very different from what consumers ended up paying. In these firms, customers were also being sold mortgages with sub prime rates where there was no evidence they had impaired credit.

The work on promotional materials runs alongside another FSA project looking at whether customers are treated fairly throughout the sub-prime mortgage advice and sales process. These findings will be published in summer 2007.

FSA retail themes director Vernon Everitt says: “Financial advertising has a massive influence on the decisions people make. So it must be clear, fair and not misleading, leaving people with a balanced picture of the key pros and cons.

“This is particularly the case in advertisements by mortgage brokers in the sub-prime market, where people are making one of the most important financial decisions of their lives. We need to see standards here rising – and fast.”

Recommended

Product matters

Norwich Union has quietly revamped its directto-consumer life insurance product.Called Simplified Life Insurance, it guarantees an immediate decision on every occasion.Using an intuitive underwriting process, the consumer gets an initial quote as normal, based on a normal, healthy, clean life.Once they have completed the application questions, the premium will either stay the same, be rated […]

Pressure is growing on Pru over £9bn estate

Prudential will come under further pressure to free up its £9bn inherited estate after Aviva’s appointment of a policyholder advocate.The Pru has been looking at ways of accessing the surplus cash from its with-profits fund for 10 years.Axa was the first insurer to manage a deal in 2001. At the time, over 500 policyholders represented […]

Honour roll

Informed Choice managing director Nick Bamford dons a Harry Potter style-gown as he graduates with a BA Hons degree in financial services from Napier University, Edinburgh. Next to him is Standard Life’s Eric Bruce.The two created a study group in Guildford with another IFA, Churchouse Financial Planning’s Keith Churchouse, who graduates next year. Bamford thought […]

Metals are still shining

JP Morgan natural resources co-fund manager Nicole Vettise says the fundamentals of the commodities market remain attractive despite the recent strong run.Speaking at Asset TV, Vettise said demand from China and emerging markets is continuing to underpin commodity prices.She said the fund is overweight in base metals, with a 40 per cent position, and gold, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com