View more on these topics

FSA warns of widespread loan fraud

The FSA is to bring enforcement action in a third of the 200 cases of suspected mortgage fraud it has been investigating.

Financial crime and intelligence division director Philip Robinson told a Council of Mortgage Lenders’ mortgage fraud seminar last week that the problem looks “bigger and more widespread” than previously thought.

Retail managing director Clive Briault had previously told delegates at the CML’s annual conference in December that more than 30 lenders had reported cases of suspected fraud to the regulator as part of its Information From Lenders project set up in 2006.

Robinson said: “Not many of these have seen the light of day yet but they will. Watch this space. It is a great start but it can be even better. The first step is to ask those lenders who have not yet taken part, why not? I know concerns have been voiced about not getting feedback which can show value for money and that is something we are committed to improving.

“I also know that some lenders who are taking part have concerns about allowing us to make full use of their evidence against brokers they suspect. That can have a significant bearing on the success of our investigations, so I very much hope that all lenders will give us the freedom to act on that evidence in the future so that more cases can reach the successful conclusion we all want.”

Robinson told lenders that if there are other factors getting in their way, then they should tell the FSA about it. He said: “The more participants, the stronger the intelligence and the better the results. It would be great for every lender to sign up.”

He said mortgage fraud is now on the FSA’s list of prior-ity risks and spoke of the threat of organised crime rings using mortgage and property fraud to make significant profits.

Robinson said his team is putting the intelligence from the 200 cases side by side with research into repossessions and possible fraud involving new builds from elsewhere in the FSA.

He said: “We are firming up and expanding our understanding and that is informing the creation of a control strategy to guide our work, both internally and with our partners. We will be looking to work with you, both lenders and intermediaries, to help us with that.”

Recommended

Money Marketing at helm in regatta

Money Marketing publisher Centaur is launching a financial services regatta to be held in the Solent in August, with industry teams competing to win the prestigious Financial Challenge Cup.

Ifs ProShare to host CGT workshop

Ifs ProShare is holding a capital gains tax workshop on Monday March 17. Facilitated by Grant Thornton, the workshop will explain the tax changes introduced by Alistair Darling and the impact those changes will have on employees participating in employee share plans.Ifs ProShare head of employee share ownership Fiona Downes says: “The imminent changes to […]

Axa CEO says generic advice should scare people into making decisions

Axa chief executive Paul Evans says generic advice will be ineffectual if it is only an information service and says consumers have to be pushed into making decisions about products. Axa has published the results of a financial research study which found that consumers are more likely to make the most of the advice given […]

Levy mettle

This may be unusual but I am going to start with some words of praise for the work of the FSA. It is to the regulator’s credit that it recognised that the burden of the Financial Services Compensation Scheme was threatening the long-term sustainability of the intermediary sector. I would like to commend the FSA and FSCS boards for their decision to review the funding of the compensation scheme and sticking to their guns under a certain degree of industry pressure.

Health - thumbnail

Healthcare predictions for 2015 from Jelf Employee Benefits

The continuing fall-out from the Competition and Markets Authority’s (CMA’s) review, the rise of the private GP and digital engagement will be the primary focuses in the private healthcare industry during 2015, according to Iain Laws, managing director, healthcare and group risk, at Jelf Employee Benefits.

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