The need for clarity and an explanation of the impact of the FSA's polarisation review on the mortgage industry are the key issues raised in Halifax's response.
The bank says previous rounds of consultation tackled its main concern about intermediary advice not being regulated but now it believes the biggest question is whether the depolarised model will be applied to the mortgage sector.
Halifax says to avoid consumer confusion and deliver transparency, depolarisation should cover the whole market as it would avoid the problem of an adviser being multi-tied for life products and ind- ependent for mortgages.
Another point raised in its response is the need for packagers to be covered by regulation, where they are influencing the borrower's choice of mortgage.
Halifax is also asking the Treasury to take a reasonable view on who must be an approved person as the amount of post-completion work on mortgages carried out by lenders would make it costly to regulate all sales-support staff.
Manager (mortgage regulation) Celia Rowland says: “We are asking for clarity from the Treasury on the impact of the FSA's consultation on the polarised market. It must make sure the situation is clear for the customer.”
Standard pulls out of FSAVCs as sales Plummet
Standard Life is pulling out of the FSAVC market due to falling demand for the product since the introduction of concurrency under stakeholder.The company has also repriced its existing FSAVC plans, its retirement annuity contracts and section 32 buyout transfers to within 1 per cent.It says this means that around 85,000 customers will have a […]
Gaskin fears over procuration fees
Burns Anderson network chief Jim Gaskin has raised fears over the future of procuration fees for mortgage brokers as a result of CP121.Many brokers make the vast majority of their income from mortgages through fees paid by lenders but Gaskin says this could soon change.Speaking at the G80 summit, Gaskin cautioned advisers that if they […]
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Ail's well that ends well
One of my colleagues suffered a heart attack last July and after six months our employer terminated his employment contract. Neither he nor our employer had any insurance against ill health.My previous employer did and pay continued until recovery and return to work. Can I do something about this myself? Yes, you can do something. […]
2016 Global Survey of Individual Investors: How is investor behaviour rewriting the job description for financial professionals?
Trapped between expectations for near double-digit returns and strong apprehensions about investing in persistently volatile markets, investors worldwide are of the opinion that professional financial advice is worth the fee. But even though they believe individuals who work with a financial professional are more likely to achieve their goals, investors have a clear vision of […]
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£1 model portfolio service launched by Invesco’s Intelliflo
Back office provider Intelliflo has launched an integrated model portfolio system that will see investment manager parent Invesco charge advisers £1 per client. This follows Invesco’s acquisition of Intelliflo last year which left it with a development budget of £3.7m to upgrade and extend its services. The £1 per client per month charge will be […]
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