View more on these topics

Lenders tear into FSA&#39s &#39confusing&#39 proposals for mortgage regulation

FSA proposals for mortgage regulation will be slammed as anti-competitive, ineffective and likely to stifle innovation in consultation responses sent to the regulator this week.

Several major lenders say their responses to the FSA&#39s consultation document – due in this week – rip apart the proposals as being a backward step for the market and virtually impossible to implement and enforce.

The news comes as senior mortgage figures predict the vast majority of the regulator&#39s mortgage proposals will become statutory at N3 next year despite industry opposition.

In its response, Yorkshire Building Society blasts the FSA&#39s disclosure regime – which it claims requires an “undesirable” logging system for pre-sale documents – as anti-competitive and likely to force illustration document suppliers out of business.

It also claims the obligation for lenders to police intermediaries is pointless as there are no effective sanctions against rogue brokers contravening statutory rules.

Coventry Building Society is another lender seeking major revisions from the regulator, which it claims is “using a sledgehammer to crack a nut”.

Compliance manager Ian Baker says: “We have some serious concerns about these rules, with the illustration requirements in particular being totally unnecessary, confusing and very difficult to administer. Some of it could not possibly work, and little of it is going to help borrowers.”

An FSA spokeswoman says: “We are grateful for everyone&#39s views on the matter and remain keen to set out a regime that will be good for consumers. We will not shy away from criticism.”

Recommended

Julian Gibbs

High-income products have come under increasing scrutiny following warnings from the FSA over the true levels of risk and high-profile examples of products falling through their protection barriers early in the term. The FSA is to be applauded for its stance. The attitude towards risk is one of the first questions that needs to be […]

SG Life & Pensions – SG Life International Portfolio Bond

Tuesday, 11 September 2001.Type: Traditional offshore bond.Aim: Growth by investing in unit trusts, oeics, managed bond funds,investment trusts and cash through a discretionary fundmanager.Minimum investment: £250,000.Place of registration: Guernsey.Investment split: Choice of unit trusts, oeics, managed bond fundsinvestment trusts and cash.Isa link: No.Charges: Initial up to 0.5 per cent a quarter for three years, annual […]

Minister rules out &#39reform for rich&#39

Pensions minister Ian McCartney has ruled out annuity reform because he believes it would benefit only the very wealthy. At a fringe meeting at the annual TUC conference in Brighton this week, he said he had not seen any evidence that relaxing annuity rules would benefit the average pensioner. Answering a question from the floor, […]

Inora offers 10.75% on high-income plan

Dublin based life office Inora Life is launching the second of its income plans, only two weeks after the FSA issued a consumer warning about the risks associated with high-income style products. The dynamic income fund 2, which launches on October 1 and closes on November 16, has a minimum investment of £6,000. It offers […]

Oil industry: only the fittest will survive

The actions of OPEC have forced the oil supply to fall and producers to cut costs and rationalise, says Richard Hulf In an interview with journalist Alexis Xydias, Richard Hulf, manager of the Artemis Global Energy Fund, explains the impact of the fall in the oil price on energy companies. Alexis also quizzes Richard on […]

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