View more on these topics

Loan firms warned to look out for property hijackers

The FSA is warning mortgage brokers to be wary of property hijacking.

In its April smaller firms regulation round-up, published last week, the regulator reports an increase in cases where fraudsters are trying to get mortgages on empty properties they do not own, which it calls property hijacking. The fraud is commonly perpetra-ted by introducers that are previously unknown to brokers.

The FSA says: “There have been attempts by fraudsters to raise mortgages on unencumbered properties.

“This demonstrates the importance of undertaking appropriate due diligence when engaging in new relationships to ensure that you know who you are dealing with and can identify any trends or anomalies in the business being offered.”

London & Country associate director of communications David Hollingworth says: “Brokers have to make sure they do enough due diligence when taking on a new introductory source to make sure they are not being used as part of a scam to commit fraud.”

Recommended

Only 12% of sales involved suitable advice, says FSA

The FSA says just 12 per cent of Arch cru sales were found to involve suitable advice based on an external file review of a small number of cases. The regulator published a consultation paper this week on plans to implement a £110m consumer redress scheme for between 15,000 and 20,000 Arch cru investors. Firms […]

FSCS defaults £9m Ucis seller Pave

An adviser firm contesting a ban and £90,000 fine after it advised clients to invest a total of £9.7m into unregulated collective investment schemes has been declared in default by the Financial Services Compensation Scheme. Bath-based IFA Pave Financial Management was declared in default on April 17. The FSCS has so far paid out just […]

4

Rob Reid: Can great minds think alike on RDR?

News that the Institute of Financial Planning has launched its “great minds think alike” campaign takes me back to my childhood as we had a set of drinks coasters with that very phrase on one of them. Synergy among firms can be very powerful, provided a common direction can be determined in early course. Indeed, […]

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