View more on these topics

MCCB calls for reasons-why letters to be retained

The Mortgage Code Compliance Board has identified key issues for the industry after the FSA takes over the regulation of mortgages.

Its final annual report published last week, the MCCB recommends that in all non-advised sales, consumers should be given a warning of the consequences of not obtaining advice.

It also stated that the title adviser should only be used when advice is provided.

The MCCB is urging lenders and intermediaries to retain the reasons-why letter as part of the mortgage sales process as it can be one of the key pieces of evidence used to determine complaints.

It is concerned that the new key facts illustration is mainly product-specific, leaving out many of the more general aspects of a mortgage required by the MCCB&#39s rules.

It believes there may be a case for firms to provide a small leaflet which lists relevant general mortgage-related issues on top of the KFI.

The MCCB believes that FSA regulation of the mortgage and general insurance markets is an opportunity for a fundamental review of regulation, looking at questions such as the point at which the extra costs of regulation are no longer balanced by additional consumer benefit.

Chairman Colin Harris says: “Our final annual report highlights the partnership we have built with the industry and the dedication of the MCCB&#39s staff as key factors in MCCB&#39s achievements.

“In continuing this progress, the MCCB has identified key issues for future review to help the industry and FSA as they develop mortgage regulation over the coming years. We hope this will stimulate debate as to how best to protect consumers and further increase professionalism in the mortgage industry.”


First State looks great in China

First State Investments has established a sterling share class in the First State Greater China growth fund, making it available to UK investors for the first time. The fund invests a range of companies in the People&#39s Republic of China, Hong Kong, Taiwan and Macau. It will be managed by Martin Lau, who joined First […]

Analysis costs may stop IFAs doing transfers

IFAs may stop doing pension transfers altogether if they are forced to pay for independent transfer value analysis, warns a leading technology provider. Chambers Townsend Con-sultancy managing director Nigel Thomas says Sesame&#39s decision to force members to pay for reports from independent TVAS provider O&M Systems – reported in Money Marketing last week – could […]

Closed funds make up 20% of WP assets

Assets in closed with-profits funds comprise 20 per cent of the overall WP market, according to the Treasury. In monetary terms, this equates to around £191bn out of £940bn in with-profits money residing in closed vehicles. With-profits liabilities in closed funds amount to £84bn out of a market total of £333bn. In its report on […]

PI rates could be halved as fears are dispelled

Professional indemnity insurance premiums could fall by 50 per cent because problems with IFAs have failed to materialise, says PI broker PYV. PYV says it has recently been able to negotiate up to 50 per cent reductions in premiums for some IFAs and director Neil Pointon expects excess and conditions terms to improve in the […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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