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MMR too focussed on brokers, says BSA

The Building Societies Association has criticised the mortgage market review’s stance on full advice as being too focused on brokers, with lenders an afterthought.

It warns that there could be a risk that consumers may become less engaged if they are forced to take advice even if they do not require it and pay less attention and have less interest in the mortgage process on the assumption that they will be provided the best mortgage for their circumstances.

The trade body states: “This is a criticism we raised in our response to CP 10/28 and it is disappointing that this has not been taken on board. Of particular concern is the lack of regard for lenders with a limited product range, where advice would be inappropriate and impractical.”

“At a time when the government is implementing major reforms through the Universal Credit regime with the objective of putting consumers in control of their finances, this proposal seems to be at odds with the government’s policy.

It has also criticised the FSA’s stance on advice as too product focused and risks further reducing choice for consumers.

The BSA was hoping that the FSA would mortgage advice and selling to move away from being solely focused on recommending or providing information on a product, to a more holistic financial advice and information approach.

By moving to a fully advised market it says the FSA risks making the process of getting a mortgage more product focused, further reducing the choice for the consumer as to how they manage their personal circumstances.


Qrops must offer same deal for residents

HM Revenue & Customs has published new rules on Qrops which confirm that schemes must provide the same tax benefits to residents as non-residents. Final rules published by HMRC last week include req-uirements previously known as Condition 4, which mean Qrops providers must treat non-residents and residents of a jurisdiction in the same way for […]

Co-operative Bank to increase SVR by 0.5%

The Co-operative Bank is to increase its standard variable rate by 0.5 per cent from 4.24 per cent to 4.74 per cent. The change will take effect from May 1 and Co-op says customers can switch onto any product in its current range, should they meet the criteria. For those with an LTV of 90 […]


Nic Cicutti: Money Advice Service has no soul

One of the perils of self-employment, as most IFAs know only too well, is the way that, in the weeks and days leading up to taking a much-needed vacation, the amount of work you have to do before taking that break seems to grow exponentially. Every client, including many who have not been in touch […]


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