View more on these topics

More sub-prime firms face FSA action after £840k fine for DB

Brokers are warning that the FSA could fine more sub-prime lenders for inadequate lending practices, following the £840,000 fine levied on DB Mortgages.

The sub-prime firm, part of Deutsche Bank Group, was fined this week for irresponsible lending practices and unfair treatment of customers in arrears. The regulator also secured redress of around £1.5m for customers.

This is the first time the FSA has taken enforcement action against a firm for irresponsible mortgage lending.

DB Mortgages is the fourth lender to be referred to enforcement following the FSA’s thematic project on mortgage arrears handling. Final notices have also been given to GMAC-RFC, Kensington Mortgages and Redstone Mortgages.

First Action Finance head of communications Jonathan Cornell believes there are other sub-prime lenders that had similarly poor lending practices. He says: “The things DBM were fined for were fairly catastrophic. I would hope there are no other lenders in that position but I suspect there will be some guilty of the same to some extent. I would have thought some of the specialist lenders are slightly more culp- able than mainstream lenders.”

John Charcol senior technical manager Ray Boulger says some sub-prime lenders did not have appropriate arrears handling practices in the past and this could lead to further fines.

He says: “I think we all know that being rather robust in the treatment of those in arrears was something that perhaps some of the sub-prime lenders went too far on. It is likely that the FSA is probably investigating several other sub-prime lenders.”

London & Country head of communications David Hollingworth says: “I think the FSA is signalling its intent to look more closely at lenders’ behaviour from now on.”


Pension firms set out their early access alternatives

Pension experts have pitched alternative ideas to the Treasury in response to its call for evidence on its early access proposals. Last December, the Treasury outlined four potential models to allow people access to their pension before age 55. These include a loan model, a permanent withdrawal model, early access to the 25 per cent […]

The pace of change

The regulatory alphabet soup facing advisers is growing rapidly, with more than a dozen high-impact directives, reviews and consultations under way, creating uncertainty, causing a drain on resources, adding cost and piling on confusion for investors. While some, such as the retail distribution review, have been ongoing for many years, many have sprung directly from […]

Syndicate Asset Management set to rebrand as Ashcourt Rowan

Syndicate Asset Management has announced plans to sell its asset management business and focus on the wealth management sector. The group has appointed an adviser and has begun talks with third parties to sell its institutional fixed income offering Epic Asset Management and is proposing to rebrand Syndicate AM as Ashcourt Rowan. The board says […]

Memories are made of this

Using information rather than just passively reading it sharpens the memory and makes it easier to recall later and the ifs School of Finance outlines techniques that can be used to make the learning process easier

DB transfers – one more factor to consider

Jim Grant – Senior Product Insight & Technical Support Analyst We look at how higher DB transfer values could cause a lifetime allowance issue and how that affects the advice process. Advisers are receiving an increasing number of requests from clients looking to transfer their pension from final salary schemes to personal pensions. This is a […]


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