The FSA’s attack on the mortgage sector following its quality of advice probe has left advisers feeling demoralised and nervous.
The Mortgage Practitioner sole trader Danny Lovey says most brokers are doing the best for their clients.
He is disappointed that the regulator has lashed out at advisers over their mortgage recommendations when such decisions are subjective so can always attract criticism.
He says the poor quality of record-keeping, highlighted as a problem by the FSA, has no impact on the advice given as it is purely an administrative function.
The FSA’s investigation found that over 75 per cent of small intermediaries did not have the right processes in place to ensure their customers received the most suitable advice.
Lovey says: “As an industry, we get this nasty smell in the air that we are not doing it right.
“It was demoralising to read the FSA’s results and it makes us nervous. Some of what it has said is black and white but recommendations are people’s judgement and you can always question that. Where do you draw the line on what you do and do not document?”
Premier Mortgage Service managing director John Malone says: “The FSA announcement was severe but I expected it to be worse.”