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Mortgage Board mauls FSA red tape plan

The FSA has been slammed by the Mortgage Code Compliance Board for issuing draft rules on mortgage regulation which could swamp borrowers with unnecessary product information.

MCCB chief executive Luke March claims FSA proposals outlined in a consultation document last week are likely to leave borrowers in the dark about the terms and conditions of their mortgage.

His comments come as he reiterated his fears that FSA rules forcing lenders to monitor the information given to borrowers could result in smaller intermediary firms being sque-ezed out of the market.

March claims the FSA is missing the point of regulating mortgages by insisting the focus of pre-sale documentation is on enabling borrowers to compare loans easily.

He says if the document for each mortgage is more than one page – industry sources claim it could be up to five pages – there is a real danger that borrowers will not read the material and will fail to understand what they are signing for.

He says he would be amazed if lenders are able to develop and implement the tech- nology required to deliver the documents to intermediaries by the time the regulations come into force next August.

March says the MCCB, which already monitors adv-ice through the mortgage code, is ideally placed to regulate brokers on behalf of mortgage providers but stresses it can only do so if asked by the Council of Mortgage Lenders.

He says: “My greatest worry is borrowers will not read the material with which they are provided. It is fundamental that consumers know what they are buying and if that is not achieved the whole purpose of regulation will be lost.”


Virginmoney calls for code on aggregation is leading calls for a voluntary code on account aggregation amid regulatory concerns that such services may be illegal.The move follows the publication last week of the FSA&#39s discussion paper on the regulation of e-commerce, which warns providers not to sign up to any aggregation service that may see them fall foul of the […]

Major multi-tie could emerge if polarisation gets scrapped

The Misys/DBS deal could lead to the creation of a major multi-tie operation, with the heads of both businesses keeping their options open until the regulator decides the future of polarisation.Both businesses indicated they would consider offering members the option to multi-tie.But IFAs believe providers will be very concerned about Misys&#39 growing influence on distribution, […]

Bestinvest hooks up with TrustNet

Bestinvest is appointing TrustNet to provide data for its online fund profiles to its more than 50,000 private investors.Trustnet will now offer Bestinvest users information on the top ten portfolio holdings of any investment fund on its site.TrustNet founding partner and sales and marketing director James Jones says: “TrustNet and Bestinvest have a similar goal […]

GE buys National Mutual

American giant GE is buying National Mutual, after the pension specialist said it was reviewing its mutual status in March. Details of the terms of the deal are yet to be made public.

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Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.


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