Claim-chasers in the mortgage market could be exempt from regulation once the Compensation Act comes into force.The Department for Constitutional Affairs’ head of claim regulation Mark Boleat admits that a loophole may exist for firms whose claims are not based on the sale of a product. At present, legislation will only apply to those who help consumers claim over a mis-sell. But some claim companies, such as Loancheck are working on claims over the calculation of fees and interest charged. The regulation of claim firms is likely to begin in April 2007. Boleat says: “Regulation covers any claim management company but we want to limit the scope to where the detriment is, which is the sale of financial products. If people think the scope should be extended we could look at that during consultation.” Claims Standards Council spokesman Andy Wigmore has warned that the council has identified a number of rogue claim firms moving into the mortgage market. He says some are pocketing fees to conduct an assessment of whether a claim can be pursued and running off with the customers’ money without checking whether there was a valid claim in the first place.
Consumers who take financial advice are likely to maintain a better standard of living in retirement. Research by Fidelity found that 70 per cent of retired consumers who had taken advice did not have to cut back on their lifestyle and spending habits while 60 per cent of those who did not take advice were […]
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Lighthouse Group has announced its interim results showing a maiden pre-tax profit of 112,000 compared to a 142,000 loss this time last year.The group’s combined turnover increased 36 per cent to 20.5m, increasing by 5.4m compared to 2005.Total funds under advice increased by 39 per cent, by approximately 4bn since June 30, 2005. Turnover per […]
Income drawdown has become an attractive proposition. But adopting a ‘decumulation’ strategy also carries risks. What are the risks advisers need to be aware of? Read the decumulation challenge. Click here to read full article
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Claims management companies must be more specific on separate permissions and competency when they under the remit of the FCA, according to HM Treasury. Under rules proposed in the Treasury’s latest consultation paper, claims management companies will operate under six sectors – housing disrepair, industrial injuries disablement benefit, personal industry, financial products and services, criminal […]
Knowing what assets each operator will accept and with what conditions is becoming increasingly difficult The recent well-publicised events concerning Sipp operator asset acceptance have focused the mind of a number of advisers. We have been fielding enquiries about our own Sipp and the asset classes we as a Sipp operator would consider. But this […]
Investment trust sales may come under pressure due to new EU rules, experts have warned. The potential benefits of gearing on investment trusts risk being overlooked as new cost reporting rules make them look more expensive compared with open-ended funds. Traditionally, closed-ended funds have looked attractive based on lower costs compared with other structures, as […]