The mortgage industry could escape severe regulatory censure for selling payment protection insurance.Research agency Defaqto believes that if regulators do investigate PPI selling practices, the mortgage sector “is least likely to require close scrutiny”. It claims that abuses are far more prevalent in the personal loans and credit card sectors. But British Insurance managing director Simon Burgess says some product providers selling MPPI in the right-to- buy council house sector are “criminal” in preying on vul- nerable consumers. Defaqto claims brokers will be the winners in the predicted industry shake-up following investigations by the FSA and the Office of Fair Trading. But it predicts that single- premium cover, where the total cost of the insurance is added to the loan amount and incurs interest, will be abolished soon, hitting sub-prime mortgage providers. Associate research director Brian Brown says: “There is not as much customer detriment on the mortgage front. There will be more competition in future and it will be clear that there will be other options rather than lenders to get cover.”
The annuity market is set to be a significant battleground for insurers as researcher firm Defaqto predicts a scramble for assets over the next couple of years. The IFA market for annuities is worth more than 5.6bn but in the first quarter of 2005, four companies accounted for 83 per cent of all open market […]
More than a decade ago, when I was in my infancy as a scribe, I got to know a business journalist who had spent many years working for a variety of national newspapers. His decades of experience meant that what he did not know about the business community and how it worked was not worth knowing, he told me once, wiping foam off his top lip as we had a quick pint or three down the pub after work one evening.
Abbey chief executive of insurance and asset management Paul Bradshaw is leaving the company at the end of the month. The firm says Bradshaw’s departure follows a strategic review into its life and investment operations which has now been completed. This included reviewing the potential options for Abbey’s closed with-profits book. Bradshaw will be replaced […]
Standard Life is revising its loan plan on its first anniversary, adding a cancellation deed that the client can sign to bring the loan to an end, creating a lifetime gift for inheritance tax purposes.
Decoding the Fed’s policy-making has become more difficult since it failed to raise interest rates last month. So Artemis’ head of US equities is stock-picking for stability as well as growth.
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