View more on these topics

Nagging doubt over lender transparency

Since the dark uncertain days of November 2004 and the introduction of the new world of regulation, there has been something nagging at the back of my mind about our new world of transparency and treating customers fairly. It has been there a year and this nagging is now reaching spouse-like proportions and will not go away.

Quite rightly, we exist in part of a very regulated food chain. Our customer, the broker, sees what we earn. His customer, the borrower, sees what he earns and yet at the end of the chain is the party that regularly gorges itself at the table the lender. So where is the transparency that the FSA seeks?

Of course, our lender friends exist in a very much more complicated world than the humble broker or secondhand car-selling packager.

They live in a world of necromancy and deep subtlety that we poor souls will never comprehend. HPAFs, ERCs, through lending, whole loan sales and the darkest magic of all securitisation.

Any gentle quizzing as to their stake in all this is usually met with a standard portfolio management blocking answer or some complicated algorithm that sends us scuttling away for cover again.

A chance conversation to this end at the recent
CML dinner while playing the usual game of identify the dinner led to a very interesting offer by one of our securitisation-friendly lenders.

They offered to declare openly their earnings on their next securitisation in our world so that we could all see what a meagre existence they survive on. It was, however, made with the proviso that they wanted their competitors to follow suit.

So, come on then, guys. You are forever telling us how tight margins are (despite the plethora of new lenders that keep appearing to refute that suggestion). Come and play the game of transparency with the rest of the regulated players.

Let us see some of these earnings statistics published in Money Marketing.
Some chance.

Guy Garrard
Director of business development,
em-financial

Recommended

Skandia IM funds available on FundsNetwork

Skandia IM’s asset allocator, global property securities and ethical funds are being put on FundsNetwork. Skandia IM launched its asset allocator range in April this year. The firm says it is keen to capitalise on FundsNetwork’s distribution base. FundsNetwork head David Dalton Brown says: “The Skandia IM funds have been popular with advisers and are […]

Abbey offers switch for Glasgow staff

After a restructure, Abbey is offering members of its Glasgow retail marketing teams roles at its Milton Keynes site on the investment side of the business.

Sesame letter ignites row with Berkeley Berry Birch

Berkeley Berry Birch is threatening legal action against rival network Sesame over a letter it claims is designed to recruit its members. BBB marketing director Carey Shakespeare says the letter represents the latest in a series of campaigns by rivalcompanies trying to poach its advisers. He claims that the letter contains factual inaccuracies and “absurd […]

Tory reshuffle sees Hammond take work and pensions role

The Tories have reshuffled their front bench following David Cameron’s leadership victory, with Philip Hammond taking the work and pensions position and Theresa Villiers joining the Shadow Cabinet. Hammond takes over from Malcolm Rifkind, who quit the Cabinet after not being offered the role of Shadow Foreign Secretary. Hammond was Shadow Chief Secretary to the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com