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Regulate buy-to-let to plug protection gap

Buy-to-let should be regulated. That is the view of the majority of mortgage intermediaries and many lenders.

We suspect it is the view of the FSA following an expression of concern about the market by director of high-street firms Sarah Wilson. The failure to regulate leaves a dangerous gap in consumer protection. Many buyers-to-let are not commercial landlords but are using a buy-to-let property as their primary investment, often for retirement as well as for income. Buy-to-let mortgages could be inappropriately sold to these people.

Money Marketing is not exactly a fan of the current regulatory regime but the FSA is the only show in town. If it is accepted that financial regulation is a necessary evil, there is no justification for buy-to-let&#39s continued exclusion.

The simple truth

Savings products will never fly off the shelves, no matter what the Government does. Yet the Secretary of State for Work and Pensions Alistair Darling dreams of simple regulated products sold without advice.

Isn&#39t that what stakeholder was meant to achieve? MM does not understand why stakeholder is not made easier to sell by relaxing the price controls coupled with tax-incentivising employers to get as many employees covered for pensions as possible. There are too many onerous regulations but the Government should be aware that in tearing up the current regime, particularly on the direct side, it risks renewed misselling.

Chancellor Gordon Brown vowed at Labour&#39s party conference in 1999 that there would never be a repeat of pension misselling. In its zeal to close the “savings gap”, Labour must not break this promise.


IFAs may yet survive after the meddlers have gone

I have yet to experience the regulator dealing with me in a straightforward, honest fashion although it lays these requirements down as its expectations of my behaviour.So for a short while I was bemused by CP121. I had believed that the IFA would always be left alone.I have long been convinced that because the IFA […]

GE Life – Income Option Plan

Monday, 13 May 2002 Type: Guaranteed equity bond Aim: Income or growth linked to the performance of the Dow Jones Euro Stoxx 50 index Minimum-maximum investment: £7,000-£1m Term: Three years two months Guarantee: Option 1 &#45 100% of capital returned if the index falls by no more than 20% or the final index level is […]

Zurich chooses new chief exec officer

Zurich Financial Services Group has appointed James Schiro as its new chief executive officer replacing former chairman and chief exec Rolf Hüppi. Chiro will take up the post on May 17 and is currently chief operating officer group finance. He is an American and was previously chief executive officer at PricewaterhouseCoopers. At the same time […]

Western Provident Association – Flexible Health

Monday, May 13, 2002Type: Individual private medical insuranceMinimum-maximum ages: From birth-65Maximum benefit: No maximumCover provided: Standard cover – inpatient, daypatient and outpatientcover for cancer care. Inpatient and daypatient cover for hospitaltreatment, specialists fees, diagnostic scans and tests. Inpatientcover for prostheses. Outpatient cover for consultations with aconsultant/specialist up to £100 a year, MRI and CT scans, […]


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