View more on these topics

Regulator tells brokers to get the basics right before diversifying

The regulator has told mortgage advisers to check their basics before looking at alternative sources of income.

At the Mortgage Business Expo, FSA director of small firms and contact Lesley Titcomb told brokers there was a long way to go before the regulator is completely happy that all mortgage advisers are covering the basics for regulation.

She said: “There is nothing wrong with looking to diversify income but I do not want to see people lose their focus on regulatory responsibilities. We are concerned where firms switch to selling products outside their area of expertise and to selling riskier products.

“In our project looking at the quality of advice processes in intermediaries earlier this year, our findings were disappointing. Over three-quarters of firms we contacted did not have robust processes throughout the areas of their business associated with giving advice. My message is to make sure that you have the basics right before you expand into new areas.”

Telos Solutions project director for mortgage compliance Richard Farr says: “It is ironic that we are here at an event about diversification and the FSA are saying 75 per cent of brokers have not got the basics right. It is a massive message.”


Mark Goodale

The late 1990s were a difficult time for Reliance Mutual in the wake of the pension review but chief executive Mark Goodale says the company is making steady progress again after fundamental change in strategy.

RDR outcome can be a springboard

What now for the RDR? What relevance does it have in the post- banking-crisis, credit-strapped economy we now inhabit? Do the original RDR objectives remain valid to an increasingly sceptical public who could be forgiven for cursing all financial services, not just the banks, with a plague on all your houses attitude? After all, consumers do not generally differentiate between banks, insurers and investment companies.

Securitisation hopes crumble with Granite

This week Northern Rock’s main securitisation master trust Granite had a ‘non-asset trigger’, meaning no more mortgages will go into the trust and Northern Rock will no longer receive money from it until all bondholders are repaid.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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