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Standards improve as brokers embrace mortgage code

The number of broker firms breaching the mortgage code fell dramatically last year, according to the Mortgage Code Compliance Board.

Its annual review identifies significant falls in the percentage of firms breaking standards relating to levels of service. Thirty per cent of firms subject to a compliance check in the final six months of the year were found to be non-compliant in this area, down from 52 per cent during the previous six months.

Breaches relating to the provision of information also fell markedly, with 24 per cent of firms found to be guilty of non-compliance in the last six months, down from 44 per cent in the first six months.

The MCCB attributes the increase in code compliance to brokers formally incorporating its requirements into sales procedures, training and supervision. But it warns it will take further action as there are still unacceptably high numbers of brokers breaching code rules.

Chief executive Luke March says: “We have taken significant steps to improve the service and protection provided for homebuyers over the past year but more measures will be introduced to ensure the standard of mortgage advice in the UK continues to rise. We have a busy year of reform ahead.”

Mortgageforce managing director Rob Clifford says: “There are in the region of 8,000 to 10,000 brokers who have left the market since the inception of the mortgage code. That is a good reflection of its worth but there are still too many sharp operators out there.”


Online bank in Cahoots with bond

Cahoot, the online banking arm of Abbey National, has introduced a guaranteed equity bond that is linked to the FTSE 100 index during a three-year term. The 3-year FTSE guaranteed return bond is available to investors with between £500 and £250,000. If they invest before the investment term starts interest is paid at 6 per […]

Product Matters

CIS has announced its intention to offerits group product range to the IFA market. A tough nut to crack. Any product provider with a long history of direct sales to the public wish- ing to become a player in the IFA market will have a lot of work to do.It will have to convince a […]

Downing & Electra arrive early

Downing Corporate Finance has teamed up with Electra Partners for the introduction of the Electra kingsway venture capital trust (VCT). Product providers usually showcase VCTs at the end of the tax year, but they are having compete earlier this year because there is a lot of uncertainty and less money going into stockmarket investments. Electra […]


Should the Government provide funds to ensure the public have access to independent financial advice, as the LibDems are suggesting?“No. If they have that sort of money to spend, then spend it on hospitals.”John Hughes, Risca Insurance Consultants“Yes. They should for anyone taking a stake-holder pension but apart from that, no.”Martin Evans, Rimmer & May“No, […]

Healthcare regulation amalgamation predicted for Gulf states

While Dubai is leading the way in terms of legislating for expat healthcare in the Gulf, Qatar, Abu Dhabi and others are watching and learning – that’s according to Jelf International’s director of international services, Doug Rice. He believes the pace of change in the Gulf states will continue and that some level of unified healthcare system will be introduced across the region.


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