View more on these topics

State of affairs in loan market

I read with interest your comments at a conference fringe meeting, reported in Money Marketing, to the effect that state intervention is needed to prevent excessive lending and the practice of “selling people mortgages that they clearly could not afford”.

I am sure you will be pleased to know that the state has in fact been intervening on this basis for the last four years. I refer you to:

  • The Financial Services and Markets Act (2000) creating the FSA.
  • The Regulated Activities (Amendment) Order 2003 SI 1475, by which the Treasury gave responsibility for regulated mortgage lending and related activities to the FSA from 2004.
  • FSA rules requiring lenders to take account of a “customer’s ability to repay” (MCOB 11.3.1 R) as well as maintaining a “responsible lending policy” (MCOB 11.3.4 R).

    In addition to these volumes of paper rules, you will be pleased to know that the FSA has a budget of £323m and a staff of 2,740 to enforce this.

    I trust this meets with your approval. Should you have any further queries relating to the conduct of financial regulation, you may wish to refer to the architect of the current regime.

    The address is: G Brown, 10 Downing Street, London SW1A 2AA. I hope this is helpful.

    Jonathan Purle

    Chartered financial planner & technical director,

  • Recommended

    Standard warns advisers on domicile rules

    Advisers with expat clients are often unaware of the estate planning strategies required in the international domain under UK domicile legislation, says Standard Life.

    When is £1m not £1m?

    Neil Jones is technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The residential nil-rate band (RNRB) was first announced in […]


    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